Question

What is a good return rate on email marketing?

How does email marketing compare with traditional marketing in terms of response rate? Is 1% a good response?

Asked by: Kevin Sasser • Vice President at Company.com Corp. Report Abuse
Len Bruskiewitz - Sr. Director, Partner Programs at Constant Contact

I think you are really asking 2 questions here. The ROI of email marketing to a house list(per DMA data from 2009) was $43.62 for every dollar invested. That was almost double the next highest channel(search advertising). However, the key factor here is that Email Marketing is permission-based, meaning it is to prospects/customers you already know (and who know you). This shows the value of building a great, permission-based list. In terms of response rates, there are a few factors to consider. The first is open rate (or how many recipients actually look at the message you sent). These vary widely depending on industry with rates ranging from under 10% to over 40%. The second factor is click through rates, which measure what percentage of readers followed a clickable call to action. Again, click through rates vary by industry but on average are in the 6-7% range.

465 days ago Report Abuse
Gabe Casalett - Business Development Associate at iContact

Kevin, Response (or "open") rates on emails vary greatly between different industries and even companies, depending on how close a relationship the company has with its customers. That said, we find that 18-20% seems to be average, with anything over 30% being considered good. However, we do have lots of customers with open rates in the 80-90% open rate, so that's definitely what email marketers should shoot for.

465 days ago Report Abuse
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