DMA client benchmark report 2012 research findings
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Research findings Fiona Robson, managing director, Rocketseed Anthony Wilkey, strategic client director, Emailvision
#dmaemail
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17th May 2012
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• Fiona Robson
– Managing Director
– DMA Email Council
– DMA Email Benchmarking Hub
• Anthony Wilkey
– Product Marketing Manager
– DMA Email Benchmarking Hub
DMA Benchmarking Hub
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2011: a great year for email
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Email in 2011
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Report Overview
• Strategic importance of email
• Email marketing budgets
• Barriers to success
• ROI – revenue and relationship
• 2011 key metrics
• Concerns
• Contact strategies
• Segmentation
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Strategic value of email
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Importance of email
• 90.9%: “Very Important” or “Important”
• Significant increase YOY for B2B
• Recognition for direct response but also longer-term impacts of email marketing
• 62% of marketers satisfied with their email marketing programme
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Email:% of marketing budget
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Email expenditure
• <10% of total spend for almost half of respondents
• 30% or more of marketing budget for 1/3 of respondents
• 63% expect to increase expenditure
• Increased spend linked with plans for advanced email marketing tactics
• Expected increase in spend in 2011 did not happen
• Is email so cost effective that businesses think investment is not needed?
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Barriers to success
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Barriers to success
• Internal Resources are the biggest barrier
• In 2010 Budget was top issue (37% vs 26%)
• Lack of data is less of a concern (28% vs 22%)
• In B2B responsibility for email marketing more likely with Senior Staff
• 15% cite lack of involvement of senior staff as a barrier
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Email:contribution to revenue
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The value of email
• Reported Revenues from email marketing are “disproportionately large”
• For almost half – drives 30%+ of revenue
• 2011 sees an increase in those who can measure revenue from email (61% vs 55%)
– 79% B2C vs 44% B2B
• Increased focus on revenue vs tracking
• Increased awareness of longer-term, brand, relationship impacts
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ROI of Email in the Marketing Mix
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ROI in the Marketing Mix
• Email marketing is rated as best marketing tactic for ROI
• Newsletters & limited time offers contribute the most to revenue
• Findings concur with other recent surveys: – DMA US estimated Email Marketing’s ROI at
$40.56 for each $1
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Relationship in the marketing mix
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Relationship in the Marketing Mix• Email marketing is the clear winner, cited by
72% of respondents
• This is exactly double those citing “social networking sites”
• Opens up new value possibilities beyond direct response
• Email as a vehicle for both distributing and creating content
• Complementary channel to social media, requiring an integrated approach
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Performance Trends
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Performance Outlook
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Performance
• Positive trends
• Optimistic outlook
• Stay focussed
• Importance of testing
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Satisfaction
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Primary Concerns
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Satisfaction and Concerns
• Broadly optimistic outlook
• Significant drop in overall concern
• Key challenges– effectively engaging senior management
– highlighting the true value of email
– data and resource management
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Contact Frequency
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Contact Frequency
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Contact Frequency
• Move beyond deliverability
• Mailing volumes remain low
• Focus on contact strategy
• Testing opportunity
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Segmentation
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Segmentation
• Definition of segmentation changing
• Progress towards personalisation
• Growth of multi-channel
• Emergence of mobile marketing
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Conclusions
• Overall email trends and sentiment are positive and improving
• New channels present an opportunity• Investment in email remains relatively
low• Critical to highlight the value of email to
secure additional resources and optimise programmes