With the dominance of social media marketing, sending traditional, plain text emails might seem old-fashioned. However, that couldn’t be further from the truth. In fact, when it comes to bringing in new customers and keeping old ones engaged and profitable — email marketing is more powerful than ever.
Even though new technology springs up every day, having an email list is still one of the best ways to generate leads, build awareness, make sales and increase conversions. Neglect email as part of your digital marketing strategy, and you’ll be missing out on a ton of potential business opportunities.
In an era where big tech companies are censoring content daily, and businesses can’t do anything about it, building an email list becomes not just a marketing accessory but a necessity. Here are six compelling reasons why.
1. You own the list
Unlike Facebook, Instagram, LinkedIn or any other social medium, your email list is yours, and nobody can take it from you. This is the first and most important reason an email list is better than any social media.
In other words, you’re not relying on algorithms that limit your reach. With emails, you’re in total control of your content, and you decide how often to email and what to say without the fear of being censored or taken down. Get your free trial with Constant Contact.
Obviously, social media can help build trust and credibility — but that’s only if it actually reaches people. According to Hootsuite, on average, only 5.5 percent of social media followers actually see your content due to algorithm changes, machine decisions, and a ton of other factors that are outside your control.
Your email list is within your control, and emails theoretically reach everyone. It’s your job to convince your audience to open them with compelling subject lines. Bear in mind that even a purely curated list will often get open rates of 10 percent and above, which makes email reach at least twice as effective as social media.
2. Email marketing brings the largest Return on Investment (ROI)
For more than 10 years in a row, email marketing has been generating enormous returns. According to DMA, in 2020, the return on investment from email marketing campaigns can be as gigantic as 4,200 percent. In other words, for every $1 spend on email marketing, the average return is $42.
This means that having an email list is one of the most inexpensive yet profitable ways to reach your audience. If you do it right, you can expect whopping returns. Here is how you can calculate the ROI of your email marketing campaigns:
Let’s say you pay $300/month for your email service provider (ESP). That equates to $3,600 per year. You also have a marketer who takes care of the email campaigns. He/she spends 10 hours per week at a rate of $25/hour. That’s $13,000 per year.
Your email marketing spend is $3,600 + $13,000 = $16,600 total costs.
If the revenue per lead is $150, and your email campaigns bring 500 leads per year, the total revenue becomes $75,000.
You can now calculate your ROI using the formula (revenue-spend)/spend: ($75,000-$16,600)/$16,600 = 351.8 percent.