There are so many ways to advertise these days. Companies spend millions of dollars to get their name and product into the hands of their targeted customers. Television ads, direct mail, and print ads are just a few of the coveted outlets. There is one source of marketing, however, that many companies forget about or simply over look; email marketing. In an article found on the Harvard Business Review’s blog site, one company proved that email marketing is in fact a profitable channel.
Email marketing allows the recipient do so much more than simply view the advertisement. It lets them interact within the selected website via links and information from the email marketing piece. This means customers are able to go directly to the company’s website and view the products and possibly even make a purchase. It is true that shopping cart sales, through email, are only around 5%, but that only reflects the direct sales through that single email. There are other ways for the customer to use what they have found in the piece to make a purchase with the company. Even if the customer doesn’t make a purchase at the moment, the email can act as a gateway for them to do research on the products and come back to the site or purchase in-store.
If you’re still a little uneasy when it comes to email marketing or you just don’t think it will drive any sales to your company, think again!
One company in particular did a little research of their own to determine just how profitable email marketing can be. They divided their loyalty member database into three groups and marketed to each of them, differently. Here is the chart from the article that breaks down the research.
Note that while direct mail has a higher response rate, it costs almost 100% more to create then an email marketing piece. In other words, you are spending more and only getting back a little.
To find out how to effectively use the chart, visit the article on the Harvard Business Review blog site. It will show you how to use multipliers to tailor the chart to your company’s statistics.
In your opinion, does email marketing work? Why or why not?
What do you think makes a “good” email marketing piece?