Email Marketing terms

Conversion Rate

The percentage of email recipients who take a desired action after clicking on a link in an email.

What is a conversion rate in email marketing?

Conversion rate in email marketing refers to the percentage of recipients who respond to your call-to-action in a particular email marketing campaign. This could be anything from making a purchase, downloading a document, signing up for a subscription, or any other action you want them to take. It is a key metric used to measure the success and effectiveness of an email marketing campaign.

The conversion rate is calculated by dividing the number of conversions (actions taken) by the number of total email recipients, then multiplying the result by 100 to get a percentage. For example, if you send an email to 100 people and 5 of them take the desired action, your conversion rate would be 5%. A high conversion rate indicates that your email marketing strategy is effective and resonates with your audience.

How is the conversion rate in email marketing calculated?

The conversion rate in email marketing is calculated by dividing the number of conversions (actions taken by recipients such as making a purchase, signing up for a newsletter, downloading a resource, etc.) by the total number of emails delivered, then multiplying the result by 100 to get a percentage. A conversion is when a recipient of an email takes the desired action that the email intended to provoke.

For example, if you send out 1000 emails and 50 recipients make a purchase, your conversion rate would be (50/1000)*100 = 5%. This means that 5% of the recipients of your email marketing campaign have taken the desired action. This metric is crucial in determining the effectiveness of an email marketing campaign.

What is a good conversion rate for email marketing?

A good conversion rate for email marketing can vary significantly depending on the industry, the purpose of the email, and the audience. However, as a general benchmark, a conversion rate between 2% to 5% is often considered good for most businesses. This means that for every 100 emails sent, 2 to 5 recipients take the desired action, such as making a purchase, signing up for a service, or filling out a form.

It's important to note that achieving a higher conversion rate often requires a well-segmented email list, personalized content, and a clear call-to-action. Additionally, continuously testing and optimizing your email marketing strategies can help improve your conversion rate over time. Remember, what's considered a "good" conversion rate can vary greatly, so it's crucial to set realistic expectations based on your specific business and industry.

How can I improve the conversion rate in my email marketing campaign?

Improving the conversion rate in your email marketing campaign can be achieved through several strategies. Firstly, ensure that your emails are personalized and targeted. This means understanding your audience's needs and preferences and tailoring your content to meet these. Use segmentation to divide your email list into specific groups based on factors like demographics, purchase history, and past engagement. This allows you to send more relevant content to each group, increasing the likelihood of conversions.

Secondly, focus on creating compelling subject lines and content. Your subject line is the first thing recipients see, so it needs to grab their attention and entice them to open the email. Once they've opened it, the content needs to be engaging and valuable, providing a clear and compelling call to action. Lastly, consider the timing of your emails. Sending them at a time when your audience is most likely to be checking their inbox can significantly increase open rates and conversions. Regular testing and analysis of your campaigns will help you identify what works best for your audience.

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