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Why is the Open Rate Crucial for Effective Email Marketing Campaigns?

Why is the Open Rate Crucial for Effective Email Marketing Campaigns?

Email marketing still has plenty to offer despite being around for quite some time and taken for granted by everyone, including marketers. This doesn’t seem right as email marketing is still generating business, and consumers prefer receiving promotional emails regularly.

Email marketing performance is measured by its open rate. The open rate indicates if the email recipients opened the email. The open rate indicates the level of engagement of the recipient and whether the content of the email was relevant to them or not.

What’s a Good Open Rate for Emails?

The industry open rate average is between 15% -20%. In 2020, the open rate was pegged at 21.3% across all sectors. If one achieves an average email open rate of between 20% to 40%, it means they are doing well.  A low available rate indicates that the recipient is the wrong audience, or perhaps the email content was not what the recipient was looking for, leading to low engagement.

How to Improve the Open Rate for Emails?

The simplest way to improve one’s email marketing campaign is to improve the previous performance. Instead of competing with others, the best idea is to compete with oneself. The target, however, would be to remain above the industry open rate average and keep improving.

Difference Between Open Rate and Click-through Rate

The number of people who open emails is the open rate, and in case they also click on the link provided in the body of the email, then it is referred to as click-through rate (CTR). The click to open rate (CTOR) is a performance metric that measures how many recipients clicked on the link after opening the email.

The CTOR, however, does not consider all the emails which were delivered. It only takes the email opened and clicked for calculation.  Let us have a look at a simple example to understand the concept of CTOR.

A website owner sends emails to 1000 people, out of which 500 open the email. In this scenario, the email open rate is 50%. Of these 500 people who opened the email, 100 click the link to the website. The CTOR will be calculated as 20%.

Factors Affecting Open Rate

The industry in which one is operating plays’ crucial role in determining the performance of email open rate. There is another hygiene factor that an email marketer must observe: taking care of having the right sender’s name, a trustworthy subject line. People reject emails and trash them if the mail appearance looks like spam. The most crucial factor is the target audience. Thus, one should avoid mass mailing and focus more on a select group of interested customers.

For a marketer, it is important to analyze the past results of the email marketing campaign and compare them with the industry benchmark. This will allow them to make necessary changes in their strategy.  It is also essential to check whether the email list is fatigued and how one can reoptimize their email marketing strategy for better email open rates.

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