Part I: The Truth About Why Email Works

Truth 1. Email is a powerful marketing tool

I often dread the situation in which people outside the marketing industry or unfamiliar with email marketing ask what I do for a living. Typically, the second I mention the word email, I get an audible sigh followed by a comment about spam, their overflowing inbox, and how I'm contributing to the problem. As responsible marketers, we know that this couldn't be further from the truth.

Usually I'll explain to these people how permission-based email marketing works, and then they will realize that they have signed up to receive and enjoyed at least one type of regular email communication from a company without even knowing it was “email marketing.” At that point, I'll walk away from these conversations with a smile and a feeling like I've made a little dent in the misconception that all commercial email marketing is spam.

“Email is the fastest, most flexible, cost-efficient, personalized, and targeted communication medium in the world today.”—Peppers & Rogers Group

The esteemed Peppers & Rogers Group captures the benefits of email marketing in its quote. However, over the years, commercial email marketing has taken its fair share of abuse. Nevertheless, it continues to remain the most powerful, cost-effective marketing tool for one-to-one communication and building relationships. Although many are still catching on to email marketing's benefits (which may be why you are reading this book), countless organizations, big and small, have discovered its potential to maintain extremely relevant communication with prospects and customers. In fact, email marketing spending is projected to reach $2.1 billion by 2012. And with 97 percent of consumers and 94 percent of marketers¹ using email, its reach is undeniable.

You probably want to know what makes email such a great marketing channel. Let's take a look.

You get out more than you put in

Recent research shows that for every dollar spent on email marketing, you can expect an estimated return of $46². If that didn't get your attention, maybe this will: Email marketing delivers the highest return on investment (ROI) of any other Internet marketing approach available. Furthermore, as I mentioned, email marketing is cost effective, so you don't have to start an email program by spending hundreds of thousands of dollars. You can start small and build up a more sophisticated email program as you go. Even implementing something as simple as an email newsletter, which is generally used for relationship building more than sales, has been cited as the single-highest ROI action you can take to improve your Internet presence.³ The options to grow from there are endless.

Anyone can benefit from it

Another great benefit of email is its versatility. Email's low cost and far reach make it accessible to just about any company. I like to think it levels the playing field among businesses. Whether you are a small business owner or a Fortune 500 company, you can enjoy the benefits of email just the same. Some companies may not have the money to invest in large advertising campaigns or other cost-intensive initiatives, but everyone can afford to invest in a well-planned email marketing program.

It helps you connect with customers

Let's talk about brand loyalty. What are you doing right now to keep customers and prospects engaged with your brand, product, or service? Is it working? Can you be sure?

Email is a great way to establish brand loyalty. One mistake that marketers often make is not thinking of email as a relationship tool. If you are using email to send messages here and there, with little strategy behind them, it likely won't work well and won't deliver the type of return I mentioned earlier. The real benefit of email is in using it over time to develop long-term relationships. After all, if you are in a relationship with someone and you only drop that person a line every once in a while and have nothing relevant to say, how long can it last?

Speaking of having something relevant to say, email allows you to create and deliver communications specific to the interests of your customers or prospects. You can tailor messages to interests on an individual level and deliver them when and how that person wants them. What other channel provides you with this option?

It is measurable

Do you wish you knew who saw your ad in that popular magazine last month? Better yet, did those people take any action on it? Because email is measurable, these are the kinds of things you can learn from your campaigns (if done properly). The popularity of email is due in part to the ability of marketers to learn from the metrics of their campaigns and to use that information to change direction or make improvements.

It can be very targeted

If you capture information such as gender, age, or interest from subscribers, you have everything you need to create targeted and more relevant email marketing campaigns. You can customize messages to distinct audiences and provide them with content and offers that match their profiles. In the end, subscribers get what they want, and you gain better insight into what each segment responds to so that you can continue to tailor and deliver more relevant emails to their inbox.

It is immediate and actionable

We've all heard the phrase “Timing is everything.” That being said, email is immediate and actionable. Offering promotions via email with a clear call to action can have an incredible effect on revenue. No other channel allows you to reach customers directly in such a short time. Because of its immediacy, email can work wonders in quickly resolving issues or clearing unsold inventory during a situation that requires timely and critical communication.

It works well with others

If the benefits of email on its own were not enough, integrating it with your other marketing channels or efforts can really pack a punch. Consider using email to drive traffic to your website. Maybe you have a new white paper you are offering on the site and want to send an email to drive traffic rather than simply waiting for your latest ad to do all the work or for your prospects to stumble upon it. You can also send emails to drive participation to special events—both online and offline. These are just a few of the things you can do to take email one step further. Give them a try.