The majority of email marketers are failing to use email as a relevant marketing tool, at the same time that consumers are spending less time and attention on email, according to Jupiter Research VP and research director David Daniels. The majority of marketers still use only basic personalization in email campaigns, despite the fact relevant messages can lead to almost as many sales as free or discounted shipping offers.
- Untargeted broadcast e-mails, with no personalization or segmentation, have an average open rate of 20 percent, average click-through rate of 9.5 percent, and average conversion rate of 1.1 percent.
- Campaigns triggered from user actions, such as shopping cart abandonment, have a 27 percent average open rate, 9.3 percent average click-through rate, and 2.3 percent average conversion rate.
- Lifecycle messaging campaigns, such as product replenishment messages, have an average open rate of 26 percent, average click-through rate of 14 percent, and average conversion rate of 2.8 percent.
- Campaigns that integrate Web site clickstream data for targeting perform best of all, with a 33 percent average open rate, 14 percent average click-through rate, and 3.9 percent average conversion rate.
As methods become more sophisticated, dedicated salary requirements rise:
- Broadcast e-mails require just $109,000 in annual salary
- Triggered campaigns require about $128,000 in salary resources
- Lifecycle messaging campaigns require $263,000 in annual salary resources
- Campaigns using clickstream data require $276,000 in salary.
The increased costs are usually offset by increased revenue:
- Triggered campaigns on average bring in 171 percent more revenue than broadcast campaigns
- Lifecycle campaigns perform 389 percent better
- Clickstream campaigns perform 781 percent better than broadcast.
The next most important influence on purchase behavior is relevance -- showing users a product they'd previously considered:
- Relevance leads to immediate purchases by 60 percent of respondents and deferred purchases by 58 percent.
- Subject line personalization leads to only 9 percent of immediate purchases and 8-percent of deferred purchases.