Email Marketing Continues to Improve Its ROI

Despite complaints of overloaded inboxes or emails being marked as spam, email marketing has seen improvements on its ROI recently. According to Experian, in the final quarter of 2016 email volume increased by 14% compared to previous years. One might think that an abundance of emails signifies that email marketing is ineffective for engaging leads and customers. However, this is not the case. Even with an increase in email volume, the open rates on emails has remained fairly consistent.

Not only have open rates stayed the same despite an increase in email volume, but people are actually taking more action when they open their emails. Transaction-to-click rates have increased by 10% compared to the previous year and order values increased by $10 per the average order. Thus, people are engaging with the emails they are receiving and actually clicking through to make a purchase.

However, the rate of unsubscribes increased from 0.09% to 0.1%, while bounce rates increased from 1.9% to 2.5%. Nowadays, more people are creating a separate email for the offers they receive from companies. Meanwhile, old emails are being deleted, hence the increase in bounces. Plenty of people are also unsubscribing for the sake of decluttering their inbox. However, this is surprisingly a good thing. If the people who aren’t interested in receiving email promotions are unsubscribing, then the email recipients who remain are more likely to engage with the emails they receive. Thus, transaction rates should continue to rise via email marketing.