Although you might read otherwise, communicating by email isn’t dead. A recent report indicates 92% of all U.S. consumers use email on a daily basis. Furthermore, 72% of U.S. consumers prefer companies use email for communication.
Email marketing has the highest ROI ($44 for ever $1 spent) of any marketing channel.
Those are some heady numbers that shouldn’t be ignored. If you want to see more statistics, check out this post from Campaign Monitor.
Why Is The ROI Number So High?
Your ROI number is high for a number of reasons.
- With all of the online tools available, email marketing is cheap when compared to other marketing channels.
- Email marketing is much less time consuming than other marketing channels. Unlike social media for example, you don’t have to actively monitor and participate on a daily basis.
- Email marketing is relatively easy from the content perspective. Your customers and potential customers generally want three things from you.
- Recent news and updates about products and services
- Information about upcoming sales and promotions
- Learn new things
The first two items are easy content for a newsletter. They don’t take much thought because the content is based on things that have already happened or about to happen.
The third item is the most challenging and time consuming, but goes the furthest in establishing you and your company as an expert. Being seen as an authority in your field will have the greatest impact on future business, as it will keep customers coming back, and they will recommend you to their family and friends if they feel you are the most knowledgeable at what you do. This is especially true if your business is service based.
So Why Do You Need To Do Email Marketing?
You need to do email marketing for 4 reasons.
- Sales generation
- Keeping your customers up-to-date on what is going on with your business
- Establishing you/your company as an expert
- Keeping your name and business at the forefront of your customer’s mind
If you’re a retail business, reasons one and two are likely the top reasons. If you’re a service business, reasons three and four should be your top priorities.
Examples of Email Marketing Success
To help drive home this point, here are a couple of examples. I’ll start with my most recent newsletter.
The last email newsletter I sent to my subscribers directly generated $2,500 in referral business and a few potential projects. This new project came from an individual I haven’t heard from in over a year. This new business occurred because he saw me as an expert and consistently heard from me throughout the year letting him know I’m still in business, I love what I do, and I want to help. If you’re going to recommend someone, aren’t you more likely to recommend someone you know is active in his or her field and wants to help?
Another example is a retail client I have. They send about four emails a year. They consistently make sales that are eight to ten times what it cost to produce the email. If you’re in the retail space and not making sales with every email you send, it might be time to investigate why.
I do often hear email marketing isn’t worth the time because the “last email I sent I resulted in zero calls or sales”…
Success almost never happens the first time for any marketing endeavor. Whether we like to admit it, we all have competitors. The companies that consistently promote their business to their customers are the ones that win in the long run, even if they don’t offer the best product or are the least expensive. All other things being equal, if you connect with your customers twice a year and your nearest competitor connects once a month, who do you think is more likely to be the company a customer thinks of first?