What is the conversion rate and how to calculate it? Measure against industry averages Improve your conversion rate: 5 technical requirements In summary From micro-conversions to key requirements for an effective call-to-action, we explore the ins and outs of email marketing's most tracked, yet elusive, metric. The conversion rate is a broad concept, a kind of container that each brand fills with its own objectives and strategies. While placing an order might be a conversion metric for an e-commerce business, a B2B brand's newsletter might target blog visits or white paper downloads . Today, we're going to take a look at this crucial email marketing metric to understand what it is, how it's calculated, and how to optimize for it . Rather than focusing on the creative side - the copy or design of the email - we'll offer tips and guidelines on how to optimize your conversions from a technical, strategic and functional perspective. What is the conversion rate and how to calculate it?
Conversion rate is the percentage of recipients who click on the link in an email and take the desired action (eg, fill out a form or purchase a product). Although the conversion rate varies according to a brand's predetermined objective as mentioned above, the calculation remains simple : the number of recipients who take the target action divided by the total number of emails delivered successfully. The result of this division is then multiplied by 100. Measure Image Masking Service against industry averages Once the conversion rate is calculated, it can be useful to compare it to industry averages . By definition, this comparison is always relative and does not definitively establish whether a campaign is a success or a failure . However, these averages can help you set more realistic goals and get an overall understanding of whether your strategy is working or not. In general, what is a good conversion rate for email marketing?
While it's now clear that the best answer is "it depends" (on the type of email sent, the business sector you operate in, and other factors), research from Remarkety gives us some benchmark percentages . A fundamental concept to consider is that sales, downloads, and subscriptions aren't the only potential conversion metrics. Successful emails are also the ones that trigger a wave of micro-conversions . Every aspect – deliverability, open rate, clicks, etc. – should be considered a conversion event that contributes to macro conversions. The distinction between micro and macro conversions can also be interpreted another way, in terms of direct and indirect conversions . Some emails lend themselves to direct conversions ( when you promote a product and the recipient buys it), while others involve indirect conversions: for example, if a subscriber does not download the suggested white paper , the email will still have helped make the reader aware that the brand's website or blog hosts similar content and resources. While it is true that optimizing open rates and clicks is essential, certain technical aspects are also essential to increase your conversion rates. Let's take a look at them.