How do you feel about your current email marketing budget? Why invest in email marketing at all with so many other marketing channels out there? Deciding where to invest your money isn’t a decision to take lightly.
“If social media is the cocktail party, then email marketing is the ‘meet up for coffee’. The original 1 to 1 channel.” – Erik Harbison
Email marketing has been around for a very long time. In fact, the first email campaign was sent in the 1970s – long before there was Twitter or Facebook (both of which you will need an email address to fully access). Businesses have to make decisions about which marketing channels to use and how much of the budget will be allocated to them. Thus, we’d like to explain why investing in email marketing is so important now more than ever.
In this article, we’ll cover the following reasons why investing in email marketing is a good idea:
- Email marketing has an ROI of 42:1
- 3.9 billion people (in 2019) use email with an expected increase to 4.3 billion in 2023
- Email engagement times have gone up 21%
- People spend approximately 5 hours a day checking emails (really!)
- 49.5% of marketers plan to increase their email marketing budgets
- Email is direct and easy to personalise
- Email marketing integrates well with other marketing tactics
- Businesses get results within minutes of sending an email campaign
Let’s dive in.
Remember the movie “You’ve Got Mail”? You know… the one where Meg Ryan and Tom Hanks fell in love with each other after exchanging emails.
Even though the film hit theatres in 1998, it’s a clear demonstration of why email remains one of the most important communication tools in today’s world.
Well… small businesses are certainly not looking for love online. However, they are definitely looking for ways to connect and build relationships with their leads, attract new customers and keep existing clients coming back. Therefore, not using email marketing to do all that may result in missing out on a powerful opportunity.
We know there’s a lot of noise in the marketing world. Between SEO, content marketing, paid social and more, there’s no shortage of competition for a business’s marketing budget. So, why invest in email marketing?
Email marketing has a solid ROI
In 2018 the average return on email spend was $38 for every $1 invested in the channel. By 2019, that number has increased to $42 to $1. Essentially, just when we thought the average email return on investment is high, it went higher.
In order to put the above in perspective, we want to note that a good marketing ROI is 5:1. However, a 10:1 ratio is considered exceptional. So with a ratio of 42:1, businesses should be over the moon and give email marketing a premium place in their marketing budget. Especially if they choose email marketing software that will help them bring the costs down even further.
Over half of the world’s population uses email
According to a report by Radicati Group, the number of worldwide email users will top 3.9 billion in 2019 – and it’s expected to increase to more than 4.3 billion in 2023. With these stats in mind, investing in email marketing presents a great opportunity for businesses of all sizes to reach their target market – no matter what their audience looks like.
By adding email marketing to the list of digital marketing tactics, businesses can improve their reach and visibility as well as have the opportunity to engage and convert more leads on a consistent basis.
Bottom line, email marketing isn’t going anywhere. So take advantage of it.
Email engagement times have gone up
As much as an email ROI of 42:1 seems too good to be true there is a reason why companies are seeing revenue growth from email marketing. One of them being that email engagement times went up 21% in the last two years, according to Litmus’s ‘The State of Email Engagement’ report.
What does this mean for your email campaigns? On average, people are spending more time looking at emails now than a few years ago. People pick up their phones and check their emails in all sorts of strange places and situations: watching TV, waiting for the tube, during events such as weddings, while walking and even, whilst using the bathroom. Our director, for example, goes through his emails at the pub with a pint.
Casually checking emails has driven people to view each email for more than 8s for 66% of the emails opened on a mobile device. Thus, email is a medium that consumers like to engage with. The proof: engagement times most marketers working with other marketing channels can only dream of.
Users spend 5 hours per day checking emails
According to the 2019 Adobe Email Usage study, people check work emails 3+ hours a day and personal ones 2+ hours a day. Overall, this comes around to spending around 5 hours per day checking emails – and people think that it’s just the right amount of time.
The study also shows that 43% of users are checking their work emails – every few hours – outside of working hours. Respectively, 10% check their work emails every hour, 13% check them multiple times per hour, 10% do it constantly and 24% never check emails outside of working hours.
On the other hand, 52% check their personal email whilst at work. 15% check them every hour, 14% do it multiple times per hour, 11% do it constantly and 8% never check personal emails while at work.
Did these stats manage to convince you investing in email marketing is a good idea? No? Keep reading. By the end of this article, we’ll have changed your mind.
Marketers plan to increase their email marketing budget
Email marketing isn’t going anywhere. It’s not slowing down anytime soon – either. So why not put your money where the stats are?
Out friends at Litmus released a survey which revealed that 49.5% of marketers are planning to raise their email marketing budget investing in tools, teams and resources that will help businesses bring their email programs to the next level. Thus, companies who don’t at least make the effort to match what their competitors are planning could risk falling behind and missing out on a powerful opportunity to reach their audience and increase their profits.
Email marketing is direct and personalisation is key
Email marketing is direct marketing. It goes straight to the people on your lists. Unlike social media, you won’t keep your fingers crossed hoping people would come across your post. Your email will land directly in the subscribers’ inbox, waiting for them to read it.
Digital consumers want marketing to be more personal and tailored to their specific needs and preference. In fact, learning what your audience wants is the key factor in making it big in email marketing. Jill LeMaire Redo, VP of Digital Strategy and Insights at Epsilon, even predicts that “by 2020, hyper-personalisation will reach a significant level, along with rules-based triggers, assimilation of the mobile channel and connecting data from other channels and platforms.”
Email marketing makes it easy to personalise. Thus, by using the data you’ve collected from your subscribers and leads (in compliance to current legislation, of course), you will be able not only to personalise your email campaigns but also, deliver relevant content that your subscribers are more likely to enjoy and engage with. This can improve both your open and clickthrough rates as well as the overall conversion rates.
In fact, something as simple as using a subscriber’s first name can make all the difference. For example, an email that includes the first name of the subscriber in the subject line will have considerably higher clickthrough rate than just a generic subject line without any personalisation.
Segmentation, for example, is an effective way of increasing personalisation. By segmenting your email lists, you’ll be ensuring your subscribers are getting the type of content and offers that appeal to them most.
Email marketing is versatile
Another key reason why investing in email marketing is a good idea is the fact it integrates well with other marketing tactics. Businesses can create marketing emails to meet numerous marketing goals as well as use email to support a number of other campaigns. Hence, it allows companies to get the most out of their marketing budget.
An example. Email marketing integrates great with social media marketing. Let’s say you are running a social media contest or a giveaway. You can increase the excitement for the campaign via email. Additionally, you can also use email marketing as a tool to increase and grow your social media audience by including social share buttons or CTAs within your email content.
Another way email marketing can be integrated with other marketing tactics is by offering businesses a platform to promote new content. As we know, content marketing is a vital part of any digital marketing strategy. It allows businesses to educate, entertain and connect with leads and existing customers. Therefore, by investing in email marketing and using it as an effective way to promote content across your target market, you’ll get more eyes on your email campaign and also drive more traffic back to your website. It’s a win-win for all.
You get results minutes after dispatching a campaign
What is the best way to know if your email marketing efforts are working? Well, by measuring results, of course.
With email marketing analytics, businesses can begin to see results within minutes of sending out their campaigns. They can see which users opened the email, if they clicked on any of the links or if they took the desired action – or converted. The analytics will also show how many people decided they no longer find your content interesting and unsubscribed from your list. All of these results are extremely valuable for businesses whilst they are working on analysing their marketing strategy and making the necessary improvement adjustments.
With the right email marketing software, you can even perform A/B tests to see which specific elements of your email campaign provide the best results and resonate with your subscribers the most.
Did we manage to convince you why investing in email marketing is a good idea? Are you ready to get your team the resources needed so they can run a flawless email program?
Businesses love Facebook Ads. However, the average clickthrough rates for FB ads are actually pretty terrible – 0.89% across all industries. Paid search ads perform better but that’s only because nearly 60% of people don’t recognise them as ads. Out of the 42.5% who do, 41% actively avoid clicking on them.
So, as you can see from the numbers, it’s pretty obvious people often don’t interact with paid marketing. Still, if they’re going to get marketing content, they want it to be the type of content they want – when and where they want it – and having it personalised to them is even better.
Bottom line, don’t let the hype circling other marketing channels turn you off from email marketing. Whilst each channel has its pros and cons, the simple fact is that email has been tested and proven time and time again.
As marketers, we are always looking for shiny, new solutions and exciting ways to get a quick overnight “win”. However, email marketing doesn’t work that way. It takes time and effort to establish and maintain a sustainable process in order to grow, but if you keep at it, email marketing will become your most profitable online marketing channel.