Email marketing roi and response rates
Posted: Tue Dec 03, 2024 9:20 am
According to the DMA 2012 Response Rate Report, Email Marketing response rates are, along with those offered by Display, the lowest among direct response channels.
email-marketing-roi-response-ratio
Email marketing loyalty campaigns generate, on average, a response rate of 0.12% . This means that for every 100 users who saw the Call To Action in the email, 0.12 responded cfo email list positively (converted). Direct mailing actions (paper) generate, on average, a 3.4% response rate, almost 30 times more than email. The only channel with a lower response rate than email marketing is display, with 0.4%. Surprisingly, the highest response rates are offered by the much maligned telemarketing , with 12.95%.
When the variable “costs” is introduced into the analysis to obtain the ROI of Email Marketing and the rest of the channels, the picture changes significantly . Sales costs through telemarketing are $78 per order or lead (if the database is owned) and $190 if the database is rented.
From a return perspective, the ROI of Email Marketing is the one that performs the best, with a return of $28.50 for every $1 invested . This is mainly due to its low cost. Given this scenario, it is not surprising that there is a temptation, justified in many cases, to increase the sending pressure on the different lists. The more you send, the more income you earn. This is the good side. The bad side is the increase in unsubscriptions, complaints and therefore the impact on our reputation as a sender.
The key is to find the right balance in the intensity of the emails we send. The ROI of Email Marketing is an interesting metric, but it does not reflect the accumulated value of the database. To do this, we must introduce variables such as the Churn Rate. The metric that can help us have a vision of the future in this regard is the Customer Lifetime Value.
email-marketing-roi-response-ratio
Email marketing loyalty campaigns generate, on average, a response rate of 0.12% . This means that for every 100 users who saw the Call To Action in the email, 0.12 responded cfo email list positively (converted). Direct mailing actions (paper) generate, on average, a 3.4% response rate, almost 30 times more than email. The only channel with a lower response rate than email marketing is display, with 0.4%. Surprisingly, the highest response rates are offered by the much maligned telemarketing , with 12.95%.
When the variable “costs” is introduced into the analysis to obtain the ROI of Email Marketing and the rest of the channels, the picture changes significantly . Sales costs through telemarketing are $78 per order or lead (if the database is owned) and $190 if the database is rented.
From a return perspective, the ROI of Email Marketing is the one that performs the best, with a return of $28.50 for every $1 invested . This is mainly due to its low cost. Given this scenario, it is not surprising that there is a temptation, justified in many cases, to increase the sending pressure on the different lists. The more you send, the more income you earn. This is the good side. The bad side is the increase in unsubscriptions, complaints and therefore the impact on our reputation as a sender.
The key is to find the right balance in the intensity of the emails we send. The ROI of Email Marketing is an interesting metric, but it does not reflect the accumulated value of the database. To do this, we must introduce variables such as the Churn Rate. The metric that can help us have a vision of the future in this regard is the Customer Lifetime Value.