Over recent years there has been a love-hate relationship with email marketing as digital marketing has matured, but the channel continues to hold it’s top spot for returning investment…
1. Email leading the ROI charts
73% of company respondants rate email marketing as ‘excellent’ or ‘good’ for the company when it comes to return on investment. This is up from 66% in 2015!
Only 5% rate email poor for ROI, in comparison to the 26% that rate online display adverting and 24% for mobile marketing.
This year email marketing has secured the top position from SEO by 9%
Here is a graph showing company respondents response to rating the following channels in terms of ROI (provided by Econsultancy)
Not enough budget allocated to email?
According to an Econsultancy chart on average, organisations in 2016 are sending 15% of their marketing budgets on email campaigns.
Over the past years, the chart/survey data shows a correlation between the amount of marketing budget allocated to email and the proportion of sales as a result of email.
Even though this shows there are results, it may also show an under-appreciation of the channel. Only 15% of the marketing budget accounts for 23% of total sales.
The Direct Marketing Association estimated that email marketing typically returns £40 for every £1 invested.
Though email solutions are easier than ever to use, there is still delay in uptake/use of automation, which can require lots of time and planning.
Results from an email marketing census suggests that automated campaigns are being targeted in 2016 with 34% focusing on this, 24% on segmentation and 22% on personalisation.
In order to reap the returns on automation the emphasised importance of having a strategy is vital. However, for all the attempts to ensure your content is better suited and relevant for the prospective user Zettasphere have warned that there is a lack of focus on list and data quality.
All graphs and charts provided by Econsultany