Did you know that email marketing ROI is one of the highest of any digital marketing strategy? In fact, for every dollar spent on email marketing, businesses earn an average return of $42. That’s because email marketing is an incredibly effective way to reach out to your customers and prospects. In this blog post, I will discuss the five main benefits of email marketing ROI. Learn how your email campaigns can drive your revenue to improved earnings.
Elevated Website Traffic
One of the most significant benefits of email marketing ROI is that it can help increase traffic to your website. By including links to your website in your email campaigns, you can encourage recipients to visit your site. In turn, this can lead to increased brand awareness and higher sales conversion rates.
Yes, we’re talking about the click though rate (CTR).
In order to enhance email marketing ROI in this regard, there are some important point to address:
- Because your email recipients (or existing customers) have subscribed to your mailing list, they would be considered interested (pre-qualified) in what you have to offer.
- Without question, existing clients are already in the sales funnel, and email offers a great way to keep these leads engaged, and help return repeat business.
- A steady stream of emails to current and potential clients will remind them by offering compelling links to visit well crafted landing pages.
- According to the research, pre-qualified (interested) people are more inclined to click on a link or call-to-action button in email, than someone who find links on other platforms.
The click-through rate (CTR) is the percentage of email recipients who click on a link in your email campaign. It is a measure of how successful your email campaigns are in enticing recipients to visit your website. If you want to improve your email marketing ROI, you need to ensure that your CTR is as high as possible.
Improved Top Line Earnings
In addition to increased website traffic, email marketing ROI can also improve your company’s top-line earnings. By sending targeted email campaigns to your customers and prospects, you can generate leads and sales. This, in turn, can result in higher revenues for your business.
In order to better appreciate the impact email marketing can have, it’s important to be aware of some of the statistics:
- 333.2 billion emails are send and received daily in 2022, while in 2019 email penetration in the U.S was 90.9%
- Adding resources to your email marketing can further increase ROI by an additional 15% (over the already 4,200% return on each dollar)
- A sending rate of about 9 – 16 emails per month reports the best balance for improved ROI
How to Improve Email Marketing ROI
There are a number of things you can do to increase sales using email marketing:
- Send only targeted, relevant email campaigns to your customers and prospects.
- Include links to dedicated landing pages on your website (in your email campaigns).
- Encourage recipients to visit your site.
- Generate leads and sales in your email and landing page copy.
- Make sure your email campaigns are well-designed, focused, and engaging.
- Test different subject lines to see what gets the best response.
Email marketing ROI is one of the highest of any digital marketing strategy. By including the above suggestions, you can ensure that your email campaigns are successful in driving traffic, leads, and sales for your business, which is a strong argument to leverage the power of email marketing ROI.
Enhanced Business Brand Recognition
Another benefit of email marketing ROI is that it can help enhance your business’s brand recognition. By including your company’s logo and branding in your email campaigns, you can create a more professional image for your business. This, in turn, can lead to increased brand awareness and higher sales conversion rates.
Brand recognition is important because it helps build trust with potential customers. If they recognize your brand, they are more likely to do business with you. Focusing on email marketing ROI can help you achieve this by increasing the visibility of your brand and making it more recognizable to your target audience.
There are a number of ways to measure brand awareness, including surveys, focus groups, and interviews. You can also use various marketing analytics tools to track how much traffic your website is receiving from different sources, and how many leads and sales are being generated as a result of your email campaigns.
An increase in brand recognition being enhance with a well planned, relevant email campaign, provides significant benefit to your business or organization.
Increased Conversion and Lead Rates
In addition to enhanced business brand recognition, email marketing ROI can also lead to increased conversion and lead rates. By sending targeted email campaigns to your customers and prospects, you can generate leads and sales. This, in turn, can result in higher revenues for your business.
Simply put email marketing increases leads, conversions, and improves sales. The key is that your email marketing helps lead people into the sales funnel.
Naturally a key benefit is that your email marketing campaign is one of the best tools to build and grow your lead magnet. But to be “lead successful”, your email should have compelling CTAs:
- Offering discounts on your products or services
- Including free shipping offers
- Providing coupons or special deals
- Offering a free trial of your product or service
- Including a contest or giveaway
How to Measure the Effectiveness of Email Marketing ROI Leads
Measuring the effectiveness of email marketing ROI leads can be tricky, but there are a number of ways to do it.
One way is to track how much traffic your website is receiving from different sources, and how many leads and sales are being generated as a result of your email campaigns. You can also use various marketing analytics tools to track the number of email clicks, opens, and conversions.
Another way to measure email marketing ROI is to survey your customers and ask them how they heard about your product or service. This can be done through online surveys, customer interviews, or focus groups.
One particularly effective way is to focus on two things:
This is where you measure the effectiveness of your business or organization in customer interaction. Metrics that can help you in this regard are already available in your email campaign analytics, namely:
- Unsubscribe rate
- Open rate
- Click rate
- Conversion rate
This measure the time it takes for your email campaign leads to move through the following stages (in order):
The awareness stage is the very beginning of the buyer’s journey. It’s when they first become aware of your product or service, and may not even be ready to buy yet.
The goal of email marketing during the awareness stage is to introduce your product or service to potential customers and generate interest. You want to get them thinking about your product or service, and how it can benefit them.
The consideration stage is when potential customers are starting to become more interested in your product or service, and are considering making a purchase. They may be comparing you to other options at this point.
Email marketing during the consideration stage should be focused on convincing potential customers that your product or service is the best option for them. You want to highlight your unique features and advantages, and show them why they should choose you over the competition.
The conversion stage is when potential customers are ready to buy your product or service. They’ve made their decision and now they just need a little push to take action.
Email marketing during the conversion stage should be focused on getting potential customers to take action and buy your product or service. You want to include strong calls to action (CTAs) and make it easy for them to purchase from you.
Once a lead has converted into a customer, the email marketing doesn’t stop there. You still need to nurture your customers and keep them engaged with your brand. This can be done through email marketing by sending them updates on new products, exclusive offers, and helpful content.
By focusing on these two measures – engagement and decision pace – you can get a good idea of how effective your email marketing campaigns are in driving leads through the sales funnel.
Understandably then, it’s important to view your email campaigns over time. Compare them, see what improves ROI faster.
Accelerated Business Growth from Email Marketing ROI
Finally, email marketing ROI can also help accelerate your company’s growth. By sending targeted email campaigns to your customers and prospects, you can generate leads and sales. This, in turn, can result in higher revenues for your business. In addition, email marketing ROI can also help you expand your customer base by reaching new potential customers.
While not necessarily as noticeable initially (as sales need to grow), reinvesting some of the revenues garnered from email marketing, back into your existing and future email marketing campaigns, helps to accelerate your business growth.
As email marketing begins to exponentially ramp up your sales, the ROI becomes a driving factor in this regard.
As you can see, email marketing ROI offers significant benefits for businesses. If you are not already using email marketing to reach out to your customers and prospects, now is the time to start. With its high return on investment, email marketing is an essential tool for any business looking to grow its revenues.
You can learn much more about email marketing ROI, by visiting our Small Business Email Marketing posts. As well as find out more about Email Marketing ROI.