Email marketing is one of the best ways to convert leads to customers. Measurement of email campaigns is key to evaluating how effective your email strategy is. There are a number of benchmarks to keep in mind for your evaluation but one size doesn’t fit all. Different industries perform differently because of a number of factors such as scope of work and buyer persona behaviour. This blog post will examine some of the b2b email marketing benchmarks to convert leads to customers.
Open Rate: This refers to the number of emails opened vs. the number of emails sent. So if you send out 100 emails and 20 of them are opened, then you have an open rate of 20%. According to MailChimp, the average open rate in the finance industry is about 21.57%.
What usually affects the open rate is the subject line. For a forex company, it is important to keep the subject short and mention "a benefit". For example, ‘Learn to trade fx in 4 weeks’ or ‘Try the new trading tutorial’. There are no rules for the perfect subject line but you can use others as an example. Take a look at how Ally Bank uses its subject lines to increase conversions.
Click Through Rates or CTR: means how many users clicked the links in your email. Using the previous example, Out of the 100 emails sent, if 5 people clicked on a link in the email and landed on your site, then you would have a CTR of 5%. This figure is generous given that the average CTR in the finance industry is about 2.97%.
There are a number of factors that can improve click-through rates, such as the use of images or the use of html vs. plain text. Test different scenarios and pick what works best for your company.
Bounce rate: refers to the number of emails that were not delivered compared to the the number of emails sent. There are two types of bounces in email marketing; Soft bounce and Hard bounce. A soft bounce means the message was delivered to the user but got rejected from the server due to a full inbox. A hard bounce occurs when the mail is not received because the email address on your list is wrong. The average soft bounce and hard bounce rates are 0.81%and 0.66%, respectively.
There really is not much you can do about soft bounces. For hard bounces on the other hand, you should take time to manage your subscriber lists and delete old emails. This will help give more accurate results when measuring email effectiveness.
Unsubscribe rate: is the number of people that unsubscribe from your mail after receiving it. The average unsubscribe rate in the finance industry is 0.24%.
To rectify this you should send email that is relevant to the user at that particular time. For example, if they are new to Forex, send emails that link to tutorials, How-to Guides and beginner content. If you send them emails about futures and binary options from the jump, they may become frustrated and unsubscribe from your list.
Type of message also has its effects on email metrics. If you send a newsletter updating the user on the operations of the company then there might not be a reason to click to your website. But if the email requires the user to fill out contact details or read more information on the website then the CTR should be looked at. The Financial Brand takes a look at some email metrics affected by the type of messaging.
Source: Financial Brand
These are a few of the many metrics out there and they should be selected depending on what you want to measure. This is not a standard and you are not in trouble if you do not meet these benchmarks. They are just useful to keep in mind so you can adjust as need be.
What are other benchmarks do you find useful, let us know in the comments below?