Open rates suck! Wake up call for Deals & Coupon Email Marketing Campaigns

Open rates suck! Wake up call for Deals & Coupon Email Marketing Campaigns

The Deals business, more so than the couponing business, still relies heavily on email participation of its audience. As such, understanding open rates, click rates, bounce rates and how yours compares to industry standards is valuable information.

What follows is a set of data produced by Mailchimp’s scan of their billions of emails sent using their platform. They scanned hundreds of millions of emails and calculated the average unique open rates, average unique click rates, average unique soft bounces, average unique hard bounces, and average unique abuse complaint rate by industry.

Here is a representation of some industry’s relevant to the deals and coupons industry. How do your campaigns compare?

Industry

Open

Click

Soft Bounce

Hard Bounce

Abuse

Unsub

Beauty and Personal Care 20.72% 2.82% 0.82% 0.95% 0.06% 0.35%
Computers and Electronics 24.65% 2.83% 1.75% 1.51% 0.04% 0.31%
Creative Services/Agency 23.65% 3.36% 1.89% 1.75% 0.04% 0.37%
Daily Deals/E-Coupons 13.2% 1.88% 0.17% 0.15% 0.02% 0.09%
eCommerce 17.35% 3.0% 0.48% 0.43% 0.04% 0.2%
Retail 23.16% 3.26% 0.66% 0.6% 0.04% 0.3%
Education and Training 22.49% 3.42% 1.04% 1.01% 0.03% 0.21%
Entertainment and Events 20.93% 2.51% 0.88% 0.85% 0.04% 0.27%
Health and Fitness 24.27% 3.64% 0.83% 0.74% 0.03% 0.14%
Hobbies 30.71% 6.65% 0.56% 0.54% 0.04% 0.22%
Restaurant 24.61% 1.6% 0.52% 0.41% 0.04% 0.29%
Travel and Transportation 20.0% 2.77% 1.12% 0.91% 0.04% 0.24%

 

In looking at these numbers a few things stand out:

  • The deals/coupons industry has dropped their open rates significantly compared to a few years ago. It makes sense that consumers are probably rather indifferent to the large quantity of emails they receive from deal companies. Essentially they are ignoring them as deals/coupons emails have the absolute worst performance of all industries tracked…by a wide margin. Perhaps a wake up call to the industry to improve their email campaigns and make them MORE relevant per customer segment.
  • Related industries to the deals/coupons industry include eCommerce and Retail. Both have higher open rates than Deals/Coupons. In fact, retailing emails have 10 point difference. That is significant and translate to more commerce opportunities. The difference? Relevance.
  • If more deal providers emailed out their promotions based on customer segmentation and customer interest, then open rates would probably be much higher. Example. Sending consumers emails just for Spa and wellness promotions for those interested in that category may very well increase open rate closer to that category as per the above stats of 24.27%, or Restaurant offers just to consumer who requested restaurant offers…open rates jump to 24.61%. Same thing for Travel or any other category.
  • Click through rates are horrendous for Deal & Coupon campaigns as well. So not only are less emails being opened, but even less are being click on from those opened. Deal and coupon providers need to work that much harder to get more and more subscribers in order to drive sales from their list. Not the most efficient way of managing a consumer list. Take a look at the hobbies section. Their click through rates are amazing! Why? Again, relevance and fanatics of the content they receive in the email. Now, how can deal & coupon providers mimic this approach?

Is it worth investing time in ensuring that open rates increase and click rates improve? Well, considering that commerce opportunities for this industry still count on high email subscriber participation, it is reasonable to state that a few percentage points increase in open rates and click rates can translate to rather attractive revenue increases.

 

2 Comments
  1. Interesting stats. I also use Mailchimp and am grouped in the Daily Deals/E-Coupons category, so brilliant to compare these stats with my own.

    Notice how the unsub rate seems to be a lot lower in the Deals category above though, it’s the lowest of all the categories. While we’re only talking fractions of a per cent, I think people still want to stay subscribed to these types of emails and just choose when suits them to have a glance at the latest offers.

    • You are probably right. Based on what we see, consumers tend to ignore emails from Deals and coupon services more than other email campaigns… They may not subscribe, but they are not as engaged as a more relevant hobby or category based email. Investing time in improving titles, motivating engagements with contests, surveys, giveaways and certainly category specific email campaigns will most certainly increase open rates.