Email is proving to be one of the most effective customer-retention tools available to marketers, according to the Ecommerce Industry Report 2001-2002 released Wednesday by the US Direct Marketing Association and the Association of Interactive Marketing.

An increasing number of traditional advertisers are now using email to retain customers and maximize sales, reveals the survey which polled seven hundred companies involved in direct and online marketing.

Sixty-seven percent of respondents reported that promotion via email increased sales, while 63% rated it the most effective medium for customer retention.

Email was less effective, however, in soliciting new business, with only 37% of those surveyed rating it as efficacious for customer acquisition.

Email is also seen as a cost-effective medium, in which survey participants invested 13% of their marketing budgets to achieve 15% of total net interactive sales.

Data sourced from:; additional content by WARC staff