Man using laptop to view emails Marketing

Why email marketing is still relevant in 2019

The word email will make most of you think of a dull and dreary plain white with black text message. Widely considered an old fashion communication method which is now often only used within business to business and internal communications. So why would you want to send your customers emails?

In actual fact email is still seen as a primary communication method for many businesses and proves vital to to many customer retention strategies. According to DMA’s Marketer Email Tracker 2018 report return on investment for email increased from £30.03 for every £1 spent in 2016 to £32.28 in 2017.

Of course a boring, old fashioned emails are not likely to achieve the results from the report, instead developing bespoke html emails with a great design and plenty of images is more likely to achieve good results.

Plain text email VS HTML Email

These emails can be personalised specifically for the customer on the receiving end, by tracking recent purchases and activity. Create a virtual profile of your customer, look at their previous purchases, send them details of similar products or items you think would meet their needs. Perhaps offer them a special deal to entice them into returning to your web site and buying a product. This could be anything from free delivery to 10% off.

The cost of acquiring a new customer is a lot higher than retaining your existing customers. Studies have shown that the cost is around five times higher, yet 44% focus on customer acquisition while only 18% focus on customer retention.

The probability of selling to an existing customer is 60-70%, whereas the probability of selling to a new prospect is only 5-20%. Studies have also shown that by increasing your customer retention rates by just 5% can increase profits by over 25%.

Of course for marketing emails to be efficient you will need to grow yourself a strong email list, this can be achieved using many different methods including:

  • eBooks – create a comprehensive guide on the service or product you provide which customers can download in exchange for their name and email.
  • A cheat sheet of tips or resources – create a document which will help customers achieve something without having to pay for your services.
  • Free trials or samples – offer customers a free trial of your service or a product sample in exchange for their contact details.
  • A free quote or consultation – use an instant quotation section on your web site to gather contact information.
  • A voucher or coupon – offer customers a free voucher sent to their email, everyone loves a discount.
  • Newsletter sign up – good old fashioned sign up to our newsletter form.

Or any other method you can think of to capture a potential customers email.

An effective email capture method should be easily consumed and provide value to the customer, there’s no point creating a guide which no one will ever read. Write about something people are interested in, something that relates to your business. The perfect guide will solve a problem or educate a potential customer on a relevant topic.

When trying to capture customers details make it as easy as possible for them, only ask for their basic information, even just an email and first name will do. You should ensure the sign up form stands out by using an image of the resource if possible.

Email capture form example

You should also use an enticing headline, don’t just go for the generic “sign up here” use compelling text which makes the benefit of signing up clear to the customer. “Be the first to see our new offers” would be a good headline, it clearly shows what they are going to receive and convinces them it offers them value.

Once you’ve gathered customers contact information you should segment the audience into different categories. Some of the obvious segment options include, gender, location, existing customers and potential customers. You can then start to send personalised emails to each of the segments, if you’re selling clothes you can send two different emails, one promoting women’s clothing and the other men’s, this will increasing the probability of your email proving successful as the content will be relevant.

By segmenting your audience you will also decrease the number of unsubscribes you receive, if the content doesn’t appeal to the recipient chances are after a couple of emails they’ll unsubscribe and are less likely to sign up again in the future.

You should look to add as much information to each of the subscribers as possible to ensure you can provide relevant content. Find out where they signed up to your mailing list, was it from a product page? What are they interested in? What emails have they opened and which have they ignored? What action have they taken on previous emails?

If you want to see how your business can increase customer retention and reach new customers using email marketing get in touch with us today, we can discuss the options available with you.