Email Marketing Yeilds Better Roi


Many webmasters and owners of E businesses have started doubting the relevance of email marketing.  Most of them often wonder what all the fuss is about. Didn’t spam kill email as a marketing vehicle? And if spam didn’t kill it, what about blogs, Twitter and all the other clever ways we can communicate online? Isn’t email outmoded?

Those wondering about the benefits of email marketing in today’s ever-changing online and marketing environment will find the answers below.

It works. Really works.

Businesses engage in email marketing because it works. And works wonders. Here is how….

  • The Direct Marketing Association( US) puts email marketing’s ROI for 2011 at $40.56 for every $1 invested. The figure for 2012 is predicted to “fall” to $39.40, when email will account for $67.8 billion in sale

  • 72% of respondents to an Econsultancy survey in early 2011 described email’s ROI as excellent or good. Only organic SEO scored better( see the chat below)

  • A 2011 MerchantCircle survey of over 8,000 local business owners in the US found email marketing cited by 35.8% as a Top 3 most effective marketing or advertising method. Only social network profiles and search engine marketing scored higher.

  • A 2011 business survey by Ireland’s Marketing Institute saw 84% claiming email marketing was important or very important to their marketing strategy.

  • In a 2011 Focus survey of marketers, the channel cited most often as the best performer over the previous 12 months was email.

Pie chart showing ROI figures for various advertisement media.

In emerging economies like India more and more businesses (almost 86%) are opting for the email marketing as an important tool to communicate with target audience. The year 2011 was especially important in this regard as 86% of top Indian marketers confirmed their use of this channel as the most vital client engagement platform.  The prime use of email marketing in 2011 was customer acquisition. For majority of Indian marketers this platform proved its effectiveness (97%) and a substantial number of marketers are using this platform for daily communications (34%) with their audiences.  Overall the use of e-Marketing platform in 2011 was focused on sending promotional communications (62%) and newsletters (52%).

In terms of budget allocation on email marketing platform, 36% of Indian marketers’ have invested more than 10% of their marketing budgets in 2011. In terms of generating sales through online medium, it is interesting to know that 46% of marketers are generating more than 10% of their sales online. It is not surprising that marketers plan on considerably increasing their budgets towards email and SMS marketing in 2012. 72% of leading marketers have reported of their plans to increase investments in email marketing platform in 2012. With increase in budget allocation, there is a positive outlook for email marketing platform in 2012. Customer acquisitions remain to be the prime goal of Indian marketers (59%). According to leading marketers of India, the top three online investment channels for 2012 are Social media, Email marketing and Search marketing. In email marketing, the main challenges faced by marketers in India are ‘Reaching Inbox’ & ‘Building Subscriber Lists.

Why it works

Email marketing works for a variety of reasons…

  • It allows targeting

  • It is data driven

  • It drives direct sales

  • It builds relationships, loyalty and trust

  • It supports sales through other channels

Modern email marketing services and solutions support database integration, segmentation and various other tricks and techniques for improving the targeting of outgoing messages. Advanced methods generate on-the-fly emails customized down to an individual recipient basis.

And every email campaign which is sent out generates a heap of actionable data one can use to refine approach and messages.

Email promotions and offers generate immediate action: sales, downloads, inquiries, registrations, etc. Informative email newsletters and other emails send people to offline stores and events, prepare the way for catalogs, build awareness, contribute to branding, strengthen relationships, encourage trust and cement loyalty. So don’t hesitate to initiate. 

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