Let’s go back to 2005 for a while.
You have a desktop computer and your email address is a little geeky. It reads something like [email protected] or [email protected] and gives your friends a clue about your personality.
Fast forward to today, and you work with emails on a regular basis, sending out emails to your customers about products they might love or announcements that might interest them. Chances are, you’re in the middle of an email campaign right now.
At this moment, you might even be reviewing your email marketing performance metrics from last week, thinking about your present campaign performance, or wondering what’s next for email marketing this year.
99% of customers check their email at least once daily, and 58% of them do so first thing in the morning.
Email campaigns have become a powerful marketing tool that can influence a buyer’s decision. Why? Because the right email keeps your customers informed.
The emails today are optimized for mobile and personalized for each customer. They are sent to consumers who want to receive them — otherwise, they run the risk of getting marked as ‘spam’.
At MoEngage, we’ve commissioned a report to help understand email behavior and benchmark it. This report covers email marketing benchmarks across industries such as retail shopping, BFSI, media and entertainment, and lifestyle services.
For this report, we’ve studied 5.3 billion emails sent across 200 days. Email marketing metrics analyzed include click through rates, average open rate, converson rate, and more. These email marketing benchmarks will help you understand what impacts customer behavior the most, between email personalization, segmentation, or journey-based campaigning.
But before we move on to the details, let’s understand the different types of emails and what makes a marketing email campaign effective.
Broadcast emails are those that are sent to a large group of customers at once.
These can be leveraged to quickly reach a large audience, but they might create more harm than do good. Often, broadcast emails are too generic to be of any value to the customer. This is the reason why broadcast emails see low numbers aross most metrics.
B2B marketers need to start leveraging better techniques to send email, whether they are segmented, personalized, or interactive emails.
Customers don’t convert right away unless you’re lucky! They go through a step-by-step journey, taking one action at a time. Your responsibility as B2B marketers or B2C marketers is to ensure you add a delightful experience for your customers across the journey.
Take this example: send warm welcome emails when customers sign up, and when they are thinking of a purchase, send across some promotional or discount message. Each email is tailored to the stage of the journey the customer is in.
MoEngage is a marketing automation platform that lets you create flexible, multi-step customer journeys across various channels.
You can schedule automated emails at different times based on where the customer is in their lifecycle. You can make the content and subject line of the email relevant to each of the email recipients using customer journey mapping.
The most significant advantage of using Flows for scheduling your emails is that these are relevant to each customer and address their specific problems.
You can customize your subject line and messaging based on your customers’ actions, preferences, behavior, location, and other attributes.
You can also leverage AI and machine learning (Sherpa) to provide valuable insights and tweak your email strategy by automatically analyzing multiple journeys to nudge customers towards the best-performing path. Eventually, you can optimize the channel mix and communication frequency for the best results.
You also need to keep a tab on words that can trigger content-based spam filters. Be mindful about words like ‘reminder’, and ‘free’ which so you don’t trigger spam filters.
Imagine this: Your Netflix subscription is about to end, and you receive an email from Netflix with the subject line: “Renew your subscription today and continue enjoying your favorite show”. That’s a classic example of event-triggered email marketing strategies.
Marketers smartly use event-triggered emails to communicate their offers, exclusive coupons, or discounts. You can pick up information provided by the customers and send an event-triggered email that’s more relevant. For example, if the customer has shared their anniversary date, you can share an event-triggered email suggesting gifts for their spouse if you’re a retail brand.
Marketers can schedule customized emails that reach each customer at the right moment and in the right context. Because of this, event-triggered emails have a high average open rate and click rates.
For marketers today, segmentation is key. Emails delivered to a segmented audience are less likely to end up in the spam folder since recipients are ready for your brand’s messaging.
With a good email platform, marketers can create optimized groups of products for each customer based on their behavior or personality. Marketers can classify these products based on different attributes.
Platforms like MoEngage allow you to identify and create email lists based on individual customer preferences to make an intelligent recommendation. This ensures that you have better click rates for your emails.
Whether you’re an online store, retail store, travel website, or BFSI product, this comes in handy for all.
Here are some of the email marketing benchmarks according to MoEngage:
Let’s take a look at some email marketing best practices followed by many marketers around the world.
The success of conversion rates for Shopping in North America sees a dramatic increase when marketers opt for journey-based campaigns, but other factors such as CTOR, unique CTR, and unique open rates are impacted most when emails are tailored to the customer journey.
Segmented email campaigns cause a significant increase in all metrics as well, ranging from a 4X improvement in unique click-through rates and conversion rates to a 26% increase in CTOR.
Latest statistics show that the shopping vertical in Europe sees almost 60X improvement in conversion rate and a 4X increase in CTOR and unique click-through rates when you deploy event-triggered emails.
This proves that customers prefer to receive communication that is relevant to their lifecycle and tailored to the segment they’re in.
The Shopping vertical in India sees a 2X uptick in unique opens due to journey-based emails, and a 3X uptick due to segmented campaigns.
At the same time, this customer base gives a 94% improvement in CTOR when emails are dynamically personalized, and a 23X improvement in unique CTRs.
Conversion rates are dramatically improved when you segment your audience and add customization or journey-based campaigning.
Email marketing campaign statistics show that customers who shop in the Middle East and Africa prefer to open emails that are smartly triggered and journey-based.
They also respond much better when segmentation or customization are deployed: unique CTRs see improvements of up to 7X, click-to-open rate sees an improvement of 5X, and conversion rates increase by 7X due to dynamic customization.
Customers of the Shopping vertical in Southeast Asia are clear that they prefer personalized, segmented emails over broadcasted ones.
They respond better (open rates improve by 51% using journey-based campaigns), and more customers convert as well: conversion rates increase by 4X due to dynamic personalization.
Unique CTR and click to open rate also dramatically increases due to journey-based campaigning, event-triggered mails, and dynamic personalization.
The inference rings loud and clear: customers in Shopping prefer emails that are smartly triggered, dynamically personalized, and related to the customer journey.
Here are some examples of how brands deploy emails for activations, conversions, and more:
Send a smartly triggered automatic welcome email when someone subscribes to your product.
Banking and Fintech customers in North America open more emails when they’re smartly triggered: unique opens see a 3.6% improvement.
They also click on and convert better when these emails are tailored to the customer journey.
Conversion rates see improvements of up to 13X, and CTORs increase up to 3X when journey-based or event-triggered emails are sent out.
Our email marketing statistics reveal that customers of banking, fintech, and insurance companies in India respond dramatically better when emails are smartly triggered, journey-based, or dynamically personalized.
Unique opens increase almost 100% from event triggers, CTRs increase by up to 20X when emails are dynamically personalized.
Customers of banking, fintech, and insurance brands in Southeast Asia prefer emails that are smartly triggered, journey-based, or dynamically personalized.
Higher open rates were observed. Unique opens increase by 86% with journey-based campaigns and 2X when making it tailor-made.
At the same time, metrics like unique CTR increase by 40X and conversions by 2.8X using event triggers, and CTOR by 3X using journey-based campaigns.
Let’s take a look at some real-life examples of banking, fintech, and insurance brands using marketing emails to engage, activate, and retain customers.
Apart from encouraging new customers to activate their accounts, BFSI brands can also leverage email to keep customers engaged and nudge them towards conversion. The fourth possible use case would be to encourage loyal customers to upsell.
Our email marketing insights reveal that Media and Entertainment customers in North America open 69X more marketing emails that are dynamically personalized than broadcast emails.
They also prefer to click and convert on journey-based or smartly triggered marketing emails. CTRs and CTORs increase up to 2.4X when journey-based or event-triggered emails are deployed, and conversion increases up to 78%.
Customers of the Media and Entertainment industry in India are very receptive to personalization and segmentation.
Unique open emails are increased by up to 2.6X when journey-based or event-triggered emails are sent. At the same time, CTRs and CTORs see an uptick of up to 76% with journey-based or smartly triggered emails.
For customers in the Middle East and Africa who use Media and Entertainment products, journey-based emails have the highest open rates.
They prefer to open 47% more journey-based emails than broadcast emails. They also click more on segmented or personalized emails.
CTRs see an uptick of 10X with dynamically personalized subject emails and 15X with journey-based emails, and an uptick of up to 8X in CTOR with smartly triggered e mails.
Click-to-open rates increase by up to 2.4X, and CTRs increase by 8X when you send journey-based emails.
CTORs increase by 12X when emails are dynamically personalized and the average conversion rate improves by 15X.
Brands can also send timely emails to encourage hibernating customers to reactivate.
Data from Lifestyle services for North America shows that unique opens benchmark at 8.2%, unique CTRs at 0.8%, CTORs at 10.6%, and conversion rate at 11.9%.
For Lifestyle Services brands in Europe, it’s clear that journey-based emails create winners.
Data shows that conversion rates increase by 41X when you send journey-based emails and CTORs increase by 7%.
Data for this region shows journey-based and behavior-based segmentation as clear winners.
Behavior-based emails see a 110% improvement in unique opens and
Lifestyle Services brands in India are winning with event triggers and journey optimization. Average email open rate data sees an uptick of 55% with journey-based emails.
At the same time, conversion rates increase by 11.4% using event triggers.
Let’s take a look at some examples to understand how leading Lifestyle Services brands are using email trends.
Brands can also send emails that encourage customers who are on the fence to convert.
It’s 2022, and customers receive 100s of emails daily in their inboxes. They don’t care for generic emails offering minimal value. Customers actively engage with emails that are personalized, segmented, and a suitable fit for their customer journey.
If you expect to improve customer retention through email marketing and want to achieve the highest average email open rates, email marketing industry benchmarks data will help you get some direction and tweak your marketing strategy.
Personalize your subject lines and deploy intelligent segmentation to target customers at the right moment in their journey. This will directly help with acquiring customers, improve customer satisfaction, and give a boost to your email metrics data.
Invest in a robust email marketing platform that enables you to create different kinds of email campaigns for different channels.
To learn how MoEngage can help improve your marketing strategy and engagement metrics, get in touch today!