Email Marketing is Still Relevant and Effective in 2020
Email marketing was once the cornerstone of a strong digital marketing strategy. As social media and other platforms have grown in leaps and bounds, email is seen by some as a staid holdover of the early internet days. Are there still benefits to email marketing? The answer is yes. Email remains a powerful tool for reaching customers and building loyalty.
Imagine a horror movie called “How Many Emails Do I Have?” This probably sounds all too familiar to anyone who has gone a few days without checking their email account, but what if it was the only account in the world? You would wake up in the morning and find 293.6 billion messages, the total number of emails sent per day.
Related Post: Email Best Practices: Loyalty ProgramsHyper-personalized emails related to loyalty programs can offer a variety of incentives to returning customers, but overall, they also tend to build an emotional connection with the customer.
The death of email as a communication tool has been greatly overstated. It’s true that our communication platforms and preferences have fragmented, but this has more to do with the ways people communicate. For example, people may use messenger apps to communicate with family and friends as they might have used email 20 years ago, but new email accounts continue to grow, with a prediction that the number will reach 4.4 billion in 2023.
The Value of Email Marketing
The value of email marketing over social media and other platforms include the fact that people on an email list have chosen to be there. Customers like to get emails, particularly affluent customers. According to a study by MarketingSherpa, 96% of people who earn $75,000-$99,900 annually and 92% of people who make at least $100,000 per year want promotional emails from companies they are already doing business with. Furthermore, more than 60% of consumers say they want weekly promotional emails, and 38% say they want them even more often. In addition, emails tailored to customers based on shared data drives engagement. Emails tailored to customers based on shared data drives engagement.
That all sounds good, but what about email marketing ROI? Email open rates in 2018 remained strong at an average of 20.8% with a click-through rate holding steady at 2.4%, according to the DMA’S 2019 Email Benchmarking report. It is important to note as well that for some types of emails and industries, the open rate is more important than the click-through rate. This beats other marketing formats several times over, including social media and paid search. For every $1 you spend on email marketing you can expect an average return of $42.
It’s clear that email marketing remains perhaps the most important tool in a digital strategy for most businesses. The key to meeting the email marketing benchmarks in 2020 is by understanding customer preferences and revising email strategies to reflect those preferences and how customers are using email today.