Email Marketing ROI
You spent $1,000 on your email marketing campaign. But how much did it bring in? To determine how valuable your investment was, you need your email marketing ROI. Email marketing ROI (return on investment) is a measure of your revenue from email marketing. With email marketing ROI metrics, you can determine how successful your campaign is.
Taken as a whole, your email marketing ROI metrics can be compared to other channels, such as social media marketing ROI. You might see that your email marketing ROI is 400% but your social media marketing ROI is 200%; in that situation, you would know that you should invest more in email marketing than social media. You can review an eMarketer study to see why.
You can additionally compare your email marketing with itself. If your average ROI on email marketing is going down steadily, you know that you may have saturated your market or may need to change your campaigns. You can compare different email campaigns as well, to determine which campaigns are going to be most successful.
There are different types of email marketing. Traditional email marketing involves sending emails, often customized, to potential and existing customers. Email signature marketing involves marketing to customers through text and banners inside an email. Email marketing ROI can also be used to compare these different methods and see which methods are most effective for you. Meanwhile, email marketing conversion rate will tell you the raw effectiveness of your strategy.
Without ROI, it’s difficult to improve upon your email marketing strategies. You can’t tell how effective those strategies are, because you can’t compare how much you’re spending to how much you’re bringing in. Nevertheless, email marketing ROI can be a challenge to capture because it isn’t always immediately obvious where customers are coming from. Without the right tracking (and analytics and software platforms), it can be difficult to map out the entire customer journey. The average email conversion rate 2020 and the B2B email marketing benchmarks (2020) can start you off on the right track.
Email Marketing Strategy
Before you start calculating your email marketing ROI, you need to develop an email marketing strategy. Your first stop can be DMA Email Marketing (the Direct Marketing Association) or Emarketer Email Marketing. Both of these websites have in-depth information on developing email marketing strategy, to include email marketing stats, benchmarks, and best practices. This will start you on your course to develop a better email marketing strategy — but you might still need some more information about email signature marketing.
(There has been a Direct Marketing Association name change, but searching for Direct Marketing Association email marketing ROI should give you the right email marketing stats 2020.)
According to an eMarketer study, the median email marketing ROI is 122%. But it can be improved through the use of email signature marketing, which you can learn more about through Terminus. DMA email marketing statistics already paint email marketing in a very positive light. But email signature marketing adds another layer of potential engagement.
Through email signature marketing, companies are able to better extend their brand, engage customers in sales and promotions, and customize emails toward their customers. Email signature marketing allows companies to take advantage of the digital real estate an email represents — thereby serving up what can essentially be free advertising the company. It can be a boost to email marketing ROI and an email marketing strategy unto itself.
Even though email marketing has great ROI, that doesn’t mean that companies should just jump into marketing without a strategy. Without a strategy, it’s possible to pump a lot of money into email marketing without any significant yield. The strategy is what makes it possible to improve.
Email Marketing Metrics
To track the success of an email marketing campaign, marketers need to track a number of critical email marketing metrics. Some important metrics include email marketing conversion rates, email marketing ROI statistics, email opens, clicks for business email statistics, click-through rates, unsubscribe, and contacts. It’s difficult to compare marketing campaigns to other marketing campaigns because every company has differing business email statistics and because email marketing statistics by industry vary.
Rather, most individuals are going to compare marketing metrics with themselves. If your unsubscribe rates are going up, you know that you aren’t providing interesting information to your customers. If your click-through rates are going up, you know that you’re providing interesting and engaging information. These metrics make it easier to track whether your campaigns are improving or whether they could be waning.
But what if your email marketing statistics are trending downward? Then it may be necessary for the marketing strategies to be shifted. Many companies aren’t properly utilizing email signature marketing, which can be just as impactful as email marketing. Email signature marketing uses the signature of emails as essentially a marketing banner, potentially making it far easier to improve customer engagement and brand identification.
Many companies aren’t leveraging email signature marketing, which is essentially free advertising space. But a platform like Terminus can help companies create and manage their email advertising as well as tracking core metrics. Before you start with your email marketing strategy, you should consider what you want to gain through email marketing. Do you want more engagement? Do you want more prospects? Or do you want straight conversion?
Email Marketing 2020
Email marketing has existed for nearly as long as the internet itself. What can we learn about the way that email marketing 2020 has evolved? Many have moved on to social media, but this is a mistake — email marketing still has the most significant ROI of any type of advertising. And it’s free.
Email marketing benchmarks by industry 2020 can vary; email marketing tends to be more valuable for B2B companies and high-value companies, but B2C companies can yield great success as well.
Some core email usage statistics 2020:
- Today, 21 percent of individuals check their email five times or more a day. While there’s a lot of advertising in emails, a lot of people are also paying attention. Nearly everyone today, regardless of age or other demographic, has an email account.
- The average email conversation rate 2020 is 15.11%. This has been going down over time, but it’s still far greater than most advertising. Advertising digitally is becoming more competitive across the board, and email marketing is one of the few channels that has not been overwhelmed with advertising.
- Average email marketing ROI 2020 amongst all types of companies varies but can be up to 3,800%. Email marketing costs nearly nothing, especially when it comes to email signature marketing.
How, B2B email marketing benchmarks (2020) will vary for company, so if your email ROI 2020 isn’t as high as it should be, it may not indicate a problem with your strategy. It’s more important to compare your B2B email marketing statistics 2020 with your own year-over-year performance. Still, a DMA national client email report 2020 or DMA email benchmarking report 2020 can be used to determine your general areas of improvement.
Email Marketing Statistics 2021
2020 through 2021 has been a unique year because people have been online more and because they’ve been doing more shopping online. When we look at email marketing statistics 2021, we also need to consider that the email marketing stats 2021 will be thoroughly altered by the pandemic; email marketing benchmarks by industry 2021 will be strongly relative to whether those industries were impacted. The average email open rate 2021 for, for instance, travel agencies are very likely to experience a downturn, whereas the average email open rate 2021 may have improved for niche home goods.
The email marketing ROI 2021 depends vastly upon industry and impact. But we can still see general trends in email marketing facts 2021 even if the email ROI 2021 may not be greatly improved since 2020. Some important email usage statistics 2021 include:
- 87 percent of marketers are using email as a distribution channel.
- Email is being used primarily to secure, nurture, and convert leads, rather than extend brand awareness.
- Email is only slightly less likely than LinkedIn to be used to share business-related content.
For more email marketing statistics, the email marketing statistics 2021 HubSpot reports can help. HubSpot has some of the most up-to-date email statistics 2021, including global statistics such as email marketing stats 2021 UK. Overall, it’s clear that email marketing is one of the best in terms of ROI — especially because it simply has such a low barrier to entry.
Email Marketing Effectiveness
If you really want to understand your email marketing effectiveness, you may need an email marketing calculator. You can go to Sendgrid or Twilio for an email conversion rate calculator or an email value calculator. Although you may not be perfect with your calculations, a tool like this can help your team set expectations.
Calculators help you set milestones and goals. You input your current metrics into an email conversion rate calculator, and you can see how much you can expect to convert — which in turn lets you project your potential revenue. An email value calculator can likewise determine the value of the emails you send. Both the Sendgrid ROI calculator and Twilio ROI calculator will tell you your return on investment. An email marketing ROI calculator provides simple calculations that are nevertheless very impactful.
Not only do you want to know how much you’re gaining (so you can determine how much you want to invest), but you also may want to see whether your ROI is going up or down month-over-month, quarter-over-quarter, or year-over-year. ROI is especially important when used internally, rather than externally, because it indicates whether your email marketing techniques are still effective.
And if your email marketing campaign is no longer effective, it could be time to change your strategies. Companies can invest more in their email signature marketing to get more bang for the buck with each individual email. One of the major benefits to email signature marketing is that it costs nothing to add email signatures to your existing marketing campaigns. And the email signature marketing strategy can be integrated with and blended into other marketing strategies, to extend brand awareness and brand identity — something that is frequently not integrated into an email marketing campaign.