Question

Topic: E-Marketing

Open-ctr-conversion Rates

Posted by Anonymous on 1/28/2010 at 7:17 PM ET 25 Points
eMail open - CTR - Conversion Rates
I am putting together the metrics for an email campaign that will have two methodologies and two different messages, each segmented. The current industry stats show a reasonable open rate of 10-20%, an average CTR of around 6-8%, and a conversation rate of 1 - 5%. The 25K sample DB demographics are focused although the validity of the DB analysis is a bit questionable. I am setting the expectations for the campaign based upon these stats... The approach, as would be expected is: phase one - setting the expectations, phase two - midpoint measurement, and phase three - final result and message/methodology analysis.

Are the Open, CTR, and Conversion stats listed above within the ballpark of what you are seeing out there?

Thanks

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RESPONSES

  • Posted by Inbox_Interactive on 1/28/2010 at 8:13 PM Accepted
    The answer is, "It depends."

    There are a number of factors that go into your open rate. Is the message even being received? Do most of your recipients have images disabled? Do they recognize the sender? Is the subject compelling? Is this list one where they might be expecting to get the email? Do they even want it? Is this a B2C list or a B2B list? What is its origin? And so on...

    Having said that, I think your open rates are in line. If I had to guess, I'd say they will come in closer to 10% than 20%, but I could be wrong.

    The clicks and the conversions, however...I think your numbers are way off, but again your response will vary based on many, many factors: list, offer, creative, etc.

    Assuming you get 20% opens, you'll need 30-40% of those openers to get the 6-8% CTR that you're hoping for. On average, I think that's high.

    And assuming you get that, you'll need between 12.5% and as much as 80+% of your clicks to convert to hit a 1-5% conversion rate. I don't know what your offer is, but I can almost guarantee you that you won't convert 80% of your clicks to conversions.

    I'd scale down the CTR and the conversion rate to set reasonable expectations, but again, please keep in mind that we have *no* idea about your list, offer, or creative.
  • Posted by thecynicalmarketer on 1/28/2010 at 8:24 PM Accepted
    Based on both my personal experience (high tech, global) and on industry data, you are on target on all three, but possibly a little on the low side of the ranges.

    A great source for this type of data is MarketingSherpa.
    Their eMail Marketing Bencmarks: https://www.sherpastore.com/EmailMKTReport2010.html
    A great article: "Summit Wrap-Up Report: 7 Takeaways to Improve your Email Marketing in 2010: https://www.marketingsherpa.com/article.php?ident=31519

    Best of Luck, JohnnyB.
    if you like the advice, read the blog, [URL removed by staff]

  • Posted by Gary Bloomer on 1/28/2010 at 10:10 PM Accepted
    Dear ronz,

    Yes. But, open and CTR rates will also depend on other factors:

    Message.
    Copy cognition.
    Significance.
    Offer.
    Deadline.
    Call to action.
    Value.
    Guarantee.
    Social proof.
    Fear.
    Risk reversal.
    Price immunity.
    Price resistance.
    Perception.
    Vision.
    Outcome.
    Follow up.
    Relational connection.

    My highest open rate on a e-mail campaign in recent months was 150 percent with a 12.5 percent CTR. I'm still looking into what it was out of the list above the drove the open rate.

    Gary Bloomer
    Wilmington, DE, USA
    Like my approach? [URL removed by staff]
  • Posted by Inbox_Interactive on 1/29/2010 at 8:26 AM Member
    Have the forum rules changed? I was under the impression that signature-type links were not permitted.

    I would appreciate clarification from a moderator.

    Thank you.

    Paul
  • Posted on 1/29/2010 at 12:28 PM Author
    Gentlemen,

    I appreciate your responses and observations. A bit more detail is in order...

    The client has not used a email based ad in the past for this B2C product offering. Therefore this campaign is a test for efficacy of method and message into two different databases. One, a smaller one, is to past purchasers, with the second larger db those that have visited the site in the past in response to online and printed advertisments. Both DBs are divided in half with an 'Edgy' tone message to one segment and a 'soft' tone message to the other. The methodologies are different for each DB grouping.. One beginning with email followed by direct mail piece for Opens. The second group is direct mail followed by email. There are several other parts of the method construct, but I won't bore you with them here.

    Creatively, the messages are well presented and the special offer is a good one with an attractive call to action.... at least I think so.

    A caveat or two -- There are several factors in this sample that will skew the resultant data to the right, but at least it is a starting point.

    The end result will be the use of the most effective message/method into a much larger list that will not have the level of demographic focus contained in the databases being used in this test. Although I have recommended a demographics questionaire on or linked from the landing page, the client is unwilling at this time.

    I am using the far left side of the ranges to set my expectations.

    I will let you know the results when they are in..

    Ron
  • Posted by Gary Bloomer on 1/29/2010 at 4:41 PM Member
    Dear Paul (and indeed, Dear All),

    My apologies. It won't happen again.

    Gary Bloomer
    Wilmington, DE, USA
  • Posted by Inbox_Interactive on 1/29/2010 at 4:51 PM Member
    No worries, Gary.

    I was asking only because if such links were permitted, I would add one to my own signature file as well. Frankly, I'm not sure what's so bad about making your contact information a little easier to get, but them's the rules.

    I know that your contributions are more about being helpful than they are about being self-promotional.
  • Posted by matthewmnex on 1/31/2010 at 7:44 PM Member
    I saw that this port was closed already :( its a shame to close so fast before we have a chacne to contribute :(.

    Anyway, I just wanted to add that your sample group of 25K is really really realy tiny so it wioll be very diffilcult to get a proper read on the metrics.

    Last year I successfully delivered 250 M emails and I use A/B testing frequeently to decide on opening tag lines, creatives messages etc.

    From a 1M send I will probably select at least 100k each for the tst and shoot the balance 800k on the winner but even this level is not always enough to have a soloid read because if IU do the same test a week later - I might get the opposite results.

    Other factors that affect not mentioned above can be:

    The weather (is everyone at the neach)
    THe latest news - (if there is a hot news item, everyone is reading or watching the news not opening emails)
    The position of the moon :))
    In other words, nobody really knows :))

    What I can tell you is that OPENING rate should be your focus over and abovce CTR and conversion.

    Why?

    250K targets
    opening rate = 8% = 20,000
    CTR 10% = 2,000

    If you increase CTR to 15% then you get 3,000

    But if you increase opening to 12% then youi get 30,000 opens and at CTR of 10% you get 3,000 visitors on your landing page.

    Therefore, THE MOST IMPORTANT METRIC TO IMPROVE IS OPENING RATE ALWAYS.

    It is simple math :)

    how do you get a better opening rate?

    Deliverability -
    (clean well opted in lists - a clean IP reputation, white lists iof you can get them, sender ID, feedback loops enabled, SPF records correctly published, reverse DNS lookup functioning correctly - DEDICATED IP address only for your emails, never use a shared IP

    Strong personlaised subject line with a clear relevant message and call to action

    Great looking graphics and professionally design email (don't forget that most email clients now have viewing panes so a user can autonatically see the email without actually clicking anything ).

    Feel free to get in touch if you would like more advise about successful email campaigns.

    Good luck,

    Matthew
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