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We're going to walk you through a common scenario about the importance of deliverability rates for your email marketing campaigns.
Run your numbers through and see how much your deliverability rate is slashing your sales. This is your wake up call.
Consider the XYZ Company.
Their list size is 650,000 strong with an average deliverability rate of 87% (not bad). The remaining 13% is due to the usual issues (bounces or bad email addresses).
With a respectable conversion rate of 3% and a healthy average transaction of $75, the XYZ Company is looking and feeling pretty good about themselves.
But, their deliverability rate just cost them $9,886,500. Annually.
So, how did this company manage to lose nearly 10 million dollars?
1. What is actual number of emails not getting to the subscribers?
650,000 (email list size) x .13 (deliverability rate) = 84,500 people don't receive their emails.
2. How many of those people were likely to purchase off that email?
84,500 x .03 (conversion rate) = 2,535 missed sales.
3. What did XYZ Company lose in sales per email campaign?
2,535 x 75 (average transaction) = $190,125
4. If the XYZ Company sends out monthly emails, how much are they losing per year?
190,125 x 12 = $2,281,500
5. What if they send out weekly emails?
The bottom line is that whatever your deliverability rate is, without figuring out what you're doing wrong or how to troubleshoot on-going issues, you're missing out on making some serious money.
And, remember: what kills deliverability rates? Dirty email lists.
on Dec 05, 2011
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