Snail mail or reliable classic: Is email marketing still effective?

With the growing popularity of social media, does email still have a place among today’s marketing strategies? Just as email seemed to overshadow more traditional marketing methods before it, will social media make email marketing less effective?

Read ahead to learn about the future of email marketing and if businesses should be redirecting their marketing efforts to newer strategies.

The statistics

From a statistical standpoint, email still has the potential to reach a wide audience. A report published by The Radicati Group Inc. estimates that by the end of 2023, the number of email users worldwide will reach 4.37 billion. This is a 2.7 per cent increase from 2022. This number is expected to grow by around 2.5 per cent every year, meaning there will be no shortage of customers to reach via email any time soon. 

A study published by Management Letters found that the number of existing email accounts is three times as much as Facebook and Twitter accounts combined. Email marketing will likely continue to be an effective tool based on the current and projected growth of email accounts.  

Email marketing has also been proven to still be profitable. In 2009, companies could expect around $43.50 in return for every dollar invested into email marketing. A 2019 study updated this value to $42. Despite this slight decrease, email marketing remains one of the most cost-effective marketing methods. Additionally, email marketing contributes to around 21 per cent of total sales on average.

Pros and cons

Like any marketing strategy, email marketing has its pros and cons. As mentioned before, email marketing is cost-effective compared to other forms of marketing. Since there are no factors such as advertising or printing fees to consider, this helps drive down costs. Another pro of email marketing is that it is permission-based, meaning every customer who signs up for an email list has actively chosen to do so. These individuals are likely already interested in a business if they have signed up for email updates, so they are also more likely to engage with its marketing campaigns.

Companies can also easily personalize emails, such as placing customers’ names in the email or including information that specific customers might be interested in.

On the other hand, one of the downsides of email marketing is that many email platforms now have more sophisticated junk filters. If a user has not interacted with an email address, emails from that address may be placed into spam or junk folders. This means there is no guarantee that a customer will even see a business’s email in the first place.

Another challenge with email is the long-term commitment. Many users come and go from subscriber lists, and it can often be difficult for businesses to retain their customer’s interest over longer periods.

Quick tips

Though email marketing is still effective, it can only perform well when used correctly. Here are some quick tips to help craft a solid email marketing campaign:

• Have a good subject line: This is the first thing customers will see in their inboxes. If the subject line doesn’t grab their attention right away, they are not likely to click the email.
• Customize emails: As previously mentioned, customizability is one of the strengths of email marketing. Separate subscribers into different groups based on their interests so that emails can be tailored to them specifically.
• Remove inactive subscribers: If some subscribers have not interacted with emails in a while, it’s best to remove them from the list. Continuing to send emails could create a bad relationship with them, leading them to avoid the company in the future.
• Keep it short and sweet: Customers will get tired of reading long emails, especially when they are composed of text alone. Keep it short and include visuals to retain interest. 

Email marketing is still a viable option for businesses despite other online marketing methods becoming more popular. Like any other marketing strategy, creating an effective campaign will require time and research, but it will be well worth it in the end.