Do you do social media? Of course you do, everyone does. It’s why social media seems to be the go-to marketing channel for businesses looking to connect with customers. It’s flashy, trendy, and has a wide reach. Yet, as a channel, email marketing is far more profitable and beneficial for a business.
Email marketing is a tried and trusted method of connecting with customers and one that has been around since the inception of the internet. Despite its longevity, email marketing has maintained its relevancy because it is incredibly effective.
Here are some of the reasons why email marketing is still the default tool for many businesses.
Email Marketing has a Higher ROI
Many studies show that email marketing has an average ROI of between 3,600% and 4,300%. That means for every dollar spent on email marketing, businesses can expect to make on average between $36 and $43 in return. In contrast, while still generating positive returns, the ROI for social media is much lower. Industry figures are showing average returns of $2.50-2.80 for every dollar spent.
This higher ROI is due to a few factors. First, email marketing allows businesses to reach a targeted audience, one that has already expressed interest in their product or service. Second, email marketing is a cost-effective marketing channel and relatively inexpensive. Especially when compared with the advertising costs required to reach a broad audience on social media.
Email Marketing is Personal
Email marketing allows businesses to connect with customers on a personal level. When you sign up for a business’s email list, you give the business permission to speak direct to you. Businesses can then send targeted messages to customers, that focus on their interests and needs.
As long as your deliverability is good, your email will be there waiting in your customer’s inbox. In contrast, your social media post competes with tens, if not hundreds, of other voices for attention. Blink and your customer could miss it. This makes it far harder to cut through the noise and create a personal connection with customers.
Email Marketing Provides Great Control
Email marketing provides businesses with high levels of control. By tracking metrics such as open, click-through, and conversion rates, you can gain a better understanding of what content resonates with your audience. This then allows you to optimise your future campaigns for better results.
Targeted and segmented lists mean you can regulate how many and how often people receive emails. And it makes it as easy to send to a message to a single individual as it is to the entire database.
By not sending irrelevant emails, businesses can build a loyal following that is more likely to convert into, and remain as, customers.
Email Marketing Has High Conversion Rates
According to the latest study by Monetate, email marketing has a conversion rate of 2.2%. That’s slightly lower than direct traffic or search, but much higher than social media. This makes sense as people who are actively looking for something are going to be coming to your site to make a purchase.
Email though, is going out to your customers and putting your product in front of them. It’s then bringing them back to your website to make a sale.
You’ll never get it right 100% of the time, but targeted emails are more likely to be of interest to the individuals receiving them. Far better than the blanket approach of other channels.
Email Marketing Allows for A/B Testing
Rather than having arguments about subject lines and CTAs, test. You can try both and let your customers decide which is the best. The ability to test what works best, in real time is a fantastic benefits of email marketing. A/B tests can also include different images, copy and layout. You send different versions to a percentage of your audience and the best performing version is automatically sent to the rest.
The Benefits Continue
Email marketing is an incredibly versatile tool that can be used in a variety of ways and works equally well for both B2B and B2C companies. Whether you’re promoting a new product, sharing a blog post, or sending a newsletter, email allows you to reach your audience in a personalised and engaging way.
It also allows you to build long-term relationships with your subscribers, gain their trust and establish yourself as an authority in your industry. This in turn can lead to increased loyalty, repeat business, and referrals.
Email may not be seen as being as glamourous as some other channels. It is far more profitable and beneficial for a business though, which in the end is what everyone wants.
Businesses that prioritise email marketing will see a significant return on their investment. They’ll also build a loyal following that is more likely to convert into long term customers.
We’d love to help you with your email marketing, so get in touch to find out what we can do for your business.
