E-mail marketing a rare conversion rate driver.
The use of emails is one of the first (if not the first) established marketing tactic on the internet. Marketing researchers agree that this practice is a major customer loyalty and on-site traffic driver. Even if it sounds a bit old-fashioned, email marketing holds certain advantages that other internet media are far from getting any time soon. We’ll review those after we clarify some basic concepts.
When talking about email marketing there are two basic functions the practice serves.
- Customer Acquisition
- Customer Conversion & Retention
If customer acquisition is your cause then get to know that there are three options to market through emails from the recipient’s perspective.
- Cold email campaign: Here the recipient receives an opt-in email from an organization that has rented an address list from a consumer or business email list provider. It is important to use some form of statement of origination to avoid getting labelled as spam. This technique tends to present higher cost per action.
- Co-branded email: The recipients receive offers from companies which have some sort of affinity with. An organization (X) partners with other organizations (Y,Z) which provide the address listings so X can communicate messages at will. It essentially the same technique with cold emailing but an established relationship with the Y and Z already exists. Marketing researchers consider this more effective choice
- Third party newsletters: Pretty much an inverted process. The X’s content appears in the Y,Z organization’s’ email campaign. This technique tends to have higher engagement rate and provides a cost effective way for prospect customers to read through your content.
In the customer conversion (this requires that the X org has acquired email address already) and retention section we examine four alternative choices to be used.
- Conversion emails: Considering that a prospect customer has provided the X company with his/her address but didn’t purchase so far, the automated follow up process imposes educating and attempting to persuade them sending a series of emails.
- Regular e-newsletter type: The most common use of email marketing. Organizations tend to send customized emails on a regular frequency to inform existing customer segments on new products, promotions or business customers.
- House-list campaigns: Refers to different objectives support emails such as convincing existing customer to repurchase or to try some newly launched product.
- Event triggered: This email type is utilized when the organization communicates information related to special event holding or exceptional offers
Of course we should point out that email marketing campaigns are getting effective when the users are interested in the organization news or have time to go through them.
Some pretty good facts that researchers have indicated on the nature of email marketing are the following
- They hold relatively low cost of fulfillment
- They encourage direct response if they are set to do so
- Campaigns are organized and executed pretty fast
- They can get highly customized in time, segment and message
Social Hackers follow a standardized process in the execution of your business campaigns by examining aspects such as Creative copy, relevance of the message, segmentation and timeliness. After the first execution we monitor metrics and compare to the objectives we set beforehand. The maintenance process includes the creation of new copies as already dealt and addresses listings development as search for new clientele.
According to email specialists email marketing provides businesses with the most direct line for conversion to sales. It is also amazingly cost-effective with a ROI up to 4,300% according to Direct Marketing Association. It’s purpose focuses mostly on retention and relationship building functions.