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It may be difficult to believe that in our current day and age email continues to resonate; to be honest, there are more than a few “Millennial” types that feel this form of communication, believe it or not, is somewhat antiquated and for “the older folks” who came before them. Yet in marketing, a funny thing is happening… many businesses and executive types are beginning to realize that by utilizing email marketing campaigns, they can be very successful because it’s a tactic that still works. What’s more, subscribers are at their most engaged when they first join a list – and this makes it important to ensure they receive useful and actionable content as soon as possible following their initial engagement.
Before we share some eye-opening statistics with you regarding the phenomenon that is email marketing, let’s take a look at why you should probably begin considering sending email content to prospects if you haven’t already done so…
Something of an Email Primer
When the Internet exploded on the scene and was considered new to consumers, the whole world went crazy over email. Some might not be able to remember this, but one of the best parts of logging into AOL – blast from the past spoiler! – was knowing that after those agonizing, relentless minutes of squeals from the dial-up modem system we’d be treated to that goosebump-inducing phrase, “You’ve Got Mail!” Indeed, this “phenomenon” was so widespread and became such a cultural and household rallying cry of sorts, there was even a film named after it.
Fast-forward to modern-day techno-burbia: After decades of Nigerian prince schemes, Spanish lotto scams, and infinite mountains of unsolicited spam – which is NEVER a good marketing tactic – we’re at an interesting crossroads to look at how people feel about email now. Is it still a worthwhile endeavor for small business owners and marketers to pursue?
Of course, as the subject of this blog alludes to, the simple answer is YES…but you came to the Multiverse site to expand your marketing knowledge base, so let’s now look at the top five research-backed reasons email marketing can be considered vital for businesses of ALL sizes…
Why Email in 2015?
1. Email is an Easy Way to Reach Mobile Customers
According to a report by Pew Research Center – and we’re going to get into a whole lot of stats like this later on – a whopping 52-percent of U.S. cell phone owners access their email from their phones. What can we speculate from this? One reason email marketing holds concrete value for business owners is that it is an easy way to begin reaching consumers via the mobile landscape without a deep investment in new technology or software.
Email marketing also works with other mobile devices, and that’s a key factor in the technology race as we move closer to the year 2016. A Forrester Research study found that 42-percent of retailers’ email messages were opened by consumers on their smartphones, while 17-percent were opened on tablets. Again, what can be surmised from this? Nearly three out of every five email marketing messages double as a mobile marketing variant. And, using email is more suited for mobile marketing than SMS because:
- It works on mobile devices other than phones.
- Texting may incur a charge, while emails remain free for the consumer.
- Emails offer more space for content than text messages, allowing for more effective marketing collateral.
2. It’s an Effective Way to Keep Customers Informed
Please don’t misunderstand us: The concept and approach of email marketing is not something undertaken by marketers “just because” they may be able to, nor is it overtly easy. The tactic is indeed very effective at assisting business owners and consumers with staying connected – in fact, some consumers aware of the enduring power of email often seek out email marketing campaigns from their favorite local stores and brands…and this goes far beyond looking for mere coupons. Here are some stats that back these observations up:
- According to Nielsen, 28-percent of U.S. online shoppers subscribe to store or product emails in order to remain informed.
- A Loyalty 360 study found that 59-percent of U.S. moms would sign up for email updates from brands if they were offering rewards.
- With regard to email marketing and delivering content to consumers, a 2013 study by the Relevancy Group noted that marketing entities that added video to their email campaigns enjoyed an average rise in revenue to the tune of 40-percent.
3. Email Coupons Drive In-Store and Online Sales
The aforementioned Nielsen study also discovered that 27-percent of U.S. shoppers doing their business online subscribe to product or store emails specifically to save money. This conclusion has been backed up by recent Deloitte data that suggested 65-percent of consumers believe email coupons are important when shopping for groceries online. Similarly, it was reported by Shop.org that 64-percent of Internet users in America have engaged in printing a coupon from an email – but this merely certifies what we have been trying to stress all along: Though consumers are looking to save money, this email coupon tactic can transcribe to increased revenue for the retailer.
With email marketing at its heart, the concept known as “e-coupons” is big business, and the number of mobile coupons used is expected to double over the next five years to reach ONE BILLION individuals. What should you be taking away from this? Email marketing is a powerful way to start reaching the growing number of online bargain hunters…after all, the big box retailers and chains are already using this tactic for that very purpose. In fact, BIA/Kelsey reports that 36.6-percent of national businesses utilize email marketing for local purposes.
4. It’s Easy to Customize and Integrate Into Other Marketing Approaches
Versatility is another element email marketing has on its side, and is another reason business owners and marketers should be keeping the tactic ready to go in their marketing toolboxes. Depending on the depth of the email base and the skill of the individual responsible for writing the copy for the campaign, email marketing tactics can range from very elemental to highly complex – emails can be personalized to encompass the name of the user and much, much more.
Retention Science conducted a small study of 139 marketers and concluded that websites take advantage of several types of personalization tactics that can easily be applied to email:
- Nearly half of online retailers in the U.S. used personalized product recommendations (44.9-percent).
- About a third added the customers’ name and/or a unique welcoming message (31.5-percent).
- A quarter of the respondents reported adding shopping cart reminders to cover all of their personalization bases (27.6-percent).
Proving that email is an important part of any integrated marketing campaign, email marketing can also be utilized with just about any other marketing tactic or approach.
5. Email Marketing is Value-Rich (i.e. Inexpensive)
Want one of the best reasons to consider email marketing in your efforts? It remains simple, effective and AFFORDABLE, allowing owners of businesses to reach a formidable amount of consumers at a rate of pennies per message. For small business owners on a budget, this makes it a no-brainer and a wiser decision compared to TV, radio or direct mail.
But don’t take our word for it…a joint study by Shop.org and Forrester Research found that 85-percent of American retailers consider email marketing one of the most effective customer acquisition tactics.
Eight Stats That Prove Email Marketing Still Works
Here, we’ll get into some specific, backed statistics that form the core of this blog – from the way in which email marketing yields jaw-dropping returns-on-investment to the importance of the fashion that email is displayed.
1. Email Marketing Yields an Average of 4,300-Percent Return-on-Investment for Businesses in the United States
Yes, you read that right – according to an August 2013 report released by the Direct Marketing Association, email marketing yields an average of 4,300-percent return-on-investment for businesses and brands across the United States. What accounts for this? Well, there are a few things; to begin with, brands eyeing the soon-to-be-largest, most lucrative demographic – the Millennials – should know that those between 18 and 39 years of age check their email more than anything else on their phones. So getting YOUR business’ icon and call-to-actions in front of audiences they frequent the most can lead to significant rewards.
Further, while it may appear to be more popular to run a social media-based contest – and that never really hurts – learning how to optimize your email marketing efforts can prove to be an invaluable slice of your company’s entire digital marketing campaign.
2. Marketers Consistently Ranked Email as the Single-Most Effective Tactic for Awareness, Acquisition, Conversion and Retention
Giagom Research addressed the question of digital approaches and brand-building/direct marketing by surveying 300 U.S.-based digital marketers, the goal of which was to understand how they are using digital-marketing tactics across the marketing funnel. This survey encompassed and took into consideration awareness, customer acquisition, conversion and retention, and went so far as to consider content marketing and how it is especially useful for awareness and retention. Giagom found that email is consistently used across the entire marketing funnel, and that it is deemed the “digital workhorse” most effective (relative to other digital tactics) for building awareness, acquisition, retention and conversion. Some 56-percent of respondents, in fact, identified email as being the “most effective” at retention – a rating sitting several points ahead of the second-most-effective tactic.
3. Seventy-Percent (70-Percent) of People Say They Always Open Emails From Their Favorite Companies
This stat comes from ExactTarget, and it suggests to us that referrals and word-of-mouth business is the best way to land on those folks’ “favorites” list. Indeed, this only comes from your customers and contacts – the ones 90-percent of businesses ignore, if you can believe that – and it is very easy to drop them an email each month reminding them who you are and why they should choose you.
4. Ninety-One-Percent (91-Percent) of Consumers Check Their Email at Least Once Per Day on Their Smartphone
This statistic, also reported by ExactTarget, justifies why email is the most-used functionality of these mobile devices…and it’s not really that difficult to understand: Some 91-percent of consumers use email at least daily, making it the number-one channel with regard to daily use and consumer preference for both personal and marketing communications. What’s more, a whole new generation of mobile smartphone and tablet users are also driving anywhere, anytime email usage – indeed, when we dig into the data, any assertion that email is “dying” with consumers is somewhat laughable.
5. If an Email Does Not Display Correctly, 71.2-Percent Will Delete it Immediately
As reported by BlueHornet, this stat confirms another theory that has been proven to be very true: While you do want your email to capture your brand and company, you need to keep image areas small so that your key message isn’t “pushed out of frame” – and that you avoid the white blocks caused by blocked images.
6. A Recent Study Concluded That Email is Almost 40 Times Better at Acquiring New Customers Than Facebook and Twitter
According to McKinsey & Company, there’s a reason why our inboxes are always jam-packed: Email marketing works, though some companies need to get smarter about ensuring every message counts. Further, McKinsey & Company found that email remains a significantly more effective way to acquire new business than social media approaches – nearly 40 times that of Facebook and Twitter combined. How can this be? Because 91-percent of all U.S. consumers still utilize email daily – as we covered earlier – and the rate at which emails prompt purchases is not only estimated to be at least three times that of social media, but the average order value is also 17-percent higher.
7. Seventy-Two-Percent (72-Percent) of Consumers Sign Up for Emails Because They Want to Receive Discounts, but Only 8.2-Percent Sign Up Because They Love the Brand
Email marketing can be an incredible channel for driving conversions, as we’ve alluded to…but another BlueHornet study has revealed that a large proportion of consumers value email discounts. Some of the most revealing finds of the study have to do with just how much consumers are influenced by email marketing discount codes, being both the main reason they subscribe to brand marketing lists, as well as the way other behaviors such as abandoning “shopping carts” as they search for available discounts are triggered.
8. For Every One Dollar ($1) Spent on Email Marketing, the Average Return is $44.25
As established by an email expert study, this stat confirms that each and every marketing dollar counts…and is what draws small businesses to email marketing. Taking this into consideration, it’s not hard to see how email marketing can consistently deliver outstanding returns.
Think of email marketing as the “target-hunter of the low-hanging fruit” – your database of contacts – in an attempt to either re-engage previous customers, move new leads further down the sales funnel or cross-sell to existing clients. When email is applied to existing relationships, you create non-invasive methods of staying at the forefront of your contacts’ minds.
Multiverse Media Group offers a game-changing selection of email marketing services, taking email marketing’s best practices and applying them to real-world situations for success.