The case for email marketing is very simple really: ROI. According to the Direct Marketing Association, every dollar spent in 2010 generated a whopping $42.08.
Numbers like that just don’t happen. To reach and surpass your company’s goals, you must create campaigns that nurture relationships and present the right customer the right offer at the right time.
Why do businesses engage in email marketing? It works. And, it works well when done well.
By the numbers…
- 72% of respondents to an Econsultancy survey in early 2011 described email’s ROI as excellent or good. Only organic SEO scored higher.
- According to research conducted by the Direct Marketing Association, email marketing was expected to generate an ROI of $42.08 for every dollar spent on it in 2010. As such, it outperforms all the other direct marketing channels examined.
- The ForeSee Results 2010 report on the effectiveness of social media foudn that promotional emails were the second biggest influence on retail website visits. The biggest influence was familiarity with the brand.
- A MerchantCircle survey of over 8,000 local business owners in the US found email marketing cited by 35.8% as a Top 3 Most Effective Marketing or Advertising Method.
- In Datatran Media’s 2010 Annual Marketing & Media Survey, 39.4% of industry executives said that the advertising channel that performed strongest for them was email. This was the top result.
- The Ad Effectiveness Survey commissioned by Forbes Media in Feb/Mar 2009 revealed that email and e-newsletter marketing are considered the second-most effective tool for generating conversations, just behind SEO.
And the money is following the results.
- A January 2011 survey by BtoB Magazine found 63% of respondents likely to increase spending on email in 2011 (second only to websites) with 29% keeping spend constant.
- The 2011 Digital Marketing Outlook Survey from the Society of Digital Agencies revealed that 70% of brand marketers planned to invest in email marketing in 2011.
- A DMA survey of US and Canadian marketers in late 2010 found email was the most widely used web-based direct marketing technique.
- A late 2010 customer survey by Campaigner found 61% intending to do more email marketing in 2011, and 33% planning to continue at the same level.
- A 2010 survey of 2,500 marketers by AWeber found 82% intending to increase their email marketing efforts over the next 12 month.
- The 9th Annual Merchant Survey (2010) conducted by the e-tailing group asked merchants to say which initiatives they would be using to improve website performance. The top answer, cited by 79%, was “send more targeted email.”
Email marketing works for a variety of reasons:
- It allows targeting
- It is data driven
- It drives direct sales
- It builds relationships, loyalty and trust
- It supports sales through other channels
Modern email marketing services and solutions support database integration, segmentation and various other tricks and techniques for improving the targeting of outgoing messages. Advanced methods generate on-the-fly emails customized down to an individual recipient basis.
And every email campaign you send out generates a heap of actionable data you can use to refine your approach and messages.
Email promotions and offers generate immediate action: sales, downloads, inquiries, registrations, etc. Informative email newsletters and other emails send people to offline stores and events, prepare the way for catalogs, build awareness, contribute to branding, strengthen relationships, encourage trust and cement loyalty.
All in all, a pretty good way of going about your marketing business.
We know it can work, but you have to get the basics down. Building a list of people who want to hear from you, crafting a message, and ensuring that your emails get through to those on that list.
And once you have the basics right, there’s a host of more sophisticated tactics that you can implement to further drive success. There’s plenty of room for improvement and plenty of rewards for those that do improve.
Need more marketing guidance? Give us a call. We’re always here to help.