Ecommerce Industry Benchmark Report

Email benchmarks that drive marketing success using automation and segmentation

As you’ll see, the largest stores we looked at — those with annual 2016 revenue of $10M or more — had an average revenue per recipient of just over twenty cents, bringing in nearly a third of their store revenue via email in Q4.

Let’s take a closer look at the practices that successful stores are using to get these results. It starts with collecting the emails of interested shoppers and customers — but it doesn’t stop there.

On average, we found that companies with an annual revenue of under $100K in 2016 had 13.36 segments. Those with annual revenue of $100K to $1M had 29.96; companies with $1M to $10M had 43.96. Meanwhile, companies with more than $10M in 2016 annual revenue had an average of 133.97 segments.

To better understand the effectiveness of this approach, we compared email campaigns sent in Q4 to less than a quarter of a company’s total email addresses (a narrow slice) to those sent to more than three-quarters of the total (a more traditional one-size-fits-all “blast”). And by email campaigns, we mean emails a company sends out proactively, including customized sale and promo emails, newsletters, holiday messages, and updates.

Campaigns sent to a narrow slice of a store’s contacts outperformed campaigns sent to most of the list, providing better open rates, click-through rates, and revenue per recipient:

We analyzed how all four automated email flows performed in Q4, categorized by the companies’ average order size. For instance, companies with an average order size of $100 to $200 had an average revenue per recipient of $7.01 for abandoned cart flows, $3.34 for welcome series, $1.95 for browse abandonment emails, and .84 for winback emails.

The highest revenue per recipient was found in abandoned cart emails sent by stores with an average order size of over $200: $14.14. Not bad for a set of emails that went out by themselves!

Speaking of abandoned cart emails, let’s look at the overall impact for stores that had them up and running in Q4. Here’s how much revenue the companies we looked at brought in, on average, in Q4 simply from abandoned cart flows.

Setting up even sophisticated abandoned cart email flows is relatively simple. It’s remarkable to see how much revenue comes in as a result of investing some time and effort up front.