email marketing ROI

Just over a third of businesses (34%) are unable to calculate the revenue earned from email marketing, according to a new survey from the DMA*

Only 60% of respondents said that they could calculate the revenue return, despite the fact that a vast majority of businesses (89%) said email marketing was either ‘very important’ or ‘important’.

This tallies with data from the new Econsultancy/Responsys Marketing Budgets 2013 Report, which found that only 52% of businesses rate their ability to measure ROI from email marketing as ‘good’.

According to the DMA’s report, of those who can calculate the ROI one-fifth (20%) accrue more than £51 for every pound spent, while almost a half (49%) of respondents said they achieve an ROI of between £1 and £10 for every £1 spent.

Even so, based on an assumption that the average return for the top category is £55, the estimated average return across all organisations is £21.48 for each £1 spent on email marketing.

email marketing

Interestingly, the DMA’s report found that lack of internal resource (54%) and budget (38%) are the main constraints preventing companies from achieving their marketing goals.

Lack of data was cited by just 27% of respondents, while internal process and in-house technology were selected by 30% and 28% respectively.

Another indicator of the value of email marketing is its share of business revenue. The majority of businesses (62%) produce more than a third of their digital business revenue through email.

In fact a third of businesses (34%) achieve 50% or more of their digital revenue from email marketing.

email marketing

Customers respond positively as email tactics mature
• Just over half of respondents reported open, click and conversion rates improved in 2012. Even more expect their numbers to improve in 2013. Only less than 12% reported any decline in these metrics

• Despite relatively low volumes, trigger email campaigns accounted for 21% of email revenue. Over 75% of email revenue is now generated by alternatives to generic one-size-fits-all campaigns

• Marketers are making use of a far wider number of email marketing approaches, but there is still significant room for improvement. For example, just under half still don’t send a welcome email

More than half (56%) of the 250 senior B2B and B2C brand marketers surveyed for the DMA Email Marketing Council’s 2013 National Client Email Report

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