What’s the correlation between email marketing and revenue growth?

by | Jul 20, 2018 | Marketing, Public Relations

What separates high performing email marketing programs from the rest of the pack? New research from email solutions provider Return Path, in partnership with global research firm Demand Metric, highlights the interplay of various aspects of email marketing, such as the presence (or absence) of specific marketing objectives, performance in critical metrics like average open and click rates, and the use of various email marketing technologies.

The study, The State of Email Marketing, also features insights into how these factors contribute to email marketing effectiveness and revenue growth.

“Marketers as a group are finding it increasingly difficult to engage with their audience in a meaningful way, and it’s fascinating to see how technology is helping with that challenge,” said Demand Metric researcher John Follett, in a news release. “For example, among study participants with above average open rates, nearly three quarters report using technology that helps them preview email campaigns. It seems simple, but understanding how your audience is going to see your campaign clearly makes a difference.”

The relationship between email marketing effectiveness and objectives:

What’s the correlation between email marketing and revenue growth?

“We’ve known for years that sender reputation is a fundamental part of email marketing success, and this study confirms that. Survey participants with above average open rates were 12 times more likely to have a Sender Score above 95, compared to those with below average open rates,” said Tom Sather, Return Path’s senior director of research, in the release. “Unfortunately, our most recent Sender Score Benchmark shows that nearly two thirds of email volume comes from senders with a Sender Score of 90 or below—so marketers still have a lot of work to do when it comes to reputation.”

The relationship between email marketing objectives and revenue growth:

What’s the correlation between email marketing and revenue growth?

Other key findings from the report include:

Marketing challenges are nearly universal

Only six percent of survey participants report that they are not experiencing any email marketing challenges.

Goal setting corresponds to marketing success

Study participants who reported improving email marketing effectiveness were five times more likely to have specific email marketing objectives in place.

Knowing your audience is critical

The most successful marketers—those with above average open rates, improving email marketing effectiveness, and revenue growth—report a far greater understanding of subscriber preferences and behaviors.

List acquisition practices are linked to subscriber engagement

Survey respondents with below average open rates are more than twice as likely to report having purchased email addresses for their list.

Competitive intelligence can factor into an organization’s overall success

Those who report an increase in revenue growth were more than twice as likely to monitor their competitors’ email marketing efforts.

Download the full report here.

Research for this study was conducted via an online survey during the period of January 3 and January 21, 2018. During this period, 428 responses were collected, 290 of which were complete enough for inclusion in the analysis. Only valid or correlated findings are shared in this report. Respondent breakdown was self-reported as follows: 50 percent mostly or entirely B2B, 20 percent mostly or entirely B2C, 23 percent blend of B2B and B2C, and seven percent agency or consulting firm.

Richard Carufel
Richard Carufel is editor of Bulldog Reporter and the Daily ’Dog, one of the web’s leading sources of PR and marketing communications news and opinions. He has been reporting on the PR and communications industry for over 17 years, and has interviewed hundreds of journalists and PR industry leaders. Reach him at richard.carufel@bulldogreporter.com; @BulldogReporter