The Real Bottom Line: Open Rate and Customer Engagement

As a marketing channel, email shows no signs of slowing down. Nearly 233 million of the world’s 3.7 billion email users are located in the US, and that number is expected to grow to nearly 255 million by the year 2020. It should come as no surprise then that over half of marketers plan to expand their budget for email in the same period to leverage this growing audience.

But as email adoption increases and brands invest more in the space, traditional KPIs like opens and clicks are falling behind money generated per email as the key decision and strategy driver for larger marketers. This begs the question, what happens to deliverability when attention is solely on the bottom line?

Performance Impact

There is a perpetual concern in the email community that open rates are falling. Customers are receiving more and more mail—ignoring even messaging they’ve opted into—and subscriber fatigue is a real issue. Recently, email performance expert eDataSource analyzed “Back to School” email campaign performance YOY for 2017 and 2018, and noticed the same downward trend. Almost universally, email read (or open) rates underperformed from the year previously.

This made me curious – was it increased fatigue generated by a specific type of campaign that individuals could easily ignore, or was there something larger at work here? Leveraging eDataSource I decided to pull performance across a few additional industries for the entire month of July in both 2017 and 2018 to compare.
 

Category

MM/YY

Inbox Rate

Read/Open Rate

Apparel & Accessories

J-17

77.096

18.887

Apparel & Accessories

J-18

84.987

17.654

Restaurants, Bars, & Food Service

J-17

83.753

18.797

Restaurants, Bars, & Food Service

J-18

89.963

18.021

Sporting Goods

J-17

77.896

18.174

Sporting Goods

J-18

84.440

17.652

It’s Time to Refocus

The results were certainly interesting and confirm what others in the space are seeing. While Inbox rates did go up, open rates dipped across the board. Combined with numerous industry studies, a larger picture is starting to emerge here. Customers are receiving more mail, marketers are focusing more on monetary returns per campaign, and a deliverability impact is coming.

The importance of open rates cannot be understated. This is a key indicator to ISPs that an individual actually *wants*to receive and engage with a brand’s messaging. It sends a direct signal to the ISP to deliver this mail to the inbox. Essentially, the higher the open rate, the lower the spam rate, the better deliverability is likely to be overall. Not to mention the fact that a customer can’t spend money on an offer they never receive or look at in the first place.

It is critical that marketers don’t lose sight of traditional engagement metrics in their efforts to capitalize on returns. Standard best practices should always apply. Leverage a double opt-in, always apply engagement-based segmentation and cease mailing to customers who opt out or do not re-engage. These are the building blocks to ensure campaigns continue to deliver functionally to the inbox.

Email marketers, also make sure to read 'Tis the Season for Holiday Planning (Now!) from Kenna Hilburn, Director of Account Development at Liveclicker. She has four tips, to highly engaging email campaigns your customers will love. 

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