How Behavioral Data Improves Email ROI

Behavioral data can transform your email marketing strategy, increasing ROI and engagement. Here's why it works and how to use it effectively:

• Email ROI: Email marketing delivers $68 for every $1 spent. Behavioral data helps you maximize this.
• Trigger-Based Emails: Perform 497% better than traditional emails and drive 29% of sales from just 2% of sends.
• Segmentation Power: Behavior-based segmentation can increase revenue by 760%.
• Personalization Benefits: Personalized emails boost revenue up to 5.7x.

How to Use Behavioral Data:

• Collect Data: Track website activity, purchase patterns, email engagement, and more.
• Segment Audiences: Group customers by behavior (e.g., cart abandonment, browsing history).
• Automate Campaigns: Use tools to send timely, relevant emails (e.g., abandoned cart reminders).
• Test & Optimize: Experiment with subject lines, CTAs, and send times for better results.

Key Metrics to Measure:

Metric	Good Performance	Purpose
Open Rate	17-28%	Measures subject line success
Click-Through Rate (CTR)	2-5%	Tracks content engagement
Conversion Rate	1-3%	Evaluates campaign effectiveness

Behavioral data makes your emails more relevant, timely, and impactful, driving better results for your business.

Collecting and Understanding Behavioral Data

To make email marketing work, you need to gather and analyze customer behavior data. Why? Because campaigns based on behavior insights perform much better. For instance, segmented campaigns can bring in up to 760% more revenue than those that aren't segmented. The key is to focus on measurable metrics that show how engaged your audience is.

Key Performance Metrics

Here are three metrics that give you a clear picture of customer engagement:

Metric Type	Industry Average	Good Performance	What It Measures
Open Rate	21.5%	17-28%	How effective your subject line is
Click-Through Rate (CTR)	2.3%	2-5%	How engaging your content is
Click-to-Open Rate (CTOR)	10.5%	6-17%	How relevant your content feels

These benchmarks can differ depending on the industry. For example, education often sees 28.5% open rates, while retail tends to be lower at 17.1%.

Data Collection Tools

To gather behavioral data, you'll need the right tools. These tools are essential for creating data-driven campaigns.

"Google Analytics allows us to look at our data across platforms - web and app - to understand the full journey of our users. We've been able to cut our reporting time by 50%".

Email tracking platforms often come with built-in analytics that connect to:

• Website activity
• Purchase history
• Email engagement
• Cart abandonment
• Content interaction

Customer Behavior Segments

Once you have the data, segmentation helps you turn it into action. Evaldas Mockus, VP of Growth at Omnisend, puts it perfectly:

"Segmentation takes email from a promotional broadcast into a targeted conversation. Every customer gets messages that genuinely matter to them, driving a better ROI for your business".

Here are some behavioral segments to keep an eye on:

Segment Type	Tracking Focus	Application
Website Activity	Product views, time on site	Product recommendations
Purchase Patterns	Order frequency, value	Identifying VIP customers
Email Engagement	Opens, clicks, forwards	Personalizing content
Cart Behavior	Abandonment, saved items	Recovery campaigns
Content Interaction	Downloads, video views	Targeting based on interests

When done right, segmentation can make a big impact. For example, targeted emails can generate 30% of a company’s revenue from just 2% of total sends. By focusing on behavior-driven email strategies, you can achieve better results and a higher ROI.

Improving Email Campaigns with Behavior Data

Using behavioral data can transform email marketing, helping to fine-tune content, timing, and testing strategies to maximize email ROI.

Creating Custom Email Content

Behavioral data allows you to move beyond generic emails, creating personalized messages that resonate. In fact, personalized emails can drive revenue up by 5.7 times. But true personalization means more than just adding a first name.

"Research has shown that emails personalized with just the first name - and not carried through the body of the email - are actually as likely to hurt performance as to help it. People see through this trick; they feel tricked when the personalization is only surface deep." - Chad White, Head of Research at Oracle Digital Experience Agency

Here’s how some companies are using behavioral data to tailor their emails:

Company	Strategy	Results
icelolly.com	Used browsing data to highlight searched deals	201% higher CTR, 45% more conversions
Adidas	Dynamic product promotion based on gender	Significant engagement increase
Flight Centre	Segmented campaigns based on customer interests	Higher vacation bookings

Once your content is personalized, the next step is to ensure it reaches recipients at the right time.

Best Times to Send Emails

Timing plays a crucial role in email performance. Research shows that engagement varies by time of day:

Time Period	Engagement Level	Best For
9-11 AM	Peak engagement	B2B communications
1-2 PM	High activity	General business updates
5-6 PM	Evening surge	B2C promotions
8-9 AM	Optimal delivery	Highest open rates

To optimize your email timing, keep these factors in mind:

• Time zones: Schedule emails according to the recipient's location.
• Industry type: B2B emails often perform better during standard working hours.
• Audience behavior: Analyze when your subscribers are most active.
• Campaign goals: Match send times to the purpose of your email.

Testing Email Elements

Testing is key to understanding what works and what doesn’t in your campaigns. By systematically testing email elements, you can refine your approach and boost performance.

Element	What to Test	Impact
Subject Lines	Length, personalization, urgency	64% of email opens depend on subject lines
Content Blocks	Dynamic vs. static content	Results vary by audience segment
CTAs	Placement, wording, design	Directly affects conversion rates

Pond Planet showcases the power of testing. By adding live social feeds, device-specific CTAs, and personalized countdown timers, they achieved a 61% increase in click-through rates and a 14.5% rise in conversions.

"Customers want to receive more relevant, personalized emails, and delightful emails - but marketers struggle to find the right data points to create these experiences." - Daniel Rosen, Snr. Account Manager at Litmus

Track key metrics like open rates, clicks, and conversions to refine your strategy. When testing, focus on one element at a time to identify what truly drives improvements.

Tracking ROI and Making Improvements

Email ROI Calculation Methods

To measure the effectiveness of your email campaigns, use this formula:

ROI (%) = [(Gross profit - Campaign cost) / Campaign cost] × 100

Here’s what to track:

• Revenue generated from email-driven sales
• Direct costs, including software, design, and copywriting expenses
• Delivery costs for your product or service

Metric	Formula	Purpose
Delivery Rate	(Sends - Bounces) / Sends	Measures how far your emails reach
Conversion Rate	Completed Actions / Delivered Emails	Evaluates campaign success
List Growth Rate	[(New Subscribers - Unsubscribes) / Total List Size] × 100	Monitors audience expansion

"The modern marketer understands that a campaign's value lies in its continuous assessment and recalibration." - Mailchimp

These metrics can help you fine-tune your email strategies for better outcomes.

Data-Driven Campaign Updates

Using behavioral data helps identify where you can improve your campaigns:

Performance Indicator	Industry Benchmark	Action Items
Open Rate	15-25%	Test subject lines and sending times
Click-through Rate	2-5%	Make content more relevant and improve CTAs
Conversion Rate	1-3%	Adjust targeting and refine offers

Some quick wins include:

• Emails with personalized subject lines see a 26% boost in open rates.
• Dynamic content can increase click-through rates by 20%.

Here’s how to act on these insights:

1. Engagement Analysis

Study how recipients interact with your emails. Look at device usage, the time of engagement, and any delays between sending and interaction. Use this data to tweak your send times.

2. List Management

Email lists naturally decline by about 22.71% each year. Keep your database in shape by removing inactive contacts and using verification tools.

3. Automation Optimization

Automated emails outperform bulk emails by a staggering 497%. Set up automated sequences for:

• Welcome emails
• Abandoned cart reminders
• Post-purchase follow-ups
• Special occasion offers (e.g., birthdays)

Email Marketing Guidelines

Data Privacy Rules

Strong data privacy practices do more than just protect you from penalties - they help build customer trust, which is critical for improving email ROI. Non-compliance can lead to hefty fines: up to 4% of global revenue or €20 million under GDPR, and between $2,500 and $7,500 per violation under CCPA.

Here’s a quick look at key compliance requirements for handling behavioral data:

Requirement	GDPR	CCPA
Consent Method	Explicit opt-in required	Opt-out option must be provided
Data Access	Users can request their data	Users can access and delete data
Processing Limits	Only for specified purposes	Only for disclosed purposes
Security Measures	Encryption and pseudonymization	Reasonable security measures

Following these rules ensures you balance personalization with privacy.

Setting Personalization Limits

Personalization is important, but it needs to respect customer boundaries. McKinsey research shows 76% of consumers feel frustrated when brands fail to personalize their experiences, but 67% are also concerned about privacy.

Build trust by being transparent:

• Preference Management: Offer a preference center where subscribers can:
  • Select email frequency
  • Choose content categories
  • Update their contact details
  • Manage privacy settings
• Data Collection: For each optional field, clearly explain:
  • What data you're collecting
  • How it will be used
  • How long it will be stored
  • Who will have access to it

"Don't respect data privacy because you're afraid of GDPR fines or whatever looming data protection authority that's going to come and get you. That's not why you should care. It's a business decision. If you treat people with respect in terms of their privacy, they will come back. Customers who feel safe working with you are happy customers, and happy customers are good for business."
– Darine Fayed, General Counsel & DPO, Sinch Mailjet

By being upfront about how you handle data, you can avoid crossing lines while still delivering personalized experiences.

Common Data Mistakes to Avoid

Many marketers struggle with behavioral data, often due to poor data management or interpretation. Surprisingly, 43% of marketers don’t use behavioral data for email campaigns at all, missing big opportunities to boost engagement.

Here are some common mistakes and how to fix them:

Error	Effect	Fix
Over-emailing	High unsubscribe rates	Use behavior data to adjust frequency
Poor segmentation	Lower engagement	Create segments based on behavior
Outdated lists	Higher bounce rates	Regularly verify and clean your lists
Generic content	Fewer conversions	Use dynamic, behavior-based content

To stay on track:

• Monitor engagement metrics to fine-tune email frequency.
• Use double opt-in for new subscribers to confirm interest.
• Include clear unsubscribe options in every email.
• Regularly review your data collection and usage practices.

Over 75% of companies that prioritize strong data privacy measures report improved customer trust and loyalty. Focus on collecting only what you need and using it wisely to create meaningful value for your subscribers while boosting your campaign performance.

Conclusion: Maximizing Email ROI Through Data

Using behavioral data can significantly outperform traditional email marketing methods. For example, automated emails account for 29% of email marketing purchases, even though they make up less than 2% of total sends. This highlights a major opportunity for marketers.

Here’s how some companies and strategies have benefitted from leveraging behavioral insights:

Company/Strategy	Results Achieved
Adobe	25% increase in email marketing ROI
Industry Average	122% median ROI through personalization
Segmented Campaigns	760% increase in email revenue

These numbers show how powerful behavioral insights can be when applied strategically. As Jeffrey Goldsmith, Fractional CMO, puts it:

"Behaviors that generate high scores - site visits, email opens, content downloads, forward detection, email clicks - are reliable proof that specific customers should be targeted for follow-up".

To turn these insights into measurable outcomes, consider these proven strategies:

• Track key metrics: Identify engagement patterns and areas for improvement.
• Use trigger-based campaigns: Automate responses to customer actions like form submissions or content views.
• Personalize with care: Balance customization with privacy, and be transparent about how you use customer data.

Tools like Myhren AI (https://myhren.ai) can help integrate these insights, automate follow-ups, and strengthen customer engagement. Jasper Van Laethem, Senior Email Marketing Strategist, sums it up well:

"It's important to truly know your customer and understand their 'job to be done.' Think about your strategy and tactics from a behavioral science point of view to encourage them to take action".