4 Email Data Points Support Increasing Budgets in 2016
Vendors have their own data as well. In 2014, Experian reported that the average ROI for a dollar invested in email was $44.25. Perhaps the most ambitious number I’ve seen is from Epsilon, which claimed, back in 2009, the DMA’s number was actually low if you take into consideration “the action that email drives offline and directly to Web sites, email marketing’s ROI is probably closer to $130 — about three times the DMA’s estimate.”
While these numbers can be a starting point when making the case for your budget, don’t focus too closely on them. In fact, the sagest data I’ve seen about email ROI comes with a very vague data point. Chad White, Research Director, Litmus, said.
“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.
To provide some context and help you be an informed consumer of information, Chad does work for an email vendor, so “aggressive, smart spending on technology and services” is to his company’s benefit.
That said, Chad does have an excellent point that is backed up by MarketingSherpa data. Email marketing was only producing an ROI for 60 percent of marketers when we last asked about this topic in December 2012.
This means, that in all of those average email marketing ROI numbers above, the “have nots” are pulling down the even better numbers generated by the “haves.”
It’s not enough to just send email to potential customers. As they increasingly demand more personal, more relevant, more helpful emails that provide a true utility in their life, it will likely take “aggressive, smart spending on technology and services” to be in the upper echelon of email marketing ROI. So remember Chad’s point when setting, and making the case, for your own budget.
Daniel Burstein is the Senior Director, Content and Marketing at MECLABS Institute. Daniel oversees all content and marketing coming from the MarketingExperiments and MarketingSherpa brands while helping to shape the marketing direction for MECLABS — digging for actionable discoveries while serving as an advocate for the audience.