With Email Marketing on the Rise, it is Important to Spend Wisely
According to a forecast from Forrester Research, spending on email marketing in the U.S. will grow by 14 percent each year for the next five years, reaching a total of $2 billion in 2014. Falling cost per thousands (known as CPMs, or the amount an advertiser will pay per 1000 impressions), a high return on investment, and the growing use of social email accounts will all fuel the use of email by direct marketers. The report also says that retention email – emails that recipients have given permission to be sent – will continue to replace paper communications and will comprise the largest share of marketing messages.
Judging from this study, it is evident that more and more companies are realizing that email marketing, if executed properly, can be extremely effective and cost efficient. However, if email campaigns are not carried out correctly, they can be a misuse of a company’s time and money.
“By 2014, direct marketers will waste $144M on emails that never reach their primary target,” said Forrester Research vice president and principal analyst, David Daniels. “Successful direct marketing pros will alter their tactics to overcome inbox clutter and increase relevancy.”1
Below are four simple things that can help avoid wasteful spending, and maximize email marketing ROI.
Grow a Reliable Email Database
It is important to grow your email database organically (ideally through opt-in measures); the email addresses will then be from your target audience.
Patience and Accuracy
Assembling a useful database can take time, and it is important to check the email addresses that are attained for accurate spelling and spacing. There is nothing more wasteful than spending time and money to organize a campaign, only to receive bounce-back notices because addresses were entered incorrectly.
Send Relevant Content/Offers
Staying consistent with useful information related to your core services/offers is imperative. Varying from relevant information could allow for an email campaign to become wasteful.
Minimize Use of Graphics
Many email readers automatically block graphics from downloading, which means many people don’t receive image-heavy messages. Be sure to minimize the use of graphics and utilize text to deliver key messages.
1 Business & Leadership US email marketing spend forecast to reach $2bn by 2014, 2009, http://www.businessandleadership.com/marketing/news/article/14143/marketing/us-email-marketing-spend-forecast-to-reach-2bn-by-2014 (June 2009)