The DMA (Direct Marketing Association) tells us that 90% of companies use email marketing and they describe email marketing as the new hero for troubled financial times. fazowo Their research shows that more than half of companies surveyed expect to increase their spend on direct email this year, many of them cutting back on traditional direct mail in order to do so. It all sounds great, but why is email marketing the answer for your business?
There are three massive advantages to email marketing compared to traditional marketing techniques:
Its inexpensive, the cost of email marketing campaigns is significantly less than other marketing strategy. As the medium is so scalable, you also have the ability to commit as much or as little as you want to email marketing.
Great Return on Investment, no other type of direct marketing will offer the same sort of ROI as email. This is partly because of cost; you aren’t spending as much in the first place, but the flexibility of the medium also has an impact. Targeted email marketing allows you to personalise campaigns to your customers. It is also a great way to maintain the relationship with your existing customers and to make them aware of offers. When done right, there a great return on investment, but you can still get it wrong. If you don’t have any in-house experience of email marketing campaigns, then it can be wise to take expert advice.
Measurable, an email campaign allows you to measure effectiveness more than any other type of direct marketing. You are able to track every opened email, every click, every email shared right through to the sale. This differs massively from a direct mail shot where no one can tell you how many went straight into the bin.
With email you can see if your campaign has worked, but perhaps more importantly you can see where it didn’t work and what didn’t work. This allows you to learn from experience and use that feedback to tailor your email activity to your customers needs.
Nobody will tell you they like spam, but what do we actually mean by that term? At the moment opinion is shifting towards the idea of spam as an email that is irrelevant to the user. Beware of allowing this to lull you into a false sense of security though. A recent DMA survey showed that 75% of consumers found less than 20% of emails they received to be relevant to them.
There are still many people who class spam as something they didn’t sign up for. Another study asked consumers to rate acceptability of promotional emails out of 5 (5 is most acceptable, 1 is least acceptable.) Permission clearly made marketing emails more acceptable, where the consumer had given permission for ongoing communication participants rated it as 4.1 out of 5. When the consumer had interacted with a company, but had not given permission for contact, the score dropped significantly to 2.5. The worst score was for marketing material from companies who had not been given permission and with whom the consumer had never interacted. This scored 1.7 out of 5.