In business, the primary goal is to grow and profit. It’s important to leverage every marketing resource at your disposal and figure out which ones give you the best Return on Investment (ROI). In this day of digital marketing, most of society holds the entire internet at their fingertips. What about email marketing, though? Is there money to be made? What exactly is the value of email marketing?
While social media runs like lifeblood in most people’s lives, it would seem that social media marketing holds the highest ROI. However, you’d be incorrect in that assumption. Email marketing is the most effective marketing resource, with up to $40 returned for every $1 spent. Let's dive in deeper and learn the true value of email marketing.
The True Value of Email Marketing
We’ve come a long way since AOL and dial-up connections. Over 59% of marketers surveyed claim that email marketing is their best source of ROI. 83% of all B2B companies use e-newsletters as a key part of their marketing campaign.
With stats like that it's clear email marketing isn’t going away any time soon and that the value of email marketing isn't a fairy tale that's too good to be true.
Email marketing is also one of the least expensive options for marketing campaigns. With email marketing, you’ll see a higher interaction level with your website content and a significantly higher customer retention rate.
Demographics of Email Marketing
In 2019, it is expected that active email accounts will surpass 5.9 billion, according to HubSpot. That’s nearly 6 billion people with email accounts that are accessed at least 5 times per week.
Further, mobile devices account for 46% of all email opens. This means your business is at the forefront of consumers’ minds on the go. A large slice of the business professional demographic (35%) stated they check their email on a mobile device.
CMO by Adobe states that by 2020, Millennials will make up 30% of the retail sales in the US; that’s upwards of $1.4 trillion in buying power. The Millennial generation also leads the charge for technology adoption. Seventy-three percent of those Millennials say they prefer to interact with businesses through email.
Additionally, over 50% of the population checks their personal email at least 10 times per day. That’s a lot of opportunities to put yourself and your business at the top of their minds. On average, 99% of the consumer population will check their email at least once a day.
In 2017, 269 billion emails were sent and received every day. Most of those emails are business-related.
Different Types of Email Marketing Campaigns
According to research from Oberlo, 81% of businesses rely on email as their primary customer acquisition resource. Eighty percent rely on email marketing to retain the customers they’ve gained.
1. Segmented Email Campaigns
Let's just use what we call a "segmented email campaign" are our primary example of just how powerful email marketing is. Segmented email campaigns reach your customers multiple times from the “welcome to our company” email upon sign up, to the sales and specials you offer through the year. When your emails include coupons, you will see a significantly higher engagement rate.
With a controlled and segmented email campaign, you can see as much as a 760% increase in revenue. This is because segmented email campaigns put you in the consumer’s inbox with relevant information multiple times during the purchase process.
Tracking the success of a segmented campaign is easier than it seems at first. There are a few factors to consider when you’re assessing the success of any campaign. Tracking these factors will help you figure out where your customers are making the jump from “potential” to “purchase.”
This is the number of emails that get opened vs. the number of emails you send. With each wave of your campaign, you’ll want to see what emails are getting the most interaction. One way to ensure your emails are making it in front of consumer's eyes is to personalize the subject line and add an emoji or two. Emojis are shown to improve the open rate by 56% in most industries.
Click Through Rate
This is the rate at which links in your email are clicked on. When your emails take potential customers to your webpage, you ensure that people are seeing relevant information. When the information relates directly to their needs, they’re more likely to convert from looking to purchasing.
Purchase Rate/Conversion Rate
This is the key. With any marketing campaign, the conversion is the end goal. No matter what else you’re tracking, this statistic is going to give you the most information. It is critical to decipher which email in your campaign moved consumers from "looking" to “buying.”
A consumer needs to see or experience your product more than once before they remember it well enough to share it with others. In today’s online shopping society, it’s not uncommon for people to load up their shopping cart and abandon it before completing the purchase.
Oberlo shows research that sending “abandoned cart” emails up to 3 times after the cart was abandoned can result in 69% more orders than a single email. Further, emails sent after the purchase of an item or service show good customer service and bumps your company to the top of their minds again.
Talk about proof when it comes to the value of email marketing. Those are so pretty shocking numbers.
According to Campaign Monitor, email subscribers are three times as likely to share your business or products on social media, widening your exposure to their networks as well.
Further, including a call to action button on your campaign emails adds purchase convenience to their conversion process. You could see up to a 28% increase in click-through with a call to action button rather than a text link.
Marketing Funnel ROI
A surprisingly low percentage (30%) of businesses actually understand all of the factors that affect their ROI in the course of their marketing campaigns. It’s important to acknowledge that your ROI depends on a combination of tactics. It’s a lot of information to take on, and business owners already wear a lot of hats.
Working with a dedicated marketing company to create and maintain a targeted, segmented campaign is the best way to ensure that your strongest foot is always forward. Marketing can be a strange beast; that's why ALYKY has built a team of committed marketing specialists to take care of your business needs. After all, we have seen the value of email marketing in our very own experiences with clients.
Contact ALYKY today to discuss your email marketing needs and options. We’re eager to work with you and your company to create the strongest email marketing campaign possible.