Email is critical in digital marketing, helping businesses get and keep customers. In the UK, knowing the cost of email marketing is vital to a good return on investment (ROI). We’ll look at what you should budget for today.
Email marketing is very cost-effective, with an average ROI of 42:1. It’s a favorite for small businesses, with 64% using it to get new customers. Also, 71.8% use it to talk to their customers. Marketers spend about 7.8% of their budgets on it, bringing in 19% of sales on average.
Key Takeaways
- With an average ROI of 42:1, email marketing is an incredibly cost-efficient channel.
- 71.8% of small businesses report email marketing focused on customer communication, and 64% use it for acquisition customers.
- Email marketing accounts for 7.8% of budgets, on average, according to marketers.
- Email Marketing accounts for an average of 19% of sales.
- Email marketing costs for mid-sized companies range from £250 to £1500 a month.
Understanding Email Marketing ROI and Investment Value
Email marketing is a top digital marketing strategy, with an average ROI of 4400% or $44 for every $1 spent. But, ROI can change a lot based on several factors. These include the marketing strategy’s success, the email list’s quality, and the campaign’s goals. To figure out email marketing ROI, businesses must track all costs related to email campaigns. This includes software, labor, and other expenses. Then, they compare these costs to the revenue and lead value generated1.
Average Return on Investment Statistics
Litmus research shows email marketing brings an average return of $36 for every dollar spent2. The best ROI industries for email marketing are tourism, media, retail, marketing, and software. It’s critical to track email engagement metrics like click-through rates to boost ROI2.
Industry Benchmarks and Success Metrics
More marketers see a rise in email engagement, up 77% in the last 12 months. With 4 billion people using email daily, the reach is huge2. Smartphone users prefer email for brand communications, making mobile-friendly design critical2. Email marketing has a higher ROI than other channels, like SEO and display ads.
Budget Allocation Recommendations
Businesses should spend 6-10% of their marketing budget on email campaigns1. Mid-sized companies often spend £250 to £1500 monthly on email services1. To boost ROI, set clear goals, use good email software, include calls-to-action, offer value, and personalize emails1.
Understanding and tracking email marketing ROI is vital to gauge campaign success and plan future strategies. By using email marketing, businesses can improve brand awareness, increase website traffic, and boost revenue1.
Core Components of Email Marketing Cost
Creating a good email marketing plan needs careful thought about several vital costs. You must consider the email platform, technology, content creation, and list management. These areas are crucial to figuring out your email marketing budget.
Platform and Technology Expenses
Email marketing platforms can cost a lot, from £26 a month for small businesses to over £1,000 for big ones. Companies like HubSpot, MailChimp, and Constant Contact offer different features and prices. This helps companies to find the right fit for their needs.
Content Creation and Design Investment
Creating engaging email content is crucial to success. Businesses usually spend £101 to £250 a month on this. This includes writing, designing, and customizing email templates4. Custom designs can improve your brand but might cost more.
List Management and Maintenance Costs
Keeping your email list clean and active is vital for your campaigns3. Tools like Kickbox and BriteVerify help by checking and cleaning email addresses. They cost between £0.003 to £0.01 per email4. Cleaning your list every quarter helps with delivery and lowers spam complaints.
Understanding and planning these costs helps businesses create a solid email marketing plan. This plan can be both practical and affordable, leading to good results5.
| Email Marketing Cost Component | Typical Cost Range |
|---|---|
| Email Marketing Platform | £26 to £1,000+ per month |
| Content Creation and Design | £101 to £250 per month |
| Email List Cleaning and Maintenance | £0.003 to £0.01 per email |
Email Marketing Cost: Breaking Down the Numbers
Email marketing costs can change significantly based on your business size, strategy, and needed features. It’s important to know what affects pricing to make a cost-effective campaign.
Basic email marketing plans start at about £250 monthly. Professional plans can go up to £1,000 or more6. The cost depends on your email list size, how often you send emails, your email design, and the platform you use.
| Email List Size | Monthly Cost |
|---|---|
| Up to 1,000 subscribers | £10 – £30 |
| 1,000 – 5,000 subscribers | £30 – £75 |
| 5,000 – 10,000 subscribers | £75 – £150 |
| 10,000 – 25,000 subscribers | £150 – £300 |
| Above 25,000 subscribers | Custom pricing |
Email marketing platforms offer advanced features that can change the cost. These include tracking open rates and analyzing click-through rates6. They also measure conversion rates and track bounce and unsubscribe rates6.
A study by Mailchimp found that segmented email campaigns have 14.31% higher open rates than non-segmented ones7. Features like automation and reporting can also affect pricing7. Some platforms charge more for dedicated support and custom solutions7.
Know your needs, list size, and required features to keep costs down and ensure success. SendX offers powerful tools at a transparent price, making it great for businesses of all sizes.
Types of Email Marketing Services and Their Pricing
There are two main ways to handle email marketing: doing it yourself or working with an agency. If you manage it yourself, it can cost between £750 and £1,000 a month. Agency services, on the other hand, can cost between £350 and £1,500 a month. This depends on how much work is needed and how complex the campaigns are.
Email marketing services include planning, designing emails, creating content, managing lists, and tracking how well they do. They offer tools like automation, advanced segmentation, and A/B testing. They also make sure your emails get delivered and keep your data safe.
Choosing an email marketing service means looking at its easy use, features, cost, and customer support. Some services stand out, like ActiveCampaign, named the Best Email Marketing Tool in 20249. MailerLite is excellent for beginners, and Brevo is the best for value9. GetResponse and Omnisend are also famous for their e-commerce features.
FAQ
What is the average ROI of email marketing?
Email marketing offers an average ROI of 42:1.
How much do mid-sized companies typically spend on email marketing?
Mid-sized companies spend between £250 to £1500 per month on email marketing.
What are the common uses of email marketing for small businesses?
64% of small businesses use email marketing for customer acquisition. 71.8% use it for customer communication.
What percentage of marketing budgets do marketers typically allocate to email marketing?
Marketers spend an average of 7.8% of their budgets on email marketing.
What is the average portion of sales attributable to email marketing?
The average portion of sales attributable to email marketing is 19%.
How often should marketers send emails to achieve the highest ROI?
Marketers with the highest ROI send 5-8 emails per month.
What was the average conversion rate for e-commerce businesses in 2022?
E-commerce businesses saw an average conversion rate of 8.17% in 2022.
How soon are email marketing campaigns typically opened?
22% of email marketing campaigns are opened within one hour.
What percentage of marketing budgets do businesses typically allocate to email marketing?
Businesses typically allocate 6-10% of their marketing budget to email marketing.
Source Links
- Email Marketing ROI | How to Calculate ROI for Marketing – https://www.nutshell.com/blog/email-marketing-roi
- What Is the ROI of Email Marketing? 9 Tips to Boost It for 2024 – https://www.mayple.com/blog/email-marketing-roi
- How Much Does Email Marketing Cost in 2024? – https://www.outerboxdesign.com/articles/email-marketing/email-marketing-cost
- How Much Does Email Marketing Cost? Pricing Guide 2024 – https://www.emailvendorselection.com/email-marketing-cost-pricing-guide/
- What is Email Marketing? 2024 edition | Visions Design – https://www.visionsdesign.co.uk/news/what-is-email-marketing-2024-edition
- How Much Does Email Marketing Cost? A Simple Breakdown – https://www.mailgenius.com/how-much-does-email-marketing-cost/
- How Email Marketing Pricing Is Structured: Factors That Shape the Costs – https://www.sendx.io/blog/how-is-email-marketing-pricing-done
- 15 Best Email Marketing Services in 2024 (Software Review) | Sender – https://www.sender.net/blog/email-marketing-services/
- The 17 Best Email Marketing Services in 2024 (and Which Ones to Avoid!) – https://www.emailtooltester.com/en/email-marketing-services/
