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How much revenue could Email Marketing generates for my webshop?

Email marketing is known as the online channel with the highest efficiency. Every franc you put in, evolves into many more francs. Now you probably think to yourself: this sounds fine, but I want to see specifically in revenue how much email marketing can now really deliver for my webshop!

What does Email Marketing really deliver?

On this page you will find the results of our research. Here you can see the average figures for the share of turnover from email marketing in relation to the total online turnover. We have calculated these as follows:

Percentage email revenue = Revenue from email / total revenue * 100

Through this formula you can easily calculate the percentages according to your situation. You can check the growth potential of email marketing.
For example, how much more revenue can you expect if you send out newsletters more often?

What does this look like in an example?

You now send 1 newsletter per week and are active in email marketing for 2 years. According to the table, at least 3% of the online revenue of your webshop could be generated by email marketing. If the online annual revenue is 2 million, then the turnover potential from e-mail marketing for your webshop is 60,000.

Imagine the follow situation:

You are going to send more than 1 newsletter per week. In that case, the revenue potential from email marketing is at least 4.1%, which is 82,000. That can rise to 22.3%, which is 446,000.

2 factors that determine revenue from email marketing

1. For how long has the webshop been active with Email Marketing?

This means how many years the webshop has been sending newsletters on a regular basis. This factor plays an important role. The longer a webshop is actively engaged in email marketing optimization, the more mature email marketing is. This means, for example, more advanced email campaigns that have been launched and a database that has grown considerably in the number of recipients you can send commercial emails to.

2. How often does the webshop send out newsletters?

This is the second factor that has an important influence on the revenue from email marketing. I notice that organisations often hesitate to send the newsletter more often. I encourage them to do so. If you send out the newsletter more often, you will see that revenue increases. The good news for webshops that start with email marketing is by sending newsletters more often they can immediately generate more revenue. The newsletter frequency can often be increased to two newsletters per week. For some webshops this can even be higher, such as for daily specials. However, increase the frequency gradually and offer recipients the option of choosing their own frequency, in order to avoid unsubscribes and spam complaints.

And now what?

If your shop is active in Email Marketing, you can calculate the share of revenue from email marketing:

When you do this, make sure you use data from a period in which you generated at least 300 orders from email marketing. To make sure you have enough data reliable figures. Sometimes this means we have to go back over a year.

If your shop is not yet active in Email Marketing:

Of course, you cannot yet calculate your own share percentage. You can, however, find out how much revenue email marketing can bring in, based on the current online revenue. It is never too late to start. Make a plan. Make sure you have the motivation to get started and start sending the newsletter to recipients who have given their permission.

Tip: Gradually build up the number of recipients and start with those who have recently given permission. With this strategy, you will increase the chance that your newsletters land in the inbox and not in the spam box.

If your revenue percentage from Email Marketing is lower than the figures in this blog:

Of course it is disappointing email marketing is still not at the level it could be . But look on the bright side, this offers potential! Find out why sales are lower than expected.

There can be many reasons for this: 

  • Reasons related to the internal organization: capacity and priority for email marketing, experience of online marketers, type of email marketing software
  • Causes that are specific to email marketing, such as a spam problem. This is a persistent problem that is not immediately visible, but does have a major impact on sales.
  • Data is not properly measured, which is a shame and unnecessary. As a result, you miss many insights and points for improvement.

If your revenue from Email Marketing falls within the figures in this blog:

Then you are doing well! Email marketing generates good revenue for you. However, do not be satisfied too soon. As you can see in the table above, the percentages vary greatly. E-mail marketing can often deliver more than you think. Find out where the opportunities lie. Think about which KPI has the highest priority to optimise. How can you personalise well? Which profitable, more advanced email campaigns can you set up?

Results from Email Marketing in addition to direct revenue

The real value of email marketing is actually bigger than just the direct sales that come from it. As the measurement is not 100% accurate.

Email marketing can also be branding that does not yet convert directly. The recipient is not yet so far in his customer journey that he makes a purchase, but discovers or creates a need that he wants to fulfil. This is the case when the recipient is still in the process of orienting himself, but signs up for the newsletter in advance. These are branding emails that do generate sales, but this is not immediately visible.

Use the right Email Marketing software

If you want to grow with email marketing, the email marketing software has to be able to facilitate it. Be aware of this, so you don't unnecessarily continue working with software that puts a hold on ambitions.

We see that webshops often start with Mailchimp. However, such software packages are only sufficient for a short while, because you are limited to the basic applications in email marketing. If you want to personalise or launch effective automatic campaigns (such as the birthday campaign), you will quickly run into limitations.

Choosing new email marketing software can be tricky, because there are so many packages. When you are ready for new software, think about how you or your colleagues want to work in software and what the software should meet. This is where the packages differ.

Email marketing can be seen as a sub-area of Marketing Automation. Usually, modern Marketing Automation software includes this as a fixed function. Here we have compiled a few more resources for you to introduce a new Marketing Automation solution or to compare different solutions with each other:

We from waym are experienced users of Salesforce Marketing Cloud, Mautic, Salesforce Pardot, Active Campaign and Mailchimp.

We would be happy to work with you in email marketing and implement or optimise your Marketing Automation. If you have questions, just contact us.

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