The Little Engine That Could

If you are an email marketer in need of some affirmation, look no further than the Direct Marketing Association's "Power of Direct Marketing" study.  The report found that the ROI of email marketing ($57.25 for every dollar spent) is roughly double the ROI of all other types of direct marketing ($22.52 for every dollar spent). 

If you're a CMO looking for some constructive criticism, look no further than the Direct Marketing Association's "Power of Direct Marketing" study.  The report found that over $12 billion will be spent on direct marketing next year, with only $300 million (2.5%) allocated toward email marketing.

Ah, email marketing, the little engine that could.  Why won't more organizations revisit their marketing mix in an effort to better utilize this medium?  It's not necessarily a question of sending more messages.  Yesterday, I was talking to a customer who selected WhatCounts in May.  Our initial advice to them was to reduce their volumes by two-thirds in lieu of a more targeted, segmented strategy.  Their ROI has increased exponentially.  So, I am not advocating that you simply amplify your current program.  I am recommending that you consider allocating more financial resources to perfecting your email marketing.  When you do your 2006 marketing review, if your metrics are below the benchmark for your industry, don't come to the conclusion that email is the problem.  Find better partners to help you get more out of your program.  If I could find a slot machine in Las Vegas that would give me $57.25 for every dollar I put in, you can surely bet that you won't find me playing blackjack instead. 

 

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