Despite being one of the oldest forms of digital marketing there is, email marketing continues to be among the most effective ways of engaging new consumers, encouraging repeat customers from past purchases, and accelerating brand awareness.
While it may seem to an outsider as though social media has more recently taken the throne, the reality is that 89% of marketers in 2021 still use email as the primary channel for generating leads (Snov.io).
However, generating leads and converting them are two different things, and even the most experienced marketing experts sometimes struggle to improve their email marketing conversion rate.
There are, however, a number of things you can do to make sure you’re seeing the conversions that you want to see, no matter what your end goals are.
For example, you might want consumers to complete a purchase in response to receiving your email newsletter, or maybe you’d rather define a conversion as the moment that you capture a lead.
Either way, there are ways of quantifying, analyzing, and improving your current conversion rates.
What Is a Good Conversion Rate for Email Marketing?
What qualifies as a “good” conversion rate for email marketing is relatively subjective. As mentioned above, what different companies define as a conversion is up to them. However, completed purchases are one of the more popular and easily measured metrics for email marketing, particularly for eCommerce businesses.
In the case of completed purchases, the average conversion rate tends to max out at around 15%. Given that conversion rates above 10% are considered to be a good benchmark for any sort of digital marketing, it’s clear to see why email marketing is still the go-to for businesses of all sizes and in wide-ranging industries.
This has to do with the fact that emails can be well-targeted, in-depth, and easily customized. In other words, they are more likely to be relevant to the audiences they are sent to than, say, a social media post that is all too easy for people to scroll past.
So, if your conversion rate slips under 10%, it might be worth thinking about ways in which you can upgrade your email marketing strategy. This can include :
- Planning your campaigns and flows well in advance
- Introducing automation
- Experimenting with different types of emails
For example, you could try sending abandoned cart emails to customers that leave your website without paying for items in their cart. These sorts of emails could lead to an email marketing conversion rate of up to 20%.
Compare that with the average cold email conversion rate which lingers at around 1%, and you’ll see that something more direct and personal is far more effective.
How to Measure Your Email Marketing Conversion Rate
When it comes to measuring your business’ email marketing conversion rate, you’ll have to make some decisions about what you want to measure and how you want to measure it. This is easier for some businesses than others.
If, say, yours is an eCommerce company, defining your conversion rate is simple enough, with many choosing to go with completed purchases as their metric for eCommerce email conversion rates.
Other businesses may be better served by measuring lead capture, landing page conversions, or response solicitation.
Once you have made a decision on this all-important metric, all you have to do then is figure out what proportion of your email recipients carried out that action. In other words, work out your email marketing conversion rate.
However, there are other ways of measuring the success of your email marketing campaigns and flows. So, consider whether your business might be better served by calculating conversions or measuring the open rates of your emails.
Email Conversion Rate Formula
Once you have all of the metrics that you need, it’s really simple to calculate your conversion rate.
All you have to do is take the total number of conversions, whether they be based on completed purchases, lead capture, or something else, and divide that by the total number of sent emails. Then, multiply the number that you get by 100 to get a percentage.
In the event that you had, for example, 500 conversions based on an email that was sent to 10,000 people, your conversion rate would be 5%, because 500 / 10,000 is 0.05. That as a percentage is 5%.
If you work out your conversion rate and it is as low as that, you’ll know that you need to invest more time and money into your email marketing strategy.
Why You Should Measure Your Email Marketing Conversion Rate
Your email marketing conversion rate is a valuable metric for gauging the success of your email marketing campaigns.
Without knowing what percentage of your target demographic is carrying out the desired actions as a result of your strategy, it will be far harder to improve.
Email marketing has so much potential, giving businesses of all types and sizes the opportunity to reach targeted audiences and encourage them to act.
Make sure your campaigns and flows are working as well as they should by keeping track of your conversions. Do so, and you’ll get an invaluable look into how good your offers are and how accurate your targeting is, among other things.