Why email marketing still produces the highest ROI
December 7, 2019
People are usually quick to think that a marketing channel has become obsolete. This is what we sometimes come across in the world of email marketing. But over decades, marketing emails have proven time and again that the channel is here to stay. Check out these outstanding email marketing stats to show how effective this channel is:
● About 61% of consumers say that they love promotional emails
● A study conducted by McKinsey concluded that email betters social media at customer acquisition by 40X
● Back in 2016, 89% of marketers considered email to be their principal lead generation channel
● Recipients of promotional emails have a 138% spend above non-recipients
The statistics do not lie. Yes, they are proof that email marketing remains one of the most lethal ways for businesses to generate revenue.
Why email marketing is so powerful
Technological innovation and advancement in the world of marketing plays a key role in establishing email marketing as a force to reckon with. This form of marketing guarantees a greater ROI which is ideal for startups and small business owners that have budget constraints. The DMA released a study that shows that email marketing produces up to 122% return on investment on average.
Admittedly, several factors come into the mix to determine how much ROI you generate. For example, the level of sophistication of your email automation software can affect your email marketing ROI. With the release of email marketing automation software like Actionetics or ActiveCampaign that allows you to store contacts, build an email list, and forward automated mails, as well as broadcasts, email marketing is everything but finished. You’ll also want to consider the quantity and quality of contacts and leads on your email list.
But rest assured that email marketing is a great way to build business revenue. Here are some top reasons that email marketing still produces the highest ROI in the internet marketing space:
1. Email targets every audience
No matter what the demographics, email marketing can reach just about any audience. Emails are used by different demographics for different purposes. One can use them for pleasure and also for business. This means that there are many opportunities to market using the channel. Throughout the years, Email continues to be the preferred way that organizations and businesses like to communicate. Reaching your customers through the medium that they prefer can get them to connect with your message.
2. Your subscribers are ready for your offers
Social media is good way to connect with your potential clients but email is the king when it comes to driving sales. The reason is simple. Most consumers are hanging out on social media mostly for social engagement with family and loved ones. They are not primed to receive your marketing offers.
But email users are already primed to receive business offers. This is something that they expect and is basically the reason that they subscribe to receive newsletters. Since your audience is already prepared to receive offers, marketing becomes easier and you can sell more. But you should be careful not to annoy them by overloading them with offers. Sending too many emails can lead to subscriber fatigue, making it paramount for you to know the frequency that your business should operate on.
3. Email gives a personalized experience
Today’s marketers know that creating custom experiences for customers leads to better results. Email offers a kind of 1-to-1 intimacy that allows you to personalize offers. Many consumers will gladly exchange their data if you guarantee them a personalized experience. This is backed by a 41.8% open rate due to personalized subject lines. Since email automation software like Actionetics gives you the ability to segment your email list, providing personalized experiences to your clients ultimately increases conversions and ROI.
4. Tracking and measuring success is easy
If you must get the best return on investment, you need to track and measure how well your marketing campaign is performing. Unlike some channels that make it challenging to track and measure, email marketing campaigns are different. With the help of automated technology, you can monitor important metrics with ease and see how your segmented lists are performing. In fact, you can also see what devices are used to view your content by subscribers. Having this knowledge at your fingertips means you can tweak and optimize your campaigns to boost investment returns.
5. Email is loved by mobile users
Did you know that tablets and smartphones are used to open about two-thirds of emails? What more do you need to convince you that Email is mobile-friendly? People love Email because they can read their messages on the go and this is a win for email marketers. Including the mobile factor into your campaign is essential for marketers who want to retain their valuable subscribers. Design your campaign in a way that is responsive to mobile and craft content that appeals to mobile users. This definitely helps to increase marketing campaign impact.
6. Email lets you build relationships with ease
Many forms of marketing help to create customer relationships that stand the test of time. One such channel is email marketing. While many people believe that relationship building is best done with social media, this is not always the case. Here’s why:
Since consumer inboxes are now being prioritized, gaining a new subscriber outweighs gaining a Facebook like. This is more about quality vs. quantity. No matter how many likes and shares you have on social media, you may not be gaining much in terms of building a relationship with them. Email marketing takes things a step further. With the ability to segment and personalize, email marketing helps to boost consumer experience and create stronger relationship.
Final thoughts
Never underestimate how powerful email marketing is in generating the highest return on investment. Many other channels will come and go with the passage of time, but email has continued to evolve over the years. You can rest assured that it will always be here.
