Daily Delivery – Boost Email Marketing Revenue

Daily Delivery – Boost Email Marketing Revenue

Which is the best way to boost revenue from email marketing?

By Richard Austin @SmartInsights 2/5/13

For some companies, the only way they are increasing revenue is growing the size of the email list to give a corresponding rise in revenue. While an increase in subscribers will undoubtedly improve revenue, we all know that only growing your database can lead to a declining scale of effectiveness over time as open rates drop and the number of inactive subscribers grow.

So what are the alternatives?

This article will look at those key practices for improving returns from email marketing that should be on every marketers list:

  • Database growth
  • Deliverability improvements
  • Open Rate (OR)
  • Click Through Rate (CTR) & Conversion Rate (CVR) and show you where your time and budget should be spent.

So let’s start by taking a look at a fairly standard situation and see what effect on the bottom line each tactic has.

We’ll start from this baseline: a retailer makes £38,880 per month in sales from email. It sends to a database of 600k, twice a month, deliverability is 90% and based on the delivered email volume it has a unique OR of 15%, CTR of 3% and a conversion rate of 2%.

What happens to the bottom line if the deliverability rate climbs to 96%? This would see the email reaching an extra 72k contacts and with all the other metrics remaining the same, it would boost that month’s revenue to £41,472, an increase of £2,592.

Not bad, but if (based on our original data) we increased that database by a massive 15% in a month; what impact would that have? That would mean an extra 90k contacts on the database and a monthly sales figure of £44,712 (remember deliverability is unchanged at 90%), so an impressive increase of £5,832 on the original figure. (c0ntinue @SmartInsights)

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