By Stefan Eyram The past year was an excellent year for email marketing. Email marketing of some sort was used by almost all companies. Recipients…
Category: Stefan Eyram
Stefan Eyram teaches us about bacn and reminds us that spam isn’t healthy for our email marketing diet!
Forrester Research just released a study saying 97% of consumers use email and 94% of marketers utilize it within their marketing mix. Plus, this recent research concludes that people who sign up for your email buy more. In fact, those people who purchase due to email spend 138% more than those who are not reading marketing emails. This report also shows that the valuable 18-34 year old demographic – the one that is more likely to be using SMS and other online/electronic channels – is using email. In fact, one-third of consumers that have a separate email address specifically for marketing emails are in this age category.
In Email Marketing Comes of Age Shar VanBoskirk of Forrester states:
There has been a lot of concern that email has lost its effectiveness because it has not grown rapidly, but the aggressive interest in email has only normalized. It should not be a concern that it’s lost its effectiveness, it is still very powerful. It’s just that it’s become like direct mail, which is still an effective marketing tool, but people aren’t as excited about it.
Ms. VanBoskirk goes on say that in 2007 there will be more advanced use of email and the trend will be that more marketing firms will start utilizing email programs with better use of data, segmentation, targeting and personalization. This will include things such as using transactional and triggered emails and closing the loop on metrics and analysis of all marketing data.
As marketers are held more accountable for their budget there is a greater need to provide CFO with return on investment (ROI) metrics for programs, campaigns and even individual executions. It seems that nowhere is this more relevant than with email marketing.
Part of the drive for email ROI is that email _is_ so measurable. You can get immediate feedback on your executions and accurately forecast the results of an email drop in just a few days. Furthermore, when you integrate your email metrics with your point-of-sale or e-commerce data and your web analytics platform (“WebTrends”:http://www.webtrends.com, “WebSideStory/HBX”:http://www.websidestory.com, “Omniture”:http://www.omniture.com, etc.) you can get even deeper ROI insights.
Here are a few things that can help you optimize your mail ROI:
*Clean Email Lists* – Keeping your lists clean (removing unsubscribes and bounces) is a best practice for avoiding spam blocks. It’s also a great way to reduce the number of messages sent, therefore reducing your total cost. Furthermore, if you have an old, underperforming list (maybe you inherited it from another division or a company you acquired) you may want to re-subscribe them through an opt-in campaign. Case studies have proven it’s the quality of the list, not the quantity that drives ROI. It’s possible to cut your email list in half and not affect your click-though and other activity rates. Plus you save 50% on your per-message fees, meaning an increase in ROI.