Any business tries to be efficient and increase its revenues. Nowadays, companies try different marketing strategies in achieving these goals, while digital marketing options can target both.
In this regard, email marketing is known for its high return on investments due to the reach and the comparatively low efforts spent on getting revenues. It sounds great for any entrepreneur, as they can use it to attract leads, increase traffic, improve brand image, share content and boost conversion.
However, it is effective only if done right and targeted at the right people. What is the best indicator to identify the value of the campaign? Right, return on investments. If it is higher than the average ROI for email marketing, you are doing alright; if not, you can advance your processes and optimize the work.
In this post, you will know why return on investments is so important and how to level it up within your email marketing strategy.
What is ROI in Email Marketing
Return on investments is a specific measure helping marketers to understand and assess digital marketing achievement. What does it mean for email marketing? In email marketing, ROI defines how useful the campaigns are based on the email marketing profits.
There is a general formula for defining ROI. One should find the difference between money that was received and spent. Then, you will need to divide this sum by the money spent, and you will get the percentage of ROI.
As this is the universal rule, you may need to identify what your spending consists of when applying it for email campaigns. Usually, they may include the funds and time ratio that marketers spend on tools or emails. Thus, it may require certain efforts. However, in the end, the business gets the picture of how it is doing and if it is doing right.
ROI Importance: Business Email Statistics
The significance of this measurement derives from some of the email marketing facts. First of all, various sources underline that the average ROI for email marketing usage equals around 120%. It is pretty high, and yes, it is not a mistake.
Such a number comes from the wide use of mail services and an email sent. Emarketer’s report underlines that there will be 4.48 billion users in 2024. How many marketing emails are sent per day, then? Subject to the statistics portal for market data, this number is to reach almost 320 billion emails this year. Imagine that some firms declare getting around 40$ from every dollar they spent on designing the promotional email.
For a company, it means excellent proficiency and performance, leading to substantial profits.
The aforementioned business email statistics refer to lead generation practice mainly, while the companies using it for other purposes can have lower numbers. It as well depends on the size of the companies and the number of prospects or goods. Still, it does not mean one should ignore the concept of ROI.
Lastly, ROI is based on the goal and can be different depending on the industry. It becomes a great indicator of whether the email sending works well in nurturing leads and fostering conversions.
Having these email marketing facts in mind, you can see how email marketing is valuable for any firm and why ROI matters.
For instance, what to do, if you represent a small B2B service that needs resources and funds to spend on other channels? What if you consider your ROI too small? Should you improve the ROI of your email marketing?
There are specific methods that marketers can apply to get higher email marketing profits with the same money spent.
How to Improve Email Marketing ROI
The enhancement of return on investments can be done in several ways: decreasing email marketing costs, increasing profits or doing both.
As email marketing is an affordable instrument for getting leads or raising awareness, many usually improve their ROI by making the campaigns more successful and effective. How to do an effective email campaign, keeping in mind ROI? In this case, a marketer may need to make the message more persuasive or improve targeting.
As digital marketing specialists offer, the key to better revenues either refers to audience, message, content or technology. Notably, one can optimize each of these sections and is likely to improve ROI on marketing, saving or enlarging the budget for other campaigns.
Let’s consider some of them in detail.
Develop your database
A list of email contacts is one of the pillars of a successful email campaign. A company has higher chances to succeed if it is vast and valid. Imagine that you have a fancy and costly marketing software for email sending with some CRM features or content customization. You are sure that open and engagement rates would be high. However, you get the results and see that it is not working.
The possible reason is the list of your contacts. Some of them can be out of date or wrong, losing their value. In this case, a marketer would need the help of some automation or marketing tools, for instance, an email verifier. With such a tool, a person may check the validity and relevance of the email by uploading their lists and comparing them with a database. Besides, it can add to the email marketing research.
You can call them an online lead finder, helping you to check or extract business emails. Even though such tools are not free, using the software can save time and efforts for your marketing team, simultaneously making the spent sum in ROI spreadsheet less.
As a result, verifying and improving your database with automation tools can decrease costs and enhance revenues.
Work on your segmenting
If a company has not applied advanced segmenting before, the particular strategy is likely to bring some email marketing benefits in the form of higher profit. Segmenting is suitable when you have a vision of the preferences and interests of your audience coming with sales. The structuring and defining of the buying preferences of your subscribers, in this case, should reflect your email sending.
For instance, offering a pair of socks to people who are buying shoes can be a good idea, while renting bikes to those who rented scooters is not. The reasons for segmentation may relate to price or behaviour. In the end, the proper segmentation will optimize your efforts and sharpen your targeting, improving revenues.
Make your messages effective
The contents of your emails are as important because they should encourage your leads to get the product. If your click rates are low, then prospects or customers are likely avoiding your message. They would open it but fail to read the whole body of the text. Why? It may lack personalization.
If your open rates are low and you have already had your contacts verified, then the subject line may be a reason for getting low revenues. It is a heading and serves as a tool for getting the desired attention of the recipients. The best option for sending the relevant email is about the utilization of AI software.
Nevertheless, you should decide whether extra costs on such an instrument are worth spending for, as there is no short term outcome.
Check the pages your links lead to
Well, the issue with unacceptable ROI may be the landing page you’re referring to in your letter. In this case, email campaigns may have high click rates and open rates, but you may have a lack of email marketing profits at the end.
Make sure that the message is relevant to the offers and content on your website. They may relate to prices or products available. The mismatch can divert users from conversions and revenues.
Besides, it can diminish their trust in your brand. Consequently, checking your landing page and reflecting it in your email may increase revenues.
Think of smartphone users
Lastly, digital marketing today depends on mobile devices. If you are not adjusting your emails to smartphones, it can backfire on your ROI. As the attention span is lower among smartphone users, the heavy template, newsletter, and website are likely to be ignored by the users.
Thus, try to improve CTA buttons and make subject lines appropriate in terms of the number of characters. Details matter. In terms of email marketing profits, they can lower your return on investments.
Interesting Related Article: “How To Run An Effective Email Marketing Campaign“