We’re constantly asked about the future of marketing channels, and email consistently features in those conversations. For Australian small and medium enterprises, understanding the return on investment (ROI) of email marketing is crucial. The good news is, despite predictions of its demise over the years, email remains a powerhouse – and we anticipate that will continue. In fact, we project email marketing will deliver even stronger ROI in the coming years, but only for businesses that adapt.

So, what can SMEs realistically expect? It’s not a simple number, as ROI varies hugely based on industry, list quality, and campaign strategy. However, here are some key insights to consider.

• Increased Personalisation: Generic ‘blast’ emails are losing effectiveness. Customers now expect tailored content. We’re seeing businesses using data – purchase history, website behaviour, even survey responses – to deliver highly relevant messages. This drives open rates, click-throughs, and ultimately, conversions. Expect to see a significant lift in ROI as personalisation becomes more sophisticated.
• Automation is Essential: Setting up automated email sequences (welcome series, abandoned cart reminders, post-purchase follow-ups) is no longer optional. These nurture leads and drive sales while you focus on other areas of the business. Automation frees up your time and consistently delivers results, boosting overall ROI.
• Focus on First-Party Data: Privacy changes are impacting advertising platforms. This means relying on data you *own* – your email list – is more important than ever. Building a strong, engaged list through valuable content and incentives will be a key differentiator.
• Integration with Other Channels: Email isn’t an island. Integrating it with your social media, SMS marketing, and website creates a seamless customer experience. For example, promoting your email signup on social media, or using email to drive traffic to a new blog post. This holistic approach amplifies your marketing efforts and improves ROI.

Looking ahead to 2027, we anticipate that businesses effectively leveraging these strategies could see an average ROI of $40 returned for every $1 spent on email marketing. That’s a substantial figure, but it requires a shift from simply sending emails to building relationships and delivering value.

If you’re not already prioritising email marketing, or if your current strategy feels outdated, now is the time to reassess. Start by auditing your existing list, segmenting your audience, and planning a series of personalised, automated campaigns. A small investment in strategy and technology can yield significant returns.