Today, we are starting a four-part series all about email marketing. We will be diving into details about what is email marketing, why it is effective, why small and large businesses should use it and tips on how to create read-worthy campaigns.
So let’s get started!
What is email marketing?
The big question. Well, by definition, email marketing is directly sending a commercial message, typically to a group of people, using email. In its broadest sense, every email sent to a potential or current customer could be considered email marketing. This generally involves using emails to send advertisements, request business, solicit sales or donations.
What is the purpose?
At its core, email marketing is used to build and/or deepen relationships with new and current customers. This type of marketing encourages customer loyalty, while driving repeat business and adding the possibility to partner with other companies to cross-market to new demographics.
Why use email marketing?
There is a famous principle called the Pareto Principle, most know it as the 80/20 rule. It states that 20% of your customers represent 80% of your sales. And 20% of your time produces 80% of your results. However, there is growing support another principle that is similar to the aforementioned, with a stark difference: It is called the Whale Bone Curve and it states that 20% of customers may make 180% or more of your profits, 60% may make you nothing and 20% may actually lose you 80% of profitability, with customers over- expending their proportion of your capacity.
Now how does this relate to email marketing? With diligent tracking, email marketing can and will be the most profitable effort a business can engage. By tracking customers that regularly open, shop and buy from targeted emails, a business can narrow down the most profitable users and target specific messaging that will garner a return. In the same breath, it is possible to purge lists of unprofitable customers who cost more to have than the revenue they earn. That’s why it is imperative to always refine, adapt and execute new email marketing plans.
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