Bluestreak's VP of product management explains email's benefits, including ROI and customer preference.

It's larger than you might think. And it is growing rapidly.

Well-executed email is on its way to becoming a killer app of sorts for interactive marketers. Indeed, in one recent study by the DMA, email was recognized as having the second-highest ROI index for direct response marketing in the United States, behind only telephone marketing. And how do I know it is growing? Here at Bluestreak,we have evaluated and created many marketing strategies and solutions designed to increase performance and ROI for marketers as well as agencies. Because we examine such strategies on a regular and ongoing basis, we get to see what works well with consumers, and what the most common pitfalls are among marketers and agencies as they attempt to effectively and economically reach their audiences. 

Forget about the granular data. For the purposes of this column, let's just explore two hard facts that emerge from even a broad review of the relevant data:

Email works and is growing in influence
The study cited above unequivocally demonstrates that email is a top ROI channel, and far more efficient than any form of offline advertising. What is less recognized, at least by marketers, but just as significant is that email is among the most widely adopted marketing technologies and is becoming even more effective as a marketing technique. In a recent survey conducted by Forrester Research, organizations viewed email delivery as the number one marketing technology either being used or being considered for use, surpassing such previously hot technologies such as data mining, customer data warehousing and web analytics. As importantly, another Forrester survey conducted around the same time revealed that most organizations view email as becoming even more effective among the various types of marketing strategies, ahead of strategies such as online display ads and classifieds.

Finally, consumers themselves, the obvious targets of any campaign, are acknowledging that not only is email displacing other types of marketing communications, but that they would like email to replace communications such as telemarketing calls, in-person sales calls and promotional mail.       

Most retailers haven't embraced email as a marketing strategy yet
Yet with all of this data, and recognition that email is a top ROI channel and is growing in effectiveness, most major retailers are dedicating very little of their marketing budgets to email today. While consumers spend approximately 34 percent of their media time online, only six percent of advertising and direct marketing spending is currently online. Drilling down further, of that six percent being spent on online marketing technologies, only about 20 percent of the online budget is spent on email, meaning that only about one percent of marketing budgets are currently dedicated to email. In my opinion, such spending is far less than it should be since email is the most direct, efficient and flexible way of communicating with consumers, the majority of whom would like email marketing to replace other, tired forms of marketing methods. Given all that we know, there is tremendous opportunity out there for businesses that choose to invest in the design of effective email marketing platforms.         

So, with the opportunity for marketers who use email properly so large, ask yourself a few questions: Before email marketing emerged as a technology, was I trying to invest marketing budget dollars in the types of media that I believed had a high ROI index? As new technologies emerge and gain influence, should I be investing in those technologies that have the best ROI and efficiency? Do I want my organization to be a leader in effective, economical marketing rather than a follower? The answer to each of these questions is obvious. 

Today, Bluestreak and other very qualified email service providers (ESPs) can design and execute the right kind of email program for any retailer or agency. While you may be enjoying limited success with a small email program today, take a close look at the above data and realize that with more investment of marketing dollars in email, the return on investment could be even greater. We predict that email will surge well ahead of projections in the next two years, perhaps tripling or more in terms of transaction volume. Some of your competitors will likely be reaping the benefit of these programs. Will you?

Eamon O'Neill is vice president of product management at Bluestreak.