e_mail_lg_clrMany people argue that open rates are not so important, that its conversions that really matter, and I can understand that, ultimately its sales that count
Example:
If you send your email to 1000 people and 400 open it, giving you a 40% open rate…but you get an amazing 10% click through rate, then you have 40 people sitting on your landing page…or wherever your link sent them.
Now out of those 40 people..lets say you convert 50% (20) with an average cost per order (CPO) of $50. This, with the front end offer and a couple upsells or downsells, You end up with $1000
Not bad..but could be better.
What if your open rate was only 20% and all other numbers held steady?
Then your profit would go down to $500 bucks.
It does matter how many people open your email…it means your doing something right in your subject line, from line, and you are segmenting properly.

 

Click through Rate (CTR)

 

Click through rate means when someone clicks on a link in your email and goes to the destination you want them to go.
The higher the click through the better chance you have of conversion…a high CTR is a good indication that your email copy and list segmentation is well optimized.
It means you are sending the right message to the right people.
Good Job! A high click through rate is not by itself a sign of success, It can get skewed sometimes, for example.

 

Some people may just want to go to your blog so that they can comment and get the SEO juice from the search engines. They may have clicked on the link to go somewhere and when they got there, realized it wasn’t where they thought they were going.
(It means you weren’t clear in your email)

 

That’s why I think balance is to be attained here. You have to look all the data as one whole pie, with the sales being the ultimate piece.

 

Conversion Rate

 

Conversion rates are when somebody takes the action you wanted. A conversion can be considered a few different things, such as:

• a purchase
• a free report
• a simple click through for more information
Conversion rate translates into money, so you want yours to be as high as possible.

 

Realistic Conversion Rate?

 

Most marketers as well as recent studies seem to show that 1% to 4% is a realistic conversion goal. Depending on the niche, 5% is outstanding and very hard to achieve.
To consistently hit 3-5% or higher, you will need to have extremely targeted traffic and a high converting sales page.
Know that your relationship with your list and the quality of your sales copy will be the number one thing that increase this.

 

Email Metrics Summary

 

Understand that open rates and CTR and conversions are not an end all, be all statistic. They only exist to HELP YOU ultimately evaluate your ROI.
ROI or Return on investment is the key indicator of a profitable campaign (net profit) and is the most important metric of them all.

 

ROI can vary depending on a litany of factors, which are outside the scope of this book. I urge you to read further about ROI if you haven’t already.
Now when it comes to open rates and click through rates and conversions and ROI..There is a lot going on here and the numbers can get confusing.
There are many cases where you can get high open rates and less sales or low open rates and more sales and this why you need to test.

 

I know guys who never test and base their results solely on the sales for the day. I cant argue that, especially if it works for them.
It is ultimately about sales and the metrics can sometimes deceive you, but sales and bottom line figures never will.

 

Myself, I look at a blend of each. I look at open rates, click throughs and conversions as three legs of a stool….take away one and the other two legs suffer.

 

If you cant get people to open your email, you have absolutely NO SHOT at converting them into buyers. Now, If you can get them to AT LEAST open the email you have a chance.

 

I’ll take a 5% chance of purchase over a ZERO chance any day!