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What are best-in-class email acceptance, hard bounce, and block bounce rates for SaaS companies?

Summary

Achieving best-in-class email deliverability for SaaS companies requires targeting high acceptance rates (98-99%), very low block bounce rates (near zero), low hard bounce rates (initially 2-3% then <1%), and low complaint/spam rates (below 0.1% and 0.3% respectively). Regularly cleaning email lists and implementing email authentication (SPF, DKIM, DMARC) are crucial. SaaS providers serving multiple clients should prioritize a holistic approach to sender reputation and avoid over-reliance on industry-specific benchmarks. Metrics should be measured consistently against historical performance, and infrastructure comparisons can provide valuable insights. Data limitations and variations in how mailbox providers define metrics must be considered. Monitoring sender reputation indicators (complaint rates, spam traps, blocklists) and adhering to best practices are essential for maintaining a positive reputation and avoiding deliverability issues.

Key findings

  • Acceptance Rate: Target acceptance rates of 98-99%.
  • Block Bounce Rate: Aim for block bounce rates near zero.
  • Hard Bounce Rate: Keep hard bounce rates initially at 2-3%, then below 1%.
  • Complaint/Spam Rate: Maintain complaint rates below 0.1% and spam rates below 0.3%.
  • List Hygiene: Regularly clean email lists to remove invalid addresses.
  • Email Authentication: Implement SPF, DKIM, and DMARC.

Key considerations

  • Holistic Approach: SaaS providers need a holistic approach to sender reputation management.
  • Historical Data: Focus on measuring performance against historical data.
  • Infrastructure Comparison: Compare performance against providers on the same infrastructure.
  • Data Limitations: Be aware of data limitations and metric definition variations.
  • Sender Reputation Monitoring: Continuously monitor sender reputation indicators.
  • Proactive Compliance: Adhere to best practices to avoid deliverability issues and service limitations.

What email marketers say

10 marketer opinions

For SaaS companies, achieving best-in-class email deliverability involves targeting high acceptance rates (98-99%), low bounce rates (under 2%, ideally 1% or less), and very low complaint rates (below 0.1%). Maintaining a clean email list by regularly removing invalid addresses is crucial. Additionally, SaaS providers sending on behalf of multiple clients should focus on a holistic approach to sending practices, emphasizing sender reputation and monitoring performance against historical data. Email authentication (SPF, DKIM, DMARC) is essential, and industry-specific metrics should be viewed with caution. Comparing performance against other providers on the same infrastructure offers useful insights.

Key opinions

  • Acceptance Rate: Aim for acceptance rates of 98-99%.
  • Bounce Rate: Keep bounce rates below 2%, ideally under 1%.
  • Complaint Rate: Maintain complaint rates below 0.1%.
  • List Hygiene: Regularly clean email lists to remove invalid addresses.
  • Email Authentication: Implement SPF, DKIM, and DMARC for better deliverability.

Key considerations

  • Holistic Approach: SaaS providers should focus on overall sending practices to protect sender reputation.
  • Historical Data: Measure performance against your own historical data rather than relying solely on industry benchmarks.
  • Infrastructure Comparison: Compare performance against other providers on the same infrastructure for a more relevant assessment.
  • Customer Impact: Understand that issues with one customer can impact the deliverability of other customers.

Marketer view

Email marketer from Email Geeks suggests that a SaaS provider sending on behalf of multiple clients should not get bogged down in "industry specific" metrics from any vendor and instead take a holistic approach to sending practices across their entire user base in the context of protecting organisational sending reputation.

21 Nov 2024 - Email Geeks

Marketer view

Email marketer from Email Geeks shares his opinion that by viewing their collective performance they can view their own performance holistically within the context of other providers that share the same infrastructure. Asking how my customers and I compare to other service providers on the same underlying infrastructure is a reasonable question to ask.

23 Aug 2023 - Email Geeks

What the experts say

4 expert opinions

Experts indicate that for SaaS companies, block bounces should be near zero, with hard bounces initially ranging from 2-3% for first-time sends, then decreasing to under 1%. While deliverability metrics are valuable, they're inherently imperfect and data-limited. Maintaining a positive sender reputation involves monitoring complaint rates, spam trap hits, and blocklistings, coupled with sustained good sending practices. The usefulness of acceptance, hard bounce, and block bounce rates is also limited by data availability and variations in how mailbox providers define these metrics.

Key opinions

  • Block Bounce Rate: Aim for block bounces to be zero or very low (sub 1%).
  • Hard Bounce Rate: Hard bounces should range between 2-3% for the first email, then under 1%.
  • Metric Limitations: Deliverability metrics are imperfect and data-limited.
  • Sender Reputation Indicators: Complaint rates, spam trap hits, and blocklistings are key reputation indicators.

Key considerations

  • Data Availability: Be aware that the data available for deliverability metrics is often limited.
  • Provider Variation: Mailbox providers may define deliverability metrics differently.
  • Sending Practices: Sustained good sending practices are crucial for maintaining a positive sender reputation.

Expert view

Expert from Email Geeks states that block bounces should be zero or very low (sub 1%), and hard bounces should range between 2-3% for the first email to an address, then under 1% ongoing.

25 Aug 2023 - Email Geeks

Expert view

Expert from Email Geeks says deliverability metrics provide the best numbers we can get, but they’re also inherently inaccurate.

5 Jan 2023 - Email Geeks

What the documentation says

3 technical articles

Technical documentation emphasizes the importance of maintaining low bounce and spam rates for optimal email deliverability. Amazon Web Services advises keeping bounce rates below 5% and complaint rates under 0.1% to avoid account reviews and service limitations when using Amazon SES. Google's documentation indicates that a spam rate exceeding 0.3% can lead to deliverability problems with Gmail. RFC documents identify hard bounces as permanent delivery failures, signaled by 5xx SMTP error codes.

Key findings

  • Amazon SES Bounce Rate: Keep bounce rates below 5% on Amazon SES.
  • Amazon SES Complaint Rate: Keep complaint rates below 0.1% on Amazon SES.
  • Gmail Spam Rate: Maintain a spam rate below 0.3% to avoid Gmail deliverability issues.
  • Hard Bounce Codes: Hard bounces are indicated by 5xx SMTP error codes.

Key considerations

  • Sender Reputation: High bounce and complaint/spam rates negatively impact sender reputation.
  • Service Limitations: Exceeding threshold metrics can lead to account reviews and service limitations with providers like Amazon SES.
  • Technical Understanding: Understanding SMTP error codes aids in identifying and addressing hard bounce issues.

Technical article

Documentation from Google explains that a spam rate consistently above 0.3% will cause deliverability issues with Gmail, as provided by the Google Postmaster Tools.

2 Dec 2021 - Google

Technical article

Documentation from Amazon Web Services explains that keeping bounce rates below 5% and complaint rates below 0.1% helps maintain a good sender reputation when using Amazon SES. High bounce and complaint rates can lead to account reviews and potential service limitations.

28 Mar 2023 - Amazon Web Services

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