Email performance benchmarking is a critical process for understanding how your email campaigns stack up against industry standards and competitors. By analyzing key metrics like open rates, click-through rates, conversion rates, and more, you can gain valuable insights into what's working well and where there's room for improvement. This comprehensive guide will walk you through the step-by-step process of benchmarking your email performance, identifying areas for optimization, and implementing best practices to boost your results.
Understanding Key Email Metrics
Before diving into the benchmarking process, it's essential to have a clear understanding of the key metrics that define email performance. These metrics provide a quantitative way to measure the success of your campaigns and identify trends over time.
Open Rate
Open rate measures the percentage of recipients who opened your email out of the total number of emails delivered. It's a crucial indicator of how well your subject line and preview text are resonating with your audience.
Click-Through Rate (CTR)
Click-through rate is the percentage of recipients who clicked on at least one link within your email out of the total number of emails delivered. It's a key metric for gauging the effectiveness of your email content and calls-to-action (CTAs).
Conversion Rate
Conversion rate measures the percentage of recipients who completed a desired action (such as making a purchase or filling out a form) after clicking through from your email. It's the ultimate indicator of how well your emails are driving tangible results for your business.
Collecting Benchmark Data
To effectively benchmark your email performance, you need to gather data from a variety of sources, including:
- Your own email marketing platform analytics
- Industry benchmark reports from trusted sources like Campaign Monitor, MailChimp, and Litmus
- Competitor data (if available) from tools like SpyFu or SimilarWeb
When collecting benchmark data, it's important to look at metrics over an extended period (at least 3-6 months) to account for seasonality and other fluctuations. You should also segment your data by factors like:
- Industry/vertical
- Email type (promotional, transactional, newsletter, etc.)
- Audience demographics
- Device type (desktop, mobile, tablet)
By comparing your performance to relevant benchmarks, you can get a clearer picture of where you stand and identify areas for improvement.
The following diagram shows a sample email performance benchmarking dashboard comparing key metrics to industry averages:
Analyzing Your Email Performance
Once you've collected your benchmark data, it's time to dig into the analysis. Start by looking at your overall metrics compared to industry averages and competitors (if data is available). Are you outperforming, underperforming, or roughly on par?
Next, dive deeper into your segmented data to uncover insights and trends. For example:
- Which types of emails have the highest open and click-through rates?
- How does performance vary by audience segment or demographics?
- Are there any clear differences in desktop vs. mobile engagement?
- Which days of the week or times of day tend to drive the best results?
Case Study: Segmenting by Buyer Persona
One ecommerce brand found that by segmenting their email list by buyer persona and tailoring content accordingly, they were able to increase open rates by 29% and click-through rates by 41% compared to their unsegmented campaigns.
As you analyze your data, look for both areas of strength to capitalize on and areas of weakness to address. Document your findings in a benchmarking report that you can share with key stakeholders.
The following diagram illustrates a sample process for conducting an in-depth email performance analysis:
Optimizing Your Email Campaigns
Armed with insights from your benchmarking analysis, you can start implementing optimizations to improve your email performance. Some key areas to focus on include:
Subject Lines & Preview Text
Your subject line and preview text are the first things recipients see, so they play a huge role in driving opens. Experiment with different styles, lengths, personalization, and value propositions to see what resonates best with your audience.
Email Design & Layout
Your email design should be visually appealing, on-brand, and optimized for both desktop and mobile devices. Use a clear hierarchy, scannable sections, and prominent CTAs to guide recipients through your content.
Personalization & Segmentation
Personalizing your emails beyond just a first name can have a big impact on engagement and conversions. Segment your list based on demographics, behavior, preferences, and other factors to deliver more targeted, relevant content.
A/B Testing
A/B testing is one of the most powerful tools for optimizing email performance over time. Test different subject lines, content, layouts, CTAs, send times, and more to continually refine your approach based on data.
Monitoring & Ongoing Benchmarking
Email benchmarking is not a one-and-done activity. Your performance metrics will evolve over time as you make optimizations, your list grows and changes, new competitors enter the market, and industry trends shift. That's why it's critical to continuously monitor your metrics and conduct regular benchmarking audits to stay ahead of the curve.
Set up automated reports and dashboards in your email platform to easily keep an eye on key metrics and KPIs. Schedule quarterly or biannual benchmarking deep dives to collect fresh data, analyze your performance, identify new opportunities, and adjust your strategy.
Conclusion & Next Steps
Email performance benchmarking is a powerful way to gauge the relative success of your campaigns, identify areas for improvement, and guide your optimization efforts. By regularly collecting data, analyzing your metrics, implementing best practices, and monitoring your progress, you can continuously fine-tune your email strategy to drive better results.
To get started with email benchmarking, follow these action steps:
- Identify the key metrics that matter most to your business and align with your email marketing goals
- Collect relevant benchmark data from your email platform, industry sources, and competitors
- Analyze your performance compared to benchmarks and identify areas for optimization
- Develop a prioritized action plan for implementing optimizations and best practices
- Set up regular monitoring and reporting to track your progress
- Conduct periodic benchmarking audits to uncover new insights and opportunities
By following this ongoing process, you can ensure that your email campaigns are always performing at their best and driving meaningful results for your business.