You've probably heard about how email marketing is an effective marketing channel. It’s low cost with a high return on investment ($57.5 for every dollar spent, according to the Direct Marketing Association). In addition to being a valuable relationship tool for both retention and acquisition, email also provides real-time measurable results. And email is a great vehicle for driving traffic to any web site. It’s all about being front of mind. If you’re not sending emails to your customers or members, someone else is.
While this all sounds great... there is a catch. Email is so deceptively simple, that doing it well is a serious challenge. Smart email marketing starts with a solid strategy. Then you need the right technology and a flexible plan for evaluating and improving the strategy as the cycle evolves.
This article presents some industry trends about what's working and not working in the email marketing landscape. But before we go any further, the most important point to understand is that every email marketing program is different. Depending on your list, audience, content, business, etc., there is no 'one-size-fits-all' method. Industry stats should be used as only as guidelines or suggestions and getting the best results possible come from testing, measuring, and refining your own program on a regular basis. To say there are variables is an understatement.
In 2006, cardcommunications began reporting on industry trends. From a business perspective, it gave us the proof to back up recommendations we often make to clients. However, these reports have also shown us how quickly things can change in the email marketing world, how some trends never change, and especially, how Canadians really love their email.
Limit content to what really counts
One common myth new email marketers often make is that they have to produce a lengthy newsletter with lots of content. It is time consuming and often the need for quantity ends up overpowering the quality of content. In an effort to please many with all the options, it really ends up pleasing few with the lack of focus and an overwhelming length. We've often been advocates of the e-bulletin - a shorter, focused email with less content and more quality. The Q4 Trend Report by cardcommunications showed not only that e-bulletins perform better, but by a landslide!
E-bulletins achieved average open rates of over 44 per cent, and almost 40 per cent of those opens also clicked through. E-newsletters show an average 32 per cent open rate and 20 per cent click-through rate. The e-bulletin also has lower opt-out rates, and higher deliverability rates. Other types of emails evaluated in the report were info updates, Sales/promotional pieces, e-vites and greeting cards.
Break up those big lists
Next: the list. How can we make our list bigger? How can we get more names? More names mean more sales right? Well… not exactly. While this method certainly works for spammers, that's not who you want to be, right? This doesn't mean you need to throw out your big list - again, it's quality over quantity. First, make sure your list is 100% permission-based. As your list grows, think about how you can segment it into many smaller lists, and speak to your audiences differently. Consistently, through our four 2006 reports, smaller lists have resulted in better results.
Email marketing is no doubt a powerful tool, and something that fits with virtually any type of business. But it's more than just typing and hitting send. The more effort you put into an email program, the better return you will get from it. And don't forget to test, test and test!
More highlights from cardcommunications’ quarterly reports:
- In all four 2006 reports, it was found that smaller, segmented lists perform better than larger lists
- In Q4 2006, E-vites had the lowest delivery rates due to irregular frequency.
- Q3 2006 showed non-profit organizations and associations achieving the best results when compared to other industries. This is most likely because these groups have the best relationships with their databases.
- Event planning emails generate the highest open rates, but lower click-through rates
- List quality (relationships) has proven itself as one of the most important elements of any email marketing campaign
- View Q4 Quarterly Trends Report by cardcommunications
About cardcommunications
cardcommunications is an Ottawa-based email marketing service provider focused on creating emails people love to open. Started in 2001, cardcommunications offers solutions ranging from blended to fully outsourced email services, specialized training and customizable programs that meet client’s specific needs.
www.cardcommunications.com
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