The last few years have seen a growing shift in the attitudes to email marketing campaigns. With all of the interest in social networking and the optimization of blogs and websites to promote sales many webmasters have begun to think of email marketing as old hat. A relic from the early days of e-commerce, no longer able to offer the return on investment (ROI) of its glory days. But nothing could be further from the truth. Email marketing campaigns still offer the highest ROI metrics for online retailers while offering benefits that other techniques struggle to match. Before turning your cyber-back on email marketing, let’s take a look at what it still has to offer.
Return On Investment – Go Figure
Over the last six years or so, ROI for email marketing has slowly begun to dip. It’s an undeniable fact, but it’s no reason to abandon ship. In 2006, the average ROI for every dollar spent on email marketing was roughly $52.00. Pretty impressive. By 2012 the average ROI had fallen to approximately $40.50 for every dollar invested. It’s a substantial dip that had many online retailers spooked. But consider this, the average ROI of search marketing for 2012 was around $22.00 per dollar spent, and the average ROI for mobile marketing hovered at a measly $10.50. Put into perspective, email marketing still offers the biggest bang for your invested buck.
Email Marketing Works
Why is email marketing still a good bet? Because it works. Email marketing allows you to target your audience, reaching the greatest number of potential customers who are already likely to be interested in your product or service. Email campaigns also return a wealth of consumer information that can be used to refine your marketing approach, tweak the messaging process and maximize your customer appeal. Email promotions also inspire immediate action, sending potential customers directly to your online retail site to take advantage of sales and discounts made available through your email offer. In short, an email marketing campaign gets people’s attention and directs it straight to your business.
This direct attention to your business has impressive metrics. Take a look at MailChimp’s Benchmarks on different industries. With “open rates” climbing close to 50% in some industries, how are you not interested in email marketing? It’s a no brainer for extremely effective brand exposure. And, if you have a small business, the click-through-rates would be significantly higher than MailChimp’s numbers.
Is There a Catch?
All marketing campaigns have hurdles they must overcome, and chief among those for email marketers is developing a relationship with the customer that allows you to send regular offers and promotions directly to their in-box. This require getting some form of permission from the customer. This can be as simple as having customers sign up for a newsletter, or asking them to tick a box during check-out indicating that would like to receive email updates about upcoming sales and promotions. With that permission in hand, you can add their email address to your database and include them in future campaigns. Bulk emails, sent to individuals who have not opted to take part in your promotions, may well be considered spam. Spamming will not only leave a bad impression with the email recipient, it may well get your email accounts shut down and result in a dangerously poor online reputation. When considering an email marketing campaign, take the high road and avoid becoming a spam merchant.
Businesses engage in email marketing campaigns because they continue to offer solid returns for their investment dollars. Recent surveys have shown that 77% of consumers like receiving permission based offers and promotions via their personal email. In 2010, the ForeSee report on social media determined that email marketing was second only to brand familiarity in driving sales for online retailers. Through all the changes that have affected the way that businesses interact with the online community, email marketing techniques continue to prove their worth by maintaining the healthiest ROI of any web-based marketing technique.
When the time comes to put your dollars to work for you online, email marketing still offers a surprisingly impressive return on your investment.