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Email marketing performance stats and benchmarks

Posted by Sheera Eby on October 29, 2014

Email performance is generally equated to open, click-through and conversion rates. While some sources have reported a decline in the basic engagement metrics, it appears that email is trending toward great productivity among those users that do engage. Revenue per email, return on investment and other performance metrics show promise with upward trends. Here are 6 email facts and associated insights that can serve as benchmarks and direction for email marketing efforts.

 

1. Revenue per email is on the upward trend.
Experian’s 2014 Benchmark reported that revenue per email was $0.11 in the first quarter of 2014, compared with $0.10 in the last quarter of 2013. Furthermore, the same report stated that revenue produced by marketing emails increased nearly 10% and was “30% higher than in Q3 2012.”1 This trend should be encouraging to marketers. If your email program performance isn’t showing a growth in revenue, sign up for J&C’s “Learn How Triggered Emails Can Drive Revenue” session to get recommendations that can influence transactions and customer value.

 

2. Relevancy boosts email marketing performance.
Email segmentation is being used by more and more companies to create highly relevant content and increase performance. Marketers who invest in tailoring and relevancy of emails yield higher returns than those who use mass emails. Trigger-based communications helped the airline giant JetBlue increase performance by nearly 1,640% compared to standard promotional messages.2 In fact, almost 80% of ROI is generated from triggered, targeted and segmented email campaigns.1 These email facts demonstrate that sending broad messages to large target audiences isn’t a winning approach to email.

 

3. Email ROI benchmark agreed upon through multiple sources.
The evidence of a successful marketing campaign is often measured in terms of the return-on-investment (ROI) it yields. Although digital marketing has expanded into a wide range of channels, the most successful channel still tends to be email marketing. Multiple sources reports that for every $1 spent, the average return on email marketing investment was nearly $40 to $45.1 This number is corroborated through email facts the Direct Marketing Association has reported. The DMA reported that email marketing has a return on investment of 4,300%.3 This email fact is a good benchmark marketers can use in their planning. Beware though, most channels don’t work alone, so focus less on direct attribution, and more on what combination of channels, including email, yield the greatest productivity.

 

4. Email is most effective as a customer marketing tool.
Email is most effective when targeted to customers, or any user who considers having a relationship with that company. Within the customer population, those who are considered loyal or having a deeper relationship are likely to be even more responsive. One study found that loyalty program customers were 40% more likely to open a marketing email message, resulting in a 10% increase in revenue per email.2

 

5. 66% of consumers have made a purchase online as a result of an email marketing message.3
Customers are buying products and services from successful email marketing campaigns on a consistent basis. According to email facts from Experian, emails sent on Mondays have the highest revenue per email, although customers purchase all 7 days throughout a week.4 There is a strong argument not to be a follower here; test deploying emails on other less popular days. And determine which days make the most sense for your company to deploy emails. The 2012 Blue Kangaroo Study noted that 7 in 10 people say they make use of a coupon or discount from a marketing email that they received in the prior week.5 Adding offers and discounts is one good way to get customers to click through to a landing page.

 

6. Email contribution to overall revenue.
Email marketing is becoming one of the most attributable and productive channels of digital marketing. 54% of organizations generate 20% or more of overall revenue through email marketing.1 This email marketing fact demonstrates the role an effective email program can contribute to overall revenue and business growth.

 

Email facts can help marketers determine where there might be gaps in their campaign development. Are your marketing efforts meeting these benchmarks? Do you want help in analyzing your current email marketing efforts to increase their effectiveness? Sign up for J&C’s email marketing assessment and learn new techniques that can optimize your current marketing programs.

 

Sources:

Topics: Email Marketing

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