2015 Email Marketing Industry Census - The Results

1. In association with Adestra Linus Gregoriadis Research Director Econsultancy @LinusGreg linus.gregoriadis@econsultancy.com http://econsultancy.com Email Marketing Census 2015 #EmailCensus2015

2. Linus Gregoriadis Research Director, Econsultancy @LinusGreg Stefan Tornquist Research VP, US, Econsultancy @SKTornquist

3. About this survey…  Ninth annual Email Census in partnership with Adestra  Online survey in January 2015  More than 1,000 survey respondents included:  64% client-side marketers  36% agencies, vendors and consultants  Majority of respondents UK-based  Biggest sectors: Retail, Publishing & Media, Financial Services, Technology & Telecoms and Travel & Leisure

4. | Email Marketing Census 2015| 4 Email continues to deliver ROI Companies stepping up to mobile challenge Segmentation needs to go beyond basic Email marketing automation

5. | Email Marketing Census 2015| 5 Email continues to deliver ROI Mobile optimised email now the status quo Segmentation needs to go beyond basic Email marketing automation

6. | Email Marketing Census 2015| 6 25% Proportion of companies and agencies rating email as ‘excellent’ for delivering ROI

7. | Email Marketing Census 2015| 7 25% Proportion of companies and agencies rating email as ‘excellent’ for delivering ROI 20%Amount of sales attributed to email channel

8. | Email Marketing Census 2015| 8 How much marketing budget is assigned to email? 0% 1% 0% 1% 1% 3% 5% 8% 20% 61% 1% 0% 1% 2% 1% 3% 6% 10% 23% 52% 0% 10% 20% 30% 40% 50% 60% 70% 91-100% 81-90% 71-80% 61-70% 51-60% 41-50% 31-40% 21-30% 11-20% 0-10% 2014 2015 2014 average 2015 average 16% 13%

9. | Email Marketing Census 2015| 9 Why has budget allocation decreased? “There seems to be a case of ‘familiarity breeds contempt’ with email where it’s been around for so long and worked well as a core channel that it’s just become part of the furniture.” Andrew Campbell, Managing Director, SixC Ltd

10. | Email Marketing Census 2015| 10 “Marketers need to raise expectations and pursue a more ambitious approach to achieving best practice in their email campaigns.” Andrew Campbell, Managing Director, SixC Ltd

11. | Email Marketing Census 2015| 11 ROI is better when email is assigned to a dedicated individual or team Excellent Good Average Poor No-one 0% 25% 38% 38% Individual as part of wider marketing responsibilities 21% 39% 31% 9% Individual dedicated to email marketing 31% 47% 16% 5% Team, as part of wider marketing responsibilities 19% 49% 27% 4% Team dedicated to email marketing 30% 48% 20% 2%

12. | Email Marketing Census 2015| 12 Email continues to deliver ROI Companies stepping up to mobile challenge? Segmentation needs to go beyond basic Email marketing automation

13. | Email Marketing Census 2015| 13 Proportion of companies optimising email for mobile devices 25% 61% 0% 10% 20% 30% 40% 50% 60% 70% 2013 2015 144%

14. | Email Marketing Census 2015| 14 What have you done to optimise email marketing for mobile? 19% 12% 26% 28% 31% 32% 52% 55% 0% 10% 20% 30% 40% 50% 60% None of the above Think ‘mobile first’, everything we do is optimised for mobile Mobile optimised landing pages Mobile optimised subject lines (key message in first 30 characters) Adapted email template to have mobile friendly CTAs Using pre-header text for promotion Created a mobile responsive email template Adapted email design to have a simpler template that renders well on all devices

15. | Email Marketing Census 2015| 15 Yet minority have an ‘advanced’ strategy for optimising email for mobile 5% 5% 12% 16% 23% 28% 39% 34% 22% 17% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2014 2015 Very advanced Quite advanced Moderate Basic Non-existent

16. | Email Marketing Census 2015| 16 What is holding back your strategy for optimising email marketing for mobile devices? “Time and resource. We have an in-house design department and don’t have the resources to optimise content for mobile, tablets and desktops for each email communication.” “A lack of strategy from senior managers makes it almost impossible to prioritise email marketing despite its benefits.”

18. | Email Marketing Census 2015| 18 Which of the following practices are a part of your email marketing efforts? 15% 20% 21% 22% 24% 27% 27% 30% 31% 32% 36% 50% 56% 61% 76% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Lead scoring Behavioural targeting (based on web activity) Advanced segmentation Lifecycle programmes Promote customer ratings and reviews Multichannel triggers (e.g sales call) Lead nurturing Content personalisation (beyond just name) Use of video content Re-marketing Use of transactional emails for marketing Regular list cleansing Encouraging sharing of content on social networks Optimising email for mobile devices Basic segmentation

21. | Email Marketing Census 2015| 21 Companies doing basic segmentation tend to get a strong return on investment… Excellent Good Average Poor We do this 24% 49% 24% 3% Planning this 18% 31% 35% 16% We don’t do this 10% 31% 41% 18%

22. | Email Marketing Census 2015| 22 But those doing advanced segmentation are even more likely to get a positive return Excellent Good Average Poor We do this 29% 57% 13% 0% Planning this 21% 48% 26% 5% We don’t do this 17% 33% 38% 12%

23. | Email Marketing Census 2015| 23 Poor data hindering segmentation efforts 19% 23% 25% 31% 33% 33% 36% 42% 43% 46% 54% 0% 10% 20% 30% 40% 50% 60% Lack of senior manager buy-in Deliverability issues Lack of budget / finances Poor measurement and analytics Lack of skills and training Poor email technology Lack of relevant content Lack of segmentation Lack of integration Lack of strategy Quality of email database

24. | Email Marketing Census 2015| 24 Poor data hindering segmentation efforts “Good data lies at the core of successful email. A well targeted okay offer will do well, a badly targeted excellent offer won’t. There are few shortcuts to a quality email database, it takes time and effort but the value of the asset built makes it worthwhile.” Tim Watson, Email Marketing Consultant & Founder, Zettasphere

26. | Email Marketing Census 2015| 26 How successful have you been in implementing automated email programmes? 4% 47% 49% 7% 54% 39% 0% 10% 20% 30% 40% 50% 60% Very successful Quite successful Not successful 2014 2015

27. | Email Marketing Census 2015| 27 What would you like to do with email marketing that you currently cannot do to your satisfaction? 2% 36% 39% 40% 45% 50% 52% 54% 61% 64% 0% 10% 20% 30% 40% 50% 60% 70% Other Mobile-friendly email More social integration Content marketing Integration with other marketing platforms Ability to be more agile in our marketing Cross-channel data insights to see bigger picture Marketing automation Better segmentation Better personalisation

28. | Email Marketing Census 2015| 28 Which three areas of email marketing do you really need to focus on in 2015? 2% 3% 3% 6% 7% 9% 12% 13% 15% 17% 17% 19% 21% 22% 24% 25% 25% 25% 29% 0% 5% 10% 15% 20% 25% 30% 35% Data security SMS integration Device recognition Deliverability Managing / effectively utilising ESP Social media integration Dynamic content solutions Smartphone-friendly emails Campaign optimisation Design and copywriting Personalisation Lead nurturing Behavioural response marketing Delivering relevant communications Segmentation Measurement and analytics List / data quality Strategy and campaign planning Automated campaigns

29. | Email Marketing Census 2015| 29 Do you love your email provider? 42% 58% 0% 10% 20% 30% 40% 50% 60% 70% Yes No

30. | Email Marketing Census 2015| 30 “Development roadmap is not great and we need a cross-channel approach. Account management is lacking with a ‘get an answer if you ask’ approach rather than proactivity.” “They don’t reach out to us, they don’t explain what the system can do, how it can help us. We discover features accidently, and training costs time and money – they charge us for training!”

31. | Email Marketing Census 2015| 31 “They offer a wealth of features and automation capabilities and it is only a lack of time and resource on our side that prevents us from using it all.” “Great support team, quirky ideas and always ready to give tips and suggestions on ways to improve email marketing campaigns.”

32. | Email Marketing Census 2015| 32 What will email marketing look like in five years’ time? 13% 15% 29% 36% 38% 7% 40% 30% 45% 40% 46% 13% 15% 18% 15% 13% 12% 30% 24% 22% 9% 8% 4% 48% 8% 14% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Email marketing will be redundant All email marketing will be automated There will be one single technology platform for all marketing, including email Email will still be one of the highest channels for delivering ROI All email communication will be completely personalised Email will be fully integrated with other marketing channels Strongly agree Somewhat agree Neutral Somewhat disagree Strongly disagree

33. | Email Marketing Census 2015| 33 Summary  Marketers need to avoid becoming complacent with email.  Email continues to provide great ROI with improved technology allowing for a more ambitious approach.  Segmentation efforts suffer as organisations continue to struggle with building quality email databases.  Automation set to play a more significant part as marketers turn their focus towards utilising the technology and addressing their pain points.

34. | Email Marketing Census 2015| 34 All rights reserved. No part of this presentation may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2014. Questions? Download the report: http://www.adestra.com/resources/downloadable-reports/2015-email- marketing-industry-census/

35. | Email Marketing Census 2015| 35 adestra.com Introducing Adestra

36. | Email Marketing Census 2015| 36 About Adestra

37. | Email Marketing Census 2015| 37 Why choose Adestra? Tailored technology configured to fit around your business processes Scalable Account Structure (multiple brands, divisions, users) Global Reach offices in Oxford, London, Dallas Award-winning Client Services department Market Leading Reporting Suite Comprehensive delivery seeding and proactive deliverability management High client retention rates: 98.7% by number of clients 70% of our new business comes from existing client referrals Privately funded, organically grown Profitable since year 1 in 2004 Data Security – trusted by ICO, ASA, & UK Police Forces We actively recruit experienced email marketers to work with you and provide unique support and strategic guidance.

38. | Email Marketing Census 2015| 38 Software AND a Service Winners of the Customer Focus Award at the UK Customer Satisfaction Awards 2014

39. | Email Marketing Census 2015| 39 adestra.com …we have better deliverability and control over the transactional emails sent from our shop…

40. | Email Marketing Census 2015| 40 adestra.com Adestra are much more than a supplier. They are a partner in our email marketing strategy.

41. | Email Marketing Census 2015| 41 adestra.com Thank you For more information please contact us: +44 (0)1865 24 24 24 or email moreinfo@adestra.com