7 Reasons Why Email Marketing is Important

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The total number of email users across the globe is over 4 billion, that’s nearly one-third of the entire human population!

Now, not every one of these people will be a customer for your business, but in terms of marketing channels, nothing else even comes close.

But, even with stats like these, it seems that every couple of years the internet proclaims, “email marketing is dead!”

I’m here to tell you not to believe the hype. Email isn’t dead. It’s thriving more than ever.

No matter what kind of business you run, email marketing can be used to supercharge your results.

Just think about your own life and inbox. I bet there are a handful of emails from companies that you look forward to opening. My goal is to help your business reach this level of mastery with email marketing.

By the end of this post, you’ll be able to answer the question: why is email marketing important? And you’ll know exactly how it can benefit your business.

If you’re still not sold on the power of email marketing, then hopefully this post will convince you otherwise. Below you’ll learn 7 reasons why email marketing is important, and why you need to start building your email list today.

What is Email Marketing?

In case you’re brand new to the online marketing world, we’ll start at the very beginning: what is email marketing?

Email marketing is a form of direct response marketing, where you use email to stay in touch, communicate, and send offers to your subscribers. Your subscribers are usually website visitors who opted into your list via a form on your website.

Most email lists are comprised of past, current, and soon to be customers.

To deliver emails to your list you’ll be using email marketing software. There are dozens of different providers to choose from, but the process remains the same. Essentially, the email marketing software you choose will store your list of email addresses, then you use the tool to send out an email to every single subscriber on your list.

The entire process is similar to firing up Gmail and blasting out an email to a friend or colleague.

As you’ll soon learn below, email is an incredible way to build a deep bond with your customers, improve customer loyalty, and create an incredible asset for your company.

7 Reasons Why Email Marketing is Important

Email marketing can be one of the most powerful drivers of new customers and sales for your business.

Don’t believe me, check out the 7 biggest benefits that email marketing can bring your business:

1. The Highest ROI Out of Any Marketing Method

Out of every marketing method you have available, email marketing has the highest ROI. According to Campaign Monitor for every dollar spent on email marketing, you can expect a $44 return, that’s a 4300% ROI. This is the number one reason why email marketing is important.

One of the big reasons for this is due to the advanced targeting methods you can employ. As your email list starts to grow you’ll notice that you have different groups of customers.

Within your email marketing software, you can segment these people into different groups based upon behavior, demographics, and more. From here you can send very targeted messages to these individual groups, which makes the sales process much easier.

Compare this to other forms of advertising like, traditional print media, radio ads, commercials, where you literally have no control over who is going to see your ads. You’re just playing a guessing game whether or not your ads work.

Email marketing even beats more modern forms of marketing as well, like social media giants Facebook and Twitter. In fact, when it comes to customer acquisition, email beats those two social networks by over 40 times.

The engagement rate on email is much higher as well. With email deliverability, nearly 90% of your subscribers will receive your message. Compare this to Facebook, where only 2% of your followers will see your post in their feed.

The final point worth bringing up is the cost to acquire leads. People who join your email list are already coming to your website anyway via other marketing methods, so the cost is virtually zero, while the revenue you can generate per subscriber is very high.

2. Build Deep Relationships With Your Customers

As you just learned, email marketing allows for in-depth personalization with your marketing. This not only improves your ROI, but it makes for better relationships with your customers as well.

When you send a personalized and segmented email, your subscribers will feel as if you’re talking directly to them. There’s no better way to build a deep bond. Plus, personalized marketing is the way of the future.

Compare this to social media, where all of your marketing communications are blasted out to hundreds or thousands of followers. There’s no personalization whatsoever. Plus, there’s no guarantee that your followers will actually see your post.

Truth is, most people prefer email communication with businesses, over all other forms of digital communication. 72% of US adults say that email is the preferred method of communication.

Sure, having a large social media presence can benefit your business in regards to brand awareness, but it probably won’t drive as much revenue as tried-and-true emails.

With a solid email marketing strategy, you can individually tailor your messages to unique people, and build deeper bonds, all while speaking to them through the medium your customers prefer the most–email.

3. Create New Passive Revenue Streams

Another reason why email marketing is important is to create additional passive income.

Having an email list can also be more valuable to your business than just promoting your products and services.

Don’t get me wrong, email can be one of the most effective sales mechanisms for your business.

But, beyond your products and services, you can generate additional income when promoting other products or services to your list through affiliate commissions.

The affiliate marketing industry is worth a whopping $6.8 billion. With an active and engaged email list, it’s much easier to tap into this income stream.

One of the most important factors in generating affiliate sales is trust. When a user opts in to your list, they’re already putting their trust in you and your business.

Then, as you send value-add emails, solve their problems, educate them, and genuinely improve their lives this trust grows even deeper as you start to build your relationship with them.

Incorporating affiliate marketing into your business can be fruitful at this stage.

Chances are your products and services don’t solve every problem that your customers are seeking. So, all you have to do is find relevant products, services, and offers that are complementary to your business.

Depending on what you’re recommending, the commission rate will typically range from 5%, all the way up to 70% plus for digital products.

Here’s an easy way to get started with affiliate marketing:

  1. Find affiliate products and services to promote (a simple Google search “your niche + affiliate” is a great place to start).
  2. Sign up for an affiliate program for quality products in your space.
  3. Add emails to your autoresponder sequence that contains affiliate links.
  4. Profit!

The overall process is a lot more nuanced than that, but as long as you’re recommending quality products you’ll be able to add a substantial new income stream to your business.

4. Recover Lost Revenue

Email marketing is one of the few marketing methods that can help you win back old customers. Validating why email marketing is important.

Not only that but winning back old customers can be completely automated.

One of the best examples of this is an abandoned cart sequence. Once a user has either exited the checkout page or left items in the cart, you can send an automatic email sequence that reminds them to complete their purchase, maybe even offering a coupon to sweeten the deal.

Or, you can create an automated educational sequence that’s triggered if a user decides not to buy your product. The goal of this sequence is to further educate your user about your product and help to overcome any objections they’re currently experiencing.

Email marketing gives you a chance to convert these lost opportunities into new customers, and deeper relationships.

It’s more expensive to acquire a new customer than to sell to an existing one.

So, instead of wasting those hard-earned dollars on trying to acquire new leads, you can use email to sell to your existing customers time and time again. Plus, with the email sequences mentioned above, you can encourage buyers on the fence to come back to your business, and become customers for life.

5. Gain In-Depth Insights Into Your Market

How well do you understand your market?

A lot of business owners believe they have a deep understanding of their market, but often this is based on guesswork and intuition. One tried and true way to gain deep insight into your market is to utilize A/B testing.

This is the process of running two emails against each other to see which one performs better.

Nearly all email marketing software has A/B testing functionality built-in.

You’ll be able to unlock answers to questions like:

  • Do short or long subject lines get more opens?
  • What time of day gets the best response?
  • Do short or long emails get more clicks?
  • Do subscribers enjoy media-rich emails or plain text?
  • What voice and tone get the most replies?

When you start running your own A/B tests, they might not generate any results. But, don’t fret, this is completely normal. It can be helpful to view split-testing through a scientific lens. You come up with a hypothesis, test it, and see if there are any results. Analyze, rinse, and repeat.

Data-driven marketing is a tried and true way to improve your bottom-line and is absolutely one of the reasons why email marketing is important. Plus, you’ll be able to get a better grasp on how your subscribers want to be marketed to, which can translate across the rest of your digital marketing efforts.

6. Create Customers For Life

According to HBR acquiring a new customer can be 5 to 25 times more expensive than retaining an existing one.

It’s not enough just to have people visit your website, but rather retain them as customers for the long-run.

Most visitors who come to your website won’t end up becoming customers, or even coming back to your website again unless you find a way to retain them.

The sad fact is, nearly 80% of these customers would have stayed if the company did something to retain them.

And what is that something?

Drumroll please…email marketing.

The sixth reason why email marketing is important is you can run a multitude of email campaigns that will encourage your customers to stick with you over the long-term. For example:

  • Customer onboarding emails to bring them into your world.
  • Inactivity emails to reinvigorate customers who haven’t opened in a while.
  • Renewal emails to encourage subscribers to renew subscriptions of services.
  • Cross-sells and upsells to encourage customers to buy complementary products.
  • VIP offers for your most loyal subscribers and buyers.
  • Surveys to learn how you can better serve your audience.

A solid email marketing strategy will have customer retention built-in. By continuously engaging with your audience, you’ll be able to serve them at different points along their customer journey.

By having multiple email campaigns that address multiple aspects of the customer journey you’ll always be at the front of your customer’s minds.

New customers will be brought into your world via a welcome sequence. Recurring buyers will be rewarded with deals, discounts, and special offers, and a consistent stream of insider information to elevate their lives.

With an email list, you’ll always be at the top of your customer’s minds (or inbox). Even the subtle reminder of your business will help you stand out from your competitors who haven’t unleashed the power of email.

7. Effortlessly Boost SEO and Rankings

The final, but the often-overlooked reason why email marketing is important is how it can improve your search engine rankings.

It can be difficult to rank your local content and website in the search engines when you’re first starting. To rank high you need to build authority in the eyes of Google. One part of optimizing your site is onsite SEO.

There are a lot of factors that go into optimizing your site, but some of the more important ones are onsite quality indicators. Namely, time spent on site and bounce rate.

When you have an email list you can promote blog posts to your email list, who are already fans of you. This means they’re much more likely to read your articles, engage, share, and check out more content on your site.

All of these will positively influence your search engine rankings and give you a leg up on your competition.

How to Get Started With Email Marketing Today

As you can see, being a small business owner, you need a rock-solid email marketing strategy because of the 7 reasons why email marketing is important.

Without a solid strategy, you could end up doing more harm than good, like wasting a lot of your time, and as you may already know time is money. Some of these harmful “don’ts” can be burning out your list, harming your reputation, and failing to execute any of the benefits above.

Email marketing isn’t too difficult, but you need an easy-to-follow strategy behind you as well as good copywriting, great content, knowledge of using a great email marketing software, and enough time to execute effective email marketing campaigns.

If you want expert help in developing an email marketing strategy that’s unique to your business, and will help you realize every benefit above, then get in touch today.

More Buzz Online provides consultation and will help guide you through your email marketing plan. Fill this form now, and we will call you back for free 30-min consultation or call us directly at (805) 870-5687. It’s time to transform your business with the power of email!

Articles related to this topic can be read here Best Video Marketing Strategy For Small Business and 7 Best Video Email Marketing Tips.

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