The Myth Of Email Marketing And The Internet
Despite (or perhaps because of) email’s longevity, two obstinate myths are circulating about email marketing. The first myth is that email marketing is dead. The second myth is that email marketing has a 4300% ROI for the average business.
These two myths are dangerous for small business owners. If you follow the former, you’ll leave a lot of money on the table. If you take stock in the latter, you’re probably headed for disappointment. Let’s explore the origin of these myths and discover what they mean for your business.
Myth …show more content…
According to Mailgen, 89% of marketers say that email is their primary channel for lead generation.
Big businesses and internet marketers understand the importance of email marketing. Yet, there is a stigma about email marketing with the rest of the population. The primary reason for this is spam.
Here’s the three word history of spam: low conversion rates. Spamalytics did a study of spam conversion rates in 2008. They sent out 347 million cold emails, trying to sell a pharmaceutical product. Only 25 people bought the medicine. That’s one sale for every 12.5 million emails sent.
That’s an abysmal conversion rate. That’s why spammers send so many emails- for them it’s a numbers game. It’s also the reason why email marketing got a bad reputation in the 1990’s and early 2000’s. Back then spam-filters were nowhere near as good as they are now. Many emails that were delivered to your inbox in 2002 would never be delivered today. Email is improving, and it’s becoming a better communication tool. Yet, the medium hasn’t been able to shake its association with unwanted …show more content…
It’s a good investment. Yet if you spend $100 email marketing, will you get $4300 back? That brings us to our next myth.
Myth #2: Email marketing has an average ROI of 4300%.
This stat is all over the internet. It comes from the Direct Marketing Association, a marketing research group from the UK. Even famous marketing blogs such as Kissmetrics, HubSpot, and Copyblogger quote this stat.
Those are impressive numbers. But do they hold up?
A 4300% average return on email marketing is amazing if you think about it. According to Webstrategies, 500% is a good ROI and 1000% is impressive.
So, how can email marketing have a 4300% ROI?
The answer comes from the DMA report itself. The businesses they poll have a solid grasp of email marketing. Here’s a question they asked in their 2015 report about email marketing.
How would you rate your company’s overall level of competence in email marketing?
78% of the respondents said intermediate or advanced. These are companies that feel comfortable with the essentials of email marketing. Some of them feel confident making use of modern tools and tactics. Ideally, many of these respondents would feel comfortable using things like A/B testing, infographics, email marketing analytics and