Email ROI

Here are some interesting statistics that demonstrate the powerful return on investment of email marketing:

  • Email is delivering sales at an average cost per order of less than $7, compared to $71.89 for banner ads, $26.75 for paid search and $17.47 for affiliate programs. – Shop.org, State of Retailing Online 2007 report (Sept. 2007)
  • For every dollar spent on email marketing in 2007, marketers can expect an estimated $48.29 ROI. – DMA (2007)
  • 83% of marketers surveyed said that they thought 2007 ROI for email will increase over last year. – Datran Media Research, “The 2007 Email Marketing Survey: Looking Forward” (2007)
  • U.S. marketers spent $300 million on email in 2005. They’re expected to spend $400 million on email in 2006, an increase of 24.4 percent. – 2006 Online Retail Holiday Readiness Report, WebTrends (2006)
  • Email generated $15.50 in sales per dollar spent on email marketing campaigns last year, 17% more than direct mail, even though marketers spend 23 times more money on direct mail campaigns than on email, Winterberry Group reports. Winterberry notes that email drove 73% more sales per marketing dollar than did telemarketing, which generated $8.94 per marketing dollar. – Winterberry Group (2004)
  • Cutting customer defections by just 5 percent has the effect of boosting profits between 25 percent and 95 percent. – Harvard Business Review (2005)
  • 50% of the shoppers surveyed in late December, 2005 said they used emails to make purchases; 50.2 percent said email had some influence on their shopping habits. – Return Path (2006)
  • Email’s ROI index is 70 percent higher than any other direct-response marketing vehicle. – Direct Marketing Association (2006)
  • Engaging your audiences in more relevant communications (such as email) increases net profits by an average of 18 times more than broadcast mailing – Jupiter Research (2006)
  • Triggered campaigns perform 171% more revenue than broadcast campaigns. – Jupiter Research VP and research director David Daniels (2006)
  • Lifecycle campaigns perform 389% better than broadcast campaigns. – Jupiter Research VP and research director David Daniels (2006)
  • Clickstream campaigns perform 781% better than broadcast campaigns. – Jupiter Research VP and research director David Daniels (2006)
  • It costs 5 – 10 times more to acquire a new customer than it does to retain an existing one. – Emarketer (2005)
  • Email marketing is the top online marketing method for retention, above search engine positioning, banner ads, sponsorships and other programs. – Direct Marketing Association (DMA) (2005)
  • Email delivers the highest ROI by an eye-popping margin: a whopping $57.25 for every dollar spent on it in 2005, $7.08 for every dollar spent on print catalogs, and $22.52 for every dollar spent on non-email Internet marketing. – DMA (2005)
  • 31% of US Marketing Executives surveyed say direct response programs (email and mailings) have greatest ROI, more than double all other marketing programs (p.r., event marketing, website, advertising). – CMO Council (2005)

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