Email celebrates its 50th birthday in October! Ray Tomlinson is widely acknowledged as the godfather of email, sending the first message way back in 1971, followed seven years later by Gary Thuerk who “hijacked” this largely government/military tool to send the first email marketing campaign. The rest, as they say, is history!
In saying “many happy returns”, we’re not just acknowledging a milestone. Email consistently ranks as the most effective channel for marketing return on investment (ROI), underpinned by relevance and high levels of consumer trust.
ROI literacy is essential – we often talk about “selling to power” where the primary issues are driving growth, competitive differentiation, and increased shareholder value. Establishing value means using a different language: economic value-add, payback period . . . and ROI.
But calculating ROI isn’t easy, and this hurts when you need to demonstrate program value to secure budget and new investment. In our most recent episode of State of Email Live, we reviewed this important topic.
Each year, the Data & Marketing Association (DMA) produces a definitive set of ROI benchmarks. The 2021 edition of the Marketer Email Tracker report, sponsored by Validity, contains good news:
Securing budget and resources remains a major email challenge at precisely the same time fresh investment in data and technology is most needed. While pandemic spending on email increased as businesses diverted resources from other channels, securing new investment remains tough, especially for program owners who struggle to prove their ROI.
We were delighted to welcome Melissa Dallek, Customer Contact Strategy Manager at Walgreens, who shared thought-provoking insights around the importance of ROI for their email program:
For Validity, delivering positive ROI to our customers is crucial. We regularly talk about our philosophy of “trust your data”, and this also extends to trusting the solutions generating the data. We regularly work with clients to help them measure their effectiveness, and doing so objectively is important. To help further sharpen our ROI story, we retained Hobson & Company to create a new set of ROI tools and processes. As part of their discovery process, Tammy Klein from Hobson interviewed a broad cross-section of Validity for Email users and identified their biggest challenges:
She then explored how they use Validity’s Everest email success platform to address these challenges and how they quantify the benefits, identifying five dimensions:
Tammy calculated that for an email program sending 20 million messages per month, achieving these benefits will deliver an additional $1 million in revenue over a three-year period.
If you would you like to hear more from our wide-ranging ROI conversation, the webinar recording is available below. Hobson has also written an excellent white paper on the topic, which you’ll find here. Finally, to learn more about how Everest can help move the needle for your email program’s ROI, reach out to us here to set up a demo today.