Email & SMS marketing benchmarks for banks and credit unions

Open rate: General range: 20-30%

Factors:

• Strong Sender Reputation: Banks and credit unions generally have good sender reputations, which can contribute to higher open rates.
• Personalization: Personalization significantly impacts open rates. Well-executed personalization can push open rates higher.
• Relevant Subject Lines: Subject lines that clearly communicate value or create a sense of urgency (when appropriate) also improve open rates.

• Lifecycle Stage: Welcome and onboarding emails often see higher open rates than promotional emails, as customers are more engaged early in their relationship.

Aim for these results

Aim for 30%+ for onboarding and important account updates, and 25%+ for promotional emails.‍

Click-Through Rate (CTR): General Range: 1-5%

Factors:

• Clear and Compelling Calls to Action: Emails with well-defined and enticing CTAs tend to have higher CTRs.
• Relevant Content: The more relevant the email content is to the recipient's needs and interests, the higher the CTR.
• Email Design: A well-designed email with clear visual hierarchy and easy-to-click links improves CTR.
• Segmentation and Targeting: Sending targeted emails to specific customer segments based on their behavior or preferences increases CTR.

Aim for these results

Strive for 3%+; higher for highly targeted campaigns.

Click-to-Open Rate (CTOR): General Range: 10-20%

Factors:

• Engaging Email Content: Compelling and relevant content that delivers on the promise of the subject line is crucial for a good CTOR.
• Number of Links: Too many links can overwhelm recipients and decrease CTOR, while a focused email with a few key links can improve it
• Link Placement: Prominently placed links, especially those in the first fold of the email, tend to get more clicks.

Aim for these results

A good CTOR is 15%+.

Conversion Rate: General Range: 0.5% to 10% or even higher

The general range varies wildly depending on the specific goal of the email (e.g., loan application, online banking enrollment). It could be anywhere from 0.5% to 10% or even higher.

Factors:

• Clear Conversion Path: A seamless and user-friendly process for completing the desired action is essential.
• Compelling Offer: A strong offer or incentive can significantly increase conversion rates.
• Targeting and Relevance: Sending highly targeted offers to the right customers at the right time improves conversion.

Aim for these results

This is very campaign-specific. Focus on continued improvement based on results. We either win or learn!

Bounce Rate: General Range: Less than 2%

Factors:

• List Hygiene: Regularly cleaning your email list to remove invalid or inactive addresses is crucial for maintaining a low bounce rate.
• Sender Reputation: A good sender reputation helps ensure that emails are delivered to recipients' inboxes, reducing bounce rates.

Aim for these results

Keep this below 2%.

Unsubscribe Rate: General Range: Less than 0.5%

Factors:

• Relevant Content: Sending valuable and relevant content reduces the likelihood of unsubscribes.
• Email Frequency: Sending emails too frequently can annoy recipients and lead to unsubscribes.
• Easy Unsubscribe Process: While it seems counterintuitive, making it easy for people to unsubscribe can actually improve sender reputation and reduce spam complaints.

Aim for these results

Keep this below 0.5%.

SMS/Text message marketing benchmarks for banks and credit unions

Delivery Rate: General Range: 90-99%

The percentage of text messages successfully delivered to recipients' phones.

Factors:

• Carrier Regulations and Filtering: Mobile carriers have strict rules and filtering mechanisms to prevent spam.
• Phone Number Accuracy: Ensuring you have accurate and up-to-date phone numbers is crucial.
• Opt-in Compliance: Sending messages only to users who have explicitly opted in to receive them is essential for deliverability and legal compliance.

Aim for these results

Aim for a delivery rate of 95% or higher.

Open Rate: General Range: 80-98%

The percentage of recipients who open and read the text message. Note that with SMS, this is harder to track precisely than with email.

Factors:

• Urgency and Relevance: SMS messages are typically read very quickly, so relevance and a sense of urgency are key.
• Personalization: Personalizing SMS messages can improve engagement.
• Time of Day: Sending messages at appropriate times increases the likelihood of them being read.

Aim for these results

Given the nature of SMS, aim for a very high read rate, ideally above 90%.

Click-Through Rate (CTR): General Range: 20-35%

The percentage of recipients who click on a link within a text message.

Factors:

• Mobile-Friendly Links: Links should be short and optimized for mobile devices.
• Clear and Concise Messaging: SMS messages need to be brief and to the point, with a clear call to action.
• Value Proposition: The message must clearly convey the value of clicking the link.

Aim for these results

A strong CTR for SMS is in the 25-30% range.

Conversion Rate: General Range: 1-15%

The percentage of recipients who complete a desired action after clicking a link in the text message.

Factors:

• Seamless Mobile Experience: A smooth and easy mobile experience is crucial for conversions.
• Clear Call to Action: The text message should have a clear and direct call to action.
• Relevance and Timing: Sending the right message at the right time can significantly improve conversion rates.

Aim for these results

This varies widely depending on the complexity of the conversion, but aim for a rate of 5% or higher for important actions.

Opt-Out Rate: General Range: Less than 5%

The percentage of recipients who unsubscribe or opt out of receiving future text messages.

Factors:

• Message Relevance: Sending relevant and valuable messages helps reduce opt-out rates.
• Message Frequency: Sending too many texts can lead to opt-outs.
• Clear Opt-Out Instructions: Providing clear and easy opt-out instructions is a legal requirement and best practice.

Aim for these results

Keep opt-out rates below 2%.

Conculsion

The numbers tell a story, but only if you know how to read them. By tracking the right benchmarks and understanding the drivers behind them, banks and credit unions can continuously improve their marketing performance. From increasing open rates to reducing unsubscribes, every metric offers an opportunity to build stronger relationships and deliver more value to your audience. Keep testing, keep personalizing, and remember: the most effective marketing isn’t just measurable, it’s meaningful.