Email Marketing ROI
DMA Report – Return on Investment
The Direct Marketing Association, the DMA have just released their latest report on email marketing’s ROI and there were some really positive findings. So positive in fact that we've taken the time to summarise them in this short article. So, if you were thinking about making email marketing part of your campaign then rest assured, you're not alone!
The DMA's report said "More than half of UK client-side email marketers anticipate increasing their 2014 email expenditure after ROI for the channel reached 2,500% in 2013". These figures are pretty impressive by anyone's standards. What this percentage means in real terms is that for every pound spent on email marketing in 2013, the average ROI was £24.93. For B2C campaigns this figure is even more impressive at an average £30.52 for every pound spent. It's usually our job to try to convince customers of the benefits of email marketing’s ROI but with results and figures like this it makes it a far easier task and will nudge some email fence sitters into action!
More Focus and Target
This increase in email marketing’s ROI, according to the report, is down to a more focused approach to targeted campaigns. This focused approach is achieved through an emphasis on list segmentation with more and more marketers segmenting audiences into 6 or more segments. These segmented emails accounted for over half off all revenue last year from email marketing according to the report and what's more "the percentage of revenue marketers attribute to targeted email has also risen from 30% of total revenue in 2012 to 39% in 2013".
Plus, social media platforms are being used, with impressive results, in a bid to acquire new email addresses. Once the email addresses are acquired, brands are able to engage with their consumers more than ever before.
The motivation behind email marketing campaigns is said to have shifted from a primary focus on retention to one on brand engagement. We're no longer just using emails to remind previous customers we're still here but to constantly engage with new ones.
The report also hints that automated campaigns, the likes of happy birthday and abandoned shopping cart emails, are becoming more effective as a marketing touch point. Combine this with your segmented lists and behaviours and habits you've deemed from social media activity and it's a three pronged attack on the consumers attention.
The report showed the most common types of email messages were, regular newsletters with nearly 60%, followed by welcome messages at 40% and thank you messages at 33% with no contact receiving any more than three emails per month.
On the UP
So, we can see that email marketing’s ROI is on the up, and we know what you're thinking – of course we're always going to try and tempt you to leave it to the experts but if you're going to do something you might as well do it right! Plus the DMA's report actually suggests that more and more brands will be looking outside of their in-house teams to outsource their email marketing in a bid to tap into its huge potential. Check out our email messenger to see how you can be sending mail shots, newsletter and email campaigns to existing and prospective customers in just a few easy steps.