Here at AudiencePoint, February has flown by! With so much going on, we want to update you on...
You should use email marketing to get the most out of your digital marketing efforts. Email marketing builds a connection with subscribers, leading to higher brand awareness, customer loyalty, and increased revenue. This article will outline the success rates of email marketing and detail important email engagement metrics you should be tracking and optimizing to get the most out of your email campaigns.
How Successful Is Email Marketing?
Email is an excellent way to reach consumers in any industry. Research has shown that 92% of internet users have an active email account. This means a high percentage of people are active email users, which makes it a powerful tool for businesses to reach their target audiences.
What Percentage of Sales Come from Email Marketing?
It’s usually recommended that 25-35% of sales should come from email marketing. This is a large chunk of a company’s overall revenue, which shows how successful email marketing can be and the importance of optimizing email marketing strategies.
What Is the Average ROI on Email Marketing?
The average return on investment (ROI) for email marketing is about $36 for every $1 spent. This is a significant number and shows why email marketing is successful. It’s cost-effective to create an email campaign that generates high levels of sales. When optimized correctly, you can get a higher ROI on emails, with top businesses earning up to $70 per $1 spent.
What Is the Average ROI for Digital Marketing?
The average ROI for digital marketing is about $5 for every $1 spent. The digital marketing ROI is a combination of different types of digital marketing, such as:
- Content marketing
- Social media marketing
- Paid advertisements
- Email marketing
- Influencer marketing
As you can see, since email marketing has a significant ROI compared to digital marketing efforts as a whole, it’s no wonder email marketing should be a large portion of a company’s total sales. Optimizing your email marketing campaigns should be a priority and will significantly boost the ROI of your digital marketing efforts.
Average Email Marketing Conversion Rate
A conversion in email marketing is when someone takes an intended action, such as making a purchase, signing up for a subscription, or installing an app. The average email conversion rate is around 1.5%. However, conversion rates can vary by industry. For most industries, a good conversion rate is anything above the average of 1.5%.
How Do You Calculate Conversion Rate in Marketing?
The conversion rate in marketing is calculated by finding the percentage of conversions out of total trackable consumer interactions with an advertisement. The conversion rate formula is: number of conversions ÷ number of interactions = conversion rate. For example, if your marketing campaign led to 2,000 interactions with consumers and 100 conversions, your conversion rate would be 5% (100 ÷ 2,000 = 0.05).
For email marketing, the conversion rate is calculated by taking the percentage of conversions from the total number of emails sent. The email marketing conversion rate formula is: number of conversions ÷ number of emails sent = conversion rate.
How the Average Email Conversion Rate Leads to Profit
While 1.5% may seem like a low conversion rate, it can still lead to high levels of profit from email marketing. For instance, say you have 5,000 email subscribers, and you spend $100 to design and write an email that is sent out to all 5,000 subscribers. With a conversion rate of 1.5%, that would result in 75 sales (5,000 x 0.015 = 75).
Now, let’s say you make $50 in profit for each product sale. This means that one sales promotion email would result in $3,750 in sales revenue (75 sales x $50 profit = 3,750). Considering it cost you $100 to create the email, your total net profit would be $3,650, and the ROI for this email campaign would be $36.50 per $1 spent ($3,650 net profit ÷ $100 investment = $36.50).
These numbers show exactly how email marketing is successful and leads to a high ROI. If you optimize further by using strategies to grow your email list and increase important metrics like conversion rate, click rate, and open rate, you can increase ROI on email marketing significantly.
What Is a Good Email Open Rate?
The average email open rate is 21.33%. A good email open rate is anything above the average of 21.33%. However, open rates vary by industry, so it is important to pay attention to your industry’s specific benchmarks to determine appropriate goals for open rates in your marketing campaigns.
Average B2B Open Rate 2022
B2B (business-to-business) is an example of an industry that gets lower than the average email open rates. B2B emails typically get an open rate of about 20.8% in 2022. If your company sells B2B products or services, an open rate of 20.8% or better is a good metric to try to achieve.
Effects of Low Email Open Rate
Low open rates and engagement can affect the success of marketing emails significantly. If email subscribers aren’t opening your emails, they can’t engage with your content or create conversions. This makes it essential to keep subscribers engaged with your email content and create subject lines that grab attention.
Low open rates and low engagement on emails can also lead to them being flagged as spam or bounced. If receiving domains stop accepting your emails, it’s hard to recover open rates, since subscribers won’t be receiving your emails in the first place. AudiencePoint’s ListFit helps with this by identifying which subscribers are more likely to engage, so you aren’t sending emails to abandoned inboxes or uninterested subscribers.
Effects of Apple MPP on the Open Rate Metric
However, AudiencePoint is aware of this. Our email insight software can recognize and isolate Apple MPP opens to give you accurate and relevant metrics.
What Is a Good Email Click Rate?
Email click rate is the percentage of email subscribers who click a link in an email. A good email click rate is generally between 2-5%, so aiming for a number in this range is a good benchmark. However, click rate benchmarks can differ by industry, so a good click rate can vary.
Improve Your Email Marketing Success with AudiencePoint
AudiencePoint can help you improve the success of your email marketing efforts. Our email insight software provides you with accurate metrics, helps you optimize send times, analyzes your email list, and provides actionable data about how you can improve your email campaigns. Contact us today to learn more about how AudiencePoint can help with your email marketing strategy.