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Click-through rate (CTR) is the percentage of people clicking on and opening links included in the content of the email. The open and click-through rates are essential marketing automation metrics because they indicate that the email body and the subject line have been well crafted, making them exciting and relevant to prospective customers.
Higher open and click-through rates indicate that email marketing campaigns have positive results. On the other hand, unsubscribes suggest that clients are not interested in what you are selling, hence leaving.
Click-through rates are typically much lower than open rates. The average click-through rate for most campaigns is slightly over 2%. The CTR gives you direct insight into how many people on your list engaged with your content and is interested in learning more about your brand.
Calculating Click-Through-Rate
CTR is the number of clicks divided by the total emails sent minus bounces. So, if you sent 1,000 emails, got 34 bounces, and had a total of 32 clicks, your equation would look like this:
What is a good click-through rate?
According to the same IBM study, the industries with the highest click-through rates (between 4 and 5 percent) are computer hardware and telecommunications; non-profits, associations, and government; and schools and education. The lowest rates (between 2.4 and 2.7 percent) are lodging and travel services, media and publishing, and computer software and online services.
That’s right: if your click-through rate average is around two or three percent, you’re doing just fine. You’re right in line with average click-through rates. But it would be best always to aim high—shooting for between four and five percent is an excellent click-through rate benchmark.
How can I increase my click-through rate?
Improving your CTR is not a straightforward process—there are a number of factors at play, but there are a number of things you can do to find out what works and what could be improved.
First, you can finesse your email subject lines. According to OptinMonster, 47% of email recipients open an email based on its subject line. So it’s something you need to get right—and it’s both an art and a science. If more people open your emails, you’ll get more people who might click your links. A/B testing your subject lines will help determine your audience's response.
You should also A/B test your content. A/B testing is essential for finding success with email marketing and increasing the number of sales. Split testing efforts should be put into emails and a page to find the most relevant traffic to your email. Creating a landing page where your email traffic can be directed or diverted is essential to convert to higher conversions and maximize your return on investment.
The must-have aspects for a good landing page include; a strong headline, a sub-headline that supports a headline, a supporting image or video explaining the use of the landing page, social proof and a CTA to convert subscribers into buyers. Don’t assume you know the answer—test it! Chances are, you’ll get at least one surprise.
Also, keep track of the kinds of things that people click on. Do they respond to company news, sales, blog posts, videos, or announcements? Look at what kinds of offers they like, whether new products or discounts on existing ones. Maybe they like advice about specific problems or tips on what to eat or wear. Tracking content trends over time will help you provide better links they want to click on.
Finally, once you’ve sorted the subject lines and copy, you can start testing buttons and calls to action. Compelling CTAs motivate recipients to convert. Research shows that clients respond more quickly when short and straightforward words seduce them to take action. CTAs words include; get, order, buy, start, download, and sign up here, among others. These usually compel recipients to take action. You can mess with button color, copy, placement, or images. Little tests like those mentioned are great ways to find quick wins. There are infinite factors to test and adjust to keep that click-through rate climbing.
The best way to keep that CTR stellar is to calculate it consistently and pay attention to the results. It’s a simple formula that can help you make your email marketing more effective by providing value to your recipients and making your emails more valuable.