Email Marketing By The Numbers|Teedup

At TEEDUP, we love dealing with numbers. Data won’t lead you astray, and the numbers on email marketing are sweet music for a business looking to grow. There are tons of sites out there giving great stats on email marketing, but this list contains the numbers of exactly why and how email marketing should take place. Don’t read this list unless you are serious about doing email marketing the right way.

3.8 BILLION…

…is the amount of people who have an email worldwide. In the United States alone there are 244.5 million  users. A huge potential market. That number isn’t a huge surprise though, and we include it just to give an idea of the potential reach of an email marketing campaign.

89%…

…of consumers check their email every day. So not only is there a wide audience to be had, but with email there is the opportunity to be seen by your target audience every time you launch a campaign. No other marketing strategy gets your content in front of the consumer as reliably as email.

72.2%…

…of consumers say that email is their preferred channel for receiving promotional content. Compare this to the stat that says only 20% of social media users prefer to receive promos on those respective sites. People are more open to sales when they pop up in their inbox.

38:1…

…is email marketing’s return on investment (ROI) average, according to a Litmus survey of 372 marketers worldwide. This blows away any other marketing channel’s return on investment. This high number is due to the fact that email is a relatively inexpensive marketing tool. Another important factor is…

138%…

…more money is spent by consumers who purchase products through email than those who do not receive email offers. People enjoy hearing about deals or looking at content from businesses and brands that they are interested in. The email acts as a reminder for the consumer to stay engaged with your business and use your products. But there is an important number to take into consideration when building an email list.

0…

…and I mean ZERO of those emails should be purchased, or grabbed off random business cards, or any of the other bush-league tactics used to get unsuspecting people’s emails. The great return on investment only applies when the people being marketed to have opted into the email list. Otherwise any email marketing content you send is nothing more than SPAM. Not a good look for your business. There are many good ways to get people to give you their emails. The best method is to create a lead magnet, which is something (samples, discounts, free stuff, etc.) given in exchange for an email.

4…

…metrics will tell the story of how well your email marketing campaign is performing. These metrics are: Open rate, Click-through rate (CTR), Conversion rate, and ROI. Simply put, the open rate is exactly what it sounds like. How many people actually opened the email? The CTR stands for an interaction by a consumer. How many people opened the email and clicked through the contents? Conversion rate represents how many people took the intended action. For example, how many people bought the item being sold in the email? The ROI is the equivalent of all the revenue that email marketing generates for a business, divided by the amount of money spent on the email campaign. These metrics help you analyze a marketing campaign, figure out what is working, and then double down on those successful strategies to achieve better numbers for the next campaign.

100.95%…

…higher CTRs are seen on segmented email campaigns vs. non-segmented email campaigns. Segmentation of email lists are very important. Segmentation means sorting your email list into smaller, more targeted lists. The sorting can be based on anything from gender to age to location, but the more focused you can be with the segmentation the better. This way, more personalized emails can be sent to each specific list, and people are more likely to interact with something that they feel directly applies to them. Many emails can be wasted on the wrong audience. Make sure your emails reach the right audience and contain a specially tailored message for those people. It takes a little longer and is more complicated, but the higher CTR makes it well worth the extra  time.

$600…

…is the amount in dollars that a small business should expect to pay for monthly email marketing. For medium-to-large businesses, this number can double, or even triple. It all depends on how large of an email list a business has and how many emails they want to send on a monthly basis. For small businesses, email marketing can be cheaper because many marketing services, such as Mailchimp and Hubspot, offer packages ranging from free to $200 per month, depending on a business’ needs. But some other expenses that will take place are writing emails, managing email lists, and running email campaigns. Just because you do the work yourself doesn’t mean you aren’t spending money on this project. Time is money. That is why some businesses choose to outsource with freelance writers ($100-$200 per email) and graphic designers ($65-$100 per hour) but these can be costly, especially if a small business has a limited marketing budget. Hiring an agency to work the email marketing for you can be a worthwhile investment and this ranges from $300-$500 per month. Again, the quantity, quality, and frequency of the email marketing will all affect the price, but all things considered, $600 is a good expectation for the cost of one email marketing campaign per month. Still very cheap compared to other marketing methods.

1,000…

…is the approximate number of emails needed on an email list to see consistent conversions. This number is approximate because it can vary greatly from business to business. A good equation for determining the number of emails needed is: [Subscribers] * [Click-Through-Rate (CTR)] * [Website Conversion Rate] = [Conversions from Email]. Then it is important to know the value of a conversion for your business, because that will determine how much email marketing is ultimately worth for you. To get more specific numbers based on your business, this site has a good chart. This large number shouldn’t scare you away from getting started with email marketing, but it is good to have an idea of the sheer quantity of emails needed for a great marketing campaign. At TEEDUP we hate to not be able to give more easily discernible data, but with such large variance in the value of a customer and the value of a conversion for businesses, this number is unique for each business. Still, to be profitable, 1,000 emails is the goal. This doesn’t mean don’t use email marketing if you have less, no business has 1,000 people’s emails at the very start, but smaller businesses must understand that it might take some time for email marketing to start generating a profit. The best thing about an email list however is that…

100%…

…of the emails on your email list belong to you. Unlike social media accounts, where all of the content and data is owned by the site, and therefore a site can block you causing you lose all of those contacts, email lists are fully owned by their creators. This means that emails are only removed when the business is weeding out un-responsive or non-active subscribers, which is a good practice to make sure you aren’t wasting emails on un-interested consumers. So for businesses, the email list will keep getting bigger over time, bringing more and more people within reach of the marketing campaign. Enormous advantage and this is why the best time to start your email marketing is RIGHT NOW. Before you get started, understand this final number.

5

…things make up a good email marketing campaign. First, a business needs a list of qualified emails. Second, segmentation of the email list is mandatory. Third, the content of the emails must be targeted for each segment of consumers. This keeps them interested because your content always applies to them. Fourth, consistency is the most difficult but most necessary part of email marketing. Not overwhelming consumers with emails, but providing good content at a consistent rate helps foster a good relationship with the consumer as they learn what to expect from your business. Fifth and finally, data tracking is huge. TEEDUP wouldn’t promote doing something if there wasn’t a good way to make sure that it is worthwhile. This is what data tracking solves for email marketing. Track the open rate, CTR, conversion rate, and ROI. These numbers will illuminate any weak points and any strengths, and turn email marketing into your businesses best friend.

1…

…choice is correct when it comes to email marketing. Do it, do it well. There are hundreds of valuable sites showing more data on email marketing. Check them out, but at TEEDUP we like to keep our numbers simple. Come back every time you get lost in the piles of data and refresh yourself with the numbers that show why and how email marketing should be done. Get TEEDUP for success.