Email Marketing is an effective tool when marketing during a recession, according to research published by Econsultancy and Adestra today.
The Email Census 2009 found that 78% of company respondents now rate email as “excellent” or “good” for ROI, this is higher than for any other digital marketing channel and up 12% since 2008.
However, the research also found that significant numbers of marketers are still failing to adopt a range of best practices relating to email, and many are still failing to get to grips with deliverability. Less than a fifth of companies (18%) know what percentage of their email budget is lost through non-delivery, according to research.
Crucially, lack of strategy is now more likely to be regarded by company respondents as a significant barrier to effective email marketing, up from 32% of email marketers in 2008 to 44% in 2009. An even bigger proportion of agency respondents (69%) say this is the biggest barrier for their clients, up 16% since last year.
Econsultancy Research Director Linus Gregoriadis said: “While some companies are mastering various tactical elements of email best practice, such as segmentation, deliverability, list cleansing and triggered emails, it is clear that there are still problems for many organisations at a strategic level. A well thought-out strategy has to be the starting point for email marketing success.”
The research found that, on average, 42% of emails (by volume) are acquisition-focused compared to 58% for retention-based emails. Additionally, there has been a 9% increase in the proportion now re-marketing through email as companies attempt to get as much value as possible from existing customers.
But worryingly, the research also found that 42% of email marketers do not know their return on investment (ROI) from email marketing .
Henry Hyder-Smith, Managing Director at Adestra, a leading email service provider, said: “With belts tightening throughout this recession, it is very concerning that 42% of marketers do not know their ROI from email marketing. It is the most cost effective medium, accounting for just 14% of online marketing budgets. With many marketers recording ROIs of over six times, budget constraints should not be seen as a barrier.”
The third annual Email Census produced by Econsultancy and Adestra is a crucial benchmarking tool for marketers and is based on the findings of a survey of more than 1,000 registered Econsultancy users.
Click here to get your copy of the census