Email Marketing may seem simple and a bit boring, email is actually the most advanced means of communication between marketers and their ideal customers. It is ubiquitous, cheap, reliable, and offers great benefits. Customers have become accustomed to using email when communicating with their brand, and email performance is a key factor in the success of a digital marketing campaign.
Let’s take a closer look at why you should pay attention to the most measurable, automated, and scalable assets in the digital marketer’s toolkit.
1. You will get a high return on investment
According to Campaign Monitor, email marketing generates $ 38 for every $ 1 spent, which translates to a 3700% ROI. The statistic itself is an incentive for brands to take a closer look at their email marketing strategy and maximize return.
In fact, for the last ten years in a row, email has been the channel that generated the highest ROI for marketers. A surprising statistic: email is 40 times more effective in acquiring new customers than Facebook or Twitter.
2. You can engage potential customers throughout the customer lifecycle
One of the greatest advantages of email is that it works at every stage of the customer lifecycle.
Stage 1: New subscribers
In this step, you can use email to greet new leads at the start of their shopping journey who have completed a form on your site. These early-stage emails should contain more information about your product or service. and build brand awareness by inviting customers to a meeting, webinar, free trial, or demo.
Stage 2: New paying customers
You have just finalized the transaction and acquired a new client. At the beginning of this stage, email marketing strategies help customers make payments or commitments by signing an e-contract. From then on, brands need to transform customers into repeat buyers for the first time.
Building trust is essential to persuading customers to make more than one purchase. Email can also be used to familiarize customers with your product and services by sharing content such as blogs or case studies.
Stage 3: Active customers and subscribers
They are loyal customers who often interact with your brand and make repeat purchases. Thoughtful email marketing can entice this valuable group of customers with loyalty offers, bonuses, limited-time offers, and exclusive invitations.
Stage 4: Dormant Subscribers, Unsubscribed, and Churn
In the fourth step, email can be used to determine which customers are no longer interested in or doing business with your brand. First, they usually stop opening your emails, which means it’s time to try engaging them again. Once they unsubscribe or jump through your email marketing funnel, it’s much harder to get them back.
3. You will get the necessary information thanks to simple metrics
Email data provides key insight into how your audience engages with your brand and can drive your email strategy.
Email Open Rate tells you what percentage of recipients have opened a specific email out of the total number of sent messages. A survey by MailChimp found that the average email open rate across industries is 21.33%.
For example, let’s say you run a welcome campaign for new customers and you have 50% openings. This means you have a larger than average group of engaged new customers. This information can help you make strategic decisions about how to sell in this segment. indicates how well the subject and content of the email have attracted their audience.
This is the percentage of e-mails that did not reach the recipient’s mailbox. There are two types of reflections:
Hard bounces don’t end up in inboxes for permanent reasons such as invalid addresses, domain address problems, or problems with the mail server. The above-mentioned study also showed that the inter-industry average for hard bounces is 0.40%.
Soft bounces are caused by temporary problems such as a full inbox or an email file that is too large. The inter-industry average for hard bounces is 0.58%.
Bounce rates are a strong indicator of the quality of your email lists and sources. Bad bounce rates can cause your domain to be blacklisted by email addresses. It’s important to manage your email list and clean it up every time you send a new message.
Click-through rate (CTR)
CTR measures how many people clicked on a link, call to action (CTA), or image in an email. CTR indicates how well the content of the email communicated with the recipients. The inter-industry average for average CTR is 2.62%.
Suppose you run an educational campaign to educate your audience about your offer. If your campaign had a poor CTR of 1%, you can try an alternate design, different content, or a changed call to action.
This is the gold standard for email marketing effectiveness. The conversion rate is the percentage of recipients who take the requested action after reading the email. It indicates the ROI and ultimately determines the success of your email marketing strategy.
A study by Barilliance, the eCommerce personalization suite, found that in 2020, the average email conversion rate based on click-through rates across the industries surveyed was 15.11%.
If you’re running an email referral campaign where your conversion rate is below average, you can adjust how your listing is presented to customers or reconsider the listing itself.
High unsubscribe rates act as a red flag in email marketing. This metric indicates how many audiences are no longer willing to engage. The industry average for unsubscribe rates is 0.17%, but anything below 2% is considered normal.
Higher unsubscribe rates should trigger warning bells in your mind. They usually indicate that you should try new tactics and change the content of your email campaign.
A marketing tool that keeps you strong
Marketing technology is evolving by leaps and bounds, but the good news is that modest email is fast enough to adapt. You can integrate email into your social media strategy, automate it to run at specific points in your customer lifecycle, and use it to collect important data. It doesn’t cost much and can be used by small businesses as well as businesses. Try it out and see how it transforms your revenue engine.