E-mails still occupy the first place for effective marketing. In the Return Path Report on E-mail Engagement Status, 2/3 respondents rated e-mail as "the most important" or "one of the most important marketing channels." most important »:
But there is also a trap. In the latest report of the Direct Marketing Association's Marketer Email Tracker (United Kingdom), 42% of respondents said that their main challenge was the limited budget, closely followed by limited internal resources ( 40% ).
I often hear this – email marketers know that their programs are effective, want to do more, but have trouble defending their investment interests. To help you, I've put together 10 of my favorite stories about "email value".
1. Intentions of Expenditure: The DMA Report (United Kingdom) indicates that 1/3 of respondents spend more than 20% from their global marketing budget to email over the next year. This corresponds to the 2018 email industry census report of Econsultancy, which indicates that 36% of people spending more than 25K for their programs e-mail, up five percent from 2013.
2. Return on Investment: Near Econsultancy respondents rated e-mail as excellent or excellent for return on investment ( 74%) – higher than any other channel or major marketing discipline, including SEO ( 70%) PPC ( 62% ) and Content Marketing ( 61% ]).
The DMA (UK) report indicates that the return on investment of e-mails is at £ 42.24 (instead of at £ 32.28  in 2018, more than to 30% increasing) . . This also reflects a GDPR ROI reported in the Litmus 2018 Report on E-mail Analysis Status. The average return on investment for EU shippers is at 49 against at $ 40 for US shippers.
3. Return on Investment – Per Channel: The US DMA response rate report for 2018 indicates the return on investment per channel. E-mails come in first with 145% of . For the other major online channels (paid search, online display and social media), the return on investment varied from to 20% to to 50%, while the return on investment of direct mail is 41 percent. (Note that the American DMA has a different calculation for the return on investment, including the cost per acquisition, which means that an identical comparison with the DMA figures of the United Kingdom is not valid).
4. Customer Lifetime Value (CLV): The Litmus report showed that last year's subscriber's lifetime value was ranked second 27% of respondents) in a basket of important measurements of the email marketing monitor. This year, this is the most important measure they wish to improve in measurement / monitoring ( 43%) .
With good reason too! The DMA report (United Kingdom) calculates the CLV at £ 37.32 per address (instead of £ 28.56 in 2018 – an increase of 30% ). A list of 1M addresses therefore £ 37m and the investments devoted to extending the life of the customers and / or reducing Waiting time lists should be framed in this context.
5. Value by e-mail sent: Cheetah Digital's Quarterly Email & Mobile Benchmark Report shows an income by e-mail from 0.08 (Q4 2018), against at 0.06 the previous year. On average, each 1M emails sent should generate $ 80,000 of revenue. Using Cheetah Digital's average single opening and click rates, we can also extrapolate the income by opening at 0.40 0.40 and the revenue per click of at 3, $ 45.
6. Opportunity Cost of Unsubscription : The flip side of CLV is the long-term cost of losing email subscribers. The IBM Watson Marketing Benchmark 2018 report shows the overall average unsubscribe rate (rebounds, unsubscriptions and complaints) from to 65% . Bluecore's Cost of Unsubscribe report shows a loss of $ 17.92 for each unsubscribe. An email list sent by 1M at a weekly frequency will lose by 6 M per year from the churn rate.
7. Cost Per Acquisition (CPA): Email also represents the best value for money for customer acquisition. The US DMA report states that CPA (the average cost of each new email client) is 22.52 USD . CPA for other major online channels (paid search, online display and social media) ranged from to $ 25.87 to at $ 43.28, while direct mail is the highest at $ 43.90.
8. The most effective marketing expenditure: The Econsultancy report analyzes the effectiveness of e-mail spending. Since 2014, the share of sales attributed to email marketing has averaged to 21% . For the same period, the share of the total marketing budget devoted to e-mail marketing was on average to 15% . We can deduce that the e-mail expenses exceed the general marketing expenses of 4X .
9. Even more effective against paid expenses: Recently, my colleague Gabriel Gastaud wrote a blog about 4 ways that the messaging channel contributes to online shopping. He identified e-mail as the 3rd source of traffic on the Web site ( 14.1% ), behind the only organic search ( 29.8% ) and paid search ( 17.7% ). E-mail is also the fastest growing channel, with an 8.1% year-over-year increase.
While e-mail traffic is ± 4/5 paid for by paid search, it is much cheaper. Research conducted in an article by The Drum showed that global e-mail marketing expenditures rose to [$ by $ [$ 720 billion] compared to [$1945million] dollars for paid searches. This means that e-mail expenses outweigh the paid research expenses of 25X !
10 Trigger: If you are now ready to spend more and say "great – but where is the best value?" Start with your triggered messaging strategy.
The state of emails published by Litmus in 2018 indicates 1/3 mail programs generate at least 25% of their revenues from automation. This is not a surprise – the Epsilon report on email trends and email references indicates that open rates triggered are almost double those of regular emails ( 51,7% against against 34,1% ), while the rates of clicks are more than doubled ( 6,9% against 3, 1% ).
In Bluecore's Triggered Email Benchmark report, the average revenue per e-mail triggered is slightly higher than $ 2.00, e-mails in the case of basket abandonment being more effective at 6.77 ! Cheetah Digital's quarterly e-mail reference report shows that the trick can be repeated, with e-mails from a four-part welcome series generating 2.14 0.79 to 0.19 and . ] 0.22 USD respectively – all much higher than [CheetahDigitals' benchmark at $ 0.08 reference!
If you have trouble convincing your stakeholders to spend more in email:
Evangelize for e-mail efficiency – highly!
Know your ROI and your CLV and frame your requests with these numbers.
Do not just think in terms of positive impacts, but also mitigate negative impacts.
Challenge lower-performing marketing channels for a portion of their budget.
Target planned spending where it will have the greatest impact.
Follow these tips, cite these statistics, and move to the forefront when it's time to prepare a solid case study to take your email program to the next level.