November 19, 2012

Email Marketing Conversion Rates

Folks like to tout the importance of "engagement", don't they?

The hypothesis offered to us is that if we can get a customer to pay attention to us, the customer will spend more money with us.

Might be true.

Might not be true.

Of course, we have the data available to measure engagement, don't we?

This image shows the average conversion rate for customers who click on email campaigns "x" times per year.  The image illustrates an interesting finding ... those who clicked on an email campaign the most have decreasing conversion rates.

Interesting, huh?  Those who are most engage have lower conversion rates than those who are moderately engaged.

If we multiply the clicks by conversion rates, we find that those who clicked the most actually purchased the most.

So, in one graph, we are able to both prove that engagement matters, and prove that engagement is highly overrated!

Most important, I want for you to start looking at your marketing channels on an annual basis, not on a campaign basis.  You can't learn the information in this chart by analyzing campaign metrics, can you?

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  1. Very interesting...Of course the chart begs that great data mining question: why?

    I don't think we should equate clicks with engagement, at least not in the sense that more clicks = more engagement. What they are clicking on matters. Or maybe more precisely, I'd separate out "high quality" engagement from "low quality" engagement (I can and do measure these kinds of things).

    In your example, I don't know the counts to know if the differences in your histogram bars is significant, but I'll assume it is. For 2-3 clicks annually to have a high conversion rate says these visitors are extremely focused (come in, buy what I want and leave).

    You are very right to point out that no single measure tells the whole story. Great example!

  2. Email marketing is great tool of online business strategy. You should buy email list from trusted one.


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