04 Nov 5 Reasons Why Your Small Business Needs Email Marketing
Because email has been around for decades, many small businesses believe that it is outdated. Newer, shinier tools like social media and texting dominate daily life. Though its competitors might seem more exciting, study after study has found that email is the most effective marketing tool for small businesses. Here are five reasons why your small business needs email marketing.
1. Email Marketing is Effective.
E-mail is the most effective digital marketing tool. For every dollar a business spends on email marketing, it receives 42 dollars in revenue. Even better, customers who purchase through email spend 138% more than those that do not. These statistics prove that email marketing helps businesses meet their goals.
Email’s effectiveness is likely due to two factors. First, email is used more often than other platforms. A March 2019 report from Hubspot found that 99 percent of people check their email daily. Because customers interact with email so frequently, messages sent via email are more likely to be seen. Second, people enjoy email marketing. Hubspot’s March report also found that 91 percent of customers liked it when businesses contacted them via email. This trend is not limited to older people. According to the Hubspot report, 73 percent of millennials prefer it when businesses contact them via email. The preference for email likely translates into sales.
2. Email Marketing is Cost-Effective.
Email marketing is not only effective, it costs little compared to other types of campaigns. Campaigns using print, billboards, television, radio, telemarketing, or direct mail can cost thousands of dollars to create and disseminate. By contrast, email marketing has low start-up fees and costs little to maintain over time. Many email marketing platforms offer free versions. Paid versions of these programs can cost as little as five dollars per month. Because email campaigns generate 42 dollars for every dollar spent, any money spent on an email marketing platform is a good investment.
3. Email Marketing Helps Businesses Promote New Products and Generate Buzz.
One of email’s many benefits is its ability to quickly spread the word about new offerings. As noted, 99 percent of people check their email daily. Even better, nearly 60 percent of people check their email before checking social media accounts. Because email is such a regular activity, it’s an excellent way to let people know about new products on the horizon. Sending an email on a Monday about a new product will make customers anticipate its Friday launch so much more than simply announcing the product.
4. Email Marketing Allows Businesses to Target Specific Audiences.
Email wastes little effort on uninterested customers. Unlike television, radio, or direct mail campaigns, email marketing targets existing or potential customers who are less likely to ignore the message. Email marketing can be personalized with almost surgical precision. Email marketing platforms allow businesses to target only those who have opened certain messages, purchased certain products, enrolled in prior programs, or attended past events. While the ability to segment an audience may not seem important, emails sent to targeted audiences increase email open rates by 203 percent. The increase in opens likely explains why Hubspot found that segmented email campaigns outperform other campaigns by 760 percent. Because segmented marketing increases revenue, every business should consider adopting the practice.
5. Email Marketing Allows Businesses to Track Their Progress.
Email marketing lets businesses know – almost immediately – if their campaigns are successful. Traditional platforms like print, television, and radio provide no true tracking tools. Even if a business has an uptick after a campaign, the business has no real way of knowing if the thousands of dollars spent on advertising or some other factor caused the increase. By contrast, nearly every email marketing platform immediately tells businesses how many people opened an email, how many people clicked a link in that email, and how many people made a purchase after receiving the email. These tracking tools allow businesses to focus on campaigns that work or quickly change those that don’t.
These five reasons prove that email remains a powerful marketing tool for small businesses. If email marketing seems too confusing or time consuming, contact the Social Channel Marketing Group. Our experienced team can write, schedule, and target your emails with ease. Contact us today for a free consultation!