Best Practices In Strategic Email Marketing September 2005

Inbox Research
The State of Email Marketing in Canada

Email is clearly gaining favour as a marketing tool among Canadian businesses, a new survey shows. Slightly more than half of respondents to the web-based survey said their email marketing budget has increased since last year, while just under half said their budget has remained steady. Notably, none of the respondents have reduced their financial commitment to email as a marketing medium.

The survey also reveals that email is taking a larger role within marketing departments. Organizations that participate in email marketing said they have allocated on average 10% of their marketing budgets to email this fiscal year, and that number will rise to an average 13.5% three years from now. These numbers are especially noteworthy given email's low cost relative to other tools such as direct mail.

Marketers are also leveraging the longer-term strategic potential of email, rather than firing off an occasional blitz to promote a sale or event, the survey shows. Fully 56% of respondents chose "creating rapport" as one of their top three reasons for using email marketing. Over half also cited "strengthening a brand, product or company's image" as a top motivation for using email. Only 2% disagreed with the statement that "email marketing increases customer retention." Fully 85% would go further, saying "email marketing is a value-add feature for our customers."

The survey shows marketers are learning to employ best practices to overcome concerns around spam and some early misuse of the medium. Only 2% would strongly agree with the statement that email marketing material is too time consuming for recipients to read. The researchers credit improved content and message testing with creating value for recipients and improving email's reputation in the marketplace. Nearly 70% of respondents agree that "email increases customer retention," while 85% strongly agree or agree with the statement "email is an effective marketing tool."

Survey participants were drawn from lists provided by the Canadian Marketing Association and Inbox Marketer Inc., and covered a broad range of Canadian businesses with annual revenues ranging from less than $500,000 to more than $250 million in various sectors. Eighty-five organizations from across the country replied to the survey, with the majority operating in Ontario. The survey was conducted by a group of third-year marketing students at Conestoga College in Kitchener, Ont. and commissioned by Inbox.