Generate $36 on Every $1 Spent on Sending an Email. Know Your Email Marketing ROI

Author: Mike Connolly

• For every $1 spent, email has an average ROI of $36
• Subscriber segmentation is the most effective campaign strategy
• Testing your email leads to higher ROI

Source: – Hubspot 2022

It is a proven fact that the best digital marketing strategy to maximize your ROI is email marketing. However, email marketing has evolved, from the type of emails sent, the channels used, the tone of messaging, the target audience, to a change in focus on segmentation.

The Current Email Marketing Landscape

Email marketing has transformed, as blanket marketing replaces more targeted, segmented and trigger-based campaigns, the objectives of B2B marketers worldwide have evolved as well. According to Litmus, 70% of brands are unable to successfully measure their ROI. As marketers we must ask ourselves, what can we do to improve?

The primary objective of 26% of marketers was driving revenues through sales

• According to Litmus, spam and A/B testing leads to a 28% increase in ROI
• Marketers can increase their ROI by subscriber segmentation, personalization and Email automation (HubSpot Research, 2021).
• To increase ROI, using subject lines that peak curiosity are the most effective (HubSpot Research, 2021)

Email Revenue Based on Email Types

With new email marketing tactics, marketers now can improve their revenues and email marketing ROI based on the types of emails delivered.

Rather than sending unsegmented emails to whole lists, tailored and segmented emails generate more revenue. While the volume of targeted emails to segmented lists may be lower, the level of engagement increases, the relevance is more contextual, and the timing is more appropriate. Segmentation results in an increase in conversion rates and ROI based on the types of emails delivered.

When it comes to sending emails based on your customer’s lifecycle, specific messages related to profiles, product use and behavior will generate more revenue. As marketers, we have to relate to our audience and create content that is meaningful to them.

Additional Read: 6 Steps to Boost B2B Lead Generation Strategies

Email Marketing Metrics

To measure email marketing ROI, some of the important metrics that you can consider include:

Email Marketing Strategy to Improve ROI

1. The Magic Number – Identifying the Frequency of Sending Emails

While the frequency of emails you send in a month is important, what is more essential is the relevance of the content. When you turn up the volume on sending emails, make sure your messaging is appropriate; otherwise you may risk losing the attention of your audience and increase in unsubscribes.

Majority of marketers send at least 2 to 3 emails a month. However, you need to decide what number works best for you. An ideal frequency of sending emails will be that number that lets you keep a top-of-mind position while being relevant at the same time.

2. The Granular Approach – Utilizing Customer Segmentation 

Marketers are using customer segmentation to drive targeted campaigns. You can segment customer data either by traditional definitions or you could use email marketing tools that automatically segment and personalize messages.

43% of marketers, who use segmentation, use up to six segments on an average. However, you need to remember that segmentation should serve a twice-fold purpose, of sending relevant messages to recipients and of helping marketers achieve their business objectives.

Additional Read: Personalization: The key to B2B lead generation success

3. The Opt-In Strategy – Building a Quality List

Marketers use different touch points and channels to gain permission from customers to send emails. In email marketing, creating an opted-in list is important, without which there will be an increase in unsubscribes and bounce rates.

While the content of the email should be sufficient to convince the reader to sign up, marketers have observed that a further nudge is necessary. There are many reasons why people are encouraged to sign up including if the email is from a trustworthy brand, if incentives such as discounts, gifts and offers are provided, or if it is part of a transaction or loyalty program.

Email marketing is an effective tool to connect with your target audience. If done correctly, with the use of marketing automation and with testing, it is possible to send the right message, to the right person, at the right time to achieve desired results.