eCommerce Marketing Blog

How to Boost eCommerce Sales with The Right Email Personalization Tool

Posted by Paul Kaye on May 28, 2015 12:30:00 PM

02.jpgLike personalization for your retail website, email personalization is an excellent way to increase clicks, average value per sale, and conversion rates. In late 2013, Experian Marketing Services released its 2013 Email Marketing Study which analyzed how marketing departments at online retailers use email, and discussed best practices for email marketing. We recommend diving into it, but one of the key conclusions is that there are many common best practices that will greatly enhance the effectiveness of an email campaign.

No online retailer should leave email out of their marketing mix because it’s among the cheapest and most effective methods available to reach out to current and potential customers, deepen relationships, and encourage sales.  In fact, the following breakdown of an average annual retail email campaign is based on recent statistics, and it’s eye-opening to say the least.

The Average Email Campaign

Let’s say over the course of a year your brand sends out a total of 1,000,000 emails.

  • Emails sent per year: 1,000,000
  • Open Rate: 20% = 200,000 emails opened
  • Click rate on the email: 5% = 10,000 clicks to website
  • Conversion rate on website: 8% = 800 sales
  • AOV of those products: $60
  • Total Revenue: $48,000
  • Cost (one year): $12,000 (or $1,000 per month)

Although these are just average dollar amounts and open and conversion rates vary greatly, the proportions are a pretty good predictor. That represents a 400% ROI on your annual email marketing campaigns, which is pretty impressive.

Based on these numbers alone, it would be foolish for an online retailer not to include email in the marketing mix, since it should account for up to 20% of a retailer’s annual revenue if planned and managed effectively.

But that’s not the end of the story. Email can get even better!

The Average Personalized  Email Campaign

By including just one additional element into your email campaigns, you will watch these numbers grow significantly.

That element is personalization.

Personalization is not a new concept in online retail and many brands are already aware of the value of personalized product recommendations and recommendation systems on their websites.  For instance, any email personalization tool that lets consumers know, “since you like that, you’ll also like this…”, or “buyers who chose that also chose that” is an example of basic personalization in action.

Personalized product recommendations on retail websites have proven to boost sales volume, conversion, and customer loyalty. But they’re not relegated just to the website.

When integrated into a well-planned email campaign, recommendation systems can do wonders for the already impressive effectiveness of email marketing, as shown by the figures below:

  • Emails sent per year: 1,000,000
  • Open Rate: 25% = 250,000 emails opened
  • Click rate on the email: 7% = 17,500 clicks to website
  • Conversion rate on website: 12% = 2100 sales
  • AOV of those products: $75
  • Total Revenue: $157,500
  • Cost (one year): $12,000 (or $1,000 per month)

Incredibly,  the same number of emails (1 million) -- which costs the same to create and send – can turn an already-impressive 400% ROI into 1300% ROI with the simple addition of personalization features.

Find out how to make your email marketing work even harder for you through personalization:

How Personalized Email marketing boosts sales up to 2X over regular email



Topics: Personalization

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