Email Conversion Rates Climb 16% In Q4; Reach Highest Rate In Two Years

Published: March 15, 2011

Some 150 clients compiled the analysis from 7.4 billion emails sent by Epsilon in 2010’s fourth quarter across multiple industries.

Epsilon and the Direct Marketing Association’s Email Experience Council recently released the Q4 2010 North America Email Trends and Benchmarks Results, which showed an increase in conversion rates of 16.1% over Q4 2009. The 2.9% conversion rate is the strongest over a two-year period.

The quarterly analysis is compiled from 7.4 billion emails sent by Epsilon in October, November and December 2010, across multiple industries and approximately 150 participating clients. The analysis combines data from both of Epsilon’s proprietary platforms, DREAM and DREAMmail.

The report also found that open rates saw little change over the two year period, increasing 5% from the same time two years ago. Four of the thirteen reported industries saw an increase in open rates over Q4 2009.

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The average click rate is 5.1%, a decrease from the same time last year (5.9%). The average volume per client increased 34.3% from Q3 2010 with a big push during the holiday season.

Volume also increased 18.5% over the same quarter last year. Conversion rates increased 11.3% over last quarter and 16.1% over last year. The 2.9% conversion rate is the strongest over a two-year period.

“Although volumes hit record highs for the season, response rates remained quite stable, again proving that email marketing is an effective tool to reach people while they are in the market for a particular product or service,” according to Kevin Mabley, SVP of Strategic & Analytic Consulting at Epsilon. “Email marketing drives consumer behavior, builds brands and increases revenue. We recommend that email marketers track behaviors and analyze campaigns in order to continue to improve performance and create deeper connections with consumers.”

“Double digit increases in email volume, conversion rates, median order size and revenue per email confirm what the DMA has heard elsewhere. Companies in the 2010 holiday season invested more in email marketing and saw better results after two difficult years,” said Yoram Wurmser, Director of Marketing & Media Insights at the Direct Marketing Association.

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