Last Wednesday was an exciting time for the world of email marketing – The Relevancy Group officially released results of a survey of more than 400 email marketing professionals on the effectiveness of email marketing solutions they deploy.

We’ve been waiting with bated breath for this event. The statistics that were revealed are key to understanding how companies could leverage their email marketing campaigns for greater deliverability and effectiveness.

And it all boiled down to a single technological decision. Outsourced or on-premise? Which provided the most value to these seasoned, hardened, battle weary marketing pros?

But wait, let’s rewind for a bit, not everyone is a tech junkie here.

I’m sure everyone is pretty familiar with outsourced email marketing solutions, but what does on-premise mean?

To steal a quote from everyone’s favourite site, Wikipedia:

On-premises software (often abbreviated as on-prem software, and also called “on-premise” software) is installed and run on computers on the premises (in the building) of the person or organisation using the software, rather than at a remote facility, such as at a server farm or cloud somewhere on the internet.”

On-premise solutions are especially useful to companies that require great control and security over the data they possess. There are pros and cons to both on-premise and outsourced email marketing technologies, but let’s just look at cold hard statistics to settle the debate. Does outsourced or on-premise provide more value and ROI to email marketing campaigns?

The answer lies in these three email marketing metrics below:

1. Lifetime Customer Value


With lifetime customer value, marketers are essentially tacking a monetary value to, and gauging the worth of acquiring each customer.  The Relevancy Group’s research showed that use of on-premise solutions allowed companies to gain a median lifetime value of $1500 more from each customer.

2. Corporate Revenue Contribution


The bottom line of all email marketing campaigns is after all… the bottom line. On-premise email marketing technology drives a higher median contribution to corporate revenue than outsourced at 8.3% versus 7.7%.

3. Average Monthly Revenue and Deliverability


This is perhaps the most significant finding of the survey:

On average, on-premise marketers drive 30% more monthly revenue than marketers relying on out-sourced solutions.

That’s about $100 more in revenue on-premise marketers are gaining monthly.  In terms of deliverability, on-premise email marketing technologies performed 17% better across a range of metrics such as:

  • Delivery rate
  • Open rate
  • Click rate
  • Conversion rate
  • Average Order Value

Another key point to note is that on-premise email marketers were able to derive more value from their email marketing campaigns, even if they had a smaller database.

What do you think of the findings? Will it affect your decision to use either  outsourced or on-premise email marketing technologies? We’d love to hear your thoughts.