If you’ve heard it once, you’ve heard it before – email marketing offers the highest return on investment of every other form of marketing there is. And considering that the ROI is an average of $38 for every $1 spent (that’s a whopping 3800%!), it is no wonder that even companies with a tiny little marketing budget are jumping on the bandwagon.
Now you might think that a ROI that high can’t be beat. But according to a study done by DMA, one in 5 companies are reporting ROI’s as high as 70:1! So what are these companies doing that is so special compared to what all the rest are doing? Well there is no way to provide an exact answer, but one factor is probably that they’re personalizing their emails with anything from the subscribers name in the subject line to dynamically adjusting content based on their subscribers data. There’s also the fact of using an email list cleaner that helps them keep their contact database valid for the best performance.
Back in 2013 Experian reported that only 70% of brands were actually personalizing their communications with subscribers, while a more recent report by Adobe says that the majority of brands have basic personalization in place. However nearly one third of Tier 1 retailers (annual sales exceed US $1bn) say that they have limited or no capability to support personalization efforts. And that is shocking because email personalization isn’t that difficult!
No matter the size of your company, or how large your list of subscribers is – email personalization is relatively easy to implement. And the nice thing is that many of the more established bulk email providers support the sending of personalized emails! Now if the stats you’ve seen so far don’t shock you into building personalized email campaigns – then maybe the following email personalization stats will!
- In a research report titled Email Marketing: Get Personal With Your Customers, Aberdeen Group revealed that click-through rates are improved by an average of 14%, and conversions improve by as much as 10% when subscribers receive personalized emails.
- In another more recent study by Campaign Monitor, unique open rates had increased to 29% and unique click through rates to 41% when comparing personalized email campaigns to non personalized ones.
- The same study showed that simply personalizing the subject line of an email can improve your open rates by as much as 37%. And by implementing the most basic of personalization techniques, which is essentially just segmenting your email lists, you can increase your email revenue by as much as 760%!
- Although website analytics, namely the ability to track the activity of individual visitors on a site and keeping a record of a buyers past behavior has vastly improved; only 39% of online retailers are using email to send personalized product recommendations.
- And this is despite a survey by MyBuys Inc. And The E-tailing Group Inc. that found that between 39% and 41% of consumers purchase more often when they receive emails that are personalized based on their past interactions with a retailer, their past purchases, or their on-site browsing.
- A study by Listrak reinforces this with their report that revealed 80% of consumers find it helpful when emails from retailers feature products based on their past purchases, with 71% liking emails that feature products based on their browsing behavior.
- Although Digital Trends found that 88% of consumers think that companies should give them the option to decide how their personal information will get used to personalize their shopping experience, as much as 73% of consumers said that they prefer to shop with retailers who make their shopping experience more relevant by using their personal info.
- A report by Infosys shows that 59% of shoppers who have experienced personalization believe that it had a significant influence on their purchasing decisions, while 89% of shoppers who have engaged with retailers via social media channels believe those interactions have also impacted their choices while shopping.
- A study by Chadwick Martin Bailey revealed that the two main reasons why consumers like and subscribe is because they want to receive discounts and special offers, and to take part in a specific promotion. Personalized email campaigns allow you to provide relevant content that is more likely to keep them as subscribers.
- The two main reasons that subscribers in the U.S. will opt out of emails from a business or non-profit is because they are receiving too many emails (69%) and because the emails they are receiving are no longer relevant to them (56%).
- In a survey of more than 1100 digital and ecommerce professionals, Econsultancy and Monetate found that 94% of businesses feel that personalization is critical to both their current and future success.
- According to Demand Metric, 78% of consumers feel that a company who takes the time to provide them with custom content is actually interested in building a good relationship with them.
- The Experian Data Quality Study discovered that the biggest challenges with personalization are gaining insights quickly enough, having the right amount of data to properly personalize emails and subscriber data that is inaccurate even though it is the subscriber who provided it.
- In a study conducted by Janrain, it was discovered that 77% of customers would trust businesses more and be more willing to provide personal info if the business explained how they plan to use the personal information provided to improve the customers online experience.
- According to a study by Gleanster, emails that combine segmentation techniques, a personalized greeting, product or service recommendations and the use of custom database fields in their copy deliver up to 360% higher conversion rates than a broadcast message that uses nothing but a personalized greeting.
As you can see, email personalization has a lot going for it and as long as your subscribers list is not filled with people who are paranoid about their online privacy – then personalized email campaigns are probably one of the best things that you can invest in. And that holds true for every kind of business – from a small content blog or local business to a massive ecommerce platform or multinational company!
Email personalization obviously starts with some simple data about your subscribers, and between email and website analytics you may be able to glean a fair amount of info without asking a single question. But if you want to be absolutely certain that your emails are relevant and that the information you’re using is accurate then take the time to build an en email preferences and customer info page, then send an email asking your subscribers to update their details.
Then start building customized emails, enjoy the benefits and let us know how your personalized email campaigns are doing!