WSI Retail Buzz

With pinched budgets, it's all about ROI

Email marketing’s popularity is attributable to its low cost, high ROI (Return-On-Investment) and focus
on customer retention. While the economic crisis will force retailers to cut back on many important
marketing and technology initiatives, email programs will survive relatively unscathed.
Odds are your marketing budget has felt the negative impact of growing concerns over the worldwide
economy. Small businesses and large corporations alike have been forced to erase entire sections of
their 2010 marketing “wish list” in response to a bleak economic forecast that has many marketers
evaluating the cost-effectiveness and ROI of previously ironclad marketing vehicles.
Amid the turmoil, Email marketing has remained a staple due to its cost-effectiveness and flexibility. At a
fraction of a penny per message, the value of an email campaign compared to an expensive direct mail
communication is substantial. However, getting the most from your email marketing campaigns during
tough economic times may require a different approach than what you’ve done before.
 
It is not surprising to see how advertisers continue adding to the budget for marketing activities that are
generating the greatest ROI, like searches and email marketing.
According to eMarketer, at the beginning of 2010 year, 14% of the online marketing budget is destined
for email marketing. What is more surprising, is that advertisers are giving more importance to their
email marketing campaigns than on investing in social networks, even though it is a rising trend. In the
current economy, on which marketing budgets plummet, email marketing can be as important as a
wood plank to someone stranded at sea.

Typically in any recession, there is tremendous pressure on marketers to do more with less. According to
MarketingSherpa, 24 percent of B2B and 34 percent of B2C marketers reported budget cuts this year.
Not surprising given its remarkably high return on investment, email marketing increases during tough
economic times.
Also, in email’s favor is its measurability. Marketers can quickly and effectively measure who is
responding to messages, which promotions work best and so much more.