Is email marketing dead? Will it bring value to businesses in the coming years? Should you invest in email marketing campaigns? To get answers to all these questions, it’s important to understand the email marketing importance and its success rate and ROI it provides to businesses. This blog covers the important stats on email marketing and must-follow tips to consider to get the most out of your marketing campaigns.
Table of content:
- Success Rate of email marketing
- ROI of email marketing
- How often should you do email marketing?
- Email marketing tips
- Major Factors that Affect Email Marketing Conversion Rates
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Think you’re a health-conscious person. And, as a marketing manager of a particular restaurant, I have started sending emails for 20% off on burgers. And, that too on a daily basis. Would you think this is the right practice? Obviously not! The reason is that you’re not the right person to whom I should send such promotional deals.
Let’s now consider another example. Think you’re a career-oriented student and completed your graduation this year. Now, you’re looking to pursue a career-oriented short-term course but confused about which course should you go for. I’ve started emailing you regarding taking admissions in the Big Data Analytics course with 50% off.
Would you think this is right? No, this isn’t. Because again you’re not the right person for these emails. Rather, I should segment my subscribers’ list into new subscribers and old subscribers. And, then personalize the emails according to the buyer’s journey stage you’re in. Further, I should shoot emails.
The idea behind the success of email marketing is to make sure that the emails you’re sending provide value to your subscribers and meet their interests. If this is so, your email marketing campaign will definitely increase your business conversions.
Success Rate Of Email Marketing
The success rate of email marketing depends on how many conversions are there on an average in a particular industry. The more are the conversions, the higher the success rate will be.
According to a survey done by MailChimp, the average email open rate and average click-through rates are 21.33% and 2.62% respectively across all industries whereas the average bounce rate is 0.98% (hard bounce rate 0.40 % + soft bounce 0.58%) and the average unsubscribe rate is 0.26%.
If you don’t know about what is the open rate, CTR, bounce rate, and unsubscribe rate, let me clear this concept as well 🙂
- Open Rate: Open rate shows what percentage of your audience opens the emails you send them. The higher open rate signifies that your email subject line resonates with your audience.
- CTR or Click-Through Rate: The CTR shows the percentage of how many successfully delivered emails got at least 1 click. The higher click-through rate signifies that your audience finds your emails relevant enough to click through and check their email for more.
- Bounce Rate: The bounce rate shows the percentage of email addresses in your subscriber list that didn’t receive your message and your email was bounced back to you by a recipient mail server.
- Unsubscribe Rate: The unsubscribe rate shows the percentage of subscribers who opt-out from your email subscribers list.
As is clear from this result, that the open rates and CTR are slightly higher than the bounce rate and unsubscribe rate, which means you have a decent chance of engaging your audience with your brand through email marketing.
ROI Of Email Marketing
According to the email marketing statistics report presented by Hubspot—
“Email generates $38 for every $1 spent, which is an astounding 3,800% ROI, making it one of the most effective options available and the marketers who use segmented campaigns note as much as a 760% increase in revenue.”
Surprising! Isn’t it?
I hope these stats will give you the answer if email marketing is still worthwhile or not.
The key point to remember is to achieve higher email marketing returns is to ensure you’re well aware of email marketing metrics and how to measure them. Not all the metrics may worth your campaign. Hence, make sure you’ve set proper metrics to measure your return and KPIs.
How Often Should You Do Email Marketing?
The most common but important question asked by most marketers is “how often should you send emails to your clients?” And, truly speaking, there is no straightforward answer to this.
Rather, I would say that it depends on your business and marketing objectives. But, here are some points that you need to consider before making your email marketing plan:
- Informing consumers with exciting and useful information is great. But don’t overwhelm them with information overload. Keep it short.
- Send no more than one email per week if you’re just starting out with email.
- Generally speaking, customers are expecting offers and deals from consumer brands. Therefore, B2C brands should blast emails to their subscribers more than once a week.
- B2B companies are bound by their time-schedule. Hence, can’t entertain any sales offer every single day. However, you can engage them with your brand by sending at least one email in a month.
- If you’re a blogger, start with a daily roundup with an option to choose for a weekly roundup by your audience.
Again, I would like to point out that there is no magic number for an ideal email frequency. Set your marketing goals and experiment. Once you find which email frequency works best, try to be consistent with that.
5 Must-Follow Email Marketing Tips
A low open rate might be due to many reasons. For example, maybe, your subject line is not relevant or interesting enough or you are annoying your subscribers by sending too many emails or anything else. Whatever the reason is, you have to improve your email marketing strategy.
Actually, the fact is, there is no single idea that works for all types of campaigns and for all industries. Instead, you should experiment with your emails from time to time to figure out what’s working and what’s not.
Here, we’re sharing a few tips that will help you improve your email marketing strategy and increase your business conversions. Let’s take a look at:
- As said earlier, try different variations of the subject line. This should be effective and clearly describes what’s inside your campaign.
- Try not to use more than 9 words and 60 characters in your subject line. Keep it simple and short but descriptive.
- Don’t be over smart by using too many punctuation marks or special characters in your email subject just to impress your subscribers. It may make your email spam.
- Segment your subscribers and send them emails accordingly.
- Make sure your call-to-action link text is descriptive and concise.
- Don’t forget to provide your subscribers with an opt-out option at the end.
Major Factors that Affect Email Marketing Conversion Rates
Whether the conversion rate of your email marketing is high or low, it depends on various factors. In order to craft the best email marketing strategy, it is advisable that you are well aware of them. Here are some major factors that may affect the conversion rates of your email marketing campaign:
- Email Responsiveness: If your emails are not responsive enough, your audience will have a bad experience which lowers down your engagement and conversion rate.
- Subscribers Segmentation: Not all customers’ interests are the same. Hence, segment your customers properly as per your business need and then shoot the personalized emails to them.
- Personalization: Personalized emails tend to have a higher open rate and CTR than a general email because personalized emails contain content that triggers the interest level of your target audience.
- Email Subject Line: The email subject line should be interesting enough to encourage readers to open your email to read.
- Email List Health: In order to reduce your email bounce rate, it is advisable to make your email list healthier. A healthy email list consists of valid email addresses.
- Landing Pages: Make sure your landing page provides a great user-experience to your site visitors. You shouldn’t ask for too much information from your customers to signup or make a deal. Otherwise, they’ll get frustrated.
- Call-to-action Buttons: Your Call-to-action button must be descriptive enough to understand the context of visiting the particular link. For example, a “Download Now” button describes that this button is created for downloading the content rather than just using a general “Click here” button.
Thus, after going through the above statistics, we can say that Yes…email marketing will be worthwhile in the year 2021 as well as in the coming years. With a well-planned email marketing strategy and by following the best practices, you’ll rock in your industry.
So, what do you think? Does it bring worthwhile value to your business as well? Don’t forget to share your opinions with us. We’d love to hear from you.
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