What is the expected customer response rate to email marketing?
We send out a monthly newsletter with highlights, promotions, and trending styles for the salon. We have about 300 subscribers. It seems like most of our new customers come from word of mouth or customer referral. The monthly newsletter is expensive to maintain and send out if no business is coming from it. What are some average stats to expect from an email like this to help me determine if it is worth keeping?
Lexi: A few questions...what is your objective with your newsletter (drive sales, engender customer loyalty, or something else)? What do you consider expensive to maintain? Most marketers value having a list to facilitate a direct dialog with their prospects and clients. Are you considering the lifetime value of a customer? One thing I might suggest is to investigate card linked marketing with a company like Cardlytics. You can target competitor's clients in you local geography (ones actually spending money on similar services) and put offers in front of them to use your services instead. This type of marketing averages over a 15% take rate on offers.
Hi Lexi, the best you can hope for is 1%-2% if your newsletter is well-targeted. However, you need to take a step back and think from the customers perspective.
Timing: What day of the week do you send your newsletter out?
- Forget Monday (catching up on the last week and weekend spill over)
- Forget Friday (TGIF – people are psychologically unplugged and going home for the weekend)
- Weekend depends on your business but if your business lends itself to Facebook & social media your efforts are best focused over there than in a newsletter.
- That leaves you with you with Tue-Wed-Thu, so not much window of opportunity and then you are fighting for attention for 100's of other companies trying to sell their product or service!
Most people write about them or their company so is all about “ME ME ME”. The client doesn't care as they are thinking about “Me Me Me”. So unless you address subjects of interest to them and then give them a reason to act (Special Offer, Money off Coupon, Freebie product, etc.) then they will ignore it. Sorry but OUR business is not important to THEM!
You have to make it about THEM.
Call to Action
Refinement of the above. Why should they respond? What is it that should make them want to Click on that link or pick up the phone and call you? If you can't see that, they won't see it either.
Newsletters are not always about generating leads. Sometimes they serve to keep your name in front of their mind. Seeing your name and communications means you become part of their subconscious so recognition and awareness pays off in the long run.
300 is not big enough for you to get much response. Even if you double the average response and get 4% it is only 12 responses. Will that be enough to justify the costs? I don't know as it depends on your product price and margins. As a Web Design company we would love 12 leads because the margins and value is high enough to justify it, but if you are selling low value or margin product or service, then it is not near enough.
I hope this helps.