At a time when social media seems to be the only thing people talk about, email is still a very effective marketing tool. Here are five reasons why email continues to have an excellent return on investment.
1. Customer Retention
We’ve all heard it before; it costs more to acquire a customer than to retain one. So, why do so many companies focus on getting new customers in the door then forget about the customers they already have?
Retailers tend to think once someone buys they will come back again on their own. But, with an overwhelming amount of marketing messages bombarding your customers, they may very well make their next purchase from another retailer, even your competitor.
2. Relationship and Brand Equity Building
Email marketing also enables relationship building which can boost brand equity.
You wouldn’t take someone on a date and then never speak to him or her again and assume your relationship was progressing. Using the same approach in business, email will allow you to build that relationship and use information we know to communicate about things that matter to them. Think back to your high school days when you signed your yearbook K.I.T (Keep In Touch).
3. Increase Customers’ Life Time Value
Now that you have built a relationship with your customers, you can communicate with them based on what you know is important and relevant to them. As you begin to do this, you will find your customers tend to buy from you more frequently.
Think about a car dealership; if two dealerships had exactly the same car at the same price, which would you buy from? The salesperson you liked the best, the one that listened to you and understood what you were looking for. Not only would you buy this car there, more than likely you would come back there to buy future cars.
4. Offset Initial Acquisition Costs
With retailers investing heavily in programs that drive qualified traffic to their websites, being able to offset these initial costs is key. Email can reduce costs both in the short and the long term.
Even with high website conversion rates, an enormous amount of traffic you paid for will leave your site.
With the strategic use of email collection techniques, you can gather email addresses and create a communications plan aimed at converting these shoppers to buyers. Once they become buyers, you have additional information about them that can help increase the number of purchases and help offset the initial cost of getting that shopper to your site.
5. Increase Overall Online Sales
This is the reason we are all in business… to make money. In my experience, email represents no less than 20% of retailers’ total online business. By maximizing your email efforts to increase purchases you will increase overall revenue.
Jennifer is the founder of ebove & beyond and a 17-Year online marketing veteran.
This article appeared in issue 23 of FeedFront Magazine, which was published in August 2013. Read issue 23 of FeedFront Magazine.