Home  › Email › Email Marketing

Why E-Mail ROI Is So Amazing

  |  October 15, 2007   |  Comments

Three reasons e-mail marketing budgets should be increased in 2008.

E-mail campaigns' ROI (define) has always been phenomenal.

In the early days, 80 percent open rates and 20 percent conversion rates were expected. Today, open and conversion rates are often much smaller, but e-mail campaigns still win every time over other channels. And that's fantastic news for marketers who can consider e-mail a safe choice. It's not great news, however, for providers of e-mail marketing technology and strategies because improved services and innovations are expected at low and even commoditized rates.

Because of this misalignment, e-mail marketing ROI has consistently performed at amazing rates.

"E-Mail Usage High, Marketing Spend Low," eMarketer explored this issue. And groups like the Email Experience Council (EEC) have created roundtables to define and determine an e-mail address's value to make a case to increase e-mail budgets.

All of this discussion about e-mail and ROI made me think: is there really a way to maintain e-mail's ROI while de-commoditizing the market?

A year ago, I would have said "probably not." In today's digitally driven world, there's a strong chance e-mail will remain queen of ROI, no matter the investment's size. Here are three reasons:

  • E-mail marketing's old business model is dead. E-mail's new business model is predicated on lifestyle relevancy and management. It will remain the backbone of our communications.

  • Budget reallocation generates higher ROI through cost savings. You can pay $500,000 for a TV ad. Or you can reallocate $150,000 of that $500,000 for a digital video embedded in e-mail, in display ads, and on the site, creating a very cool viral element. The cost savings alone allow you to set up a higher ROI from the get-go. E-mail gets more funding as part of an integrated strategy, and the digital effort costs less.

  • Standalone e-mail campaigns increase brand equity and drive extended ROI. The old way of evaluating e-mail ROI looked at direct sales. However, e-mail has proven to be a branding tool credited with driving sales through other channels. The ability to capture this increased impact allows you to invest more in e-mail without your ROI declining.
  • What does this all mean? We should increase the e-mail marketing budget for 2008. Think about how you can enhance your program to increase impact. Do this without worrying about the potential negative impact on ROI.

    The world of e-mail has changed. Now your ROI can be even higher without sacrificing anything. And each additional investment you make will further increase your ROI.

    Want more e-mail marketing information? ClickZ E-Mail Reference is an archive of all our e-mail columns, organized by topic.

    ClickZ Live Chicago Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
    ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, Oct 3 to take advantage of Early Bird Rates!

    ABOUT THE AUTHOR

    Jeanniey Mullen

    Jeanniey Mullen, a recognized women-in-business and tech, is known for her entrepreneurial style and her ability to build, shape, and grow brands into well-known dominant, successful entities. Jeanniey is a pioneer in email, mobile, and digital marketing; publishing; and brand-building. She now leads her own agency, YellowBean LLC, focused on assisting companies of all sizes with driving innovation and growth. Most recently, Jeanniey was the Global EVP, CMO, and subsequently Chief Growth Officer for Zinio, where she worked to define and implement strategies creating explosive growth through strategic partnerships with publishers, technology companies, brands, and consumers during her five-year tenure. Jeanniey has authored and contributed to multiple books, blogs, and magazine articles. She is a regular columnist for ClickZ, a blogger for Huffington Post, and a frequent keynote speaker. A serial networker, in 2005 Jeanniey founded the Email Experience Council, which was sold to the Direct Marketing Association in 2008. She sits on the Advisory Board for IndieFlix, and on the International Executive Council of the Internet Marketing Association. Jeanniey is recognized as both a Top CMO and Top Author on Twitter, and was most recently featured as Mover and Shaker by the Professional Woman's Magazine, and a featured Woman in Technology by The Legacy Series Magazine.

    COMMENTSCommenting policy

    comments powered by Disqus

    Get ClickZ Email newsletters delivered right to your inbox. Subscribe today!

    COMMENTS

    UPCOMING EVENTS

    Featured White Papers

    IBM: Social Analytics - The Science Behind Social Media Marketing

    IBM Social Analytics: The Science Behind Social Media Marketing
    80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.

    An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising

    An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising
    If you're considering implementing a marketing attribution model to measure and optimize your programs, this paper is a great introduction. It also includes real-life tips from marketers who have successfully implemented attribution in their organizations.

    WEBINARS

    Jobs

      • Web Writer
        Web Writer (Money Map Press) - BaltimoreDo you have a passion for the markets and investing, and writing? Do you want to spend your days providing...
      • Web Production Specialist
        Web Production Specialist (Money Map Press) - BaltimoreMoney Map Press is looking for a self-starter to perform and oversee the production of daily...
      • Internet Marketing Campaign Manager
        Internet Marketing Campaign Manager (Straight North, LLC) - Downers GroveWe are looking for a talented Internet Marketing Campaign Manager...