Here is the final piece of the Email Campaign Strategies series. Hopefully you found it useful, as I have pulled much of the information and put it in one spot for you.
Making sense of open rates, click rates, and email stats
Executive Summary:
First, I want to set expectations as a foundation so you can understand the numbers, just like offline direct mail, email has a low return. The typical conversion range for email campaigns (once opened / the offer is clicked) is 1% to 2% on the low side typically and 20% to 30% on the high side. An opt-out rate higher than .1% drives up the cost of lead generation and is an indicator that the messaging needs to be changed. Emails that are timely, attractive, and compelling with a great mix of informative content and promotional offers will see great results.
Those who are new to email marketing are fascinated by all the tracking they get with their email campaigns. Unlike print or traditional direct marketing, you can actually track how many people opened your email campaigns, and see exactly what they clicked.
Watching your campaign stats is great fun (ok, so I’m a nerd), but it’s all useless if you don’t understand how they work, and what you should be doing with them. So let’s go over the basics of email campaign reporting.
How We Track Clicks
Here’s a little technical information for you. Let’s say you place a link in your campaign that points to your website, and you want to track how many times it was clicked. Any email marketing service will save your link in its database, and replace it with their own “redirect link.” The redirect link basically routes people to their server first (where they track the click) and then quickly sends them to your original intended destination. The redirect happens instantaneously, so the entire experience is seamless and invisible to your subscribers.
Click Tracking Can Raise Red Flags
Some email programs (like Mozilla Thunderbird) will display warnings when they see tracked links in your email. They do this because many scammers send emails designed to look like they came from a trusted source (like your local bank) but when you click their link inside, they “redirect” you to a website designed to steal your password. Because of these “phishing” scams, some email programs don’t like any redirect scripts. In general, they are not a problem so long as you avoid creating links where the description is the URL.
Coding links like this will NOT set off alarms:
Please visit <a href=”http://www.our-website.com”> our website </a>
In this example, whenever we add redirect tracking links, there is no mismatch between the actual URL of the link, and the description.
In your HTML email, you don’t have to worry about the URL being changed, because your recipients will only see the “Visit my website” part of the link, while the redirect code stays behind the scenes. But in your plain-text alternative emails, there’s no way to hide the URL behind the code. It’s out in the open for all your subscribers to see.
Tracked Links Are Ugly In Plain-Text Emails
When you track a link in an HTML email, nobody sees the redirect link behind the scenes. They just see, “click here.”
But in your plain-text alternative email, you can’t hide your link code. You can’t make text like “Visit our website” clickable like you can in HTML email. For example, when you want to point people to your website from a plain-text email, it’ll have to look like:
To go to our website, visit this URL in your browser: http://www.mywebsite.com
If you were to activate click tracking in plain-text email, it would look like this:
To go to our website, visit this URL in your browser: http://www.mcsv.net/cgi-bin/redir?id=xyz345
Some of your recipients would be suspicious about that “mcsv.net” redirect URL, so they won’t click. It’s for this reason that a lot of our users choose not to track clicks in their plain-text emails.
How Email Open Tracking Works
The email company places a tiny, invisible graphic at the bottom of your HTML email (people in the email marketing industry sometimes refer to these as “web beacons”). Each time your HTML email is displayed in a recipient’s inbox, that unique graphic for your campaign gets downloaded from the email company’s server, which we track as an “open.”
Web beacons only work in the HTML version of your email. That’s because you obviously can’t place any graphics into plain-text messages. If you track a click from plain-text, we also register that as an “open”).
Web Beacons Won’t Work Unless Images Are Turned On
A lot of email applications block images from being automatically displayed in HTML email. When an HTML email is initially loaded, you’ll see placeholders where all the images should be. Users have to click a button, or right-click to turn images on. This is a privacy measure that’s becoming standard in most email programs. They do this because some spammers could theoretically use web beacons for “evil” by tracking whether or not your email account was alive (and then send you more spam). With these privacy measures in place, it gets extremely difficult for email marketers to accurately measure their open rates. Unfortunately, you will just have to take your open stats with a grain of salt.
Typical Email Campaign Stats, and What They Mean
Let’s go over some typical email campaign stats, and how to use them.
Total Recipients
This one’s pretty obvious. It’s basically the size of the list of recipients you tried to send the campaign to. Not all deliveries will be successful, though…
Successful Deliveries
Some emails bounce back, or get blocked by email firewalls and spam filters. The “successful deliveries” is a quick number showing you how many of your emails actually got through to your recipients.
Bounces
When you send a campaign, you get bouncebacks. In general, you can expect about 10% of your recipients to bounce back your message. Anything more than 10% total bounces, and you’ve probably got an old or dirty list. There are two types of bounces you should know about. A “Hard bounce” basically means you sent your campaign to a bad, “undeliverable” email address. Maybe the person closed down their account, or got fired. Whatever the case, you shouldn’t send anymore emails to that address, or the recipient’s email server will start blocking you. We instantly remove hard bounced emails from your list for you. The other bounce type is a “soft” bounce. In general, a soft bounce just means the recipient’s email account was “temporarily unavailable.”
We should keep a close eye on bouncebacks, because in general, they’re an indication of the overall “health” of your lists.
Total times email was opened
This is a stat with lots of “wow” factor, but don’t let it get to your head. Your email might have been opened 10,000 times, and that sounds really cool. But what if it was just one guy (a guy with way too much time on his hands) who opened your email 10,000 times? That’s pretty extreme, but you get the gist. It’s not a totally useless stat. For example, if you sell banner advertisements in your email campaigns, then an open is an impression, and you want to show total impressions (even if one of your recipients is a whacko).
Recipients Who Opened
This is a more accurate stat. It tells you how many individuals opened your campaign. So if two (very sad, very lonely) people opened your campaigns 500 times each, that would be 1,000 total opens. This stat would show, “2 recipients opened” which is a lot more useful to email marketers.
Average Times Email Was Opened
This stat just gives you a general idea of how many times each recipient opened your campaign. Literally, it’s your total opens divided by recipients who opened. 1.5 or 2 is pretty average. Anything more than that, and your email newsletter must be pretty interesting!
Total clicks
This is the total number of clicks your email got. It’s handy in determining how much overall web traffic you’ll get to your website after a campaign is sent. For instance, it might be nice to know that “after every email marketing campaign I send, our website gets about 600,000 visits.”
Recipients who clicked
This number tells you how many people clicked on some link in your campaign. Let’s say you sent your campaign to 5 people. 4 of them click a link in your campaign once. But one of the recipients is our weirdo from the examples above, and he clicks your link 500 times. This “recipients who clicked” stat will show you that “5 people clicked something.” Your “Total clicks” stat, on the other hand, will show “504 total clicks.”
Clicks by URL
This is one of our favorite stats. It tells you exactly which URLs in your email were clicked, and how many times. Use this stat to learn what kind of content your subscribers prefer. For instance, do they respond better to whitepapers and research articles, or special offers and promotions?
Unique Clicks
This stat counts how many times your recipients clicked on links inside your email campaign, minus any duplicate clicks. So if some weirdo clicked on 2 different links 500 times each, we tell you that you had 2 unique clicks.
Forwarded email
Maybe your recipients forwarded your campaign to 1,000 friends. This stat will not tell you how many times those friends opened your campaign but does give that person the option to be added to your list. It’s a nice measure of how “viral” your campaign is.
Total unsubscribes
If any email campaign stat is capable of bringing a tear to your eye, this is the one. We’ve seen average unsubscribe rates of less than half of one percent. Anything above that means you did something to make a lot of people very angry at you.
Total abuse complaints
You know when you get a piece of junk email, you click that button in your email program that says, “This is junk” or “Report Spam”? Every time you do that, a report and copy of that email is sent to your ISP. Your ISP then sends a little warning to the sender that says, “too many more complaints, and we’ll block all future emails from you.
It’s normal for about 0.04% of your list to report your campaign as spam (yes, even if they know you, and even if they gave you permission to email them!). If you get anything above 0.1%, major ISPs like AOL will start blocking future emails from you.