Today email marketing is the online marketing tool that costs the most. The Litmus survey for 2021 describes that a whopping $36 for every $1 spent, in fact. Here are the challenges that the email channel can solve for your business:
For many companies, email marketing is a way to compete for market segments. If your competitor does not engage in email marketing or does not use it to its full potential, you will benefit from it. Email marketing is a strategic tool to take over a market niche position.
An average email service unlimited newsletter for a database of 50K contacts costs ~ $70-100 per month. CR from email is higher than other channels. Target conversion from trigger messages is 5-7%, and the one from manual campaigns is 8-12%. This figure is not uniform. For some e-commerce projects, 3% of conversions is too much. Everything depends on the business model.
In this case, it is possible to send personalized notifications and receive direct calls from customers through surveys.
You can make cross- and up-sale for the loyal audience or those who made a targeted action on the site (looked over the product card, filled out the form, stayed on the page for more than 3 minutes, etc.), thus increasing the average bill.
Email marketing is suitable for both B2B and B2C projects, but you need to choose a strategy that suits your target audience and business model. In each of the following types of business, you can use email marketing for that model of monetization, which is present in these projects:
You have a customer base of at least 10,000 subscribers, as email marketing won't significantly impact sales to fewer customers. I recommend collecting a client base of at least 50,000 so that the channel brings a greater revenue.
The customer base has to grow organically. Otherwise, you yield a zero result. There will be problems with the domain's rating, and messages will go straight into the "Spam" folder. To create your real base of subscribers, check the detailed article on the blog Netpeak.
The number of genuine visitors to the site has to be above 50,000 per month, and this is key. If the traffic is lower than 50K, we will have to collect contacts and grow the base.
Conclusion. Working with the email channel is necessary to encourage users to buy, increase LTV, stay in touch with the client, and allows you to pay a low price for the contact.
Manual. Each message is designed by a marketer and has a thoroughly determined grounds, strategy, and dedicated audience segment for this type of campaign.
Triggered. In-advance prepared messages are sent automatically with regards to the recipients' actions. The letters often have dynamic content (the one that is tailored for each user depending on the performed action).
Let’s take a closer look at each of them.
Manual email campaign
There are promotional manual emails and informative manual emails.
Integration of diverse messages is essential to keep the audience interested and engaged. Don’t overload the audience with constant discounts and promotions. You may justify discounts at first glance as something subscribers need. However, the audience will drop after a while, the number of message views will fall, and the purchasing power will decrease.
Basic trigger emails
Service trigger emails
Custom trigger mails
Here is a simple visualization with a mind-map, which illustrates that email marketing is a variety of measures, not just one mail campaign in a month. Link to the mind-map.
Method and result are of equal importance.
KPI for business
ROMI - return on investment
CPO - cost per application (cost per order)
CAC - price for the acquired client
Indicators of mailing efficiency
20% - Open Rate (OR) - the ratio of open letters to sent letters.
7% - Click-Through-Rate (CTR) - the number of users who clicked any clickable element in the message: a link, a button, or an image.
35% - Click-to-Open-Rate (CTOR) - the ratio of unique emails opened to unique link redirections.
4% - Bounce Rate - indicates how many emails didn’t reach recipients.
0.3% - Spam Complaint Rate - the number of emails that subscribers consider spam.
1% - Unsubscribe Rate - the number of recipients who unsubscribe from email and notifications.
In the process of launching and setting up an email campaign, you should pay attention to these aspects:
Do not forget to make a summary analysis besides the total revenue calculation at the end of the month. Brake down the funnel into stages, and you will understand how to grow sales from this channel.
If you haven't done this before or did it long ago, it is wise to do it gradually, starting at 50 messages per minute. Base reactivation must be done frequently through manual or triggered mailing.
You can reactivate the base in case:
A step-by-step guide to launching email marketing from scratch
Recommendation: start developing your email channel now because primary PPC & SEO will hardly be enough to compete and stand out among your rivals. All these tools are excellent when put together.
By Maksym Sokoliuk, Head of Email Marketing at the digital agency Netpeak.