WebSurveyor Corp., partnering with Internet Retailer released an August survey of IR e-newsletter readers revealing that web merchants have very ambitious plans to increase both the size and scope of their e-mail marketing efforts. 18.4% expect to grow their opt-in lists by more than 50% within the next year, while another 25.1% will increase their lists by 16% to 50%.
Reported by Mark Brohan in a recent article, he says that 73% of chain retailers, catalogers, virtual merchants and consumer brand manufacturers taking part in the monthly survey on e-mail marketing, spend 5% of their marketing budget or less on e-mail marketing, yet just over half of respondents, 50.6%, report that 6% or more of their sales come from e-mail marketing, with 25% saying the proportion is over 11%.
The report found that
63.8% of retailers conduct up to three e-mail campaigns each month and another 25.2% conduct between four and eight campaigns, says the report. 62.8% also indicate that they've increased the frequency of e-mail campaigns in the past year.
E-mail marketing consultants consider an open rate of about 20% and a click-through rate of 4% to 5% to be a highly effective e-mail campaign.
Click-through and Conversion averages are growing:
Brohan concludes that by working smarter with existing resources while controlling costs, web retailers expect a sizeable return on their investment in e-mail marketing. Compared to the rising cost of paid search, he says, which can absorb up to 50% of a big retailer's total annual online marketing budget, e-mail marketing remains relatively inexpensive.
You can read the complete article here.