5 Reasons Why Your Business Cannot Survive Without An Email List
Out of all the channels I tested as a marketer, email continually outperforms most of them - Neil Patel
Email Marketing is dead.
Email marketing is … not dead.
This debate has been going on for far too long. While some marketers claim that emails are now a thing of the past and social is the dominant digital marketing tool, others argue with equal passion that email marketing is thriving.
Case studies, experiences of internet marketing gurus and statistics all prove that email marketing is definitely on the rise. Below are channels ranked by highest return on investment.
Below are 5 reasons why you need to incorporate email marketing in your digital marketing plan.
1. Email list has higher reach
The total number of worldwide email accounts was 3.9 billion in 2013, and projected to reach 4.9 billion by 2017, according to Radicati.
Online marketing starts with reaching out to the right people. Once you identify and initiate contact with them, you can start your sales funnel and persuade them to turn into customers. But, first and foremost, you need to ensure that your message reaches the target audience.
This is where the email vs social fight starts. Which is better? Which has better reach?
Social media marketers downplay the importance of list building and email marketers scoff at using social media to reach out to their audience.
So who’s right?
According to Social@Ogilvy analysis, Facebook reach has seen a downward spiral from 2012 onwards. From 16% Facebook reach in 2012 to a measly 6% in 2013, it has decreased at an alarming speed.
Email on the other hand has become as important as morning coffee for most people. It’s average open rate is 21.73%.
6% Facebook reach vs 21.73% email reach. It’s clear who the winner is.
Derek Halpern conducted a small experiment to demonstrate the sheer importance of building an email list. He sent a link to his Twitter followers and the same link to his email list with a similar number of subscribers.
The result? He received 300 clicks to his website from twitter and 4200 clicks from his email list. As he very profoundly puts, ‘if you’re not building your email list, you’re an idiot.'
And Corey Dilley, wholeheartedly agrees with him.
'Unbounce’s email list is the biggest asset we have for driving new acquisitions. Why? Email marketing consistently generates 80-90% of our landing page traffic when we launch a new campaign, piece of content or product feature.' - Corey Dilley, Marketing Manager at Unbounce
2. You own your email list
“An email list is critical because you can’t build your content on rented land. So many brands and companies build their audiences on Facebook and Google+, which is fine, but we don’t own those names – Facebook and Google do. " Joe Pulizzi
Social media platforms continuously change their rules. SEO has it's own set of complex rules that change regularly. When you're marketing and speaking to your audience through these platforms you're at their mercy.
As John Battelle, entrepreneur, technology innovator, and the founder of Wired, says, “if you’re going to build something, don’t build on land someone else already owns. You want your own land, your own domain, your own sovereignty.”
Your email list is your own little black book. You can sell them anything, talk to them about any topic and nobody can stop you.
If social media platforms shut down your account, you’ll lose all your fans and followers. You’re stumped. You’ll have to start all over again.
But with an email list, you don’t face this problem. Even if you change email marketing platforms or they close your account, you still have your subscriber list you can import elsewhere.
3. You can convert cold leads into hot buying leads
Out of all other digital marketing channels, email drives the most conversions. As Brafton reports, ‘email is responsible for generating twice as much direct traffic as social media, and fully four times the conversion rate.’
Monetate’s Ecommerce Quarterly report also shows email as the biggest driver of conversions in Q1 2013.
Email makes it easier for you to build relationship with your customers. Send them regular emails full of value to prime them for your paid products. Engage with them. Build their trust. And then convert them into customers through an effective email funnel.
An email funnel leads your subscribers to your paid product through highly targeted emails. You need to,
- Start an automated chain of emails.
- Divide your subscribers into different segments according to their varied likes and dislikes and different engagement level.
- Then, send them personalized emails accordingly.
Several brands and businesses saw sky high conversions when they started using email marketing effectively. The Expert Institute, New York City-based legal service platform startup, is one such business.
They saw their conversions increase drastically when used effective email marketing to reach out to their audience. They sent personalized emails from George Cuchural, Vice President of Client Relations, each month to their subscribers to engage with them and see if they had any problems. This was a great way to build trust and show subscribers that you care about them.
Result? Their conversions increased by 200%.
Michael Morgenstern, Vice President of Marketing at The Expert Institute, said, "We were thrilled with the rates and the growth we experienced. And as a result, we just had our biggest quarter ever this past quarter, and our biggest month ever was June."
4. Email Coupons are an eCommerce business's golden ticket
Shop.org reported, 64 percent of US Internet users have printed a coupon from an email.
You get an email from your favorite shoe brand. They’re offering a 40% discount to everyone who shops online in the next 12 hours. Your ears perk up. Your heartbeat gets faster. You can’t help yourself but click ‘shop.’
Has this happened to you?
I go through this every single day. And I know it's not just me. Mobile Commerce Daily’s report stated, ‘96% of mobile users searched for a digital coupon in 2015.’
Email coupons are magic. Not just for consumers but for business owners, as well. By asking users to opt in when they shop for the first time, you’re getting a chance to convince them to shop again and again through persuasive emails.
75% of consumers report scouring their inboxes just to look for relevant discounts.
There are several ways you can use email coupons to amp up your sales.
- Appreciation Token
You can send coupons as a token of appreciation to your loyal consumers through email.
- Motivation for New Customers
Persuade new users to shop from your brand by offering them special discounts.
- Re-targeting Strategy
Cart abandonment is a huge problem in the eCommerce business. You can use coupons to re-target all the people who put things in their cart but didn’t end up buying them. You know they want it, why not provide them with a little incentive to seal the deal.
5. Emails generate higher ROI
According to Experian’s QA Email Benchmark Report, email campaigns that contain a value-add offer (coupons, discounts and the likes) generally experience a 48% increase in revenue per email sent.
Email marketing is a very cost effective marketing tool. With an ROI of 4300% (yes you read that right), it is a core player in the digital marketing world. It is estimated that for every $1 you spend, you get $39.40.
Several brands are using this channel to increase their ROI. Dell is one such brand. With the right amount of personalization and creativity, Dell started a GIF dominant email campaign marketing campaign to demonstrate its product’s capabilities. It was a hit with their audience and they lifted their revenue by 109%.
As David Sierk, Email Strategy and Analytics, Dell, said, "We want to make sure we are providing an experience for our customers that is engaging and they want to click on. We know that they aren't going to buy from every email we send, but we certainly want to make them exciting enough that they want to open every email we send."
Email marketing has always been key player in the digital marketing world and it's not going anywhere. Build an email list, convert subscribers into customers through highly personalized emails, and watch your account fill up with money while you sleep.