Some think of email as an outdated technology, but that couldn’t be further from the truth. Not only is email usage steadily growing, with an expected 4.3 billion email accounts by the end of 2016, but the channel also provides a significant return on investment for businesses. In fact, email averages a $38 ROI for every dollar spent, with one in five companies seeing an ROI as high as 70 percent.
Despite the impressive numbers, only 15 percent of marketing budgets are dedicated to email marketing. Research suggests that a larger investment can produce greater results; companies that put at least 20 percent of their marketing budget into email are eight times more likely to see email leads responsible for more than 50 percent of sales.
ROI Goes Beyond Dollar Signs
While 26 percent of marketers deem email’s primary goal as driving revenue through sales, it’s not the only benefit. Email also cuts the cost of acquisition and retention while building long-term relationships.
Do It Right
Seventy-seven percent of email ROI is attributed to segmented, targeted and action-triggered campaigns. In other words, it pays to know your audience before setting up your campaign goals. Delivering the right message at the right time can make all of the difference.
Are you taking advantage of your email list? To find the answer, look at email marketing metrics like deliverability, click-through rates, list growth, email sharing and forwarding, and conversions.
For 60 percent of marketers, the effectiveness of an email campaign comes down to the conversion rate. But not every email campaign is sent with immediate sales conversions in mind. Focus on your specific goals when considering campaign results.