The Science of Marketing #3

The Rise of Email Marketing

In today’s business landscape, email marketing takes precedence for many companies, and understandably so. As the era of cookie-based targeting approaches its conclusion, leveraging your first-party owned data becomes commercially imperative. Your email database, undoubtedly, stands as your most potent advertising asset, holding immense potential.

 

Why Email?

Over time, email has proven to be the most lucrative of sales channel, demonstrating its profitability for businesses. The most successful online retailers depend on email to generate up to 15% of their overall online sales. The key advantage of email lies in its profitability, as it does not require any advertising expense. When it comes to driving conversions, email marketing outperforms all other marketing channels, including social media and search. A whopping 66% of online consumers have made a purchase as a direct result of email marketing.

 

Email key Metrics.

When comparing email marketing to other common digital strategies, email marketing’s ROI can’t be beaten.  As of 2023, the average click-through rate for emails stood at 2.5%. This places email marketing far ahead of numerous other advertising channels, including social media platforms and display advertising. Notably, a study conducted by Hubspot in 2021 revealed that marketers recognised email marketing as the most effective marketing channel.

A recent Litmus study found that for every $1 spent on email marketing, marketers make $36. That’s a ROI of 3,600% and the results are even higher for the retail/ecommerce sector at 4,500% ROI on average. Simply put, email drives sales. In fact, email sees the highest conversion, re-purchase and average order value scores of all the online marketing channels

 

2023 Average Industry Benchmarks

• Average email open rate: Between 15% to 25%
• Average email click-through rate: About 2.5%
• Average email click-to-open rate: Between 20% to 30%

 

Hubspot’s Key Stats in Email Marketing 2023.

• 37% of brands are increasing their email budget.
• 41% of email views come from mobile while 39% come from desktop followed by tablet at 20%
• The majority of marketers using email emphasise mobile-friendly emails as part of their success.
• Smartphone users prefer to receive brand communications via email.
• 8 out of 10 people will open a welcome email.
• 22% of all marketing emails are opened within the first hour of sending.
• Subscriber segmentation is the most effective email marketing campaign strategy.
• 33% of marketers send weekly emails and 26% send emails multiple times per month.
• 77% of marketers have seen an increase in email engagement over the last 12 months..
• 64% of small businesses use email marketing to reach customers. (Campaign Monitor, 2021)

 

For personalised messages delivered at the perfect moment with compelling and relevant content, reach out to us at Sing! As certified partners of Klaviyo, we specialise in executing high-performing email campaigns. Contact us now to make the most of your email data.