The Economics of Marketing By Email

Marketing by email has been arguably one of the most successful promotional strategies of recent times, and one that continues to drive results for business and organizations across sectors. It is a low-cost method of reaching out to individuals en masse, with measurable, trackable results allowing for campaigns to be tweaked and fine-tuned for performance. The economics of email marketing make it an intriguing model for those promoting anything online. With additional insight and analysis, it can be feasible to create campaigns that perpetuate in value, delivering the most effective combination of email content as borne out by the facts.

Marketing by email provides businesses with a cheap, direct and automated way of communicating more personally with customers and prospects. The marginal cost of sending an email is zero, and provided you can stick within spam-compliance regulations, it can be a hassle-free way of getting the word out about your business. From a sales perspective, email marketing can warm a prospect, making them an easier proposition for a sales pitch later down the line. For these reasons, businesses choose to deploy email marketing with uniformity. While some do a better job than others, they all push email sign-ups and subsequent marketing messages as part of their online approach.

Economics of Email Marketing

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In order to build a list worthy of an email marketing campaign, you first need to encourage your visitors to sign up for your emails. Some choose to do this as part of their existing website, whereas others choose to be much more aggressive about promoting the sign-up. A percentage of those who are presented with a sign-up box will input their email data. All things remaining equal, more traffic translates into more of the signups, regardless of the percentage itself.

Improving the percentage of traffic to email signups can have a massive impact on your business, above and beyond simply driving more traffic. While both can achieve similar results, improving the uptake of your email offering makes your marketing effort and spend work more efficiently. For best results, focus on both simultaneously.

Encouraging people to sign up for your email marketing messages is essential – otherwise, your efforts would be indistinguishable from spamming. But even taking visitors to this stage in the process doesn’t mean they will ever read your messages.  Open rates are another statistic that marketers need to bear in mind, and similar to on-page conversion rates, subtle increases in open rate can drive improved results from your marketing campaigns. By this stage in the marketing process, you are looking at a percentage of the percentage. Even from these qualified prospects, only some will buy.

This might at first sound disheartening. In fact, this is positive news. Regardless of the variables in the middle, which can be tweaked and optimized over time, there is a direct correlation between increasing traffic and increasing results. It becomes a game of numbers, which is a much more preferable basis for making sensible decisions.

Economics of Email Marketing 2

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While it is important to give all the individual variables a fair run at optimization, one of the most important in any campaign will always be sequencing. Sequencing is the order in which you send emails to a prospect as part of a marketing campaign. Coming on too strongly with promotional emails might scare prospects off buying, while taking too long to get to the point can lose you numbers. Finding the right sequence is a case of testing different options and measuring the comparative results. The most effective options are not always the most intuitive options, and often a seemingly slight change in approach can make a much more considerable difference in outcome.

Testing different elements of your marketing campaign is essential to finding the right formula. Only through comparing the results and trying different techniques can you learn what works most effectively for your business. A/B testing methodology allows for a side-by-side comparison of results, so you can systematically figure out the best options for your marketing.

Email marketing is a fascinating area of academic interest, let alone its significance to business and the Internet as we know it. Mastering the methods of success email marketing can take a business to entirely new demographics, warming cold leads into warm, sale-ready prospects. The techniques work across industries, and because of the analytical element to marketing online, it is possible to find the optimal formula in a way that just isn’t possible with competing media. As such, businesses should increase their investment in email marketing, and indeed wider online marketing, for better results.

About Steve Baik is a pioneer in the free search engine submission industry and has been providing valuable web tools and resources for small business owners since 1996. Sign up for our free newsletter to receive the latest info on SEO and Internet Marketing.
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