With social media, SEO, and content marketing dominating companies’ attention and budget, you may wonder: Is email marketing still relevant?
Here’s the short answer: Yes. Email continues to deliver a strong return on investment — on average, you can expect to see $40 for every $1 you spend.1
The first step to unlocking the power of email marketing? Understanding your email open rate. Read on to learn more about this essential metric and key tactics that may help improve yours.
Email marketing open rate refers to the percentage of marketing emails opened by recipients.
You’ll frequently hear marketers obsess over open rates because they provide insights into the effectiveness of a company’s email marketing efforts. A high open rate indicates that recipients find the emails relevant, increasing the chances that they complete a desired action — whether that’s making a purchase, signing up for a loyalty program, or leaving a glowing review.
The formula to calculate an email open rate is:
To break it down:
Say you sent out 1,000 emails, and 300 recipients opened the email. Using the formula, your open rate would be 30%.
While the average open rate for email marketing can depend on factors such as your industry and your target audience, studies have found that the average open rate for email marketing is between 21.5%2 and 38.49%.3
Industry benchmarks offer a glimpse into how your email campaigns compare to those of your competitors.
Below are a few examples of average email open rates by industry – compiled in a study that analyzed over one-million marketing emails.3
Research your industry to identify a standard open rate to use as a benchmark in your marketing strategy.
If your email open rate is lower than the industry average, don’t panic. Use these tips to help improve your email performance. Over time, you may notice an uptick in your email open rate.
Segmenting your audience lets you create and send emails catering to the specific interests and needs of your different target audiences.
Some popular ways to segment your email list include:
Building a quality audience list of subscribers genuinely interested in your products, services, or content means a greater likelihood that they will open your emails. One way to achieve this is to regularly remove invalid or inactive email addresses from your mailing list. This helps reduce bounce rates, which can negatively impact your sender reputation and email deliverability.
Another best practice is to invite clients and followers to opt into a regular newsletter. Just be sure to follow regulations for acquiring opt-in consent.
Once you build your list, creating valuable email content that educates, entertains, or inspires is the heart of any successful email marketing strategy.
Engaging content can take various forms, such as informative articles, personalized product recommendations, exclusive email-only deals, or interactive elements like quizzes or surveys.
By consistently delivering quality content, you establish trust, credibility, and loyalty that encourages recipients to open future emails as well.
Discover more tips on content and email marketing here.
Try sending emails when recipients are most likely to check their inboxes actively. For example, emails received during working hours when people check their emails can result in higher open rates compared to weekends when they’re out and about.
As the first thing that email recipients see, your subject line is crucial for achieving a better open rate.
Use these tips to optimize your subject lines:
The spam (or junk) folder is where email providers store unsolicited, irrelevant, or potentially harmful emails (e.g., phishing attempts or scams) to protect their users.
Avoiding spam filters ensures that your legitimate marketing emails reach recipients' inboxes. Meanwhile, high spam complaints can harm your sender reputation, leading to lower open rates of future email campaigns.
Use these tips to improve deliverability and reduce the chances of your emails being flagged as spam:
Leveling up your email marketing is a solid first step to a more effective marketing strategy. Next up? Leveraging social media marketing – use this guide to get started.
In partnership with three expert business owners, the PayPal Bootcamp includes practical checklists and a short video loaded with tips to help take your business to the next level.
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