Does Mobile Have Better ROI Than Email?

By | June 24, 2011

According to Steve Snyder, chief sales and strategy officer, Consent Media, well crafted mobile campaigns have 2.6x the ROI of corresponding email campaigns. In his presentation “Using Mobile Marketing to Drive Print Sales and Expand Client Relationships” at Print Solutions 2011, he presented audiences with the following chart:

Average Retail Transaction $50
Email Mobile
Database size 1,000,000 125,000
Cost per message $.005 $.04
Open rate 12% 95%
Viewed 120,000 118,750
Response 3% 8%
Total cost $5,000 $5,000
Revenue $180,000 $475,000
ROI $36 revenue for each $1 spent $95 revenue for each $1 spent

This is an ROI of 2.6x for every dollar spent.

Why is the ROI for mobile much higher than email? From what we understand about mobile campaigns, the power comes from the opt-in. People are very possessive of their mobile phone numbers. If they opt in, they’re your very best prospects. They are the most likely to respond to your offers, and when they do, they spend more money. Hence the near-triple response rate of 8% and higher per-order revenue.

People have to opt into email, too, but the nature of email communication is very different. When I look at my own inbox, I get some 200+ emails per day. Email is much higher volume and far less personal. Years ago, most of my email was sent by individuals to me individually. Today, it’s almost exclusively coming from lists: e-newsletters, press releases, industry news, and spam. I can ignore it for months on end.

Texting is a different animal. I’ve seen stats that 94% of texts are viewed within four minutes. If you get in there, you’re golden. Big difference.

You may never become a major supplier of mobile campaigns, but it’s important to understand how and why mobile works so you can integrate it with print. After all, how do your clients get mobile numbers? Print ads, direct mail, flyers, posters, cups, and other printed materials. So you may drive mobile campaigns yourself, but even if your aren’t the mobile provider, you need to get in there when the mobile campaigns are created so you can be the one doing the print that drives it.

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