Email marketing remains a digital cornerstone for marketers and sales teams looking to engage with customers and generate sales. Dedicate time to obtaining a solid understanding of how email marketing works, and you’re likely going to see a boost in the return on investment (ROI) from your email initiatives.
If you aren’t there yet, don’t worry! In this blog post, we’ll delve into eight proven strategies for enhancing your email marketing ROI, complete with data-driven insights and practical examples.
Let’s make your campaigns not just good, but great.
According to a recent study by the Data & Marketing Association (DMA), the average ROI for email marketing in 2022 was $36 for every $1 spent. This figure, however, varies by industry.
For instance, retail, ecommerce, and consumer goods companies often see higher returns thanks to direct purchase links in their emails.
B2B companies, while having a slightly lower ROI, benefit from the long-term value of relationship building and lead nurturing through email.
These numbers aren’t just a testament to the effectiveness of well-executed marketing strategies and the ROI of email. It’s clear that email marketing isn’t just surviving in the digital era; it’s thriving.
The classic ROI formula is: (Gain – spent)/spent = ROI.
Here, the Amount Gained is any income directly attributed to your email marketing campaign, and the Amount Spent includes all associated costs to make that campaign happen, from software costs to manpower.
However, many email ROI formulas fail to account for your inbox placement rate. After all, if your emails never reach subscribers’ inboxes, they can’t contribute positive ROI.
If you’re looking to calculate exactly how much revenue you stand to gain from your email marketing overall, use Validity’s Email Revenue Calculator! Just fill out the required fields to get a snapshot of where you are and where you need to maximize your email potential.
By regularly calculating your ROI, you can gauge the effectiveness of your strategies and make data-informed decisions for future campaigns. A “good” email ROI depends on your business, but most put this number somewhere in the 7-30 percent range.
Most experts agree that the most effective strategies for email marketing campaigns are subscriber segmentation, content personalization, and email automation. Below we’ll break down why these strategies––and others––are such a boon to email marketing return on investment.
Segmentation is key to delivering relevant content. Manage your email list by dividing your audience into smaller groups based on their preferences, behaviors, or demographics. This way, you can tailor your messages to resonate more deeply. For instance, a clothing retailer might segment customers based on gender, sending different product recommendations to men and women.
Personalization goes beyond addressing a recipient by their name. It’s about delivering content that feels crafted for the individual. Use data like past purchases, browsing behavior, or location to create emails that speak directly to the recipient’s interests and needs.
Use the tools at your disposal. Hubspot’s State of Generative AI report showed that 32 percent of sales reps found AI most useful for re-purposing messages and adapting them to a different audience.
Marketers, if a customer frequently purchases kitchenware from your site, send them an email highlighting new kitchen gadgets or exclusive recipes. This level of personalization shows customers you understand and value their interests.
Your call-to-action (CTA) is your gateway to conversions. Make them clear, compelling, and hard to resist. For a summer sale, instead of a generic “Shop Now,” use “Dive into Summer Savings!” This creates excitement and aligns with the seasonal campaign theme. Test different CTAs to see which generates more clicks and conversions.
Subject lines can make or break your open rates (but remember, this metric may now be inflated by Apple’s MPP). The most effective email subject lines engage curiosity, include promotional offers, and are personalized to each recipient’s interests.
If you’re running a promotion, test subject lines like “Your Exclusive Discount Awaits!” against something more urgent like “Hurry! Your Special Offer Ends Tonight!” A/B testing different subject lines helps identify what resonates best with your audience. Does a sense of urgency work better, or do your subscribers prefer a more informational tone?
Analyze which drives more opens and use these insights for future campaigns.
Automate a welcome series for new subscribers, starting with an introduction to your brand, followed by emails highlighting popular products or exclusive offers. For inactive subscribers, set up a re-engagement drip campaign offering a special discount to reignite their interest.
Social proof builds trust and can influence decision-making, leading to higher conversion rates.
Incorporate customer testimonials, reviews, or user-generated content in your emails. For example, if you’re selling a new skincare product, include a quote from a satisfied customer along with a before-and-after photo. This tangible proof can encourage others to make a purchase.
With more than half of all emails opened on mobile devices, your emails must look great and function as well on smartphones and tablets as they do on desktops. Since 46 percent of smartphone users prefer to receive communications from businesses via email, use responsive design, and test on multiple devices to ensure a seamless experience.
Consistently monitor your campaign performance through key metrics like open rates, click-through rates, and conversion rates. Use these insights to refine your strategies. Don’t be afraid to pivot if something isn’t working as expected.
By incorporating these actionable examples into your email marketing strategy, you can create more engaging, personalized, and effective campaigns that drive higher ROI.
Maximizing your email marketing ROI isn’t just about sending more emails; it’s about sending better emails. By understanding your audience, personalizing content, optimizing your CTAs, and using the power of automation, you can significantly enhance the effectiveness of your email campaigns. Keep testing, keep learning, and remember there’s always room to improve and innovate.
Taking the time to optimize your email program and plan your campaign strategy in advance can help you catch roadblocks early on and ensure your email program is performing at an optimal level during peak sales periods
Not sure where to begin? Download The Email Marketer’s Peak Sales Season Prep Guide to learn how to maximize your ROI for a record-breaking peak sales season.