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By Neil Anuskiewicz
The news regarding investment in marketing is not good, with many firms cutting their marketing budgets left and right. Instead of taking an axe to your marketing budget, consider first how your budget is allocated and move some resources to marketing activities that yield a higher ROI.
One such low cost, high ROI marketing activity is email marketing. In fact, a 2008 Direct Marketing Association (DMA) study showed that, "E-mail's ROI in 2008 was $45.06 for every dollar spent on it."
In addition, a February 2008, retailer survey by shop.org, showing that email marketing has the second lowest Cost Per Order (CPO) of any online marketing method. The email marketing CPO of $6.85 beat paid Web search, which yielded $19.33 CPO.
Despite its low cost and high ROI, email marketing still accounts for a very small fraction of most marketing budgets or not used at all as a marketing medium. According to a 2008 Forester study, "only 48% of small and medium-size businesses (SMBs) have been using email for four years or longer. But now they're beginning to embrace it with gusto."
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