Email is a top revenue driver amongst our clients at The Media Captain. There are so many ways to bring in additional eCommerce revenue through email and utilizing it effectively can take your business to a whole other level.
When you’re spending money to drive traffic to your site through advertising, email marketing is the best way to ensure you’re getting the most out of that ad spend. Considering the average eCommerce conversion rate is only about 2.5-3%, capturing customer information on your site will ensure you can remarket to visitors who didn’t convert right away to hopefully turn them into customers.
Email marketing is an extremely powerful tool. For our in-house eCommerce brand, DermWarehouse, email is one of our top sales channels and we make sure to utilize it as often as we can. We have an extremely targeted audience (people who have come directly to our site searching for a specific skin care product) and we can deliver personalized messages to those visitors based on the actions they took on our site.
We can send one email to customers who placed an order recommending related products. We can send another email to those who added an item to their cart but didn’t check out. We can send yet another message to people who landed on a product page but never added an item to their cart. We can send messages to people who like a certain brand or product type with new releases, promotions, and more. You get the point, the possibilities are endless!
Just remember that it’s one thing to get your customers in the door, that’s step 1. Once you’ve paid to get them to your site, you want to make sure you keep them around. Email is the best way to do this (and SMS is a pretty powerful tool as well)!
I find email marketing fascinating and oh so powerful, especially for eCommerce where you can use it to sell, sell, sell. If you’re not already convinced of how important this channel is, read on for some mind blowing eCommerce email marketing statistics.
Table of Contents
- 1 1. Subject lines convince 50% of users to open emails. [source]
- 2 2. In 2022 alone, 333.2 billion emails were sent and received each day. This figure is also expected to increase to over 375 billion by 2025. [source]
- 3 3. The ROI on email marketing in the eCommerce industry is $45 per $1 spent. [source]
- 4 4. Marketers who use segmented campaigns note as much as a 760% increase in revenue. [source]
- 5 5. The average open rate across all industries within Klaviyo is 35% [source]
- 6 6. Mondays see the highest email open rates (22%), compared to the lowest open rates, which fall on Saturdays and Sundays (20%). [source]
- 7 7. 60% of consumers say they’ve made a purchase as the result of a marketing email they received. Contrast that with the 12.5% of consumers who say they’d consider using the ‘buy’ button on social media. [source]
- 8 8. Welcome emails enjoy an open rate of 82%. [source]
- 9 9. 49% of consumers reported that they’d like to receive weekly promotional emails from their favorite brands. [source]
- 10 10. 45% of cart abandonment emails are opened. [Source]
- 11 Closing
1. Subject lines convince 50% of users to open emails. [source]
This is just another indicator that first impressions are extremely important! Make sure your subject line tells customers what’s in store for them in your email message. If you’re having a sale or promoting a new product, make sure to say so right away, as this may entice customers to open your email. Getting through that first step is key. It’s a great idea to A/B test different subject lines within email campaigns to see what works best. Sometimes changing wording slightly or even just adding an emoji can make a significant different.
For DermWarehouse, anytime we’re running a sale or promoting a new product, we make sure to mention it right away. Here are some examples of our recent subject lines, with our open rates:
- $173 of Skincare for $30? 😮(48.2% open rate)
- FREE PCA Skin Product – Details Inside 😱 (56.5% open rate)
- 20% Off Because We Love Birthdays! (30.9% open rate)
- DermWarehouse Clearance Sale – Up to 40% Off Select Items! (39.8% open rate)
- Free Gift for Eczema Awareness Month 💫(57.3% open rate)
Our Co-Founder, Robin Parks’ Skin Care Routine 😍(66.2% open rate)
A few takeaways here. Our 20% off birthday email and our DermWarehouse clearance email didn’t do as well as the rest when it comes to open rate. There are two things that these emails have in common. First, they don’t contain emojis. Second, these are sales that we offer every month. Now that I’ve made these observations I will try to add emojis to the subject lines next month. If that doesn’t help with the open rate, I can slightly change the way we phrase our sale so that it stands out from other months.
2. In 2022 alone, 333.2 billion emails were sent and received each day. This figure is also expected to increase to over 375 billion by 2025. [source]
This stat is important for a couple of reasons. First, it proves just how big email marketing is. And it’s growing. If you don’t have a solid email marketing strategy in place, it’s time to step up your game.
Second, as important as email marketing is and regardless of the great ROI you can have with it, the sheer volume of emails sent and received daily goes to show you that you’re competing with many others for your customers’ email inbox space and attention. Creating a great email marketing strategy is essential, however, it’s important to also be diversified in your marketing strategy so that you can reach your customers even if they aren’t checking every email in their inbox.
3. The ROI on email marketing in the eCommerce industry is $45 per $1 spent. [source]
This is a staggering statistic. What an amazing return on investment. If you’re running Google ads for your business, you’ll be lucky to get a 2 or 3 to 1 return on ad spend (which means that for every $1 you spend, your return is $2 or $3). For DermWarehouse, we spend $2,000 per month on email marketing. In the last 30 days, we brought in over $148,000 in revenue from our email marketing campaigns. That’s a 74 to 1 return. As if that’s not convincing enough, according to Digital Commerce 360, “96% of the top 1,000 online retailers agree that email marketing gives them the best return on investment.”
Learn More: How to Set Up a Successful Abandoned Cart Flow
4. Marketers who use segmented campaigns note as much as a 760% increase in revenue. [source]
When we’re talking about segmented campaigns, we’re referring to campaigns that are being sent to specific groups of people. You could have a segment for people who purchased in the last 30 days that you send an upsell email to, recommending related products. You can have a segment of people who have visited your site within the last 30 days but haven’t purchased anything. You can have yet another segment for people who have purchased a certain brand or product type and email them with sales or updates specific to their favorite products. The possibilities are really endless. The more targeted your emails, the more likely your customers will be to open your email, click on a link and then hopefully make a purchase.
When we started with email marketing for DermWarehouse (before switching to Klaviyo), our strategy was extremely simple. We’d send 2 email blasts per month to all of our customers, promoting a sale. We’d generate a ton of sales on those two days each month, but then we relied on our ads to bring in our sales every other day.
When we switched to Klaviyo, we were able to get creative with our segmenting. This platform really knocks segmenting out of the park and makes it so easy to target different groups of people based on their buying behavior. Now we have sales and revenue coming in daily for different email campaigns that we’re sending out to different groups of people. Our customers don’t feel bombarded by our emails because we’re not sending to the same group each day.
Below you’ll see our December email marketing calendar for DermWarehouse. While we do have some emails that go out to all customers, all of the days that are highlighted in yellow have a campaign going out to a specific segment of customers. We love sending to people who have purchased from a particular brand in the past year. You can see, for example, that on December 14th, we’re sending out a Biopelle GWP (gift with purchase). This email is going out to only customers who have purchased from the Biopelle brand in the last year.
5. The average open rate across all industries within Klaviyo is 35% [source]
These are important benchmarks to keep in mind to help you gauge the success of your campaigns. If your open and click rates are lower than what you see above, it’s a good indicator that there’s some work that can be done to enhance your campaigns. Even if you’re right on par, look at what optimizations you can make to increase your open rates. Play around with different headlines, different promotion types and even different imagery to see what works best.
Below are some other Klaviyo benchmarks. These are just for campaign emails and not for Klaviyo’s flows.
- Click Through Rate – 5.45%
- Conversion Rate – 1.41%
- Revenue per Recipient – $1.17
- Average Order Value – $99.80
Klaviyo customers have much higher averages when it comes to open rate and click rate than MailChimp customers (for eCommerce specifically). MailChimp benchmarks note that their average open rate is 15.68% and average click rate is 2.01%. These numbers seem low for eCommerce and this just speaks to the differences in the two platforms for eCommerce.
6. Mondays see the highest email open rates (22%), compared to the lowest open rates, which fall on Saturdays and Sundays (20%). [source]
When you’re devising your email marketing calendar, it’s important to understand what days of the week perform better and worse. It makes sense that weekdays tend to fare better than weekends, since people are more likely to be on their computers (or phones) when they’re at work vs. when they are at home spending time with family.
I used to love sending out email blasts on Sunday nights, figuring people were at home, browsing on their phones and wanting to shop. We started experimenting with different days and I learned really quickly that sending emails during the week tends to work best.
It’s really no contest here when it comes to driving sales. Email is a winner. Anyone in your email marketing list is there because they either entered their information on your on-site popup, or they have already made a purchase on your website. These are targeted messages to people who are interested in what you have to say. Social media gets so much buzz and companies invest so much time and resources into this. The data proves that email is where your time and effort should be going.
8. Welcome emails enjoy an open rate of 82%. [source]
More likely than not, a customer is getting a welcome email from your brand because they entered their email address on your on-site popup. These emails often contain a discount or promo code and the open rates are so high because people wanting to shop are looking for the code they were promised. Make sure you have a welcome email automation set up so that any time a customer enters in your list, they receive an email with some juicy content!
First impressions are important, so your welcome email can help set the tone for what’s to come for your customers. They may decide on the spot whether your emails are worth staying subscribed to just by what you have to say in the welcome email, or on the other hand, they may choose to click that unsubscribe button right away. Think about the emails that you receive on a daily basis and what makes you stay subscribed to a company vs. not. Chances are you act like many of your customers do and you can gauge what content might work based on this.
Below is an example of a Welcome Series email from one of our clients, Cashmere Hair. They offer a great discount on their products, showcase before and after photos so that potential customers know what to expect, do a fantastic job showcasing what their product looks like, and include product reviews. This is a fantastic introduction to their brand and is sure to get customers excited about what they have to offer.
9. 49% of consumers reported that they’d like to receive weekly promotional emails from their favorite brands. [source]
There ya have it. Your customers want to get emails from you and know what promotions you have going on. Don’t keep your audience waiting!
We started sending out a weekly email blast to our customers that we call “Skinsights.” This email covers everything new going on at our warehouse from new product launches to promotions to price increases to staff picks and more. Our customers love getting this weekly update from us and it’s great for us to make sure those who want to be informed are.
Below is an example of one of our Skinsights emails. The design on this is vey simple, but we make sure to include a ton of links so that customers can read about what’s new and click on related products.
10. 45% of cart abandonment emails are opened. [Source]
Cart abandonment emails are sent to site visitors who add a product to their cart, but never make it through checkout. Klaviyo analyzed millions of cart abandonment emails ecommerce businesses sent, and learned that email campaigns with three cart abandonment emails generate the most revenue—$24.9 million compared to $3.8 million for those who only sent one email [source].
There’s so much revenue left on the table and ensuring you have an abandoned cart flow set up for your eCommerce store is essential. For DermWarehouse, we recover nearly $10k per month from our abandoned cart email flow. This is one of the reasons we switched to Klaviyo in the first place and we’ve never looked back since. We’re able to showcase the product(s) that customers left behind within the email and include a link that will take customers right back to their cart. It’s really pure magic!
Email marketing is an extremely powerful tool, as evidenced by the statistics mentioned above. Regardless of the size of your email list or how long you’ve been in business, you can utilize email marketing to drive more sales. Whether you’re just starting out or already have a robust email marketing strategy in place, utilizing email marketing can yield a huge ROI!