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Three Data-Driven Ways to Boost Email Marketing ROI

Three Data-Driven Ways to Boost Email Marketing ROI

If you’ve ever scoffed at the email marketing's ROI (which accounts to around 4,300%, according to the Direct Marketing Association) you’re not alone. The average office worker sends and receives 122 emails per day, so how can marketers possibly expect to stand out against all that noise?

If you’re part of the majority of marketers planning to increase email spending this year, it’s critical to use your subscriber data to drive targeted (aka relevant) campaigns that truly resonate. And in turn, you’ll increase performance, sales and customer loyalty – a true marketing triple treat.

Here are three proven ways to do just that.

1. Don’t underestimate welcome emails.

Welcome emails receive four times more opens and five times more clicks than other bulk emails. The reason why is clear – they arrive, usually automatically, after a customer has actively shown interest in your organisation. You’ll get bonus points if that welcome email is tailored to how they joined your list; e.g. they downloaded a piece of content, signed up at an event, etc.

However, it’s up to marketers to translate welcome emails into sales results. One effective strategy is to include a special offer that highlights the value of receiving your emails. Luv Aj, a jewellery design and retail company, tested this strategy by updating their standard plain-text confirmation email. They developed an automated welcome email that shared an exclusive sale for 10% off its products, and in three weeks, it converted 21% of new subscribers into paying customers.

2. Use analytics to get to know your audience.

The advent of data analytics changed the way every industry operates. Professional sports teams court new fans, reward loyal ones and draft players using analytics; politicians use crowd research to determine advertising and outreach strategies. Your brand is no different.

Learn more about your subscribers by tracking who’s opening your messages, when they’re reading and what action they take afterward. Children’s Corner Store used this approach to track purchases inspired by emails, subscribers that frequently purchased from the brand and more. Then they took what they learned about their customers and used it to inform future campaigns. As a result of incorporating analytics in its email marketing, the company notably improved its conversion and click rates: while its first email campaign resulted in a solitary $37 conversion, its fifth garnered 17 conversions, worth $1,286 in total. That’s a pretty solid lift.

3. Send more relevant emails through segmentation.

Consider the last few emails you opened, but ultimately ignored. Did they have anything in common? Chances are, they might have looked flashy, but they didn’t deliver content that was relevant to your interests.

Segmenting your mailing list by a number of factors (location, purchase history, demographics) can help avoid this problem and ensure you’re always delivering the right message to the right person at the right time.

Segmentation can also stop your brand from sending emails that appear tone-deaf, for example, a promotion for baby clothes to people who don’t have children. When Peter Nappi, a shoe retailer, applied smart segmentation to a recent campaign, it measured a 67% open rate and 20% click rate – a dramatic improvement from its baseline campaign performance.

Email is the most direct channel of communication between your brand and its customers. They’ve invited you into their inbox. By using analytics to get to know your audience, catching their attention with compelling welcome emails, and building a relationship based on relevant messages, your emails will cut through the noise loud and clear.

Cynthia Price

Cynthia Price

Cynthia is the vice president of marketing at Emma, a provider of email marketing software and services that help marketers do their very best work.

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