Improve Return on Investment for Email Marketing

Improve Return on Investment for Email Marketing

Improve Return on Investment for Email Marketing


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How to Improve Return on Investment for Email Marketing

In this blog post we will discuss how you can maximise profits and improve return on investment for email marketing.  The job of a marketer is ultimately to attract clients to a business in order to make money.  However, implementing a marketing strategy can be costly if you don’t get it right.  In this blog post, we will outline how you can use email to market to your ideal customer base and improve return on investment.

Read the following sections to find out how you can improve return on investment for email marketing campaigns.

Return on Investment:  The Statistics

Pound for pound, email marketing has the highest return on investment of all marketing channels.  The DMA reported that return on investment for email marketing in the UK stood at £38 for every £1 spent at the start of 2015.  18% of those surveyed reported a return on investment of £70 per £1.  The report forecast further improvements in ROI in years to come.

A survey conducted by the Radicati Group questioned marketers as to how they rated their own marketing efforts.  68% of respondents to the survey reported that their email marketing return on investment was ‘Excellent’ or ‘Good’, higher than any other marketing channel.  

The initial set up cost of email campaigns may be high due to the purchasing of a platform, campaign packages and hiring and training of your team.  However, the potential ROI for email as a marketing channel supports the notion that email is a worthwhile investment.  Once you have started to make money from email, reinvesting the profits has the potential to increase future return on investment.  You can use the money alongside campaign insights to build much improved campaigns as your strategy develops.

Comparing Email to Other Marketing Channels

Pay Per Click marketing campaigns rely on a regular investment and can produce inconsistent results.  Pay Per Click requires the marketer to bid on keywords that they want to target, the cost of which may fluctuate significantly over time.  Similarly, whilst social media marketing gives you access to a large potential user base, the decline in organic reach combined with increasing paid social costs is making this marketing channel less cost effective.  Whilst you can try to outsmart the algorithms on social media sites, this tactic is extremely time consuming and only has a limited effect.

You can use email to communicate with your contacts over time.  The flexibility of this marketing channel allows you to fulfill many purposes including:  Interaction, Driving Conversions, Nurturing and Transaction.  Email marketing platforms such as Wired Plus, allow you to segment your list and create email series which can be sent to contacts at the appropriate time.

Email as an Inbound Marketing Channel

Many marketing techniques such as social media marketing and pay-per-click campaigns rely on sharing your message with a large audience in the hope that you find the right individuals.  Although you can specify certain characteristics of the people you want to see your message, you have little control.  This results in wasted ad spend as many internet users who view your marketing materials may not be interested in what you have to say or may not be in the right position to take action.

By comparison, email is an inbound marketing channel.  To receive marketing emails, you need to establish consent before sending campaigns.  Building your contact list may take time and investment but once you have established your contact list, you have a ready made audience to target.  As you need consent to market to individuals it is logical to assume that recipients of your email marketing campaigns are interested in what you have to say.  Although there is no guarantee that the contact will be interested in what you have to offer in individual campaigns, this represents a big opportunity for you to communicate with email recipients in a way that will make them take action.

You can further increase the chance that you are attracting the right type of email subscriber by identifying buyer personas to target with your message.  Buyer personas help you to identify the right type of content to send to each recipient on your mailing list.  You can then hone in on exactly the sort of people you want to target.  This reduces the chance that you are sending to people who are unlikely to respond to your email campaigns.

Segmenting Your Contact List

Segmenting your contact list into smaller, more concentrated groups of like-minded contacts is proven to improve ROI.  You can segment your data based on any vertical you choose that is most relevant to your company.  Segmentation allows you to deliver messages that are more focused on one section of your email list.  You can use this technique to avoid the ‘batch and blast’ approach which results in contacts receiving irrelevant emails.

Wired Plus Segmentation

According to Econsultancy, 78% of marketers are already using basic segmentation in their email marketing campaigns.  However, there is plenty of room for improvement, especially with more advanced segmentation techniques as only 36% of marketers currently use them.  Segmenting your data results in an increase in open and engagement rates as contacts only receive the correspondence they require.

Increase profits in the long term by focusing on customer retention as well as acquisition.  You can use a nurture series to ensure that customers approaching the end of the lifecycle to renew their interest in your company.  By using an email nurture series, you can increase the customer lifetime value and return on investment of your email campaigns.

The Benefit of Listening to Your Customers

When running an email campaign, there is a wealth of data that you can tap into about your performance.  This data should not be ignored.  Data on campaign performance can provide insights into areas of your campaign that you need to change and improve.  Improving your campaigns based on the results of your previous marketing materials helps increase the relevancy of your campaigns.

Writing likeable content increases the chance that they will share your email with their friends.  This expands the reach of your email sends without any further cost and is a great way to increase brand awareness.  Include social sharing buttons in your header to encourage social engagement.

You should also pay close attention to the way you write your emails.  Contacts from different segments of your email list are likely to respond differently to your email marketing campaigns.  Use copywriting techniques which are appropriate to your recipient to ensure that they engage with your campaign.  Writing copy in a tone which is appropriate for your customers is more likely to yield results than blasting all of your contacts with the same message.

The pervasiveness of email is another reason why it is so effective.  Email is the central hub of all marketing activity; an account is required to sign up for many websites and services.  It is used by millions of people worldwide and you can attract a wide range of people who are interested in your core message.  Being able to target a large customer base means that you can transcend people of different backgrounds and demographics each with a tailored message.

How Data Hygiene can Improve Return On Investment for Email Marketing

We have previously explained how data hygiene improves email marketing performance and return on investment is no different.  When purchasing an email marketing package, users are often charged for a set number of email sends.  You can reduce the number of wasted sends by maintaining your data hygiene processes, saving money in the process.

It is important to monitor whether contacts are becoming disengaged with email campaigns over time.  Data hygiene practices are essential to prevent wasted sends on disengaged contacts or inaccurate email addresses.  Furthermore, by quickly identifying when customers are becoming less engaged with your business, you can change your approach accordingly to reduce list decay.

Data hygiene has a significant impact on the deliverability of email campaigns.  Your email deliverability has wide ranging and serious impacts on your campaign performance.  Having poor data hygiene which reduces your email deliverability can have a detrimental impact on ROI.  Campaigns which do not reach their intended recipient do not have the opportunity to perform.

Email Marketing Packages

Email marketing packaging options give marketers the opportunity to select the most appropriate package for their needs.  It is important to select the right email marketing package so that your strategy can perform to its full potential.  The two main considerations when selecting a package include:  Number of Campaign Sends and Managed Campaign options.

Managed Campaigns Wired Plus

When choosing an email marketing package it is important to carefully consider the number of email sends that you require.  This will impact the cost of the email package that you select, increasing or decreasing costs accordingly.  Before buying an email marketing package, calculate the number of emails that you plan including predicted list growth.

Managed campaigns give control of the campaign to a dedicated campaign manager.  Whilst more expensive than basic starter packages they provide a higher level of support for marketing teams.  This option is useful for companies who do not have time to manage campaigns.  One clear benefit of this approach is the level of expertise provided which helps to improve campaign performance.

However, should you wish to purchase an email marketing package to manage in-house, the cost is likely to be cheaper.  It is important to consider whether you have sufficient expertise and time in-house to run successful campaigns.


Email marketing is a cost effective marketing strategy which can result in a high return on investment when implemented correctly.  Marketing professionals should be proactive, taking measures to increase the effectiveness of their campaigns over time.

We hope you have enjoyed reading our post about how to improve your return on investment.  Download your free copy of The Complete Guide to Email Marketing today.  We have included seven steps to email marketing success designed to help you achieve your campaign goals.

Complete Email Marketing Guide

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