Beyond the Numbers: Why Email Sales Benchmarks Aren't One-Size-Fits-All
Let's have a chat about those email sales benchmarks, shall we? We often hear questions like, "How much sales should I be getting from email?" It's pretty standard in the DTC world that email and SMS should bring in about 30-50% of total online revenue. But here's the thing — are these benchmarks really relevant for every brand out there?
For starters, if your brand falls into one of these categories, those benchmarks might not be all that useful:
Subscription-only business: Think meal kit deliveries, supplements, discovery boxes, and similar services. There are so many factors at play here that affect the percentage of revenue supported by email, it deserves a deeper dive.
High-ticket, long-consideration products: Take furniture, for example. Some sales might happen over the phone, which won't always be captured the same way by email software.
Businesses in high-growth stages: When you're significantly ramping up your acquisition budget, it's bound to skew the percentage of sales coming from email. And that metrics shift won't provide anything meaningful about the channel itself.
There are more things to consider when it comes to the usefulness of benchmarks:
Seasonal Variations: Many businesses experience fluctuations in sales performance due to seasonal trends, promotional events, or external factors like economic conditions or global events. Email revenue percentages may vary significantly throughout the year, making it challenging to establish a consistent benchmark. Instead of relying on static figures, you should analyse seasonal patterns and adjust your expectations and strategies accordingly.
Audience Segmentation: Not all subscribers are created equal, and their purchasing behaviour may vary based on factors like demographics, purchase history, or engagement level. Segmenting the email list and tailoring content and offers to different audience segments can have a profound impact on conversion rates and revenue generation. Therefore, a one-size-fits-all approach to email marketing may not accurately reflect the revenue contribution from each segment.
Testing and Optimisation: Continuous testing and optimisation are key to maximising the effectiveness of email marketing campaigns. You should experiment with different subject lines, content formats, sending frequencies, and calls-to-action to identify what resonates best with your audience. By refining their email strategies based on data-driven insights, you can improve conversion rates and overall revenue performance over time.
Customer Journey Mapping: Mapping out the customer journey from initial awareness to post-purchase engagement can provide valuable insights into the role of email marketing at each stage. By understanding how email interactions influence customer decisions and behaviours across the entire journey, you can better allocate resources and prioritise initiatives that drive meaningful outcomes, beyond just immediate sales.
Holistic Performance Evaluation: While email revenue percentage is an important metric, it should be viewed in conjunction with other performance indicators to provide a comprehensive view of email marketing effectiveness. Metrics such as email engagement metrics (open rates, click-through rates), customer acquisition cost (CAC), and customer retention rate can offer additional context and help identify areas for improvement and optimisation.
By considering these additional factors and adopting a holistic approach to email marketing measurement, you can gain a more nuanced understanding of the impact of your email campaigns and make informed decisions to drive sustainable growth and success.