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A lack of measurement is still an issue for many email marketing campaigns, with almost half of companies failing to track their ROI from email.
Econsultancy's third annual Email Marketing Industry Census, sponsored by Adestra, found that 42% of organisations did not know what their ROI was from their email efforts, despite its proven effectiveness.
Without accurate measurement of ROI, making a business case for future email marketing efforts is virtually impossible. An email campaign may have been a great success, but without the facts companies may be missing on the potential benefit that further investment in email may bring.
For respondents that are aware of the figures for their email marketing efforts, 61% said that email delivers ROI of 300% or more, while 30% confessed to ROI of more than 500%, an increase on last year's figure of 24%.
Both agencies and companies were asked the same questions about ROI, and 37% of agency respondents did not know their clients' returns from email marketing. A third (33%) said that their clients' ROI from email was 500% or more, up from 20% in last year's survey.
The vast majority of respondents (78%) rated email as either 'excellent' or 'good' in terms of ROI, higher than for any other digital marketing channel. Only 4% of respondents say email is poor for ROI.
Email marketing measurement doesn't seem to have improved too much since the release of our first Email Census in 2007. Then, 47% of respondents didn't know their company's ROI. This figure improved to 42% last year, but has not improved since.
With 29% of company respondents citing lack of effective analytics and measurement as a barrier to the success of their email marketing efforts, this is clearly an area which could be improved upon.