The ROI of Email Marketing: Better Returns on Content Creation
Understanding the ROI of Email Marketing is crucial to the modern marketing professional. We all know that email nurturing is important and we spend lots of time creating beautiful content but how do we understand its impact and why is it important to know the ROI of our work?
The answer lies in the way that we measure our results. The ROI of Email Marketing is important because it shows the value of creating email nurture campaigns and getting a better return on content creation. The reason why knowing your ROI is so critical to marketing professionals today is because companies are making less returns on ad spend across all channels, not just social media or search but also TV, radio and print ads too (Collins). The unfortunate thing about this trend isn’t only that marketers need to get more creative with how they attract new customers; there simply aren’t enough resources anymore for most businesses to market their products through multiple mediums.
The ROI of Email Marketing by Industry
Depending on the industry you’re in, you might see different returns on investment for email marketing. Litmus surveyed over 2,000 marketers and found that industries such as media and publishing see a 32:1 return whilst e-commerce businesses see a whopping 45:1 return.
Clearly, there’s a good reason to spend time getting email marketing right and if you’re in a product-based industry then you’ll see a better return.
Ways to Increase Email ROI
So we know it’s important but how do we get the most out of email? Here are a few strategies to increase email ROI.
This is where you use data to personalise your emails. The content of the email will change depending on things like a customer’s location or previous purchases, giving them more relevant information that appeals directly to their needs and what they care about.
It might sound complicated but there are tools out there that make it easy for marketers. The results speak for themselves with dynamic emails achieving click-through rates three times higher than non-dynamic ones! They also see an increase in revenue per e-commerce order by 12% too so why wouldn’t you use it?
Social Media Content Linking
If you’re running social media campaigns then this idea could really work well for you. You can create content specifically designed to be shared around social
Businesses that use A/B testing in their emails generate an 82% higher ROI against those who don’t use any sort of A/B testing.
Making use of animated GIFs in emails sees a high 105% increase in ROI versus not using any sort of animation in their email. GIF’s done right can show your audience your brand personality and exemplify the reasons your audience connected with you in the first place.
When using GIF’s ensure you test in all major email clients as some don’t support them so you’ll want to make sure your contacts aren’t receiving a broken image. Also, without getting too stuck into email loading, make sure you optimise your GIF’s properly.
Consistent Email Sending
Making sure that your branding and your content is consistent and relevant to your business helps business increase their ROI by 42%. Using an email checklist and having a review process is a great way to ensure you don’t slip up on this part of your process.
Check out Constant Contact’s essential elements of email design!
Optimize The CTA's
Making sure that the call-to-actions in your emails are relevant and make sense for what they’re trying to accomplish sees an increase in ROI by 34%. This means making sure you align what it is exactly that they want with how you design the CTA buttons. Having them stand out from other links and having them be consistent across all platforms also helps get people clicking! You can create content specifically for email, which means you can make sure that the visuals are stunning and will grab attention. The great thing about this is there are some really interesting statistics out there on how much more likely people are to click on something if it has a relevant image attached!
Using Email Automation
While email marketing is still one of the most successful methods for promoting your business today, it’s changing. While newsletters and one-time campaigns will always have a role in your email marketing campaign, the smartest companies are starting to create automatic emails that are triggered by a user’s actions.
Why? Because these automated emails are timely, customized, and hyper-relevant to the reader. As a result, they are opened and clicked more often, resulting in additional visitors and revenue for your business. vs “Business as Usual” Marketing Messages: Automated email messages have an average 70.5 percent higher open rates and a 152 percent higher click-through rate than “business as usual” marketing messages. – Epsilon Email Institute
Companies who send automated emails are 133% more likely to send relevant messages that correspond with a customer’s purchase cycle. – Lenskold and Pedowitz Groups
Whenever you send an automated email, you may get vital information from each contact. You may determine whether or not the person:
- Opens the email
- Clicks through to your site
- Uses an offer
- Buys a suggested product
- Continues to browse once they’re on your site
Everything you learn about your customers when targeting your automated emails may help you make the next move. If your subscribers aren’t opening your discount emails or clicking on your suggestions, try something different.
And Finally The Bottom Line…
The HubSpot Email Marketing Benchmark Report shows the ROI of Email Marketing is important to marketing professionals because it shows the value of creating email nurture campaigns and getting a better return on content creation. The primary reason for this increased revenue is that automated emails are sent based on customer behaviour rather than time-based schedules. When companies send email messages based on customers’ behaviours instead of pre-set schedules, these emails have open rates over 98%. Automated email messages average 70.50% higher open rates and 152% higher click-through rates than “business as usual” marketing messages.
The bottom line of The ROI of Email Marketing is that creating content just isn’t worth your time or money without having an equally engaged audience who actually takes action with what they’ve read.
The best way to do this? Simple changes over time that are measured and improved upon. Take action on one thing at a time, measure it’s impact and make changes accordingly. If yours is a Smarketing focused business, this is also a golden opportunity to join forces with the Sales team to create content and measure qualitative feedback.
If you need help getting on how to start an email nurture campaign then read on.