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Email Marketing's ROI

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  Email Marketing's Return-on-Investment

According to an October 2008 report from the Direct Marketing Association, "the return on investment from e-mail far surpasses other channels."  E-mail’s ROI in 2008 was $45.06 for every dollar spent on it, compared to $15.55 for non-catalog direct marketing, and $7.28 for catalog marketing. Surprisingly, email marketing only receives 0.4% of direct marketers' budgets.

The email marketing program I recommend, Listrak, will cost you an average of about 7 cents per email for the first 5000 emails sent. After that, the cost per email drops to as low as six-tenths of one cent. Ask yourself, how much are you spending to send that direct mailer, or catalog, or printed newsletter? Plus, with those marketing methods, you don't know IF they received it, IF they read it, WHEN they read it, or WHAT they read. With email, you do. Learn more about my email tracking and analysis service >>

I've created a calculator that allows you to plug in your costs and circulation figures for your direct mailers or printed newsletters, and then to see how much you save if you convert X percent to email only. Call me for a copy: 717-368-5143, or email me now at VogelMarketing@verizon.net. I can also send you a copy of MarketingSherpa's PowerPoint "Email in the Downturn: Looking Ahead to 2009."

This may be an area for you to be competitive in this troubled economy. If email marketing's ROI is clear, and others aren't investing heavily in it, now may be a good time to strike.

More interesting statistics come from MarketingSherpa's "Email in the Downturn: Looking Ahead to 2009."
  • 44% of B-to-B companies have either cut marketing budgets or a cut is planned.
  • The same applies to 51% of B-to-C companies, and a staggering 70% of large organizations.
  • For 2009, 69% of those companies surveyed will either spend "considerably more", "somewhat more", or "no real change" in ONLINE spending.
I'm sure you've heard the stories of companies that marketed aggressively during a downturn while their competitors hunkered down.

More interesting stats:
  • Of the 1700+ companies surveyed, 83% are reducing radio/TV ads; 60% reducing print ads; 57% reducing event marketing; 52% reducing direct mail; and so on.
  • At the same time, 48% of those same companies will INCREASE emailing to house lists; 48% will increase spending on Web 2.0; and 27% will increase spending on paid search on Google, Yahoo!, etc.
Call Vogel Marketing Solutions at 717-368-5143 for more information on how your company can take advantage of email marketing in a downturn.
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