Why email marketing gets the best ROI of all marketing channels

When it comes to marketing, return on investment (ROI) is king. And among all the digital channels, such as social media, paid ads, SEO, and influencer campaigns, email continues to reign supreme. In fact, according to Litmus’ 2024 State of Email Report, every $1 spent on email marketing generates an average return of $36. That’s more than 3,500% ROI.

But why is email marketing so effective, even in a landscape dominated by TikTok trends and AI-generated content?

In this post, we’ll unpack the reasons why email marketing delivers such high ROI, with data-backed insights and real-world examples. We’ll also give you practical takeaways to help you get the most out of your email efforts.

1. Email reaches people where they act: the inbox

Unlike social media algorithms or paid ad placements, email gives you direct access to your audience. When someone subscribes to your list, they’re inviting you into their inbox, a place they check multiple times a day.

Stat to know: The average open rate for email campaigns is around 21.5% across industries (Campaign Monitor, 2024). Compare that to the organic reach of a Facebook post, which is often under 5%.

Your emails don’t compete with cat videos, political memes, or influencer drama. Instead, they show up in a space that’s personal, controlled, and intentionally checked.

2. Email drives purchases repeatedly

Email marketing isn’t just for engagement. It’s a proven revenue driver.

According to HubSpot, 59% of people say email marketing influences their purchasing decisions. From abandoned cart flows to post-purchase upsells, email allows you to automate personalized sales journeys that convert.

Example: An ecommerce brand can send a 3-step winback campaign to customers who haven’t purchased in 60 days. A single email with a 10% discount could reactivate dormant revenue without spending a cent on ads.

3. Automation + personalization = scalable efficiency

With modern ESPs (Email Service Providers), you can segment your list, personalize messages based on behavior, and automate entire workflows, from welcome series to loyalty programs.

This means you can deliver relevant, timely content at scale, with minimal lift after setup.

Tools to consider: Klaviyo, Iterable, Customer.io, or Braze all provide advanced automation and real-time data syncing.

Result? Higher engagement, more conversions, and better customer retention.

4. Lower costs compared to paid channels

Let’s talk budget. Email marketing doesn’t require high production costs, large media budgets, or pay-to-play visibility. Once you’ve built a list and set up your strategy, the marginal cost of sending additional emails is close to zero.

Quick math:

• Cost to run a 1-week Facebook ad campaign: $1,500+

• Cost to send a newsletter to 50,000 subscribers: ~$100 (or less, depending on platform)

That’s why email is such a powerful channel for startups, bootstrapped brands, and scaling companies alike.

5. You own the data

With the death of third-party cookies and increasing privacy regulations, first-party data is the new gold. Email lists are built from user opt-ins, meaning the people on your list have chosen to hear from you.

Unlike your Instagram followers or YouTube subscribers, your email list is owned media. You’re not at the mercy of an algorithm or a policy change that throttles your reach overnight.

Bonus: You can also layer email with zero-party data (like quiz responses or preference centers) to fuel even smarter segmentation.

6. Email powers the whole lifecycle

Email isn’t just a one-time channel. It supports your entire lifecycle marketing strategy, from acquisition to retention to reactivation.

Here’s a breakdown:

Done well, email can nurture customer relationships across every stage—automatically.

Key Takeaways: How to Maximize Your Email ROI

To make the most of your email program, focus on these principles:

• Invest in quality list building: Never buy lists. Grow organically through popups, content upgrades, and gated tools.

• Segment your audience: One-size-fits-all emails underperform. Segment by behavior, preferences, or lifecycle stage.

• Test and iterate: Subject lines, CTAs, send times, content type—always be testing.

• Measure beyond opens: Focus on conversion rate, revenue per recipient, and long-term engagement.

And of course, make sure your ESP setup is solid. We’ve written a guide to avoiding chaos in your ESP if you need help organizing multi-brand lists.

Final Thoughts

Email marketing might not be the newest channel—but it’s still the most reliable for ROI. It gives you direct, personalized, and cost-effective access to your customers—without fighting algorithms or spending a fortune.

Whether you’re just starting out or looking to scale, your email program is worth the investment.

Want to level up your email marketing strategy? Let’s chat.