Why Email Marketing?

Pros of Email Marketing

With low production cost, email marketing has proven to have a higher ROI (Return on Investment) than most other Internet marketing tools.

In his article, Mr. Sterne adds... "Then there's the price/performance ratio. Drawing on studies from Forrester Research and the Direct Marketing Association, a recent issue (2000) of Internet marketing newsletter Iconocast reported that banner ads have an average cost per sale of about $100. For direct-mail pieces sent through the post, that cost declines to about $71. For direct-mail pieces sent through the post, that cost declines to about $71. And for opt-in E-mail campaigns, in which consumers agree to accept messages, the figure plummets to $2."3

 

Email Marketing and Traditional Direct Marketing
Email marketing and traditional direct marketing (postal mailings) campaigns have many similar characteristics. For example, both can deliver high quality graphics with rich text formatting to target existing and potential clients. Unlike traditional direct marketing, however, email marketing has a fast turnaround time, it is easier to track response rate, and costs are considerably low to produce and implement.

(a) Faster Turnaround Time
With traditional direct marketing, there is a two-week window between launch and response. The first 24-hour period after sending out emails to recipients is the "hot time" for email marketing. Wait period changes from weeks to hours.

(b) Easier to Track Response Rate
Tracking a campaing using traditional direct marketing depends on the caller stating that he/she heard about the company from a brochure, flyer or by word of mouth or remembering an ad code. This method of tracking has a higher margin of error due to the human factor. Either the potential client must voluntarily mention the referring material or the telemarketing person must remember to ask for the information.

All email campaigns are electronically tracked through special links, landing pages, referring codes, etc... The margin of error is reduced considerably. These campaigns can also be tracked. There are scripts and software available that automate this process such as, tracking the entrance of potential customer, time stayed on site, to the point of exit. This information makes finding those needed adjustments somewhat easier.

Example: a targeted email is sent out. Several recipients go to the landing page and after two minutes of viewing, initiates filling out a request form but aborts before leaving. This signifies that the email was compelling enough to cause a reaction to search further and that the page is intriguing enough to keep the visitors there. However, there may be a piece of vital information missing from the page to cause the visitor to complete and send in the request for information. Giving you an opportunity to not abort the campaign, but to make changes to the landing page. It reduces the guesswork from the adjustment of campaigns.

(c) Low Cost
Without the cost of stamps, envelopes, ink or paper, email marketing campaigns can market to the targeted audience at a considerably lower price.

  • "Internet direct marketing is estimated to be 60-65 percent cheaper than traditional direct marketing --Yankee Group

  • Direct marketing cost-per-piece comparison: $.01-0.25 for e-mail, $1-2 piece for snail mail --Jupiter Communications

  • Approximately $603 million was spent on direct marketing through the Internet in 1998. This number will climb to $5.3 billion by 2003 --The Direct Marketing Association"4

 
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3 Sterne, In Praise of Email 4 INT Media Group, Inc, E-Mail Marketing Ref.

 

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