Advantages of Email Marketing: Benefits, Stats & Brand Examples

email-on-smartphone-benefits-of-email-marketing

What is email marketing?

Email marketing is generally defined as the act of sending a message of commercial nature to an audience that has opted in to your marketing list.

It is a direct line of communication with your customers and potential customers. It is the easiest way to engage customer by sharing your story, products, and offers with subscribers who want to hear from you.

Why is email marketing important?

In the midst of Apple’s iOS 14.5 update and Google’s third party cookie restrictions, third party data is taking a backseat to Customer First Data (aka first or zero party data).

This means marketers are doubling down on owned marketing and looking for ways to grow and automate their own marketing channels, the most popular of which is email marketing.

Email marketing allows marketers to target their consumers with personalized content based on their preferences.

Using email marketing platforms they can create numerous audience segments that further customize communications by creating specific campaigns for new customers, returning customers and customers that may not have engaged with the brand for some time.

Email marketing advantages with cookie restrictions

What are the statistical benefits of email marketing?

Here are some eye-opening stats for 2022, which underline the benefits of email marketing:

  • There are 3.9 billion daily email users—and this number is expected to hit 4.3 billion by 2023 [Statista, 2021].
  • It is predicted that 333.2 billion emails will be sent (plus received) per day in 2022 [Statista, 2021].
  • According to a study done by Litmus, email marketing generates an ROI of $36 per dollar, higher than most other channels. [Litmus, 2021]

Email marketing segmentation benchmarks for ecommerce success

What is driving this revenue impact for email marketing?

Artificial intelligence is driving this impact for digital marketing transformation as email marketing platforms allow brands to use email automations that make campaigns more efficient.

Using AI helps automation platforms centralize the data from all marketing campaigns and then use that data to predict consumer behavior, make product recommendations, and analyze data sets to ensure marketers understand what would be the best campaign for high performance and ROI.

Consider an email marketing automation platform like Klaviyo.

Email Marketing platforms that offer data analysis

Its customers (brands like) Living Proof, Taylor Stitch, and Heist Studios are seeing considerable increases in revenue after improving their email marketing strategies.

On average, brands that switch to Klaviyo see an increase in revenue of 46 percent in just two years—pocketing an average of $68 for every $1 spent on their email marketing platforms.

Artificial intelligence and email automation platforms 

What are the advantages of email marketing?

Listed below are the top email marketing advantages that will help your business scale by overcoming the restrictions of third party data.

1 | You own 100% of the revenue generated from email

Email marketing is a form of pull or “owned marketing” at its best. It is all about taking ownership of your company’s growth by taking back control of the entire customer experience.

Any revenue you generate from email is yours—unlike platforms like Amazon that take a cut of what you make.

Third party data does not always give you the insights needed to create integrated campaigns. Even if you are able to utilize some data there is no way to create unique experiences that more closely align with your brand.

Email marketing allows you to use the customer behavior from the data that comes from your own website and utilize it to manage your messaging.

This means you protect your customers data, and control the customer journey to enhance their experience with your brand.

2 | Email continues to be a low-cost marketing channel

Email is a low-cost marketing channel—especially when compared with social media advertising and paid search.

Consider that email marketing has the potential for 4.3 billion users.

Compare that with Facebook statistics that place users at slightly over 2.2 billion monthly active users and Instagram users at around 1 billion. Even combining the two, email comes out in front (Kinsta, 2021)

Most email automation providers charge according to the emails that are sent, and the scale at which your list size grows.

Considering that, email also usually offers a better ROI as much as 122 percent on average—which is significantly higher than other marketing channels, the advantages of investing in email are obvious.

Email marketing benchmarks for ecommerce businesses

3 | Email automation platforms make email marketing easier

Once you’ve chosen a marketing platform and have started collecting email addresses via signup forms, flyouts, popups, or even quizzes on your website, you’re good to go!

Then you can start to build workflows to email your subscribers automatically at different stages throughout the customer journey and based on different actions they take on your website.

Some email providers will even give you templates to help you launch your automations quickly and easily.

Esselle, a California-based lifestyle brand, grew its direct-to-consumer (DTC) revenue by a fantastic 600 percent within as little as two months. Their repeat purchase rate also grew by 27 percent—that’s certainly a quick turnaround!

Email automation and its advantages to grow your marketing channel

4 | Email has higher average conversion rates than other marketing channels

Your email subscribers have specifically signed up to hear from you, which means they often become some of your most engaged and valuable customers.

In 2021 data shows that email accounted for 19.8% of all transactions – with paid search at 19.9% and organic search at 21.8% (Custora, 2021).

Conversion rates are also at least three times higher on email than on social media—especially if you segment your audience and send them targeted, personalized content to delight them.

5 | Email drives more sales with highly targeted marketing messages

Why are targeted messages so powerful?

They often lead to better customer engagement, more conversions, and a better subscriber experience overall.

Highly segmented emails—in particular—have the power to drive three times more revenue per recipient (RPR) than unsegmented emails.

Email segmentation benchmarks for the marketing channel

There are lots of ways you can segment your email list to send more targeted messages, such as by:

  • Subscriber demographic (age, gender, location, etc)
  • Product interest
  • Email type and frequency
  • Signup method
  • Email engagement (opens, clicks, etc)
  • Purchase frequency and amount of money spent
  • Website interaction

Learn how to segment your email list to increase engagement

Segmenting your audience is also a great way to show your subscribers that you’ve personalized your emails—beyond just using their names in email subject lines and body copy.

Your subscribers (and their crowded inboxes) will thank you for it!

You can even go as far as recommending specific groups of products based on a customer’s order history to drive even more sales and traffic to your website.

6 | Email provides personalized messages at the right time

Once you’re sending targeted emails to a segmented customer base, you’ll also be doing something else that’s highly valuable for your business—you’ll be messaging the right people at the right time.

This improves your email deliverability while driving more conversions, sales, and brand awareness.

Average email open rates are around 20 to 30 percent—with some brands experiencing even higher numbers than that—while in contrast, organic Facebook posts are said to only reach around two percent of your fans.

This means your message—the right message—is over ten times more likely to be seen by your customers via email than via your Facebook page.

Steps to improving email deliverability

7 | Email marketing improves brand awareness as you share personalized content

Email marketing gives you the opportunity to share more content with your customers, helping to improve awareness of your brand and products. Through email, you’ll be able to convey specific brand messages—whether they’re about your product’s benefits, enticing discounts and offers, your brand’s stance on certain environmental or economic issues, and whatever else you can think of that resonates with your ideal customer. Take Innermost, a wellness and nutritional supplements brand based in the UK, for example. As part of their strategy, the team has launched email courses to educate consumers on health and wellness topics related to their brand and products—rather than only focusing on sales. Innermost's 'Better Sleep' Email Course

This approach has resulted in average open rates of around 35 percent—with some of the brand’s automated emails seeing open rates as high as 90 percent (typically by day five of each email course)—suggesting this unique approach to customer communications is resonating well with their audience.

8 | Email marketing platforms allow more sales opportunities with A/B testing

A/B testing enables you to send two variations of the same campaign or email automation to subsets of your audience so you can quickly and easily see which email performs better.

You can test lots of different elements of your campaigns to find out which products, testimonials, photography, subject lines, calls to action (CTAs), and more drive the most opens, clicks, and conversions. This means you can keep doing more of what’s working and change up what isn’t to uncover more opportunities to close the sale.

Take 111SKIN, a luxury skincare brand based in London, for example. They changed the featured image within their first welcome email, which resulted in the brand doubling their AOV.

A/B testing emails for better ROI and CTA

9 | Email helps build lasting customer relationships and improves CLV

Your email subscribers have given you a coveted place within their inboxes. They’ve said they want to hear more from you, so you’ve now got the perfect opportunity to build lasting relationships with them, ultimately improving your Customer Lifetime Value (CLV or CLTV).

All good relationships start with a strong first impression, and with email, this often comes from your automated welcome series.

Take the opportunity to say hello, introduce your brand and products to new subscribers, and welcome back existing customers—just like if they’d walked into a brick-and-mortar store.

Email marketing also helps you to improve brand recognition as you’re consistently popping up in your subscribers’ inboxes—and possibly also when they’re already in the frame of mind to buy, such as in the run-up to the holidays or another special occasion.

How to calculate CLV with a CLV calculator for better CLTV in email marketing

10 | Email helps your brand grow as you get more customer reviews

Email can also help you to collect immediate customer feedback and survey responses, which you can then display on your website, in emails, and across your marketing channels as trust signals—or social proof—to drive even more sales.

Don’t forget to also use this feedback to improve customer experiences where necessary.

11 | Email marketing allow brands to improve omnichannel marketing strategies

Email is a powerful standalone tool but you can also integrate it with other parts of your marketing, including social media, SMS, and even your brick-and-mortar store. This is known as omnichannel marketing, and because omnichannel shoppers spend 30 percent more than other shoppers, it’s a valuable strategy to consider.

Learn more about omnichannel marketing

12 | Automated emails save time and focus on long-term marketing strategies

Automated emails have the power to outperform campaign emails across the board—with 1,558 percent higher conversion rates and 1,361 percent higher RPR on average—and you can automate almost any marketing process.

By allowing intelligent automation to power your emails, you’ll free up time to focus more on long-term marketing strategies and business goals—rather than only finding the time to work on manual tasks.

Automating digital marketing channels for better scale and CVR

13 | Easily analyze and optimize your marketing efforts

When it comes to email marketing, there are various key performance indicators (KPIs) and metrics to focus on, such as:

  • Email deliverability
  • Open rates and click-throughs
  • Email conversions
  • Revenue per recipient
  • Revenue from email
  • Customer Lifetime Value

As mentioned before, A/B testing helps you to see what’s working and what can be improved.

You can then use these insights alongside your metrics to improve your strategy across all your marketing channels. Let your email subscribers, aka your most engaged customers and followers, lead the way in telling you what your customers want to see more of.

Understanding revenue per recipient for email marketing analytics

14 | Email list segmentation boosts your sales and revenue

Segmented campaigns, A/B testing, and collecting more customer reviews all have one thing in common—they help to boost sales and revenue. Especially during flash sales and other exciting promotional events like Black Friday, emails can also help you to generate instant sales from subscribers who are ready to buy.

You can also feel this instant impact on a global scale thanks to smart email marketing systems that can send emails at different times based on subscriber location and timezone.

When to send your emails for better marketing and open rates

15 | Email marketing helps your business scale faster

Finally, all of the above email marketing advantages mean you’ll grow your business faster and with better ROI. Here’s a quick intro to three fantastic ecommerce brands that have grown their sales and revenue with email marketing.

These are just some of the phenomenal results you could achieve when you invest your time in email marketing.

Learn about the process of email marketing and its effect

From having more control over your marketing and building lasting customer relationships to driving more conversions and uncovering additional sales opportunities, there are a lot of email marketing benefits for you to reap the rewards from.

And once you’ve experienced one benefit, the rest create a kind of snowball effect.

When you build the email marketing process and start to send targeted emails, you’ll improve your customer relationships and feedback scores, leading to more sales.

When you uncover more opportunities with A/B testing and automated emails, you’ll grow your sales, revenue, and ultimately, your business.

Wondering if email marketing could benefit your business? Learn how email marketing can help your brand increase sales.

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