Email marketing is one of the most facetted disciplines in marketing. Thereby email marketing experiences and continues to experience a continuous upswing – until today. So far, it has survived all market changes and has even been able to use them positively in most cases. The near future also challenges email marketing, new opportunities, gains and changes await for email marketers. One of these changes will be, that the email gains a new value in the business model.

In the fall of 2021, Apple introduced the Mail Privacy Protection functions with the iOS 15 update. These functions prevent the tracking of the open rate and thus one of the previously essential KPIs for evaluation and optimization in email marketing. Gmail is following suit with a similar feature and there is a possibility that other email client providers will as well. There are technical workarounds to generating so called synthetic open rates, but nevertheless this means that classic email KPIs such as open rate or click to open rate lose their relevance and significance.

Email marketing as a business discipline

What sounds like a problem, however, is an opportunity: because email marketing success must still be measurable and email marketers are forced to focus more on lower funnel KPIs, such as conversion rate or, more importantly, business KPIs, such as revenue.

After all, email marketing is a business discipline. This means that email marketing must contribute to the fulfilment of business objectives. The open rate is a good indicator for the success of an email campaign and can be an important adjustment screw for optimization. However, it says nothing about the business success of email marketing.

Say goodbye to single campaigns and single newsletters

Another factor is the greater granularity of communication and interaction in email marketing. Email marketers have to say goodbye to the single campaign or the single newsletter as a guiding principle.

This development intensifies the need for cross campaign, more long term KPIs, such as

  • RFM (Recency Frequency Monetary)
  • Customer Lifetime Value
  • Subscriber Lifetime Value
  • Net Promoter Score
  • Revenue growth
  • Churn rate

This shift to real business KPIs offers two key benefits for email marketing:

  • A better understanding of the entire impact chain and thus the opportunity for more targeted optimization.
  • The opportunity to more strongly highlight the value of email marketing in the business model (there are companies where email marketing contributes more than 50% to revenue), making top management aware of the impact of email marketing on customer relationships and business development.

Five more thesises – Report: Future of email marketing

Cover Report: Future of email marketing

This thesis is just one out of five more exciting thesises on the future of email marketing. Read all thesises in our Report, in which we point out what opportunities, gains, developments and changes are going to challenge email marketing in the next years. Fill out the form to download the full Report: Future of email marketing.

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