Conversion rate is very important metric in email marketing profession, it tells the rate of effectiveness and percentage of return on investment of a email campaign. But many people don’t know how to use it to enhance the effectiveness of email campaign.
What can be learn by it ?
It tells the success rate of a campaign at which the recipients actually did what you wanted them to do, it tells how much monetary value the newsletter subscribers have. Once you know how much your subscribers are worth, you also know how much you can spend to obtain more.
Open and click rates can be monitored by most of the email software applications. Learning about how many clicks and open your email campaign produced is “good to have” but learning your conversion rate is “must have”. Because it is the most important tracking rate for an email campaign and it can only be identified by monitoring the visitors action on your website.
Email are not sent out to have fun, they are sent with the purpose of getting the people to execute a specific action or set of activities. These preferred activities lead toward what is generally known as an conversion or goal. For example it might include: buying, subscribing, getting in touch with a sales rep for a quotation, downloading content etc.
Calculating it is a pretty simple than other email metrics:
Number of Goal Achievements / Number of Visits
What can be considered as a good conversion rate
Most professionals consent that 1 % to 5 % is a realistic conversion rate, but figures can be deceiving sometimes. If you want to know how the conversion rate can results in return on investment then you should see the whole result. For example, if you have two offers in different campaigns, with one conversion rate at 3 % and the other at 1.5 %, you might believe that the 3 % conversion rate is the better entertainer.
But if you then look at the average purchase value for the offers, you may see that the one with conversion rate of 3 % is only $100, while the one having conversion rate of 1.5 % is $400. Now the 1.5 % conversion has the greater ROI, and in the end ROI is really the best metric of achievements of an campaign.
Of course, it’s more complicated to assess ROI of free details. These campaigns are usually used to getting more attention, but you can still observe whether there was improved user attention in the product or campaign in the weeks instantly following it.
When compared to the your own data, conversion rates are as much valuable as open rates.When a particular offer gets failed to give expected results, either leave it or analyze it to see if you can enhance conversions.
The most essential measurement is not the overall figures, but rather how those figures turn into achievements and profit for your business. It just help in evaluating the ROI of your business.