Why Email Marketing Is Still In Vogue
How effective is email marketing?
- Email advertising is cheap and produces a significantly higher ROI than traditional forms of direct marketing: 1) Sales generated in 2009: Direct marketing - $2149.6b.; Email marketing - $32.6b.; 2) Advertising spending in 2009:
Direct marketing - $183.1b.; Email marketing - $0.7b.; 3) ROI in 2009: Direct marketing - $43.52b.; Email marketing - $11.74b.
- Projected spending on email marketing: There is a projected 11% increase from 2010 to 2014.
- Email marketing costs are extremely low compared to the alternatives. One survey in 2008 found that retailers spent on average US$6.85 per order, nearly the lowest of any form of online marketing.
Targeting and execution directly affects campaigns performance
- Open, click-through and conversion rates of each type of email marketing campaign: 1) Open rate: Untargeted emails ~ 20%; User-triggered campaigns ~ 27%; Lifecycle messaging campaigns ~ 26%; Clickstream-based
campaigns ~ 33.5%; 2) Click-through rate: Untargeted emails ~ 9%; User-triggered campaigns ~ 9%; Lifecycle messaging campaigns ~ 9%; Clickstream-based campaigns ~ 14%; 3) Conversion rate: Untargeted emails ~ 2%; User-
triggered campaigns ~ 3.5%; Lifecycle messaging campaigns ~ 3.5%; Clickstream-based campaigns ~ 4%.
Text drives more email click-throughs than images
- In a Jupiter research Survey, consumer recipients revealed what prompted them the most to open and respond to emails from email marketers: 1) Products or services featured ~ 53%; 2) Written copy ~ 39%; 3) Subject line ~
34.5%; 4) Compelling offers ~ 32%; 5) A single large image ~ 12%; 6) Multiple smaller images ~ 9.5%; 7) Search box within the email ~ 6.5%; 8) Recipients get text-only email ~ 2%.
How small businesses use email marketing
- How small businesses utilize email marketing: 1) Newsletters - 55%; 2) Announcements - 18%; 3) Sales and promotional offers - 18%; 4) Event invitations - 5%; 5) Customer surveys/polls - 3%; 6) Other - 1%.
- Percentage of small businesses who: 1) Use email marketing - 44%; 2) Plan to be using marketing in the next year - 36%; 3) Don't use email marketing and have no plans to begin - 18%.
- How small businesses measure the success of email marketing campaigns: 1) Click through rate ~ 63%; 2) Response rate to campaign ~ 50%; 3) Lead results from campaign ~ 47%; 4) Favorable feedback ~ 49%; 5) Percentage of
emails opened ~ 45%; 6) Number of people that opt in or opt out ~ 26%; 7) Number of people that forward emails to friends ~ 26%.
FlowTown | Sources: Graphicmail.com; Forrester.com; Bloomtools.com; Campaigner.com.