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3 Reasons Why Email is So Effective for Holiday Marketing

old man dressed as santa claus sitting on top of a chimney writing on his computer
Dec 07 2016

As we enter the mad rush of holiday shopping, many businesses across the globe anticipate their biggest revenue spike of the year. Retailers expect to hit up to 30%, of their annual sales during November and December, and historical holiday sales are forecasted to increase by 3.6%, or $655 billion in 2016.

 

We’ve all experienced the shift to online shopping and mobile commerce. Marketers who’ve embraced digital strategies may wonder how effective email is during the holiday season, and whether it should still carry weight in their marketing mix. Here are 3 reasons why it continues to be so effective:

 

1. It’s the Catalyst for Digital Commerce

 

Digital commerce hit a whopping $56 billion last year, but did you know that 70% of holiday shoppers learned about promotions from email? This makes sense. Studies show consumers check their email on a daily basis, as mobile devices make it easy and convenient for users to check their inboxes at any moment. Marketers have adopted very sophisticated practices in email marketing, where segmentation, personalization and testing have enabled us to share meaningful content to the right people at the right time, so it’s no surprise that email continues to hold rank as a very effective and trusted marketing vehicle.

 

2. Subscribers are Waiting to Hear From You

 

Email volume typically increases by 46% in the fourth quarter. One might expect that as inboxes become cluttered, open rates decline. Surprisingly, email open rates increase by 10% to 14% during the holiday season. Whether looking for discounts, free shipping, or new gift ideas, consumers are waiting to hear from you. If you’ve established trust by learning their product interests and buying habits, and have used that data to consistently present them with meaningful content, you should expect even higher open rates.

 

3. Email Marketing is Very Cost Effective

 

When stacked against online search, online advertising and social spending, where does email marketing rank? According to the Direct Marketing Association, every dollar spent on email marketing averages a return of $38, or a 3,800% ROI. McKinsey reports that the average order value of an email is at least three times higher than that of social media. Campaign monitor reports that on Black Friday, email marketing generated the most sales with 25.1% of the share. Organic search drove 21.1% while CPC (paid search) came in third with 16.6% of sales. Social media was only responsible for a mere 1.6% of sales on Black Friday. Cyber Monday was no different, with 1.5% of sales.

 

If you plan to use email for holiday marketing this season, remember it’s most effective when executed with other channels. Be sure to cross market on your website, social channels and paid media for the best results. And as always, pay close attention to your data!

 

Want to jumpstart your email marketing program in 2017? Contact Mambo for a free consultation.

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Laurie White
laurie@mambomedia.com