In 2014, 88% of digital marketing organizations utilized email marketing, and that number continues to rise. With 91% of consumers checking email at least once a day, there’s absolutely no reason why your business shouldn’t take advantage of this highly effective marketing channel. ROIs on email campaigns have been pegged at anywhere from 3200 to 4500 percent. That means for every $1 you spend you could see a $32 - $45 return on investment. It’s no wonder that 50% of marketers expected to increase their email spend in the last year.
Despite the dozens of new products, tools, and ideas that get touted as the next big thing each year, email marketing continues to dominate. While social media is on the rise as a purchasing platform, 4.24% of visitors from email marketing buy something as compared to 2.49% of visitors from search engines and 0.59% from social media, according to a survey conducted by Monetate. So let’s talk about why email marketing is such a powerful and effective tool.
They Already Want What You’re Selling
The permission-based nature of email is one thing that makes email marketing campaigns so effective. People have opted-in to have you in their inbox and they’re primed to buy what you’re selling. In fact, 95% of people who opt-in to email campaigns from brands find those emails useful. The word “useful” is one you’ll want to remember. 77% of people prefer email as a channel to receive promotional content, 4% of people prefer to see this on Facebook, and 0% on LinkedIn. When your promotions aren’t considered disruptive, you have a much stronger chance of converting.
Email Reaches Further
Compared with social media, email already has a much higher reach built in. Social media marketers everywhere constantly lament how organic reach on Facebook continues to drop. And while many people delete promotional emails without even reading them, the numbers are still working in your favor. According to Silverpop, average unique email opens are around 20%. Compare that with Facebook which saw 6% reach in 2014, and that number drops to 2% if you have more than 500,000 fans. Many marketers believe organic Facebook reach will eventually bottom out at 0%, forcing you to pay to play. While your tweet or your Facebook post can disappear from a timeline in minutes, your email sits, waiting for its recipient to take action.
Email is Not Just for Existing Customers
One of the most ubiquitous sentiments about email is that it’s a great way to keep or bring back existing customers, but that it doesn’t stack up to social in terms of building a new customer base. This is patently false. In fact, a 2012 study pegs email as a 40% more effective method of acquiring customers than Facebook and Twitter combined! Whether your email acquisition strategy is based on a super-informative newsletter, a whitepaper, a giveaway, or just some great deals, people are willing to give their email in exchange for information. Once you have that email address, you’re in the door. How to build a successful email marketing campaign targeted towards both acquisition and retention is a topic we will be covering soon.
Targeted Emails Drive Conversions
The latest trend in email marketing that is quickly becoming the standard is automated campaigns. Some studies have shown automated emails are up to 300% more effective than standard blast newsletters.
Your automated email campaign can include anything from a series of welcome emails, to an abandoned cart reminder, or sending an informative video after a user views a specific product. Due to the highly personalized nature of these emails, it’s no surprise they’re driving increased conversions.
The numbers don’t lie and email marketing is far from dead or dying as some may suggest. There are nearly three times as many email accounts in the world as Twitter and Facebook users combined. Email is a necessity in all of our daily lives and it will continue to be for the foreseeable future. Think about it. I bet you’ve never heard anyone utter the words, “That’s it, I’m quitting email.”