The Market Curve: How to Increase Email Open Rates with H2H Subject Lines

The Market Curve: How to Increase Email Open Rates with H2H Subject Lines

When it comes to building a successful startup, one of the most crucial factors to consider is the market you choose to serve. However, for many technologists, this is often a blind spot. Understanding the market size and potential is essential for the growth and sustainability of your business. So, before you dive headfirst into your venture, ask yourself these two questions: how many customers can you attract, and how much will they be willing to pay?

Knowing where your startup stands on the market curve is crucial in determining your sales strategy. If you are fortunate enough to have hundreds of high-value customers, you can allocate a significant budget for sales, implementation, and customer success to ensure their satisfaction. On the other hand, if you are targeting mass-scale consumer apps, such as free apps monetized through ads or optional subscriptions, your primary focus should be on scalability. Ask yourself, "How big can this get?"

While understanding the market curve is important for startups, it's equally important to consider how to increase email open rates for established businesses. The average email open rate across industries in 2022 is 19.66%. If your open rates are lower than this benchmark, there are two possible reasons: either your subscribers don't want to hear from you (which is unlikely since they signed up for your emails) or you're not framing your subject lines to show what's in it for them.

To improve email open rates, it's crucial to remember that people don't care about you or your product. Instead, they want to know that your email is written specifically for them. The job of the subject line is to make the reader feel that they want to open the email. Research has shown that personal gain is a much more effective motivator than social responsibility. For example, a study on solar adoption found that people were twice as likely to adopt solar power when the messaging focused on personal gain rather than social responsibility.

Curiosity plays a significant role in driving email open rates. Our brains release dopamine, a feel-good chemical, as a reward for satisfying our curiosity. Therefore, your subject lines should cater to at least one of the five dimensions of curiosity: deprivation sensitivity, joyous exploration, social curiosity, stress tolerance, and thrill-seeking. By creating subject lines that pique curiosity, you can increase the likelihood of recipients opening your emails.

Another strategy to improve email open rates is to utilize triggered emails. Research has shown that triggered emails perform almost twice as well as newsletters. Triggered emails have an open rate of 35.64%, while newsletters sit at 20.58%. Personalization is a key aspect of triggering emails, but it goes beyond simply adding a first name tag to the subject line. Surprisingly, open rates were found to be lower when subject lines included this type of personalization. Instead, specificity and a clear outcome in the subject line tend to yield better results. For example, subject lines with the word "now" have an open rate of 31.73%.

Considering that most people open emails on their mobile phones, it's crucial to optimize your subject lines for mobile viewing. While the average subject line is 44 characters long, mobile phones can only display around 33 characters in the field of view. Therefore, concise and impactful subject lines are more likely to catch the reader's attention.

In conclusion, understanding the market curve is essential for startups, while improving email open rates is crucial for established businesses. By focusing on personal gain, piquing curiosity, utilizing triggered emails, and optimizing subject lines for mobile viewing, you can significantly increase your email open rates. Remember, the market you serve and the way you communicate with your audience can make or break your success in today's competitive business landscape. So, take the time to analyze your market and refine your email marketing strategy accordingly.

Actionable Advice:

1. Conduct thorough market research to determine the potential size and profitability of your chosen market. Understand your target customers and their willingness to pay.
2. Craft subject lines that focus on personal gain and cater to the five dimensions of curiosity. Make readers feel that opening your email will provide them with valuable information or opportunities.
3. Optimize your email marketing strategy by utilizing triggered emails and personalization techniques that go beyond simply adding a first name tag. Additionally, ensure that your subject lines are concise and impactful, considering the limitations of mobile viewing.