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Leverage Email Marketing: Boost Your ROI with These Stats
Proof That Email Marketing Makes Money For Brands
Megan Smith
May 27th, 2024
Marketers are spoiled for choice when it comes to platforms and strategies for reaching their target audience. So why should you prioritize tried-and-true email marketing over flashy social media campaigns and sexy influencer partnerships?
First, email can be a direct source of revenue. Email marketing ROI stats also routinely prove that it's effective, and increasing revenue and sales is the top goal for most marketers.
Tracking email marketing ROI can be tricky—like trying to catch an eel with your bare hands. It's elusive and confusing and might leave you wondering why you bothered. (Or so I assume. I've never gone eeling.)
Unlike open rates or other easily monitored metrics, email's ROI relies on multiple factors, some of which are hard to quantify.
That's why this isn't a short article. Read on for insights into the ROI of email marketing and the factors and strategies that make a difference. Then you can take advantage of your brand's email metrics more effectively, using your numbers to improve campaigns.
What is the average ROI for email marketing in 2024?
The average ROI for email marketing in 2024 is $36 for every dollar spent.
You'll hear a lot of email marketing ROI stats tossed around. I've seen everything from 3200% to an ROI of 4400% for email marketing. Everybody has access to different sources of data, and none of them are perfect.
But $36 (3600%) comes from the most reputable and far-reaching source not hidden behind a paywall.
Email Marketing ROI Stats: Key insights
The global revenue generated from email marketing stands at a whopping $10.89 billion, so let's start breaking that number down.
Not all companies take equal advantage of email marketing:
However, a 5:1 ROI is considered decent when calculated as an average across all digital channels, so the situation is less dire for underperformers than it may appear.
There's also wide variance in ROI across industries, from retail to content creators to B2B. It's important to understand the context of your industry and adjust your benchmarks accordingly.
You can tailor your opt-in strategies to maximize ROI, too. The numbers have changed over the last few years. Single opt-in programs are now showing an 80% higher return than double opt-in programs.
Improving ROIs
The year 2023 marked an uptick in email marketing ROI.
Email’s relevance continues to grow as people increasingly desire personalized digital experiences that they choose for themselves.
Improving ROI Calculations
With any statistics that depend on self-reporting, you have to ask how reliable the numbers are. Accurately calculating ROI requires correct assessments of both the true cost of email marketing and its returns.
One of the associated difficulties stems from the number of indirect returns associated with email marketing. For example, while 36% of consumers will click on an exciting offer directly, 23% will (either then or later) get to the website through another route, such as search. Even that doesn’t take into account intangible returns that come from deepening their relationship with your brand.
Good news. As a field, we’re improving — or at least gaining confidence. About 62% of marketers now think they can correctly determine email marketing ROI stats.
There are some differences between B2C and B2B marketers. B2C senders are more confident than their B2B counterparts, who often grapple with longer lead times. Consequently, the results of initial emails are harder to track.
ROI for Different Types of Campaigns
Just as not all marketers are equally adept, not all emails will contribute the same amount to your bottom line. Leverage the most effective types of emails that generate the conversions necessary for an impressive ROI.
Once consumers engage, emails are an incredibly effective tool for driving sales. While the conversion rate for promotional email campaigns is only 0.08%, the click-to-conversion rate is strong at 6.74%. The trick is getting your audience to open your message and click on the links.
Higher Converting Email Campaigns
Other types of email marketing have higher yields. Email flows outperform one-shot campaigns with a conversion rate of 1.66%. Instead of a single message, create a journey with email sequences that gradually convince the consumer of the benefits of whatever you sell.
You also shouldn’t take everyone on the same journey. Luxury resorts may not appeal to die-hard campers. Segmented and targeted emails are responsible for generating 58% of all email revenue.
Email Automation and ROI
The highest converting type is triggered or automated emails: According to 2023 insights from beehiiv, the click-through rate for automated emails is 5.48%. Don’t slow-play your customers. Take advantage of someone’s initial interest in your brand with a special offer.
Once customers demonstrate higher purchase intent, emails help them take the final step.
People appreciate a nudge when they wander away from suddenly lonely carts. Help them reunite.
Email Marketing ROI: What Can You Expect?
In your quest for email success, there are other relevant benchmarks.
These metrics contribute toward ultimate email marketing ROI stats and are easier to measure. Know where you stand in terms of open rates, click-through rates, and unsubscribe rates.
The following numbers represent the key metrics across all newsletters from various industries on beehiiv in 2023.
*B2C emails have slightly higher open rates than B2B emails.
What about bounce rates? Reported bounce rates vary too widely to generate a meaningful average. There’s no return on emails that never reach their destination, so pick a service known for email deliverability (like beehiiv).
Does Email Marketing Have a Higher ROI Than Other Channels?
Email marketing ROI stats blow those of other channels out of the water. For example, social media ad campaigns yield an average ROI of 250%, compared to email’s 3600%.
People actually want to receive emails, and they’ll willingly sign up for your brand’s offers. However, only 34% of consumers want brands to contact them through social media.
Preferences differ between generations, but email is popular across the board. One study found that 70% of all consumers like being emailed by brands. By demographic, that number represents:
57% of Generation Z respondents.
79% of Millennials.
67% of Generation X.
69% of Baby Boomers.
Additionally, a third of consumers consider themselves more likely to buy based on an email offer than one coming from other channels.
Email is popular with businesses, too. For both B2B businesses and B2C businesses, email is the third most popular platform for content distribution. It only trails behind brand websites and blogs.
Email marketing also lets small businesses make the most of smaller budgets. Email marketing is their second biggest investment but yields the highest returns. After all, 55% of consumers prefer small businesses to contact them solely through email.
What Emails Do Successful Marketers Send?
Email marketing works, and marketers show no inclination to stop using it. The global market for email marketing is expected to soar to $17.9 billion by 2027.
That's a lot of money, but the number seems reasonable in light of the projected 392.5 billion daily emails by 2026. Even now, the average person with an office job receives between 100-150 emails a day.
While you should always aim to stand out from the crowd, it's also important to steal strategies that work.
16.8% of professionals send newsletters, the most popular type of campaign.
15.3% of professionals send promotional emails.
45% of email marketers send emails once a week.
Close to a third of email marketers send marketing emails multiple times a week.
Emails including the word video in the subject line can increase open rates by as much as 6%, and people are 51% more likely to share videos than other forms of content.
Optimize the body of your emails as well as their subject lines. A huge number of recipients have and use mobile devices to open all these emails. 50% of smartphone users prefer receiving business communications via email. Make sure your campaigns are mobile-optimized to ensure you don’t miss out on half of your potential audience!
You'll also need to get to the point quickly. With so many emails coming in, people spend an average of 10 seconds reading an email from a brand.
What Emails Do People Want to Receive?
Looking at the relationship from the audience's point of view, we can also learn about what makes subscribers opt-in and keeps them engaging with your communications.
According to one study, these are the most popular content types and the percentage of subscribers who crave it:
Discounts and offers: 65%
Information about sales and new products or services: 43%
Product reviews, user guides, and related information: 36%
Advice, articles, information, tips, and tutorials: 34%
It's no wonder that 48% of new sign-ups are directly inspired by the desire for discounts and offers.
Why Are Segmentation and Personalization Essential to a Strong ROI?
12% of consumers consider themselves very likely to purchase a product after receiving an email newsletter, and most are open to the idea. You just have to send them the right offer.
When you only send your subscribers relevant content, your conversion rate will soar, ultimately increasing your ROI. For example, an email promoting a new line of vegan skincare products will likely resonate more with customers who've previously shown interest in cruelty-free products.
The proof is in the numbers.
Segmenting your campaigns can increase customer lifetime value by 33%.
Compared to spray-and-pray campaigns, marketers who use segmentation report as much as 760% more revenue.
Fast-growing companies derive 40% more of revenue from personalization than slower competitors.
In fact, not personalizing content is a risk.
80% of consumers would rather do business with a company that offers personalized experiences.
71% expect personalization, and just as many will switch brands if unsatisfied with its targeting.
When asked about their top three email tactics in 2023, more than 41% of senders listed personalization.
Only around 15% don't personalize emails at all.
71% of marketers personalize emails with a recipient's name or the name of their company.
All of the data suggests that implementing personalized, segmented campaigns will result in a significant boost to your marketing performance. It also indicates that you can't afford to let business rivals monopolize the tactic.
How to Segment and Personalize Email Marketing to Improve ROI
The best practices for creating segments and personalized content require you to gather data, use it, and add a little personal touch.
Leverage Past Purchase Data
63.7% of marketers personalize with dynamic content, customizing based on established preferences or behavior.
Use information about your customer's past purchases to create groups and tweak your emails. If a customer frequently buys workout gear, they might appreciate news about your latest athletic wear collection. Or if they frequently purchase clothing for kids, they might be interested in a new article about child safety.
You can also send segments specialized offers. Instead of overwhelming everyone with a slew of promotions, why not send different discount codes to different groups?
Nearly 50% of surveyed coupon users found offers through emails or online searches.
Consider Location and Demographics
Let people know about local happenings, or shape your message based on the recipient's current weather experience. You may find that southern Californians and northern Minnesotans have different needs in January. 40% of email marketers create segments based on location or geolocation.
Demographic data can be effective, and 14% of senders use demographic data to create segments. People at certain stages in their lives may respond in distinct ways to certain messages. Just steer clear of stereotypes that may come off as offensive.
Utilize Website Behavior
Your website can provide valuable insights into your customers' interests and preferences. A customer who spends a lot of time browsing your blog's DIY home decor section might be interested in related products.
27.5% of marketers who personalize their communications recommend products based on data they've gathered.
Create Multiple Versions of an Email
More than 65% of senders often create at least two versions of an email.
In addition to using a/b testing to find the best content, you can compose messages that deliver the right content for each member of your audience.
There are many ways that you can segment your newsletter. Even if the bulk of the content is the same for all, you can spotlight different articles, include different images, or end on different CTAs according to individual preferences.
Ask Customers To Self-Segment
Personalization goes beyond addressing the customer by their name. It's about understanding their needs, interests, and behaviors. There's no better way to attain this insight than by asking them about themselves.
Build rich customer profiles — or, actually, have them build their own.
83% of consumers will give you data so long as businesses are transparent about the purpose and leave them in control. 74% are interested in sharing their unique preferences and needs in order to receive more individualized experiences and offers.
Use Automation and AI
Automation is vital to email marketing. It's the engine that allows for high-performing trigger campaigns and automatically sending emails at the perfect moment. 63% of marketers around the world use some form of automated email marketing.
Incorporating AI pushes the strategy to the next level. It's the difference between sending someone an email reminding them that they left something in their cart and incorporating dynamic content that puts the abandoned goods right in their inbox.
Across all marketing platforms, investments in AI can generate an increase in revenue from 3-15%.
42% of marketers trust AI to personalize content. The savviest apply AI to email. 32% say they currently use AI with automation to personalize offers. 22% personalize subject lines, and 12% have AI segment their audience.
Email Marketing ROI Stats and Your Brand
There you have it. Email marketing remains a vital tool in the digital marketing space. Email marketing ROI stats wipe the floor with the returns shown by other popular forms of marketing.
Maximize yours with strong personalization and segmentation strategies. Customers are eager for more tailored engagements with brands — and want them to occur via email. With wide adoption rates, businesses ignore these increasingly common tactics at their own risk.
But the numbers can only tell you so much. Learn how to really take your game to the next level by studying beehiiv superstars with the highest ROIs. Then you can adapt their plays to fit your newsletter’s playbook.
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