Email Marketing

Email Marketing: What You Need to Know

Introduction
An increasing number of companies are turning to email as an alternative to traditional direct mail marketing, recognizing the power of this medium as a low-cost, high-value communication channel. This trend is a natural outcome of the proliferation of email itself. Ten years ago few people had email addresses; today, few do not. Most people have integrated email into their personal and professional lives. Studies show that many people check their email both day and night, thanks to the proliferation of mobile devices. In AOL's most recent "email addiction" survey, 59% of people emailing from portable devices admitted to using them in bed, in their pajamas! [1]

With this kind of penetration into peoples' lives, email is an excellent tool for establishing and maintaining customer relationships. Success in business is all about creating customer loyalty and driving repeat business. The value of customer loyalty is too compelling to ignore, since acquiring a new customer is much more expensive than selling to an existing customer. Customer loyalty is a function of trust, and that trust is best established through ongoing, consistent communication.

"Communication" includes any contact with customers or potential customers, so it could include newsletters, coupons or Web sites. The chief advantage of email marketing is that it's less expensive to produce and deliver, in terms of time, money and resources. It reaches more people, and is the least expensive form of communication, right behind telemarketing. When done well, consumers respond positively; 67% of U.S. consumers say they like companies that did a good job with permission-based email marketing, 58% open such emails, and 53% say these emails affect their buying decisions. [2]

Communications is something that has both "push" and "pull" components. Push communications channels (like direct mail) actively reach out to a target audience, while pull communications channels (like a Web site) deliver information when the audience is motivated to look for it. Email can integrate the two channels, by letting you reach out with a quick note and attract customers to your Web site. That means you don't have to wait and hope that they can find your site on their own. Another benefit of email marketing is that it levels the playing field: there's no significant economy of scale, so big companies have no cost advantage. Doing email marketing well requires knowledge and skill, but it's affordable for anyone.

The benefits of email marketing make it a very attractive proposition for almost any business. It's inexpensive, versatile and adaptable to many kinds of products and services. It can be used for general communications, to alert customers to new products or special events and to spread the word about special offers or promotions. Most consumers respond positively to email communication, especially from companies with whom they have an established relationship. That means it's one of the best vehicles for building a base of loyal customers - the kind of loyalty that will generate repeat business.