10 Surprising Benefits of Email Marketing You Need to Know

Does your business struggle with a limited marketing budget and rising customer expectations?

There is a way to fix that! It’s through email marketing. 

Studies show that it offers the highest ROI of all forms of marketing. For perspective, for every $1 spent, you get an average of $36 in return.

So, here are the 10 surprising benefits of email marketing you need to know.

1. Extremely high ROI

Businesses with a limited budget will find email marketing cost-effective while offering the highest ROI.

The logic behind it is that businesses already have an email list with subscribers who opted in to receive continuous communication. So, promoting products to them is easy, and they will not need much convincing to buy. 

According to a study by Statista, companies in the US make an ROI of $36 for every dollar they spend on email marketing campaigns.

Not only that, businesses in specific niches like e-commerce, consumer goods and retail make a staggering ROI of $45 for every dollar spent.

Now, there are tips that businesses can use to increase their email marketing campaigns’ ROI.

They include:

• Using dynamic content on emails.
• Running split tests on different elements of the email.
• Putting live content in the emails, like webinars, into action when possible.
• Using animations like GIFs and emojis sporadically in the content.
• Using analytics tools, like Google Analytics, for granular insights.
• Using a checklist for pre-send testing.

An excellent example of this application is this FOOD52 abandoned cart email. The email content is fun and engaging, with a clear reminder that nudges a subscriber to checkout.

It is one way the brand encourages customers to complete checkout and increase ROI.

One misconception is that email marketing won’t work because of social networks.

However, statistics prove it is still powerful and has a higher ROI than any other marketing method.

2. Ability to personalize content

One way to transform generic email blasts into powerful marketing campaigns is through personalized content. Writing email content tailored to each subscriber based on demographics, behavior, and preferences works. 

It allows them to connect with the brand better and makes converting easier. A Campaign Monitor study shows that personalization improves open rates by 26%.

Not only that, email content personalization boosts revenue 5X, which is remarkable.

Businesses struggling with email open rates can use some of these personalization tips to improve.

• Segment your subscribers to create relevant and targeted content.
• Use simple elements like a subscriber name and greetings in the subject line.
• Consider other relevant data points like the subscriber’s location, history and more.
• Send timely emails depending on the subscriber’s stage in the sales funnel.
• Ensure the sender’s info gets added in the ‘from’ field to build trust.

An excellent real-life example of this application is Uber. In the subject line, they use a subscriber’s name followed by a compelling offer.

It makes it more personable and increases the likelihood for the customer to take action.

One misconception about personalization is that it’s too intrusive. However, that’s not the case. Instead, it increases the chances of conversion and overall email campaign performance when done well.

3. Segment audiences based on their need

Breaking your audiences into smaller groups with shared characteristics allows you to target better. Businesses can segment based on demographics, behavior, or other criteria.

From there, companies can tailor content relevant to the segments and address their pain points. According to a MailChimp study, segmenting improves open rates by 14.31%.

The campaigns also have a higher CTR of 100.95% compared to 3.1% of unsegmented email blasts. So, it shows that segmented campaigns are 32 times more likely to get clicked on.

As the statistics show, segmenting is crucial, but there are some pointers marketers should consider.

They include:

• Identify the different segments within your audience based on custom-defined criteria.
• Create personas that represent your audience so that you can segment them accurately.
• Use demographics like age, income, gender, or more.
• Use subscriber behavior like purchase history to segment
• Use the email engagement level data to segment
• Consider the subscriber stage in the funnel

An excellent real-life application of this is Skillshare. Once a subscriber signs up, Skillshare recommends courses that match the subscriber’s preference.

Skillshare uses a subscriber’s history to suggest the courses.

One misconception about segmentation is that it complicates a marketing strategy. However, it is proven to work even when using basic segmentation strategies.

4. Strengthen relationships with subscribers and customers

One way businesses can strengthen relationships with customers and subscribers is through emails. It is a regular way of informing subscribers about the brand and products. 

Email marketing is also a way to provide valuable content that answers subscriber pain points. Through it, businesses can build trust and loyalty, turning the subscribers into brand advocates. 

A Data and Marketing Association study found that email marketing has a CLV 3 times higher than mobile marketing.

It shows that businesses can retain their clientele and generate more revenue longer than any other marketing approach.

Now, there are ways that businesses can strengthen their relationship with their subscribers for longer periods.

They include:

• Focusing on providing valuable content and not only promotional emails.
• Personalizing the emails to create a human connection and build trust.
• Creating a feedback loop that responds promptly to inquiries.
• Running nurture campaigns for new subscribers and inactive accounts to help nudge them.

Southwest Airlines is an excellent real-life example of this application. New subscribers receive an email outlining the benefits of being a member. 

The email highlights the perks, like exclusive discounts and offers. Southwest Airlines also links its help center to people who may encounter problems navigating its website.

There is a misconception that all emails are all about selling. However, that’s not true. Sending helpful dynamic content helps build trust and eventually leads to more conversions.

5. Collecting feedback and surveys

It is not all about sending email broadcasts. In fact, it is a two-way street where businesses can gather data from their subscribers. One ideal way is through surveys, which companies can embed in emails to encourage subscriber feedback. 

The feedback is a gold mine for businesses in understanding their audience better. It can help them in optimizing their marketing campaigns for better performance.

A study by GetResponse found that adding surveys to emails increases their likelihood of getting opened by 24%. It is a huge percentage showing that surveys allow subscribers to express themselves and make their voices heard.

Now, there are ways that businesses can collect feedback from their subscribers through surveys.

They include:

• Defining the goal of the survey.
• Picking a survey tool to create and distribute the survey.
• Creating an engaging survey email that encourages participation.
• Keeping the survey concise and easy to complete on mobile devices.
• Asking clear and specific questions that offer insights.
• Offering incentives after the survey completion.
• Analyzing the data to optimize the campaigns.

An excellent real-life application is Wave, an invoicing software. Wave personalizes the email and directly requests a rating from the subscriber.

It also asks whether the subscriber would recommend it to other people.

One misconception about surveys is that they are full of negative responses. However, the feedback, even if negative, is valuable because it allows businesses to identify areas for improvement.

6. Take advantage of email automation

It is a way to create emails targeted at the right audience with relevant content that gets delivered on time.

Businesses can include it in their marketing strategy to engage subscribers. Some examples of automated email applications are newsletters, onboarding, reminders, and more.

According to an Invesp study, automating email sequences improves conversion by 14.5%. Not only that, it reduces the marketing overheads by 12.2%.

It is a clear demonstration of automation’s impact on marketing.

Businesses looking to use email automation in their campaigns need to consider these pointers.

• Identify crucial subscriber touch points where automation adds value, like sign-ups or cart abandonment.
• Find an automation tool with extensive functionality.
• Segment your audience and send each an automated email sequence or create drip campaigns.
• Track responses from subscribers to collect more data.

An excellent real-life example is Chipotle. They send their customers a birthday email after collecting their birth date and automate it when their customer birth date arrives.

One misconception about email automation is that sending generic email blasts to everyone works. However, automation helps simplify the workflows and save time.

They also allow businesses to nurture their audiences based on the subscriber stage in the funnel.

7. Create more awareness for your brand

Nothing increases brand awareness better than constant communication and providing value to your audience via email. It allows them to recognize your brand, build trust, and be more likely to buy its products. 

According to an Airship survey of 11,000 customers across 10 countries, 86% were willing to share information with brands via email.

It shows that building trust with consumers through awareness campaigns allows them to recognize the brand and be willing to take action.

There are ways that marketers can create brand awareness for their businesses. Here are some pointers to consider:

• Businesses must maintain consistent brand visuals and voice in all communications.
• Businesses must provide relevant content that is helpful to their audience.
• Create shareable content that the audience can send to other people.
• Collaborate with brands in the same niche to tap into a wider audience.
• Run giveaways or contests to generate a brand buzz.

An excellent example of this application is Apple. The company emails its users about upcoming products and hypes up the launch event.

It helps keep the brand in the customers’ minds as they anticipate the new additions.

One misconception about brand awareness is that it is a vanity affair. However, creating brand awareness is crucial in building customer loyalty, trust, and conversion.

8. Drive new sales and revenue

While most marketers will find it an excellent marketing tool, email marketing also improves sales. Businesses can achieve it by nurturing leads, providing exclusive deals, and promoting products.

The best part is that companies can retarget website visitors by offering discounts, giving them a second chance at conversion.

According to a HubSpot survey of 12K people in the US, over 59% of marketers said email is their most significant source of ROI.

It also revealed that marketers who segment their campaigns receive a 760% increase in revenue.

Now, businesses struggling to drive new sales and revenue with their email campaigns can use these tips to find success.

• Segment their audiences into groups and create targeted content.
• Write an engaging email copy with quality images, clear CTAs, and product descriptions.
• Use dynamic content recommendations and personalize the message.
• Create scarcity and urgency with limited-time offers.
• Implement an automated email sequence for abandoned carts.
• Offer exclusive offers and discounts.

Nike is an excellent real-life example in this situation with their reminder emails. Here, Nike creates a sense of scarcity by highlighting the shoe is almost selling out to nudge the customer to take action.

There are some misconceptions that people hardly read emails. However, well-written emails with catchy subject lines and content can grab a recipient’s attention.

The emails can also compel subscribers to take action, such as buying.

9. Communication channel for delivering value

Building relationships with your audience is one of the most essential factors of email marketing. It also provides a direct communication channel to deliver valuable content to your email list. 

Offering content that inspires, educates, and entertains lets you establish your business as a trusted source. 

An earlier study by the Content Marketing Institute found that two out of every three customers prefer to learn about a product before purchasing it. 

It shows that creating helpful content can impact marketing campaign conversions.

Now, there are ways that marketers can set up their email marketing as a communication channel for delivering value.

They include:

• Focus on your email list needs and double down on what they find valuable.
• Create a mix of content formats like blog articles, tutorials, and more.
• Provide subscribers with actionable takeaways they can implement.
• Create a delivery calendar for sending emails.
• Showcase positive experiences through customer testimonials they had with your brand.

An excellent real-life example of this application is the Vrbo vacation rental brand. Here is an email from their sister company, which is running a contest to win exclusive gifts.

One misconception about email marketing is that it’s all about pushing sales and conversions. However, that’s not the case.

Offering value to the subscribers should be the first step before sending promotional offers.

10. Launch new products and services

One of email marketing’s strengths is generating buzz around new products and services. Businesses can provide subscribers with early access to test the products before release. 

The good thing is that marketers can add a survey to the emails to get product insights. The data can be valuable in up-selling complementary services or products.

Marketing Sherpa surveyed 2000+ US adults and found that 60% wanted to receive promotional content via email.

It shows the effectiveness of email campaigns in capturing subscriber attention in promotional material like new launches.

Now, for businesses to launch their new products and services through email campaigns, there are some pointers to consider.

• Create exclusive content with sneak peeks and early access opportunities.
• Offer in-depth education on the new launches and highlight their benefits.
• Include high-quality visuals like demos, images, and animations.
• Create urgency through countdown timers and limited-time offers.
• Add strong CTAs in the emails to drive action.

Apple is an excellent real-life example of this application. Leading towards a new launch of an iPhone, the company sends a sequence of emails to build anticipation.

The emails highlight the key features and highly incentivize pre-orders.

One misconception about launching new products by email is that simply announcing them is enough. However, that is not the case.

It requires a strategic campaign that builds buzz, educates and encourages pre-orders.

Start benefiting from email marketing

Marketing trends come and go, but email marketing still proves it works. The strategy is simple: add value, build a connection, foster loyalty, and your brand will succeed. 

Now, there are learning curves, especially for beginners. However, following the tips highlighted in this guide will make the benefits valuable.