Email marketing has always been one of the core digital marketing techniques in the marketing-mix. I was honered to author this year’s National Client Email Report for the DMA UK and Email Hub. The report is based on a survey of client-side Marketing Professionals on the use and results of the email channel. What are the main conclusions from the report?
Conclusions from the Client Email Report 2015
Email marketing continues to deliver a strong performance for brands and marketers. It is used by over 90% of businesses and provides a cost-efficient and powerful way for both broadcasting news and one-to-one communications.
Email marketers are building a strong business case with a high ROI and less internal constraints.
- Email has an average ROI of $38 for each $1 spent. A big increase over the 24.93 reported in 2013.
- One in five companies report an ROI of over 70:1 .
- Internal resources and budget limitations are less often a constraint for campaign success.
- Over half of all respondents anticipate their company’s spend on email to increase during 2015.
Increased use of targeted campaigns and advanced tactics lead to higher effectiveness.
- Regular newsletters are classed as the most effective way of delivering email content to achieve campaign objectives, yet with a particular focus on segmenting the target audience based on purchase habits.
- Triggered and behavioural driven email marketing drive more revenue than in previous years, with a reduction in blanket email marketing.
- The overall expertise seems to be on the increase as only 12% of respondents rate their company’s competence as basic compared with 22% last year.
- 78% of marketers rate their company’s competence in email marketing as either intermediate or advanced, up from 70% last year.
9 out of 10 clients perceive email marketing as a channel of importance to great strategic importance for achieving business goals.
- The survey shows lower levels of ambivalence around the email marketing channel.
- A high proportion of companies’ email programmes remain managed in-house, with a slight shift from services outsourced to ESPs towards in-house management.
Direct revenue is most often a key email marketing objective and email marketing campaigns are very effective in delivering it.
- Driving revenue through sales tops the list of prime objectives, with over a quarter (26%) of marketers seeing it as the most important goal.
- Marketers are aware of the need for engagement with one in five (22%) naming it their prime objective.
- 60% of marketers use conversion rates to evaluate email campaigns effectiveness.
Trends reflect a positive outlook and a need for focus on data quality.
- Mirroring this, over the coming 12 months delivery, open, conversion and click-through rates are predicted to rise further, possibly led by the increase in advanced email marketing tactics.
- Data degradation is the fastest growing barrier to effective email marketing while data availability is less of a concern.
Email marketing more vital and effective by taking an integrated approach
Like Chris Combemale, the executive director of the DMA says in the intro of the report: “When done well, email stands as one of the most effective ways to reach target audiences.” By taking an integrated approach and especially when combined with new media, Conversion Rate Optimization and Marketing Automation it helps bring the right message to the right audience. Email marketing is changing, and this change is making it more vital, more effective.
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[…] use a wide variety of approaches to reach prospects and customers via email. According to the 2015 National client email report by the DMA, newsletters, welcome messages, and customer surveys remain the top three ways for email […]
[…] use a wide variety of approaches to reach prospects and customers via email. According to the 2015 National client email report by the DMA, newsletters, welcome messages, and customer surveys remain the top three ways for email […]
[…] use a wide variety of approaches to reach prospects and customers via email. According to the 2015 National client email report by the DMA, newsletters, welcome messages, and customer surveys remain the top three ways for email […]
[…] use a wide variety of approaches to reach prospects and customers via email. According to the 2015 National client email report by the DMA, newsletters, welcome messages, and customer surveys remain the top three ways for email […]
[…] use a wide variety of approaches to reach prospects and customers via email. According to the 2015 National client email report by the DMA, newsletters, welcome messages, and customer surveys remain the top three ways for email […]
[…] use a wide variety of approaches to reach prospects and customers via email. According to the 2015 National client email report by the DMA, newsletters, welcome messages, and customer surveys remain the top three ways for email […]
[…] that email marketing is capable of offering is next to no other marketing tool. According to the DMA National Client Email Report 2015, for every $1 that you spend on email marketing, you get a return of […]
[…] to look at when assessing the efficiency of a particular email campaign. According to DMA’s National Client Email Report 2015, CTR is actually the top performance indicator used to evaluate effectiveness, followed by […]
[…] to look at when assessing the efficiency of a particular email campaign. According to DMA’s National Client Email Report 2015, CTR is actually the top performance indicator used to evaluate effectiveness, followed by […]
Hey Jordie,
This all sounds quite exciting. I myself prefer to read offers via email that I have opted into, than to click on banners and ads on various websites. In fact, I have add-ons in my broswer that automatically turn off ads. Email marketing gives freedom to people to read what they really want to read about versus thrusting unwanted advertisements on them.
Best,
al
[…] invested. And more recently marketing consultant Jordie van Rijn found email (in the UK) to have an average ROI of $38 for every dollar spent, up from $24.93 in 2013, as reported in the National Client Email Report for the DMA UK and Email […]
[…] o Relatório anual de Resultados de E-mail Marketing de 2015 (ver relatório em inglês) o e-mail marketing teve um ROI (Retorno sobre investimento) de […]
[…] Mobile Open Rate (współczynnik otwarć na urządzeniach mobilnych) wyniósł w 2015r. 53%. Nigdy nie był tak wysoki (Email Monday) […]
Do you think that the statistics and trends mentioned in this report reflect those happening in the US in 2016? Or do you know of a similar report using US-based data and company feedback?
I wondered this same thing — this is in pounds (UK), right?
Hi Jessica and Sara, yes this report is based on primarily UK respondents.
The ROI question was in pounds namely “How much is the approximate return you get back for every pound spent on email marketing?” but as the outcome is a Ratio the currency doesn’t matter.
Oh I know the currency doesn’t matter, but surely the results would be far different in the UK than in the US? I only meant that pounds had me suspicious that it was only about UK email marketing. :)
[…] email resulted in an average conversion rate of 3.19 percent. This fact was further bolstered by data from the Direct Marketing Association that revealed that marketers can expect a ROI of $38 for every $1 they invest in email […]
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Dear Jordie,
I’ve tried bulk emailer companies and have been royally ripped off. One clown offered us 1,000,000 emails including a email-landing page for only $500 (that’ dirt cheap). The problem was that the emails were not to real people. We got zero sales. Just a few thousand fake website visitors. Believe me. I know that zero sales HAS to be fake. The fraud email company is headed by “Shawn”. Do no business with Shawn!
What I need to know is typical “conversion rates” ROI means nothing to me if the average item sold is $1000. I have many cheap products in the under $100 range. No one seems to track conversion stats – just ROI. Conversion is routinely guessed at by scammers to be in the 1% conversion range. I flat out do not believe even 0.1%.
Everyone knows that conversion rates depend on the product and the price. That’s obvious. But when you know for sure that a particular product “can be used by every single person” (there are some like that) what would be a typical conversion rate? Any case studies. Opinons are a dime a dozen.
I don’t have to have one of the rare cases where their product can be used by everyone. I can do the math if a product can only be used by 10% of the market to arrive at conversion rates for products than can be usd by everyone.
I don’t know why this smple and yet valuable question seems to not be collected. It’s crucial.
Look forward to an intelligent reply.
Ron
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The DMA data over-states the ROI situation. I agree that their measures identify significant revenue generation but that is not what ROI is concerned with. ROI is a measure of profit achieved as a consequence of investing in a balance sheet asset.
What the DMA data shows is cost effectiveness and whilst it it a useful base for comparison with other communications it won’t be understood as ROI in the Board Room.
Futhermore, since research continually reports that no more than a third of organisations can measure their data with precision those responding to the DMA data are at least atypical. This fact of inadequate measurement is even more important when attribution is considered. Sales are not linear they are the result of multiple contacts. If the data provided is based solely on last touchpoint criteria then, logically, all previous communications must have a zero value and ought to be stopped. This isn’t correct either.
I don’t doubt that email marketing has a value. I am more concerned that we aren’t using sufficiently robust measurement criteria.
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Here Here no guesswork for me today… Have a good one all…
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[…] By the end of 2020, the number of email users will grow to be 3 billion worldwide. Additionally, email has an average ROI of $38 for every $1 spent. […]
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[…] By the end of 2020, the number of email users will grow to be 3 billion worldwide. Additionally, email has an average ROI of $38 for every $1 spent. […]
[…] By the end of 2020, the number of email users will grow to be 3 billion worldwide. Additionally, email has an average ROI of $38 for every $1 spent. […]
[…] By the end of 2020, the number of email users will grow to be 3 billion worldwide. Additionally, email has an average ROI of $38 for every $1 spent. […]
[…] By the end of 2020, the number of email users will grow to be 3 billion worldwide. Additionally, email has an average ROI of $38 for every $1 spent. […]
[…] By the end of 2020, the number of email users will grow to be 3 billion worldwide. Additionally, email has an average ROI of $38 for every $1 spent. […]
[…] By the end of 2020, the number of email users will grow to be 3 billion worldwide. Additionally, email has an average ROI of $38 for every $1 spent. […]
[…] By the end of 2020, the number of email users will grow to be 3 billion worldwide. Additionally, email has an average ROI of $38 for every $1 spent. […]
[…] By the end of 2020, the number of email users will grow to be 3 billion worldwide. Additionally, email has an average ROI of $38 for every $1 spent. […]
[…] By the end of 2020, the number of email users will grow to be 3 billion worldwide. Additionally, email has an average ROI of $38 for every $1 spent. […]
[…] By the end of 2020, the number of email users will grow to be 3 billion worldwide. Additionally, email has an average ROI of $38 for every $1 spent. […]
[…] By the end of 2020, the number of email users will grow to be 3 billion worldwide. Additionally, email has an average ROI of $38 for every $1 spent. […]
[…] By the end of 2020, the number of email users will grow to be 3 billion worldwide. Additionally, email has an average ROI of $38 for every $1 spent. […]
[…] By the end of 2020, the number of email users will grow to be 3 billion worldwide. Additionally, email has an average ROI of $38 for every $1 spent. […]
[…] By the end of 2020, the number of email users will grow to be 3 billion worldwide. Additionally, email has an average ROI of $38 for every $1 spent. […]
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[…] it’s 100% true. With email marketing, you earn nearly $38 return on every $1 spent. This is the highest return on investment compared to any other marketing channel. That’s the […]
[…] is very high: According to Email Monday, for every one dollar spent on email marketing, there is an average return of 38 dollars. That is […]
[…] email marketingre, és év végére közel 10 000 000 Forintot hozna neked vissza? Egy 2015-ös tanulmány alapján ez megvalósítható, mivel átlagosan minden, email marketingre elköltött 1 dollár 38 […]
[…] That confidence has paid dividends over the years in favor of email. For one, it’s 40x more effective compared to social media when it comes to making a sale. Also, for every dollar spent on email, you can expect an ROI of $38. […]
[…] success is only amplified by other digital marketing channels. Email has been shown to generate an average of $38 for a single dollar spent. That means email ROI can be a whopping 3,800% when done […]
[…] Statistics show that the average ROI of emails stands at $38 for every $1 spent. This proves why email is still the preferred choice of most businesses. […]
[…] Statistics show that the average ROI of emails stands at $38 for every $1 spent. This proves why email is still the preferred choice of most businesses. […]
[…] Statistics show that the average ROI of emails stands at $38 for every $1 spent. This proves why email is still the preferred choice of most businesses. […]
[…] Statistics show that the average ROI of emails stands at $38 for every $1 spent. This proves why email is still the preferred choice of most businesses. […]
[…] is said that email has an average ROI of $38 for each $1 spent… and you are able to see the results of your email marketing with the right […]
[…] studies that show a $38 ROI for each $1 spent on email marketing (source), it’s no surprise that email is a major focus for many businesses, both large and […]
[…] O email também é mensurável em todas as etapas, ajudando você a entender onde estão os acertos e erros do seu processo: o ROI do e-mail marketing é 3.800%! […]
[…] Email has an average ROI of $38 for each $1 spent […]
[…] Email has an average ROI of $38 for each $1 spentSegmented campaigns can have as much as a 760% increase in revenueEmail is 40 times more effective at acquiring new customers than Facebook or Twitter […]
[…] Email has an average ROI of $38 for each $1 spentSegmented campaigns can have as much as a 760% increase in revenueEmail is 40 times more effective at acquiring new customers than Facebook or Twitter […]
[…] studies that show a $38 ROI for each $1 spent on email marketing (source), it’s no surprise that email is a major focus for many businesses, both large and […]
[…] the years email has been considered “dead” many times. But, with an ROI of $38 for every $1 spent email marketing is still the most effective channels of communication with your […]
[…] Statistics show that the average ROI of emails stands at $38 for every $1 spent. This proves why email is still the preferred choice of most businesses. […]
[…] soon. According to HubSpot, 99% of consumers check their email daily. Email also generates $38 for every $1 spent, totaling a 3,800% […]
[…] email marketing makes it a perfect tool to integrate with SEO campaign. According to the reports, e-mail has an average ROI of $38 for each $1 spent, i.e. 3800% ROI which is […]
[…] studies that show a $38 ROI for each $1 spent on email marketing (source), it’s no surprise that email is a major focus for many businesses, both large and […]
[…] Email has an average ROI of $38 for each $1 spentSegmented campaigns can have as much as a 760% increase in revenueEmail is 40 times more effective at acquiring new customers than Facebook or Twitter […]
[…] to the DMA National Client Email Report, every $1 spent on email marketing leads to $38 in revenue. Another report by Campaign Monitor […]
[…] it’s numbers as evidence that you are looking for Email Monday have shown that amazingly, email marketing generates $38 for every $1 spent, how’s that for an […]
[…] or some other channel. It’s informative, cordial, unintrusive, and most importantly it pays off. Email marketing specialist Jordie van Rijn found that email returns about $38 for every $1 spent… which is an impressive 3800 percent return […]
[…] effective ways of marketing to your customers online. Some estimates claim it can net you up to a 3800 percent return on investment! But in order to run a successful email marketing campaign, you’ll need to create a list of […]
[…] in five companies reports an ROI of over 70:1 for email […]
[…] you know that by sending an email newsletter to customers, you could earn an average of $38 for each $1 spent? In fact, one in five companies reports almost twice that much. You might think that creating an […]
[…] nurturing/scoring. Research by the DMA showed that triggered and behavioral driven marketing drive more revenue than in previous years, with a reduction in batch and blast email […]