Although email marketing has proved to be a strategy with a high ROI (return on investment), its effectiveness appears to be shrinking. According to the results of a research conducted by the Direct Marketing Association, the ROI generated by this marketing effort was $43.62 for every dollar spent on it in 2009. This figure was down from the 2008 level of $44.93 and the result is expected to slip to $42.08 in 2010. No doubt, the ROI from email marketing is higher than that generated by other direct marketing channels. In fact, Internet search advertising, which claimed the second position, generated an ROI of $21.85 for every dollar spent. According to Datran Media’s 2010 Annual Marketing & Media Survey, 39.4% of industry executives said that email had proved to be the strongest advertising channel for them.
Email Marketing: Tips To Improve ROI
So, how can you prevent the ROI from your email marketing endeavors from slipping? Here are some tips to maximize your returns:
- • Focus on one message throughout the email: This tip holds for non-newsletter emails. Moreover, the mail’s focal point should be clearly reflected in the subject line and the first few lines of the message, so that those just skimming through the mail can also grasp the message.
- • Be clear and concise: Don’t beat around the bush. Get to the point fast and in a clear and crisp way.
- • Use strong call to action: Use compelling call to action messages and use them in several parts of your email. This maximizes the clicks from the email to your site.
- • Personalize your message: Add the recipient’s name wherever possible in the mail. This allows the reader to connect with the mail and prompts him/her to go through the mail and act on it.
- • Customize your template: You should customize the template of the message by using the colors and fonts that can be instantly associated with your company.
- • Offer incentives: Free stuff, prizes, discounts and similar incentive programs work very well to encourage readers to register on your site or make purchases.
- • Don’t overpay: Don’t pay for emails that are not successfully delivered. Remove emails that recorded a soft-bounce and hard-bounce more than five times from your list.
- • White-list your email or IP address: Getting your email sending or IP address white-listed ensures that more messages are delivered to readers.
- • Monitor the number of times the mail is opened, clicked and unsubscribed.