In Is Email Marketing Cheap — Or Does It Have A High ROI?, Chad White makes the case that how a business thinks about their email marketing is creating a huge gap in their results: “This gap is firmly in place and that the Haves, who correctly believe that email marketing has a high return on investment, are increasing their competitive advantage over their peers who chronically under-invest in their email programs.” This gap is widening. Businesses who invest in improving their email marketing programs are growing their market share at the expense of those who don’t.
Potential Email Marketing ROI
Investing in email marketing expertise drives profit. The better your strategies and segmentation, the higher the return. “The Direct Marketing Association says email marketing returns $43 for every dollar invested in it. While that’s incredibly impressive, it’s even more impressive when you realize that figure averages in a lot of low-performing programs. I know brands that are generating email marketing ROIs of $80, which they’re achieving with aggressive, smart spending on technology and services. ”
~ Chad White ~
How Important is Email Today?
An extensive analysis of the most effective mobile acquisition method determined that email is best. A LiveIntent study of 600+ premium publishers indicated email dominates mobile activity. Prior to the Email Summit 2015, MarketingSherpa surveyed 2,057 American adults in January 2015. 72% of those surveyed prefer that brands contact them using email. This video contains the top takeaways from this year’s best sessions:
- Email is the #1 method American adults surveyed prefer companies use to contact them
- Keep in mind that “you are not your customer”!
- B2B best campaign generated $21 million in sales using segmenting
- Easy method to segment your existing list
- Mobile marketing: unless your target audience is early adopters about half do NOT have smartphones yet
- Segment by purchase preferences and even sports teams or college attended
- Optimum email frequency: 86% B2C said at least monthly down to 15% who wanted daily emails
- Case Studies on how to segment lists to maximize results
- Segmentation revealed relative sizes of each segment and dropped unsubscribe rate 94%
- Tie your promotions to your target audience to increase retention rates
- A/B test design: content, subject lines, advertisements
- Simplify welcome email, then use drip campaigns to nurture and gather additional information – order matters
How to A/B Test Email
Businesses of any size can increase sales generated by email. The primary resource required is expertise which can be acquired. There are training solutions and ample videos and written information available online.
Major email solutions have now integrated built-in mobile optimization and split testing. Instead of having to use a separate testing solution, look for the ability within your existing solution. To better understand how this is done, see the video about A/B Testing email here.
Email Marketing Case Studies
There is ample evidence that improving email marketing can generate huge profits. In the MarketingSherpa library alone there are a multitude of case studies including:
- How a B2B company lifted conversion 200% with personalized email messages
- Simplifying email content increases open rates 48% for B2B company
- Email Preheaders Tested: The surprising sensitivity of a single line of text
- Education group utilizes A/B testing to increase open rates by 39%
It should be obvious that email marketing is growing in importance. It is not dying, but only those businesses willing to send their lists what they want will benefit. Isn’t it time to make email marketing a higher priority? Start with cleaning up your email list.
If you don’t have a dedicated email manager, now would be a good time to consider adding one. At a minimum, designate someone to carve out email marketing time. It takes time to test and analyze data. Email marketing has gone from somewhat boring to innovative, but many are being left behind. As Pamella Neely reported in Clever Innovations for 2015 and Beyond: “78 percent of marketers surveyed believe the biggest area of innovation in email over the next five years will be in personalization.”
Email personalization has been around as long as email. What can be done, today, though goes far beyond simply adding someone’s name. Improve your email marketing expertise, or lose market share to companies that will.