September 8, 2023

ROI of Email Marketing: The Impressive Statistics That Back It Up

As to getting the best bang for your buck, the ROI of email marketing absolutely delivers.

In fact, it produces the highest ROI ($44 for every $1 spent) vs. other marketing channels, like social media marketing ($2.80 for every $1 spent) and paid advertising ($2 for every $1 spent). [1-3]

And that the ROI of email marketing is four times higher than other digital marketing channels.

Don’t believe us? Just check out the impressive statistics below that may shock you. No, we’re not joking.

In this blog post, we’ll walk you through the basics of email marketing ROI and explain its importance in measuring email marketing campaign effectiveness. We will also provide specific advice on why such a marketing channel has an impressive ROI.

Feel free to use our tips and insights on these statistics to improve your email marketing performance.

What is Email Marketing ROI?

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Email marketing ROI (Return on Investment) is a measure used to evaluate the profitability and efficiency of investing in email marketing.

Here is the basic formula for calculating email marketing ROI:

ROI = (gained – spent)/spent

For example, your business spends $100 for an email marketing campaign and earns $1,000 out of that investment. In that case, you’ll have a $9 ROI for every dollar spent.

As the name suggests, email marketing is a form of marketing that happens over email. And because others now consider email ancient, email marketing is one of the oldest yet most effective digital marketing strategies.

It can help you reach your target audience, generate leads, increase conversions, and boost brand loyalty.

Importance of ROI in Measuring Email Marketing Effectiveness

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ROI allows businesses and marketers to measure how effective their email marketing efforts are, how well they performed this year vs. last year or month, customers’ reactions to marketing changes, and what changes draw in more returns.

Knowing your email marketing ROI also allows you to improve your marketing activities and earn more money.

Now, let’s get right to the most essential part of this article – the actual email marketing statistics.

Mobile Marketing Statistics

1. According to a study by the Radicati Group, 333.2 billion emails will be sent and received daily in 2022. That’s a lot of emails to compete with, so you must ensure your emails stand out and catch your subscribers’ attention. [4]

2. 49% of emails are opened on mobile devices, according to Backlinko. This means that almost half of your subscribers are likely to view your emails on their phones or tablets, so you must ensure your emails are responsive and adapt to different screen sizes. [5]

3. Mobile accounts for 46% of all email clicks. [6]

4. 47% of all people across demographics use a mobile application for checking their email. [7]

5. 23% of readers who open an email on a mobile device open it again later. [8]

Tips: To optimize your email marketing for mobile devices, make sure your emails are responsive, easy to read, and have clear calls to action. You can also use tools like Litmus or Email on Acid to test your emails across different devices and platforms.

Content Distribution Statistics

6. Oberlo’s data reveals an impressive insight: For every dollar invested in email marketing, businesses can anticipate an average return of $40. [9]

This ROI ratio highlights the remarkable potential for generating substantial returns through email campaigns.

Additionally, this noteworthy info emphasizes the financial benefits that can be reaped by focusing efforts on crafting engaging and targeted email campaigns.

7. Two out of every three marketers use email marketing to distribute content organically. [10]

8. Email newsletters are the most popular type of email content, used by 81% of B2B marketers. [11]

9. A notable 85% of B2B organizations rely on email marketing software to facilitate content distribution. [12]

10. 64% of B2B marketers reported that their email marketing strategy effectively achieved their business goals. [13]

Tips: To create engaging and valuable email content for your subscribers, you must understand their needs, preferences, and pain points.

You can use surveys, feedback forms, or analytics tools to collect data and insights on your audience. You can also use content marketing tools like BuzzSumo or SEMrush to find relevant topics and keywords for your niche.

Customer Acquisition and Retention Statistics

11. 81% of small businesses rely on email as their primary customer acquisition channel, and 80% for retention. [14]

12. Email subscribers are 3x more likely to share content on social media than visitors from other sources. [15]

13. Email marketing outshines Facebook and Twitter combined, boasting an impressive 40 times greater effectiveness in customer acquisition. [16]

14. Welcome emails boast a remarkable 320% higher revenue per email than other promotional emails. [17]

15. GetResponse says welcome emails achieve an above-average open rate of over 63.91%. Additionally, the average click-through rate hovers around 14.34%. This means that approximately 6 out of 10 new subscribers will engage with your message, and around 1 in 7 will click through to your website and act upon your desired call-to-action (CTA). [18]

This significant disparity emphasizes the effectiveness of welcome emails in capturing recipients’ attention and prompting them to take action.

The data also underscores the importance of crafting engaging welcome emails as a valuable opportunity to establish a positive initial interaction with subscribers, enhancing engagement and potential conversions.

Tips: To attract and retain customers with email marketing, you must build trust and loyalty with your subscribers.

You can do this by sending personalized and relevant emails that offer value and benefits to your audience.

You can also use email marketing tools like Mailchimp or Constant Contact to create and automate welcome emails, thank-you emails, re-engagement emails, and other types of lifecycle emails.

Personalization Statistics

16. Personalized emails deliver 6x higher transaction rates than non-personalized emails. [19]

17. Personalized subject lines generate 50% higher open rates than generic ones. [20]

18. According to HubSpot, personalized call-to-actions (CTAs) outperform basic CTAs by an impressive 202%. [21]

Their comprehensive analysis involved studying more than 330,000 CTAs over six months.

The findings revealed that CTAs customized to match individuals’ preferences and behaviors exhibit an impressive 202% higher conversion rate than their generic counterparts.

In addition, this underscores the potency of customization in driving engagement and desired actions. As a result, it showcases the significance of personalization in optimizing marketing strategies for improved outcomes.

19. Barilliance analyzed 300 randomly chosen customers and uncovered valuable insights. The study revealed that product recommendations contribute significantly, constituting as much as 31% of eCommerce site revenues. [22]

This data also emphasizes the impact of personalized suggestions on driving sales and enhancing the customer experience.

20. Personalizing cart abandonment emails not only boosts customer engagement but also slashes cart abandonment rates by a significant 10% to 30%. [23]

Tips: To personalize your email marketing campaigns, you must segment your email list based on different criteria, such as demographics, behavior, interests, and preferences.

You can also use email marketing tools like ActiveCampaign or Drip to create and send personalized emails based on triggers, actions, and conditions.

Segmentation Statistics

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21. Subscriber segmentation is the most effective email marketing campaign strategy. [24]

22. Segmented email campaigns have an open rate of 14.32% higher than non-segmented campaigns. [25]

23. Segmented email campaigns have a click-through rate that is 100.95% higher than non-segmented campaigns. [26]

24. According to Campaign Monitor, emails tailored to specific segments, with targeted content, contribute a significant 58% of the overall revenue generated through email marketing efforts. This data underscores the effectiveness of personalized and focused email strategies in driving financial success. [27]

25. Segmented email campaigns can increase revenue by up to 760%. [28]

Tips: To segment your email list effectively, you must collect and analyze data on your subscribers, such as their location, purchase history, browsing behavior, engagement level, and preferences.

You can also use email marketing tools like AWeber or ConvertKit to create and manage different segments and tags for your email list.

Automation Statistics

26. 82% of marketers use automation to craft triggered emails, leading to 8 times more opens and higher earnings than standard bulk emails. [29]

27. Compared to 18.8% for non-automated emails, automated emails have an average open rate of 45.7%. [30]

28. Automated emails average a 152% higher click-through rate than a standard email newsletter. [31]

29. Automated emails can generate up to 320% more revenue than non-automated emails. [32]

30. Automated emails can save up to 80% of your time and resources. [33]

Tips: To automate your email marketing campaigns, you must define your goals, audience, and message for each email sequence. You must also set up triggers, actions, and conditions for each email sequence.

You can use email marketing tools like Sendinblue or Moosend to create and run automated email campaigns based on different scenarios and workflows.

Here Are the Reasons Why Email Marketing Has an Impressive ROI

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Email Is Used Worldwide

Email is still the main form of digital communication, despite instant messaging, social media, and text messaging.

It may sound exaggerated, but statistics back it up. There are about 4 billion daily email users this year alone, expected to increase to 4.6 billion by 2025.

In addition, many people prefer email as their primary form of communication with a brand. The good news is that the wide use of emails signifies that you can fully engage with your audience, wherever they are and whoever they may be.

Scalability

Email marketing has an impressive ROI because it grows with the brand and offers a steady revenue stream.

It also requires less investment than other marketing forms, like paid ads. Yet, its strength lies in its ability to provide a long-term and sustainable revenue stream with an impressive ROI.

Personalization Drives Purchases

The third compelling reason in this list why email marketing has a high ROI, is because it drives purchases.

Emails can be crafted based on time triggers or actions. So, email marketing is more than just a one-size-fits-all approach. As the marketer or business, this platform drives purchases because you can make the subscriber feel special, especially when the email is personalized.

Remember, however, that email personalization is more than just using your customer’s first name in the body copy and subject line. We’re talking about providing them with content that matches their needs and wants based on the customer segment they belong.

For instance, you can send an email about swimsuits to people living in Hawaii, while you can send a promotional email about winter coats to subscribers in Alaska.

Then, you can send a personalized email with a 20% coupon to high-spending clients and a 10% coupon to the low-spending ones.

When you tailor your email this way, it is 25% more likely to be opened. But before sending those personalized emails, segment your list first. You can segment them by location, position in the sales funnel, past purchases, personal interests, or age.

Email Builds Trust

Delivering valuable content to your subscribers establishes trust.

When subscribers receive informative, helpful, or entertaining content, they’re more likely to engage with your campaign and see your brand as a trusted source. This approach will also reflect the product or service that you offer.

Therefore, deeply understanding your subscribers’ needs and interests is vital to deliver valuable content. It may involve segmenting them and tailoring your content to address the needs of each segment.

Helps with Customer Retention

A good email marketing strategy helps acquire and retain customers.

With this form of marketing, you can rest easy knowing that subscribers can become loyal customers as long as you constantly engage, even if they haven’t expressed interest in buying your product or availing your service for the second time.

And as you know, increasing customer retention also increases profits.

How to Use ROI Data for Email Marketing

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Whatever industry you’re in, you’re most likely focusing on your customers to provide the right service or meet their needs effectively.

Moreover, ROI data lets you know whether a customer likes your current newsletter, if any change you made has affected their opinion about your form of marketing, or how to improve your campaign.

If you observed an increase in your email marketing ROI, your recipients likely liked your newsletter and the information you provided.

After all, they wouldn’t have clicked your email and read it if they didn’t like it. Gradually, you’ll see to improve your campaign, and when you do, you’ll notice an increase or decrease in your ROI. If it decreases, there’s a chance that they didn’t like the change you made.

So, adjust your email marketing campaign based on that data.

If a certain type of subject line has a higher ROI than others, use that to bring in more clients. Give what your audience wants.

Other ways to improve your email marketing strategy include improving your subject lines, giving a simple call-to-action (CTA), or lowering bounce rates.

Here are some areas to focus your ROI analysis:

Consider how email impacts other marketing channels and how your analysis may help you achieve greater success.
Monitor what drives conversions and clicks.
Measure the most effective email marketing campaigns and replicate them.

Email Marketing Is Still Worth the Investment – But You Have to Do It Right

There’s no denying that email marketing is tried and true. It has an amazing ROI of $44 for every $1 spent.

Despite not being the most cutting-edge or the newest digital strategies, it remains worth it. When used correctly, it is a form of marketing that can help businesses add qualified leads and reel in more customers.

Don’t worry if you’re just starting in email marketing. Most of the time, it’s just a matter of observing the best email marketing practices.

Let InboxAlly be your tool to flourish in the email marketing arena.

Find out how this deliverability tool has helped hundreds of other clients craft brilliant results that drive revenue.

References:

[1] https://www.campaignmonitor.com/company/annual-report/2016/

[2] https://nealschaffer.com/social-media-roi/

[3] https://kstatic.googleusercontent.com/files/

[4] https://www.radicati.com/?p=17936

[5] https://backlinko.com/email-marketing-stats

[6] https://www.litmus.com/blog/email-client-market-share-trends-first-half-of-2018

[7] https://www.campaignmonitor.com/resources/guides/email-marketing-trends/

[8] https://www.campaignmonitor.com/resources/guides/email-marketing-trends/