Why Every Small Business Should Be Using Email Marketing

Email Marketing has a very high ROI
Email Marketing has a very high ROI

The short answer: because it works!   Email marketing is also extremely cheap compared to other ways of getting new customers.

There are many marketing tools that you can use to get new customers. Few are as effective and inexpensive.

Email Marketing has an impressive ROI

Email returns a stunning $38 for every $1 spent. This is according to a 2015 Direct Marketing Association study[2]. One in five companies in this study reported an even higher ROI of 70:1. You can find even higher ROI claims if you search the Web. The obvious takeaway – Email Marketing is a VERY effective marketing tool.

Email is likely the best marketing tool, online or offline, for most small businesses to use to grow their revenue.

According to a 2009 Datatran Media Study[1], 39.4% of surveyed marketing executives ranked email as the best performing marketing channel. Email produced better results than SEO, direct mail, social media, mobile, affiliate and traditional media advertising. While this is an old study, we believe email marketing is still king.

Email is the least expensive Marketing Channel

Email has the lowest CPA (Cost Per Acquisition) of any traditional or online marketing channel as revealed in the last published Response Rate Report in 2015[3].  It is cheaper than TV, radio, direct mail, traditional media advertising, social media, mobile, paid search and Internet display advertising.

The primary expense associated with email marketing is the time spent creating and managing email campaigns.

Conclusions

Despite the explosion of new of digital marketing tools, email remains one the most lucrative customer acquisition and retention tools you can use.

Email marketing should be a primary tool of any small business marketing effort.


Footnotes:

[1] Datran Media, 4th Annual Marketing & Media Study, December 200

[2] DMA, National Client Email Report, 2015

[3] DMA, Response Rate Report, 2012

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One Reply to “Why Every Small Business Should Be Using Email Marketing”

  1. Nice article. I also find it more personal than social media and with mobile on the rise it’s actually easier to reach out to people who are already interested in what you have to offer. We’ve also moved to marketing automation with GetResponse and that’s certainly helpful when we’re running a different kind of promotions for different types of subscribers.

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