What does conversion rate mean in email marketing?

When it comes to the success of an online marketing effort, few metrics receive as much attention as the conversion rate. Simply put, the conversion is the action the visitor is supposed to take on the website or online shop. The conversion rate is, therefore, the ratio of the total number of visitors to those who have converted. Common conversions include registering for a newsletter, making a purchase, downloading content, or creating a user account. But how is the conversion rate defined in email marketing?

Success of an Email Campaign: Open Rate, Click Rate, or Conversion Rate?

Email marketing offers various metrics that can be measured, each indicating something different: How many emails reached their recipients? How many emails were opened? How many recipients clicked the link(s) in the email? How many have converted? Each metric tells a different story and relates to the others. Fundamentally, each should be monitored and analyzed as they indicate different optimization potentials.

So what is the conversion rate in email marketing?

Every mailing initiates a series of actions that as many recipients as possible should undergo:

1. First, as many emails as possible should be delivered (= a low bounce rate).

2. Of these delivered emails, as many as possible should be opened (= a high open rate).

3. Of those, as many recipients as possible should click the link(s) in the email (= a high click-through rate).

4. Finally, as many conversions as possible should occur on the target page (= a high conversion rate).

So from what ratio is the conversion rate calculated? Which of the previous metrics should it relate to? The fact is, there is no standard here. Whether the number of conversions is viewed in relation to the number of sent or delivered emails, or opened emails or clicked links, essential metrics and indicators for campaign success are always excluded.

Alternative Terms?On the blog of optivo, René Kulka logically suggested as early as 2011 to name the metrics differently and thus more clearly:

• Conversion-to-Clicked Rate (also Conversion Rate): Conversions relative to clicks in the email

• Conversion-to-Opened Rate: Conversions relative to opened emails

• Conversion-to-Delivered Rate: Conversions relative to delivered emails

• Conversion-to-Send Rate (Also Response Rate): Conversions relative to sent emails

So a uniform definition of the conversion rate is not possible. It largely depends on which aspect should be considered. In the second part of our small series "Conversion in Email Marketing," we'll share our tips on how you can improve your email conversion rate, considering all four aspects mentioned above.

What can we do for you?Are you interested in discovering email marketing as a channel for your business or improving the success rates of your existing email campaigns? We are happy to assist you with our experience and a strategic concept tailored precisely to your target audience and your business. Contact us!