The Benefits of Email Marketing and How to Measure Them
Email marketing is one of the oldest tricks in the marketing book. It has been delivering great marketing results for a long time. It still delivers results today. As a matter of fact, in 2018, Direct Marketers Association, a UK based marketing tracking company released an email tracker report. In the report, they highlighted that for every $1 spent on email marketing, you can expect an average return of $32. If your email marketing campaign is effective, you convert potential clients to paying customers. Hence, you can make them loyal and raving fans of your business.
Today, there are a plethora of digital marketing channels available. Hence, a lot of modern-day marketers and business owners are questioning the viability of email marketing.
Well, the introduction of other digital marketing channels did not diminish the effectiveness of email marketing. It only expanded the options for marketers and business owners to achieve greater marketing results.
However, comparing email marketing to other digital marketing channels available today, email marketing is ranked highly.
Let’s look at three different surveys by some digital marketing firms.
Survey 1: Ascend2 report.
From the above report, email marketing was endorsed by 52% of respondents as the most effective channel for a digital marketing plan. It is ranked just below Websites in that regard.
Survey 2: Econsultancy
In this report, Email marketing ranks high again in its potential to deliver great ROI.
Survey 3: GetResponse
Here, email marketing is highest in its ability to generate ROI as 55% of respondents ranked it above average.
A holistic look at these reports shows that email marketing is still a very effective marketing channel. In fact, only email marketing ranked among the top two ROI opportunities across all three reports. That’s because it helps business owners and marketers achieve multiple marketing goals. Also for many businesses, it has a huge impact on sales, which makes ROI measurement easier.
There’s no doubt that effective email marketing can benefit your marketing campaign and business as a whole. Here are some of the direct benefits you stand to get from effective email marketing.
1. Increase in Business Revenue
Not to prejudice other digital marketing channels, email marketing remains the greatest generator of revenue for many businesses. Revenue from effective email marketing improves year over year. This is because businesses continue to engage with leads and customers through email marketing year after year.
The reason for this increased engagement is not far-fetched. The number of email users in the US is on a rise. Statista has the following statistics:
- In 2013, there was an average of 218.9 million email users.
- In 2014, that figure increased by over 3.6% to 226.8 million users.
- In 2015, there was a slight increase of about 2.6% to 232.8 million users.
- In 2016, there was a 2.4% increase to 238.5 million users.
- The figure stood at 244.5 million and 248.7 million users in 2017 and 2018 respectively.
- It is expected that by the end of 2019 and 2020, the number of users will hit 251.8 million and 254.7 million respectively.
As more people continue to use emails as a means of communication, the potentials for email marketing rise. This means that businesses and marketers continue to reach more prospects through their email marketing campaigns.
In addition to the increasing number of email users, the cost of running email marketing campaigns is low compared to the results it delivers. As earlier stated, for every $1 spent on an email campaign, the average revenue you can generate is $32. To buttress this, a report from eMarketer shows that email marketing drives 25% of the overall revenues for the businesses covered in the survey. So, you can run a budget-friendly email marketing campaign with great ROI.
As much as we have established the revenue benefits of email marketing, it’s important you know for sure how much revenue it generates for your business. Every business is different and the best revenue generators differ as such. With the aid of good email analytics software, you can track and measure sales made after customers click on email content. When you put the sums of these sales together against the cost of your campaign, you can determine the revenue from your email marketing.
2. Better Sales Conversions
Revenue generation is important. However, this is not the only important part of email marketing that marketers or business owners should concentrate on. Email marketing is a great way to improve sales conversions. That’s because email marketing helps nurture leads and guide them through the marketing funnel to the point of making a purchase.
For instance, a prospective client visits your website a couple of times but has yet to make a purchase. It’s possible the prospect need more information about your products or services. It’s also possible that they are taking the time to weigh their options and check their budget. At this stage in the customer’s buying journey, they need a little nudge or motivation to make a final buying decision.
You should be able to identify their behavioral patterns on your website and feed them with contents that appeal to their interest. If you have a special offer, you can present it to them. The most effective way to do this is through effective email marketing.
There are two ways you can measure the impact of your email campaign on the rate of conversion. They are lead engagement and lead acceleration. Let’s look at them in detail.
- Lead Engagement: This shows you how your business is effectively interacting with prospective clients. The metrics to use in determining how effective your email marketing is engaging your prospects are:
- Open Rates – How many of the emails are your prospects opening. If your open rate is low, then you may have to work on your email headlines. It is your email headline that gets a prospective client to open the message to see what’s in it. Great headlines increase your email open rates.
- Click Through Rates (CTR) – It is one thing for leads to open your email message. Taking the desired action in the email is a different ball game. You want to make sure that your email body has enough psychological triggers and powerful CTAs that make the prospect take the next step.
- Unsubscribe Rate – Yes, this happens quite a lot. And, people are at liberty to unsubscribe to email messages they do not find useful or helpful. You should make sure your messages have something that interests the prospect. Again, you should also check the frequency of your emails. When you bombard potential clients with series of emails at a time, you leave them with no choice than to disengage themselves from you.
- Lead Acceleration: How long does it take for your prospects to move from one point of the journey to another? Prospects move from the awareness stage to the consideration stage, and then to the decision stage. You want to know how fast or how slow your email marketing takes your prospects through their buying journey.
By now, you should have a CRM system working in your business that makes it easy for you to capture these metrics. The whole essence of this is to know if your email marketing campaign is giving you the desired benefits (which it should).
3. Increase in Website Traffic
I must say, when it comes to website traffic, there are other effective ways to do that and get great results. You can use SEO or social media marketing to boost your website traffic. However, email marketing is a king in its own right when it comes to driving traffic to your website.
It is no news that even with all the marketing channels available, generating website traffic is one of the biggest challenges for many business owners. According to HubSpot’s State of Inbound 2018 report, 54% of businesses consider website traffic generation as their biggest marketing challenge.
When it comes to website traffic generation, email marketing makes a significant impact. This is because it sends targeted and relevant traffic to your website. A prospect’s continuous engagement with your email marketing content shows that they have an interest in your product or service. So, when they come to your sales page or sales video, they are likely going to make a purchase. The more you drive high-quality traffic back to your website, the greater your chances to engage these qualified leads and record more conversions.
The most effective way to measure the benefits of email marketing with regards to website traffic generation is by monitoring your CTR. This shows you how many potential customers are clicking on links in your emails that lead to certain pages on your website – usually your sales page or sales video page. As earlier stated, the CTR of your email marketing campaign is highly influenced by the content of the email. If your prospects don’t find the content appealing or convincing enough, they will just open the message and close it without taking action.
4. Better Brand Awareness
Effective email marketing campaign is very important in helping your business build brand awareness. Most of the times, your products or services don’t sell just because of what they can do for the customer. Your potential clients’ perspective of your business goes a long way to influence their buying decision. When clients identify your business for a particular thing, it becomes easy for you to sell your products or services, even if they are a new release.
The major reason email marketing is so effective for better brand awareness is that it gives you the opportunity to engage with your leads directly and on a more consistent basis. In the course of your engagement, multiple points of the prospective client can be touched over a period of time. With an effective email marketing strategy, you establish a relationship, build trust, and record increased conversions over time.
The way you define brand awareness goes a long way to determine the effect your email marketing has on it. Do you just want to ensure that leads are aware of your brand? Or do you want to make them aware of some peculiar attributes that differentiate your business from the competition? This also helps you know the kind of metrics to employ in measuring the impact of your email marketing on brand awareness.
This is why you have to be consistent in the content you give to leads. They create an image of your business in their mind. And this is how they get to know you and trust you. This is possible when your email marketing is effective.
You Can Enjoy the Benefits of Email Marketing
It’s important to reiterate that effective email marketing delivers great results for your business. This is why many businesses are developing and implementing effective email marketing strategies.
The benefits for your business are great. They are:
- Increase in business revenue.
- Better sales conversions
- Increase in website traffic
- Better brand awareness.
If you are ready to develop and implement effective email marketing strategies in your business, then we can help you. There’s a business strategist on our team waiting to talk with you.
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