I Want My $28! Rockin' Email Marketing ROI

Post on 01-Nov-2014

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The Future15 (12 min) presentation emfluence Community Director gave at #SXSWi 2013 on rockin' email marketing return on investment.

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#emailROI

#emailROI

Email ROI

Email drove $67.8 billion in sales in 2012.

Email ROI in 2012 was $28.50, the highest of any direct marketing medium. (DMA, 2012)

#emailROI

Email ROI

(Revenues-Expenses)/Expenses = Return On Investment

Got it. Now how do we improve it?

Increase revenue; OR

Decrease expenses

Campaign List Size Expenses Revenues ROI

Free Shipping offer 100,000 $1450 $31,245 $20.55

Free Product w/Purchase 100,000 $1450 $24,996 $16.24

New Customer Bounceback 1,000 $85 $3,513 $40.33

#emailROI

IMPROVE DELIVERABILITY

Deliverability = getting into the inbox.

More inboxes means more revenue.

#emailROI

Deliverability by the Numbers

In the U.S., only 80.8% of valid marketing email ever makes it to the inbox. 9.4% never shows up anywhere (never delivered and not reported).

#emailROI

Reported open rate: 20% | Actual open rate: 25%

Potential boost in response/revenue: 25%+!

Deliverability by the Numbers

0

20,000

40,000

60,000

80,000

100,000

Sent Delivered

#emailROI

Deliverability = Your Email Provider + YOU

What your Email Service Provider should do for you:

Good email template code

Throttled sending

Automated unsubscribe & complaint handling

Built-in CAN-SPAM compliance

Optional:

Pay for “Certified” Sender Status

#emailROI

What YOU can do to improve deliverability:

Improve Deliverability

Create Good Content

Maintain a Good, Clean List

&

#emailROI

Improve Deliverability: Good Content

Include a “white list” request

Balanced text:image ratio

Avoid overusing spammy words

Send Relevant & engaging content!

#emailROI

Improve Deliverability: Segment

#emailROI

Improve Deliverability: Test Content

Test, Measure, Learn & Improve

The more readers engage with you, the better your “rep.”

Subject line Offer/Discount % Call to Action Layout Graphics Frequency of emails Time of day/day of week

Balance of images/text Number of links in an email Length of emails Landing Pages vs. full site Article topics & order Mobile responsive design

#emailROI

Maintain a good email list:

Opt-in (aka permission-based) house list only

Set expectations for frequency and value to the subscriber at sign up, and then meet those expectations

Clear out those that bounce back often and never open

Improve Deliverability: Clean List

#emailROI

REENGAGE OR TRIM INACTIVES

Reengaging subscribers that haven’t opened, clicked or purchased.

#emailROI

Reengaging Lost Subscribers

Reaching out to those who once opted in but are now either held (bounced) or simply inactive.

Marketing Sherpa reports that as much as 33% of your email list can turnover each year.

Without reengaging these addresses, you’re left with 16.8% of your original list after 5 years.

#emailROI

Email Reengagement Campaign

Reengagement/Re-Permission

An email (or series) with a strong offer to entice those who haven’t opened, clicked or converted to engage… or to unsubscribe.

#emailROI

Other Reengagement Outreach

In-store & point-of-purchase

Telemarketing follow ups

Direct mail

Online ads/social media outreach

Be sure to ask for an updated email address so we can reconnect and resell!

#emailROI

Trim Inactives

Keep those that reengage! Those that don’t, gotta go.

Opened

Didn't open

Opened

Didn't open

NEVER open

Reengage ~10% and increase revenues. Trim 25% and save the expense of sending to inactives.

80%

20% 20%

45%

35%

Opened

Didn't open

40%

60%

#emailROI

Rockin’ #emailROI

REENGAGE OR TRIM

IMPROVE DELIVERABILITY

Campaign List Size Expenses Revenues ROI

Shipping offer 100,000 $1450 $31,245 $20.55

Free Product w/Purchase 100,000 $1450 $24,996 $16.24

New Customer Bounceback 1,000 $85 $3,513 $40.33

Campaign List Size Expenses Revenues New ROI

Shipping offer 75,000 $1200 $39,056 $31.55

Free Product w/Purchase 75,000 $1200 $31,245 $25.04

New Customer Bounceback 1,000 $85 $4,391 $50.66

#emailROI

Feedback

http://sxsw.tv/d4h

#emailROI