the state of

EMAIL
MARKETING

Benchmark Study Report

June 2018
 the state of

EMAIL MARKETING

Table of Contents
Introduction 3

Executive Summary 5

Email Marketing Objectives 8

Email Marketing Challenges 15

Email Marketing Tactics & Technology 24

Email Marketing Subscribers 36

Email Marketing Performance 42

Analyst Bottom Line 46

Acknowledgements 49

Appendix: Survey Background 50

 the state of

EMAIL MARKETING

Introduction
INTRODUCTION The State of Email Marketing 4

In today’s highly competitive environment, the pressure to generate

business results through email marketing is immense. The sheer volume
of marketing emails sent daily has made it harder than ever before for
marketers to stand out from the crowd.

Even those who are able reach the inbox in the first place are finding
it increasingly difficult to engage with their target audience in a mean-
ingful way.

While some organizations are doing an exceptional job of contributing to

business results, countless organizations are still struggling to achieve a
return on their email marketing investment.

Demand Metric partnered with Return Path on research to understand

which email marketing tactics are in use, how effective they are, and what
challenges exist.

The research effort also pursued an answer to the key question: What
separates high-performing email marketers from the rest of the pack?

These study results provide insights and data useful for comparison, plan-
ning, and improving email marketing effectiveness.
 The State of Email Marketing 5
the state of

EMAIL MARKETING

Executive Summary
EXECUTIVE SUMMARY The State of Email Marketing 6

More than 80 percent of this study’s participants were from primarily B2B Nearly one half of participants report that their email marketing effec-
or mixed B2B/B2C organizations, with more than two thirds reporting tiveness is improving slightly or significantly.
a modest or significant increase in revenue during the most recently
A detailed analysis of this study’s data provides the following key findings:
completed fiscal year.

Key Findings
Study participants who report below
Only 6% of study participants report average open rates were five times
they are not experiencing any email more likely to report a significant
marketing challenges. decline in revenue growth. They
are also more than twice as likely to
report purchasing email addresses
to add to their list.

Study participants who report that Study participants who are growing
their email marketing effectiveness is revenue were more than twice as
improving were five times more likely likely to know what other brands
have specific email marketing objec- are emailing their subscribers.
tives in place.
EXECUTIVE SUMMARY The State of Email Marketing 7

Nearly three-quarters of study Study participants who report

participants with above average above average open rates, email
open rates report using technology marketing effectiveness improve-
to preview email campaigns. ment, and revenue-growth know
much more about their email
subscribers’ preferences. They
were also more likely to report using
a combination of In House and
outsourced resources.
Study participants who report above
average open rates were 14 times
more likely to report click rates
above 15%, 12 times more likely to
report having a Sender Score of 95
or greater, and more than 7 times
more likely to report that their This report details the results and insights from the
email marketing effectiveness is analysis of the study data. For more detail on the
survey participants, please refer to the Appendix.
improving significantly.
 the state of

EMAIL MARKETING

Email Marketing Objectives

EMAIL MARKETING OBJECTIVES The State of Email Marketing 9

No one doubts the importance of having email marketing objectives: only

3% of this study’s participants report they don’t have any specific objec-
tives in place. What are your email marketing objectives?

A wide variety of email marketing objectives exist, so this study first set out
to identify the top three email marketing objectives, as shown in Figure 1.

The top three email marketing objectives are listed below: FIGURE 1: EMAIL MARKETING OBJECTIVES
The top three email marketing objectives are to communicate
Communicate with customers
with customers, communicate with prospects, and build brand
Communicate with prospects
awareness.

Build brand awareness

Communicate with customers 76%

Some of the “Other Objectives” listed by study participants in the write-in

Communicate with prospects 73%
area of the survey include:
Build brand awareness 70%
Drive in-store traffic

Communicate with staff Generate revenue 52%

Capture data on subscribers 29%

We don’t have any specific 3%

email marketing objectives

Other 6%
EMAIL MARKETING OBJECTIVES The State of Email Marketing 10

One goal of this study was to determine what separates high-performing

email marketers from the rest of the pack.
Which of the following statements best describes the
To accomplish this task, participants were asked to categorize the effec- effectiveness of your email marketing efforts?
tiveness of their email marketing efforts, and the following category
options were provided for this rating:

Declining significantly FIGURE 2: EMAIL MARKETING EFFECTIVENESS RATING

Email effectiveness is getting considerably worse than before. Less than half of study participants report their email marketing
effectiveness is improving slightly or significantly.
Declining slightly
Email effectiveness is getting slightly worse than before.

Holding steady
Email effectiveness is the same as before.
5% 8%
Improving significantly
Declining significantly
Improving slightly
Email effectiveness is getting slightly better than before.

Improving significantly 14%

Declining slightly
Email effectiveness is getting considerably better than before.

The results of this email marketing effectiveness rating are presented in

Figure 2.
36%
Improving slightly

More than half of study participants report their email marketing effec-
tiveness is declining slightly, declining significantly, or holding steady. 37%
Holding steady
 EMAIL MARKETING OBJECTIVES The State of Email Marketing 11

A correlation exists between the use of email marketing objectives, as

Figure 1 shows, and the email marketing effectiveness rating shown in Responses to the email marketing effectiveness rating question
Figure 2. were grouped into two broad categories: the “Email Effective-
ness Decline” category (56%), which includes the “declining
Figure 3 displays this relationship.
signifi- cantly,” “declining slightly,” and “holding steady”
responses; and the “Email Effectiveness Improving” category
(44%), which includes the “improving slightly” and “improving
significantly” responses.
What are your email marketing objectives?

FIGURE 3: THE RELATIONSHIP BETWEEN EMAIL MARKETING EFFECTIVENESS AND OBJECTIVES

Survey participants belonging to the “Email Effectiveness Improving” category were five times more likely to report having specific email
marketing objectives.

Effectiveness Improving Effectiveness Decline

1% 6%

78% 78% 77% 60% 35%

5% 5%

64% 74% 69% 46% 25%

Build brand Communicate with Communicate with Generate revenue Capture data on We don’t have Other
awareness customers prospects subscribers any specific email
marketing objectives
EMAIL MARKETING OBJECTIVES The State of Email Marketing 12

Survey participants belonging to the “Email Effectiveness Improving” TABLE 1: THE RELATIONSHIP BETWEEN EMAIL MARKETING
category were five times more likely to report having specific email EFFECTIVENESS AND SPECIFIC OBJECTIVES
marketing objectives in place.
Survey participants belonging to the “Email Effectiveness
They were also more likely to report pursing every single objective listed Improving” category were more likely to report pursing every
in the survey, as shown in Table 1. single objective listed in the survey.
Since “Generate Revenue” was one of the specific objectives listed in
the survey question, we wanted to determine whether study participants Email Email
who report revenue growth are more likely to have “Generate Revenue” Effectiveness Effectiveness
listed as a specific email marketing objective. Improving Decline

Build Brand Awareness 78% 64%

Communicate with Customers 78% 74%

Communicate with Prospects 77% 69%

Generate Revenue 60% 46%

Capture Data on Subscribers 35% 25%

EMAIL MARKETING OBJECTIVES The State of Email Marketing 13

To determine the relationship between revenue and email marketing objec-

tives, participants were asked to categorize revenue growth and email What statement best describes the revenue
marketing, and the following category options were provided for this rating: growth at your company during the most recently
completed fiscal year?
Significant decline in revenue growth

Modest decline in revenue growth

FIGURE 4: REVENUE GROWTH IN LAST FISCAL YEAR (FY17)
Flat or no growth
70% of study participants report a modest to significant
Modest increase in revenue growth increase in revenue growth in the last fiscal year.

Significant increase in revenue growth

The results of this revenue rating are presented in Figure 4.

3%
Significant decline
More than two-thirds of study participants report they experienced
modest to significant revenue growth in the last fiscal year (FY17).
20%
Significant increase

9%
Modest decline
The division of revenue into “Revenue Growth” and “Revenue
Stagnant” categories was another valuable filter through which
to analyze and view other data collected in this study.

For the analysis that follows, responses to the revenue rating 18%
Flat or no growth 50%
question were grouped into two broad categories: the “Revenue
Modest increase
Stagnant” category (30%), which includes the “significant decline
in revenue,” “modest decline in revenue,” and “flat or no growth”
responses; and the “Revenue Growth” category (70%), which
includes the “Modest increase in revenue” and “Significant
increase in revenue” responses.
 EMAIL MARKETING OBJECTIVES The State of Email Marketing 14

A correlation also exists between the use of email marketing objectives, Further analysis revealed that study participants who report “signif-
as Figure 1 shows, and the revenue categories shown in Figure 4. Figure icant revenue growth” in the last fiscal year were twice as likely to
5 displays this relationship. report “Generate Revenue” as an email marketing objective, compared
to those who experienced a “significant decline in revenue.”
Compared to revenue-stagnant companies, survey participants who report
they experienced revenue growth during the most recently completed fiscal In order to ensure email success, marketers must have a clearly
year were more likely to report “Generate Revenue” as a specific objective. defined set of objectives. Study participants who report improving email
marketing effectiveness and revenue-growth in the last fiscal year are
Revenue-growth companies were also more likely to report all of the
more likely to have email marketing objectives in place.
email marketing objectives listed in the survey, as shown in Figure 5.
The “Email Marketing Effectiveness” and “Revenue Growth” catego-
ries will both serve as important points of comparison throughout the
What statement best describes the revenue
remainder of this report.
growth at your company during the most recently
completed fiscal year? In the next section of this report, we explore email marketing challenges.

FIGURE 5: THE RELATIONSHIP BETWEEN EMAIL MARKETING OBJECTIVES AND REVENUE GROWTH
Compared to revenue-stagnant companies, revenue-growth companies were more likely to report all of the email marketing objectives listed
in the survey.
Revenue Growth Revenue Stagnant

2% 6%

73% 79% 73% 55% 31%

6% 4%

63% 69% 72% 45% 25%

Build brand Communicate with Communicate with Generate revenue Capture data on We don’t have any specific Other
awareness customers prospects subscribers email marketing objectives
 The State of Email Marketing 15
the state of

EMAIL MARKETING

Email Marketing Challenges

EMAIL MARKETING CHALLENGES The State of Email Marketing 16

This study conducted an inventory to determine which challenges are

currently plaguing marketers.
Which email marketing challenges are you experiencing?
Figure 6 displays a summary of these challenges.

Only 6% of study participants report they are not experiencing any email
marketing challenges.

In the past, there was an expectation that any email sent would be received FIGURE 6: EMAIL MARKETING CHALLENGES
and read by the recipient. Today, however, competition for attention in Competition for attention in the inbox is a challenge for over half of
the inbox is fierce, with more than half of study participants reporting it study participants.
as a challenge. As a result, it is more important than ever before to send
timely, relevant, and interesting content to email recipients.
Competition for
54%
attention in the inbox
The top five email marketing challenges that survey participants face are
listed below: Staffing/Resource constraints 41%

Competition for attention in the inbox (54%) Poorly defined metrics 26%

Staffing/resource constraints (41%) Low visibility into

26%
email performance
Low visibility into email performance (26%)
Email deliverability 25%
Poorly defined metrics (26%)
Poor email performance 24%
Email deliverability (25%)
Limitations of email
21%
In an effort to determine which factors differentiate high-performing email service provider

marketers from the rest of the pack, this study looked at the impact of open Lack of executive buy in 14%
rates; specifically, whether higher open rates led to greater email marketing
success and what high-performing marketers were doing differently. We are not experiencing any
6%
email marketing challenges

Other 3%
EMAIL MARKETING CHALLENGES The State of Email Marketing 17

To determine the relationship between email marketing performance

and open rates, participants were first asked to share their average
What is your average open rate for your bulk
open rate for bulk email sends, and the following category options were email sends?
provided for this rating:

5% or less

6% to 10%
FIGURE 7: AVERAGE EMAIL OPEN RATES FOR BULK SENDS
Just over one-third of survey participants report their average
11% to 15%
open rates for bulk email sends is 10% or less.
16% to 20%

21% to 25%

More than 25%

12%
More than 25%

The results of this open rate question are presented in Figure 7.

16%
5% or less

More than one-third of study participants report their average open

rates for bulk email sends is less than 10%.
15%
21 to 25%
18%
6 to 10%
According to the 2017 DMA Response Rate Report, when sending
email to a prospect list, the average open rate was reported as 16.8%.
This industry benchmark was used to group responses to the open
rate question into two broad categories: the “Above Average Open
16%
16 to 20%

23%
Rates” category (43%), which includes all open rates 16% and higher;
and the “Below Average Open Rates” category (57%), which includes
11 to 15%
all open rates 15% or less.
 EMAIL MARKETING CHALLENGES The State of Email Marketing 18

A correlation exists between email marketing challenges, as shown in Study participants who report above average open rates were less likely to
Figure 6, and the open rate categories shown in Figure 7. suffer from poor email performance, low visibility into email performance,
poorly defined metrics, and the challenges associated with email deliverability.
Figure 8 displays this relationship.
The study found that several email marketing challenges are universal for
most organizations. Survey participants who fell into the “Above Average
Open Rates” and “Below Average Open Rates” categories both reported
Which email marketing challenges are you the following challenges at nearly the same percentage:
experiencing?
Competition for attention in the inbox
Staffing/resource constraints
Lack of executive buy-in
FIGURE 8: EMAIL MARKETING CHALLENGES AND OPEN RATES
Competition for attention in the inbox remains a universal chal-
lenge for most organizations.

Above Average Open Rates Below Average Open Rates

5% 3%
26% 21% 16% 16% 14% 40% 18% 53%

6% 4%
17% 29% 33% 34% 14% 40% 29% 55%

Limitations of Email Poorly defined Low visibility Lack of Staffing/ Poor email Competition We are not Other
email service deliverability metrics into email executive buy in Resource performance for attention experiencing
provider performance constraints in the inbox any email
marketing
challenges
EMAIL MARKETING CHALLENGES The State of Email Marketing 19

Interestingly, when comparing revenue-growth companies to reve-

nue-stagnant companies, revenue-growth companies were more
What resources do you use to support your email
than twice as likely to have executive buy-in than revenue-stagnant marketing efforts?
companies.

Although speculative, perhaps revenue-growth companies are doing a

much better job of measuring their contribution and business impact by
attributing revenue to their efforts, thus securing buy-in and support from FIGURE 9: EMAIL MARKETING RESOURCES IN USE
the executive team. The vast majority of study participants report using “In House
The second most frequently reported challenge was “Staffing/Resource Only” resources.
Constraints,” reported by 41% of study participants.

In an effort to determine whether staffing and resources can impact

results, we first asked study participants about the resources used to 0%
Other
support their organization’s email efforts, as shown in Figure 9.

Nearly three-quarters of study participants report using “In House 26%

Both (In House and
Only” resources, while just over one-quarter of survey participants Outsourced)
report using “Both In House and Outsourced” resources to support
their email marketing efforts.

72%
In House Only

2%
Outsourced Only
EMAIL MARKETING CHALLENGES The State of Email Marketing 20

A further analysis using the open rate categories described earlier

yielded the following results, shown in Figure 10.
What resources do you use to support your email
Study participants who report above average open rates were marketing efforts?
more likely to use “Outsourced” or a combination of “In House and
Outsourced” resources.

Remarkably, these results were also echoed by study participants who FIGURE 10: EMAIL MARKETING RESOURCES AND OPEN RATES
report their email marketing effectiveness is improving, as well as by
participants who report revenue growth in the last fiscal year. Study participants who report above average open rates were
more likely to use “Outsourced” or a combination of “In House and
If your email marketing results are not meeting or exceeding expec- Outsourced” resources.
tations, your organization might benefit from leveraging outsourced
resources and subject matter expertise.

Above Average Open Rates

Below Average Open Rates

Respondents reporting below average 3% 0%

24 % open rates use a combination of both In

House and Outsourced resources.
69% 28%

2% 0%

74% 24%

28 %
Respondents reporting above average
open rates use a combination of both In
House and Outsourced resources. In House Only Outsourced Both Other
Only (In House and
Outsourced)
EMAIL MARKETING CHALLENGES The State of Email Marketing 21

Another frequently reported challenge was email deliverability, with

one-quarter of study participants reporting it as a challenge.
Have you changed your ESP or added a new
Although deliverability issues can be addressed using a wide variety of dedicated IP address in the last two years?
approaches, it is not uncommon for organizations to address this chal-
lenge by changing their email service provider (ESP) or adding a new
dedicated IP address, as shown in Figure 11.
FIGURE 11: COMPANIES THAT REPORT CHANGING THEIR ESP/
Nearly one quarter of study participants report changing their ESP or ADDING A NEW DEDICATED IP ADDRESS
adding a new dedicated IP address in the last two years.
Nearly one quarter of study participants report changing their ESP
There are a wide variety of reasons why companies change their ESP. or adding a new dedicated IP address in the last two years.
To dig a bit deeper, we asked survey participants about the reasons for
changing their ESP, and the following responses were provided:

Substandard user experience

Diminishing email results
19%
24%
Lack of customer support I don’t know

Cost Yes
Technical limitations
Email deliverability
To get a fresh start
Other 57%
No
 EMAIL MARKETING CHALLENGES The State of Email Marketing 22

A correlation exists between the reasons for changing an ESP or adding a The top three reasons that survey participants changed their ESP or
new IP address and the open rate effectiveness rating shown in Figure 7. added a new dedicated IP address in the past two years are listed below:

Figure 12 displays this relationship. Technical limitations (50%)

Email deliverability (41%)

Which of the following reasons best describes why Substandard user experience (30%)
you changed your ESP or created a new dedicated
IP address in the past two years?

FIGURE 12: REASONS FOR CHANGING ESP/CREATING A NEW DEDICATED IP ADDRESS AND OPEN RATES

Study participants with below average open rates were over six times more likely to change their ESP due to diminishing email results.

Above Average Open Rates Below Average Open Rates

6% 6%

22% 17% 17% 44% 39% 33%

35% 41% 24% 29% 53% 41% 18% 12%

Substandard user Diminishing email Lack of customer Cost Technical Email deliverability To get a fresh start Other
experience results support limitations
EMAIL MARKETING CHALLENGES The State of Email Marketing 23

For survey participants who report above average open rates, 33% report
the reason for changing their ESP or creating a new dedicated IP address
was “To get a fresh start,” compared to only 18% of study participants with
below average open rates who report the same reason.

On the other hand, study participants with below average open rates
were over six times more likely to change their ESP due to diminishing
email results.

Another factor for study participants who report below average open
rates was cost, with 29% of survey participants reporting it as a reason
for change, compared to 17% of study participants with above average
open rates.

Finally, study participants who report below average open rates were
more likely to report a substandard user experience as a reason for
change, with 35% of study participants selecting it as a reason, compared
to only 22% of study participants with above average open rates.

Organizations that report above average open rates, those who are
experiencing an improvement in email marketing effectiveness, and
revenue-growth companies are all experiencing different types of chal-
lenges than companies that are underperforming.

In the next section of this report, we explore the tactics and technology
in use by high-performing email marketers.
 The State of Email Marketing 24
the state of

EMAIL MARKETING

Email Marketing
Tactics & Technology
EMAIL MARKETING TACTICS & TECHNOLOGY The State of Email Marketing 25

A wide variety of email marketing tactics are being used by marketers,

and this study conducted an inventory to determine which tactics are
currently in use, as shown in Figure 13. Which email marketing tactics are you using?

Email personalization was the top tactic reported by study participants

with 68% reporting its use, followed by email list management (67%),
subject line optimization (50%), A/B testing (39%), and email deliver-
ability optimization (36%). FIGURE 13: EMAIL MARKETING TACTICS

Email marketing efforts are known to provide the highest return when The most popular email marketing tactic is personalization, with
marketers proactively build and maintain an engaged list, so it is no more than two-thirds of study participants reporting its use.
surprise that the second most frequently reported tactic in use was
“email list management.”
Email personalization 68%

Email list management 67%

Subject line optimization 50%

68 % Study participants report email

personalization as a current tactic.
A/B testing 39%

Email deliverability
36%
optimization

Reactivation campaigns 25%

Study participants report email

list management as a current tactic. 67 % Multivariate testing

Artificial intelligence
12%

9%

Other 5%
 EMAIL MARKETING TACTICS & TECHNOLOGY The State of Email Marketing 26

Using the open rate categories for further analysis yielded some valuable Almost every single tactic in use was more likely to be reported by study
insights on the email marketing tactics in use, as shown in Figure 14. participants with above average open rates, when compared to study
participants with below average open rates.

Which email marketing tactics are you using?

FIGURE 14: EMAIL MARKETING TACTICS AND OPEN RATES

Almost every single tactic in use was more likely to be reported by study participants with above average open rates.

Above Average Open Rates Below Average Open Rates

4% 8%

48% 15% 26% 45% 67% 50% 70%

9% 3%

31% 23% 28% 68% 11% 49% 64%

A/B testing Multivariate Reactivation Email Email Artificial Subject line Email list Other
testing campaigns deliverability personalization intelligence optimization management
optimization
EMAIL MARKETING TACTICS & TECHNOLOGY The State of Email Marketing 27

The most notable deltas are listed in Table 2. TABLE 2: ABOVE AVERAGE OPEN RATES AND TACTICS IN USE
Artificial Intelligence (AI) was included in this research study as an The biggest deltas between above and below average open
emerging tactic. rates are found in A/B testing, email deliverability optimization,
Although study participants with below average open rates are more
and multivariate testing.
likely to report its use, 10% of study participants who report their email
effectiveness is improving also report using AI technology, compared to
only 7% of study participants who report email effectiveness declining. Above average Below average
Tactic
open rates open rates
Since AI technology is still in its infancy, many email marketers are still
trying to understand how to leverage AI as it applies to email marketing.

As reported in Demand Metric’s 2018 Martech Adoption Study, marketing A/B testing 48% 31%
organizations that position themselves near the front of the technology
adoption cycle are getting better returns on their martech investments.

Since those who have adopted AI are also more likely to report their Email deliverability
45% 28%
effectiveness is improving, we fully expect that those who appear early optimization
on the adoption curve will reap the rewards of this new and exciting
technology.
Multivariate testing 15% 9%
 EMAIL MARKETING TACTICS & TECHNOLOGY The State of Email Marketing 28

We wanted to know if survey participants who report above average The results of this analysis are shown in Figure 15.
open rates are doing anything differently to maintain the lists they use
Survey participants with below average open rates were more than
for marketing or lead generation.
twice as likely to purchase email addresses to add to their list.

Conversely, survey participants with above average open rates are more
How do you maintain the email address list you use for
likely to adhere to email marketing best practices by maintaining their email
marketing or lead generation? lists, honoring opt-outs, removing bounces, adding organically to their list
through inbound efforts, using technology to validate email addresses,
and using technology to ensure invalid emails have been removed.

FIGURE 15: EMAIL LIST MAINTENANCE AND OPEN RATES

Survey participants with above average open rates are more likely to adhere to email marketing best practices.

Above Average Open Rates Below Average Open Rates

4% 3%

86% 68% 77% 11% 32% 33%

7% 3%

79% 67% 63% 24% 26% 23%

We honor “Opt We remove We add new email We purchase We use some sort We use some sort We don’t maintain Other
Out” requests “bounced” email addresses to the email addresses of software or of technology to our email address
by flagging or addresses list organically, to add to our list technology in an ensure that invalid list
removing email via inbound attempt to validate emails have been
addresses marketing efforts email addresses removed
 EMAIL MARKETING TACTICS & TECHNOLOGY The State of Email Marketing 29

More than 50% of survey participants report that subject line optimiza- The results of the open rates category and subject line optimization
tion was an email marketing tactic in use. But are survey participants process are shown in Figure 16.
with above average open rates using more advanced and sophisticated
Study participants who report below average open rates are more likely
techniques for optimizing subject lines? We wanted to find out.
to report they do not optimize their subject lines. They are also more
likely to report they don’t have a defined process in place.

Finally, study participants with below average open rates are more likely
Which statement best describes your process for
to copy what their competitors are doing and to review top-performing
optimizing subject lines?
subject lines by industry.

Study participants with above average open rates are more likely to
FIGURE 16: PROCESS FOR OPTIMIZING SUBJECT LINES AND optimize subject lines by reviewing past campaign performance, and to
OPEN RATES rely on technology to provide informed recommendations.

Study participants who report above average open rates are more
likely to rely on technology to provide informed recommendations.

Above Average Open Rates Below Average Open Rates

7% 2%
2%
11% 23% 43% 12%

2% 6% 2%

15% 27% 30% 18%

We don’t optimize We don’t have a We copy what our We look at We review top We rely on Other
our subject lines defined process in competitors are past campaign performing technology to
place doing performance subject lines by provide informed
industry recommendations
EMAIL MARKETING TACTICS & TECHNOLOGY The State of Email Marketing 30

High-performing email marketers are not only relying on technology

Are you using technology to get a comprehensive
to provide informed subject line recommendations; there is a myriad
look at what percentage of your email is going into
of different technologies that can be leveraged to help improve email
the inbox, spam folder, or being blocked at major
marketing effectiveness and results. mailbox providers?

One technology that is giving companies an edge against the competi-

tion is inbox placement technology.
FIGURE 17: THE USE OF INBOX PLACEMENT TECHNOLOGY AND
Many companies are using inbox placement technology to get a compre- OPEN RATES
hensive look at the percentage of emails going into the inbox, spam
folder, or being blocked at major mailbox providers. Study participants who report above average open rates are more
likely to use inbox placement technology.
Figure 17 shows the relationship between the adoption of this tech-
nology and open rates.
Above Average Open Rates
Study participants who report above average open rates, improved
Below Average Open Rates
email effectiveness, and revenue growth in the last fiscal year are all
more likely to report using inbox placement technology.

In fact, 40% of study participants who report their email marketing effec-
tiveness is improving use inbox placement technology, compared to 36% 45% 19%
only 27% of study participants who report their email marketing effec-
tiveness is in decline.

30% 47% 23%

Yes No I don’t know

EMAIL MARKETING TACTICS & TECHNOLOGY The State of Email Marketing 31

Organizations that find their email in the spam folder or blocked by major
mailbox providers must work hard to repair their email reputation.
Are you using any technology to determine how mailbox
This often involves building a case for better email personalization, providers rate you as a sender (Sender Score)?
improved email list segmentation, and following other email marketing
best practices.

In an effort to stay ahead of the curve, many high-performing organiza- FIGURE 18: THE USE OF TECHNOLOGY TO MONITOR
tions choose to proactively monitor their sender reputation, or Sender SENDER SCORE
Score, so they can identify potential deliverability issues before they
58% of study participants are not using technology to monitor their
become a major issue.
sender reputation.
Much like a credit score, a Sender Score is a measure of your reputation
on a scale of 1 to 100. The higher the score, the better your reputation
and the higher your email deliverability rate is likely to be.

Figure 18 shows the percentage of survey participants who are using

technology to determine how mailbox providers rate them as a sender. 23%
19%
I don’t know

Yes

58%
No
 EMAIL MARKETING TACTICS & TECHNOLOGY The State of Email Marketing 32

Only 19% of survey participants are using technology to determine how Compared to study participants with below average open rates, study
mailbox providers rate them as a sender. participants who use technology to measure their Sender Score and
report an above average open rate are 13 times more likely to report
In an effort to determine the correlation between Sender Score and open
their Sender Score is 95 or greater.
rates, we asked study participants who are using this technology what
their score was. Figure 19 shows the correlation between the open rate This study also concluded that survey participants who report their email
categories and Sender Score. marketing effectiveness is improving were over six times more likely
to report a Sender Score of 95 or greater.

Monitoring your Sender Score is a proactive exercise that demonstrates

a commitment to continual improvement which can dramatically impact
What is your average Sender Score?
email marketing results.

FIGURE 19: SENDER SCORE AND OPEN RATES

Study participants that use technology to measure their Sender Score and report an above average open rate are 13 times more likely to
report their Sender Score is 95 or greater.

Above Average Open Rates Below Average Open Rates

5% 5% 9% 5% 5% 5%

52% 14%

4% 9%
0%

22% 17% 13% 13% 22%

95 or greater 90 to 94 85 to 89 80 to 84 75 to 79 70 to 74 Less than 70 I don’t know

EMAIL MARKETING TACTICS & TECHNOLOGY The State of Email Marketing 33

One technology frequently used by organizations that suffer from poor

email deliverability is blacklist technology.
Are you using any technology to continuously check to
Study participants who report above average open rates are more likely make sure your IP addresses haven’t hit any blacklists?
to use blacklist technology as shown in Figure 20.

Study participants who report above average open rates and that their
email effectiveness is improving are more likely to report the use of FIGURE 20: THE USE OF BLACKLIST TECHNOLOGY AND
blacklist technology to continuously check IP addresses and make sure OPEN RATES
they haven’t hit any blacklists.
Study participants who report above average open rates are more
Revenue-growth companies are also more likely to report the use of likely to use blacklist technology
blacklist technology, with 35% of survey participants reporting revenue
growth compared to 22% of study participants from organizations who
report their organization was revenue stagnant in the last fiscal year. Above Average Open Rates
Below Average Open Rates

33% 53% 14%

35%
Respondents reporting above average
open rates are using blacklist technology.

23% 53% 24%

Respondents reporting below average

open rates are using blacklist technology. 22 %
Yes No I don’t know
EMAIL MARKETING TACTICS & TECHNOLOGY The State of Email Marketing 34

The opposite of appearing on a blacklist is a whitelist. Appearing on a

whitelist means that emails are let through whatever gate is being used.
We asked study participants if their company appeared on any certified Does your company appear on any certified whitelists?
whitelists.

The relationship between the open rate categories and whitelists is

shown in Figure 21.
FIGURE 21: CERTIFIED WHITELISTS AND OPEN RATES
Study participants who report above average open rates are more likely
to report appearing on certified whitelists, compared to those who report Study participants who report above average open rates are more
below average open rates. Those who report revenue growth are also likely to report appearing on certified whitelists than study partici-
more likely to appear on whitelists. pants who report below average open rates.
The largest delta was revealed by looking at the email effectiveness
category. Study participants who report their email marketing effective- Above Average Open Rates
ness is improving are more than twice as likely to appear on whitelists.
Below Average Open Rates

33% 19% 48%

29% 25% 46%

Yes No I don’t know

EMAIL MARKETING TACTICS & TECHNOLOGY The State of Email Marketing 35

Getting on a whitelist helps ensure better inbox placement with major

mailbox providers. This occurs through the process of being accredited
as a “trustworthy” or “good” sender. Have you gone through any email certification process?

By working with third parties to evaluate your current sending prac-

tices, and acting on the advice that is provided, the sender can become
accredited and certified.
FIGURE 22: EMAIL CERTIFICATION AND OPEN RATES
The relationship between training and certification and open rates are
shown in Figure 22. The vast majority of study participants have not gone through
the email certification process.
Surprisingly, the vast majority of study participants have not pursued
certification. However, those who report above average open rates,
improved email effectiveness, and revenue growth are more likely to
Above Average Open Rates
report using email certification.
Below Average Open Rates
However, those who report above average open rates, improved email
effectiveness, and revenue growth are more likely to report taking
3%
some type of training or certification.
29% 68%
Subscriber preferences also impact email marketing results, as the next
section of this report discusses.
3%

19% 78%

Yes No I don’t know

 The State of Email Marketing 36
the state of

EMAIL MARKETING

Email Marketing
Subscribers
 The State of Email Marketing 37

How much do marketers really know about their email subscribers? We We know what time they are opening emails
wanted to find out. The following preferences were provided: We know which mobile device they are using
We know which email clients they are using
We know which browsers they are using
We know where they are opening emails (geolocation)

Which of the following preferences do you know about We know how long they spend reading our emails
your email subscribers? We don’t know any of the preferences listed

The relationship between open rate categories and subscriber prefer-

ences is presented in Figure 23.
FIGURE 23: SUBSCRIBER PREFERENCES AND OPEN RATES

Above Average Open Rates Below Average Open Rates

59% 55% 45% 46% 35% 27% 17%

54% 41% 34% 39% 26% 20% 26%

We know what We know which We know which We know which We know We know how We don’t know
time they are mobile devices email clients they browsers they are where they are long they spend any of the
opening emails they are using are using using opening emails reading our emails preferences listed
(geolocation) above
 The State of Email Marketing 38

Unanimously, study participants with above average open rates were TABLE 3: SUBSCRIBER PREFERENCES AND OPEN RATES
more likely to report knowing the preferences of their email subscribers
than participants who report below average open rates. Study participants with above average open rates know much
more about the mobile devices and email clients in use, as well
The most notable deltas are listed in Table 3. as the geolocation of their subscribers.
Study participants who report their email effectiveness is not
improving were more than twice as likely to report not knowing any of
the subscriber preferences listed. Above average Below average
open rates open rates
Conversely, study participants who report their effectiveness is improving
were more likely to report knowing the subscriber preferences listed;
especially the devices in use, times subscribers are opening emails, and We know which mobile
55% 41%
for how long. devices they are using

The revenue categories revealed a similar correlation. In fact, revenue

growth companies were nearly three times more likely to know how
We know which email
long subscribers spend reading their emails. 45% 34%
clients they are using
Study participants who report above average open rates, revenue
growth, and improvement in email effectiveness all know more about
We know where they
their email subscribers. are opening emails 35% 26%
(geolocation)
 The State of Email Marketing 39

In order to successfully engage and retain email subscribers, you must

deliver an exceptional experience. The good news for email marketers Are you using any software or technology to preview
is that inbox preview technology allows marketers to preview the expe- your email campaigns across numerous desktop, mobile,
rience they are about to deliver before hitting send. and webmail clients before sending?

The use of this technology can help to ensure that subscribers are getting
the best possible experience when engaging with your brand.
FIGURE 24: TECHNOLOGY IN USE TO PREVIEW EMAIL
The correlation between the open rate categories and software or tech- CAMPAIGNS AND OPEN RATES
nology to preview email campaigns is shown in Figure 24.
Nearly three-quarters of study participants with above average
Nearly three-quarters of study participants with above average open open rates are using technology to preview email campaigns.
rates are using technology to preview email campaigns.

This study also found that survey participants who report their email
Above Average Open Rates
effectiveness is improving, and those who report revenue growth are
Below Average Open Rates
also more likely to report the use of email preview technology.

6%

Respondents reporting below

73% 21%

64 % average open rates are using

technology to preview campaigns.

64% 25% 11%

73 %
Respondents reporting above
average open rates are using Yes No I don’t know
technology to preview campaigns.
 The State of Email Marketing 40

But what about the competition? We wanted to know what type of

competitive intelligence email marketers can access as it relates to their
subscriber base. Which of the following do you have visibility into?

The following options were made available to survey participants:

We know which other brands are emailing our subscribers

We know which days of the week are busiest for our subscribers FIGURE 25: COMPETITIVE INTELLIGENCE AND OPEN RATES

We have access to our competitors’ campaign metrics The majority of study participants do not have visibility into any of
the advanced intelligence data points listed.
The results of this analysis and the correlation to the open rate category
are shown in Figure 25.
Above Average Open Rates
More than half of study participants report not having visibility into any of
Below Average Open Rates
the advanced competitive intelligence data points that were listed in the
survey. However, study participants with above average open rates are
more than twice as likely to report knowing which days of the week are 5%

busiest for subscribers. 14% 38% 56%

Study participants who report their email marketing effectiveness is
improving, and those who report revenue growth were also more likely
7%
to report knowing the busiest days of the week for their subscribers.
11% 20% 74%
Study participants who report revenue growth were more than twice
as likely to know what other brands are emailing their subscribers.

We know which We know We have We don’t have

other brands which days of access to our visibility into any
are emailing our the week are competitor’s of these items
subscribers busiest for our campaign
subscribers metrics
 The State of Email Marketing 41

However, access to competitor campaign data is scarce.

Of the study participants who reported having access to their compet- Which statement best describes your process for
itors’ campaign metrics, only the revenue-growth category was more monitoring your competitor’s email efforts?
likely to have access to this data, when compared to the revenue-stag-
nant category.

To dive a bit deeper, we wanted to determine how study participants FIGURE 26: PROCESS FOR MONITORING COMPETITOR EMAIL
were capturing information about their competitors. AND OPEN RATES
Figure 26 shows the correlation between open rate categories and study Nearly two-thirds of study participants with below average
participants’ process for monitoring their competitor’s email marketing open rates report they don’t monitor their competitor’s email
efforts. marketing efforts.
Companies with below average open rates are much more likely to Above Average Open Rates
report they don’t monitor their competitors’ email marketing efforts (65%)
Below Average Open Rates
compared to participants with above average open rates (47%).

Study participants who report their email marketing effectiveness is in 6% 1%

decline are also more likely to report they do not monitor their compet- 47% 30% 16%
itors’ efforts.

Revenue-growth companies were most likely to report the use of third-

party software or technology to monitor their competitors compared 8% 3%
to revenue-stagnant companies. 65% 12% 12%

This data potentially reveals an awareness gap: email marketers simply

do not know that technology is available to help them monitor their
competitors’ efforts.
We don’t We subscribe to We subscribe to We use 3rd Other
monitor our their lists using their lists using party software
We expect the adoption of technology used to access competitors’
competitor’s an alias our true identity or technology
campaign metrics and help monitor competitor efforts will increase as efforts to monitor our
the awareness of these solutions grows. competitor’s
efforts
 The State of Email Marketing 42
the state of

EMAIL MARKETING

Email Marketing
Performance
 The State of Email Marketing 43

In this final section of the report, we look at email marketing performance

using the open rate categories described earlier.
What is the average click rate for your bulk email sends?
Using the open rate category for further analysis yielded some valuable
insights, beginning with the impact of open rates on click rates. Do higher
open rates result in higher click rates?

Figure 27 displays this relationship. FIGURE 27: THE RELATIONSHIP BETWEEN OPEN RATES AND
CLICK RATES
Study participants with above average open rates were more likely to
report click rates above 6%. Study participants with above average open rates were 14 times
more likely to report click rates above 15%.
Respondents who reported below average open rates were three
times more likely to report click rates below 3%. Conversely, when
open rates were above average, respondents were 14 times more Above Average Open Rates
likely to report click rates above 15%. Below Average Open Rates

9%

21% 23% 21% 12% 14%

14 % Respondents above average open rates

report click rates above 15%
32% 40% 18%
7% 2% 1%

Less than 3% 3 to 5% 6 to 8% 9 to 11% 12 to 14% More than

Respondents below average open rates
report click rates above 15% 1 % 15%
 The State of Email Marketing 44

The correlation between above average open rates and high click rates
is well pronounced. Do higher open rates lead to revenue growth? What statement best describes the revenue growth
at your company during the most recently completed
Figure 28 shows the relationship between open rates and revenue growth. fiscal year?

Survey participants who report below average open rates were five
times more likely to report a significant decline in revenue growth.
FIGURE 28: OPEN RATES AND REVENUE GROWTH
Conversely, survey participants who report above average open rates
are more likely to report a modest or significant increase in revenue
Survey participants who report below average open rates were five
growth.
times more likely to report a significant decline in revenue growth

Above Average Open Rates

Below Average Open Rates

6%
1%
16% 53% 24%
Respondents above average

24 % open rates report a significant

increase in revenue growth 5%
10% 19% 49% 17%

Significant Modest decline Flat or no Modest increase Significant

17 %
Respondents below average
decline in in revenue growth in revenue increase
open rates report a significant revenue growth growth growth in revenue
increase in revenue growth growth
 The State of Email Marketing 45

In order to determine whether open rates had any bearing on email

marketing effectiveness, we conducted the comparison below, as shown
Which of the following statements best describes the
in Figure 29.
effectiveness of your email marketing efforts?
Study participants who report below average open rates are more than
twice as likely to report email marketing effectiveness as declining
significantly (3% vs. 7%).
FIGURE 29: OPEN RATES AND EMAIL MARKETING
Study participants who report above average open rates were over EFFECTIVENESS
seven times more likely to report email marketing effectiveness as
Study participants who report above average open rates were
improving significantly.
over seven times more likely to report email marketing effective-
The relationship between open rates and click rates, revenue growth, ness is improving significantly
and improvement in email effectiveness highlights the importance of
Above Average Open Rates
achieving above average open rates.
Below Average Open Rates

3% 9%

37% 36% 15%

Respondents above average open rates

15 % report email marketing effectiveness is

improving significantly 7%
20% 36% 35%
2%

2
Respondents below average open rates
report email marketing effectiveness is % The
effectiveness
is declining
The
effectiveness
is declining
The
effectiveness is
holding steady
The
effectiveness
is improving
The
effectiveness
is improving
improving significantly
significantly slightly slightly significantly
 The State of Email Marketing 46
the state of

EMAIL MARKETING

Analyst Bottom Line

ANALYST BOTTOM LINE The State of Email Marketing 47

This study has explored which email marketing tactics are in use, Marketers who want to leverage email marketing in the most
how effective they are, and what challenges exist. The research effective way, and produce the highest possible return, should
effort also pursued an answer to the key question: What separates implement the following recommendations:
high-performing email marketers from the rest of the pack?

Document specific email marketing Use a variety of email marketing tactics.

1 objectives. 2
When it comes to email marketing, small changes can
Study participants who report their email effectiveness is make a big difference. The best way to experiment with
improving, and revenue growth in the last fiscal year, are change is by using a variety of email marketing tactics,
more likely to have email marketing objectives in place. including testing and optimization.
To increase the likelihood of email success, marketers are High-performing email marketers are more likely to use
encouraged to have a clearly defined set of objectives. a variety of tactics, and almost every single tactic in use
Email marketing objectives should be reviewed with exec- is more likely to be reported by study participants with
utive stakeholders to ensure alignment with overall busi- above average open rates.
ness objectives.
Since email marketing is all about continual improvement,
Once email marketing objectives are in place, select improve your email marketing results by experimenting
metrics that can be used to measure progress and with a wide variety of tactics.
monitor email results proactively. Leverage the data that
you capture to make more informed decisions about how
email marketing can further support your organization in
achieving its intended business objectives.
ANALYST BOTTOM LINE The State of Email Marketing 48

Know your email marketing subscribers. Leverage technology.

3 4
In today’s competitive environment, customers and pros- Study participants who report above average open rates,
pects have come to expect a certain level of personaliza- revenue-growth, and improvement in email effectiveness
tion. Study participants who report above average open are more likely to report the use of technology. High-per-
rates, revenue-growth, and improvement in email effec- forming email marketers are using data and insights from
tiveness all know more about their email subscribers. martech to improve their email results.
Get to know your email subscribers’ preferences and Technology is what enables high-performing marketers
leverage the data you capture to provide a more person- to do what they do best – experiment with new tactics,
alized experience. provide a personalized subscriber experience, overcome
email marketing challenges, and measure results. Since
companies that are at the front of the adoption curve are
getting the best results, don’t be afraid to experiment with
new technologies as they emerge.

5 Pursue certification. Consider taking an agile approach by testing a variety of

different technologies and adopting solutions that deliver
Study participants who report above average open rates, value to your business.
revenue-growth, and improvement in email effectiveness
are more likely to report appearing on certified whitelists.
The best way to appear on a whitelist is through certifica- The relationship between open rates and click rates, reve-
tion, which will also help to ensure that your email reaches nue-growth, and improvement in email effectiveness is unde-
the inbox. Learn about the different certification programs niable. By implementing these recommendations, marketers
that are available and apply for one that suits your needs. can take their email marketing efforts to the next level of
effectiveness.
ACKNOWLEDGEMENTS The State of Email Marketing 49

Acknowledgements
Demand Metric is grateful to Return Path for sponsoring this research, and for those who took the time to complete the study survey.

Demand Metric provides Agile Marketing software powered by 1,000+ Return Path is the leading provider of email data solutions. We analyze
practical tools and resources to help our members complete their work the world’s largest collection of email data to show businesses how to stay
faster and with more confidence. connected to their audiences and strengthen their customer engagement.
We help mailbox providers around the world deliver great user experi-
Our community of 130,000+ global members is composed of CEOs and
ences and build trust in email by ensuring that wanted messages reach
business owners, marketing consultants and agencies, marketing execu-
the inbox while spam doesn’t.
tives and managers, and professionals who specialize in: product manage-
ment, marketing operations, sales enablement, customer engagement, Headquartered in New York, Return Path has offices in Denver, San Jose,
demand generation, content marketing, project management, account- Austin, Indianapolis, Toronto, London, Paris, Hamburg, Sydney, and São
based marketing, and other disciplines. Paulo.

To learn more about Demand Metric, sign up for a free membership at: To find out more about Return Path solutions, visit us at returnpath.com.
www.demandmetric.com
APPENDIX: SURVEY BACKGROUND The State of Email Marketing 50

This Demand Metric The State of Email Marketing 34%

Blend of B2B/B2C
Benchmark Study survey was administered online during
the period of March 8, 2018, to March 26, 2018.

During this period, 287 responses were collected, 265 of

which were complete enough for inclusion in the analysis. 49%
Mostly or
Only valid or correlated findings are shared in this report.
entirely B2B
The representativeness of this study’s results depends on
the similarity of the sample to environments in which this
survey data is used for comparison or guidance.
17%
Mostly or entirely B2C
 © Demand Metric Research Corporation.
All Rights Reserved.

www.demandmetric.com

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