Thanksgiving, Black Friday, Christmas, Boxing Day and New Years – the string of Holidays that close out the calendar year are some of the busiest and therefore most important selling periods for marketers. As we head into another busy fall and holiday shopping season here are some things to remember when it comes to where you should be spending your marketing dollars.
Email Still Tops in ROI
Despite constant change and the arrival of new technologies, marketers keep coming back to email. The reason is clear - for a decade email has generated the highest ROI for marketers of 38-to-1, according to research by the Direct Marketing Association. BrandSpark and The Canadian Marketing Association (CMA) backed this with a survey whereby marketers in Canada also put email at the top of their list.
Email’s Decreasing Cost per Click (CPC)
Over the past six years, email marketers in Canada have been enjoying a steadily decreasing CPC – down from $0.32 in 2010 to $0.14 in 2016. This means that, keeping everything else the same, email marketing is getting cheaper. In practice, what this means is that marketers are able to divert spend away from operational costs, focusing those freed up dollars on strategy and analysis.
Email Marketing Performance Metrics in Canada
Not only does email marketing deliver great value (and continues to get cheaper) but performance metrics also show email’s strength. Inbox Marketer’s trend data indicates that since dropping to 18.8% in 2011, open rates have risen steadily to a high of 27.1% in 2015 – an increase of over 44%! A main driver for this increase in open rates is the ubiquity of mobile devices, which according to eMarketer will have grown to 29.2 million users in Canada by 2016, and have enabled subscribers to access their email anytime from anywhere.
Canada’s CTRs are on the Rebound
As an email marketer, getting subscribers to click the Call To Actions (CTAs), and not just open your email should be a primary goal. Click-through rates (CTR) are a great indicator of the relevancy of email content and are an excellent measure of subscriber engagement.
In 2015, Canadian CTRs increased slightly, averaging 5.4%, up from 5.0% in 2014. Overall, average CTRs are healthy but there are significant variances between companies, with leading email marketers typically generating CTRs between 7-12%.
Stats are great but they don’t tell you much about the process behind achieving great results. During the fall and holiday shopping season we are often asked about marketing tactics and which are the most effective. According to a 2015 report published by eMarketer, the tactics most popular with retailers to implement during the holiday season are Percent off discounts (58%), Free or expedited shipping (41%), or a free gift with purchase (29%). Implementing these in your marketer campaigns can help drive engagement and increase your bottom line.
With the summer winding down and the fall shopping season almost upon us, you should take the time now to analyze your previous campaigns and discover what worked and what did not. Take these learnings with you and implement them into new campaigns that catch your customers eyes and get them clicking on your CTAs!