83% of customers would prefer to hear from companies via email than any of the other common means of communication. This is no surprise to marketers who study the success of multiple marketing facets. These market researchers understand the effectiveness of email marketing in a world where 45.4% of the world’s population is smartphone users. Put simply, Email marketing is a segment of internet marketing which encompasses online marketing via websites, social media, blogs, and newsletters. Often email marketing shares updates from companies, exclusive deals for subscribers, promotions and sales. Email marketing can also be used to share general information on the company’s behalf. Unlike other forms of marketing, email marketing allows the user to strategically tailor their marketing messages to their audience which can also contribute to increased sales. The success and need for email marketing can be easily traced back to society’s growing need for instant information.

Efficiency

Email marketing is considered one of the most efficient and cost-effective marketing methods in the digital world. For every $1 you spend on an email campaign; you gain $44 return on investment (ROI). This statistic is considered one of the highest ROI returns in the digital marketing world. Along with email marketing fulfilling with the growing need for instant information it’s success can also be traced to the reality that email marketing works well for the business and the consumer. As previously stated, email marketing offers an advantage not held by other marketing tactics. Email marketing allows businesses to target specific individuals and specific groups of people. Through contacting specific individuals’ companies can offer special rewards such as birthday deals on merchandise or services. This facilitates for “virtual rapport” between the customer and the business, further improving customer loyalty, relations and sales. One survey states that 59% of respondents were influenced by email when it came to purchasing decisions. With concrete evidence to support the efficiency and success of email marketing there is great promise for companies seeking to pursue email marketing in hopes of expanding company sales and reaching more customers.

Figure 1: Online Marketing Platforms

Email marketing is a powerful tool for those looking to drive conversions. It generates some of the highest open and click-through rates compared to other channels.

• Average email open rate across all industries: 17.8%
• Average email click-to-open rate across all industries: 14.3%
• Average email click-through rate across all industries: 2.6%

Communication between a business and customer via email can help boost brand sales because this means of marketing capitalizes on its users preferred means of communication. Through email marketing business can directly draw customers to a specific point on a website or a particular landing page using strategic advertising through company emails.

Risk

There is minimal risk involved in participating in email marketing. This minimal risk is due to the overall success rate achieved by small and larger business and companies. Businesses often face adversity when customers feel overwhelmed by too frequent emails. Thebalancesmb.com identifies one of the “dangers” of email marketing as sending too many emails or spam mails to customers. This common mistake causes business to push away customers or become “annoying”. This mistake can be mitigated by controlling or regulating the frequency of consumer contact.

Investments

In 2019, researchers found an average of 293.6 billion emails were sent and received annually, a statistic which is expected to grow by 2023. For many researchers this data proved to be concrete and promising, and contributed to many questions regarding the future potential success of email marketing. When considering the longevity and risk of potential investing into email marketing, we can assess this investment in two arenas. First, implementing email marketing for small businesses or growing companies is a profitable route, as well as purchasing email marketing software stock.

From a small business perspective, a company taking the opportunity to practice email marketing and invest that practice into their business offers a great promise of high return. This fact is supported by general success rates from other business owners, as well as the simple reality that this is the era of technological communication. When considering investment opportunities in email marketing software stocks, considering an investment is also a great opportunity for high yield and return. Email marketing presents investors with a consistent upward trend in growth and hold promising longevity due to the growth in desire for digital communication.

Despite being the evident preferred means of communication amongst customers, and upward trend in growth in email marketing, another important reason for considering an investment in email marketing is that it allows businesses the opportunity to genuinely hone in on an ideal target audience. Unlike social media platforms which do not permit businesses certain marketing liberties, email marketing software’s can pinpoint specific details about costumers, and emails pertaining to specific offers that maximize company and consumer advantage. Email marketing allows companies to get to know their clients on a more in-depth level. Email personalization otherwise known as personalized promotional mailings, overall have a 29% higher unique open rate, as compared to non-personalized mailings, which again contributes to the overall efficiency of email marketing.

Conclusion

Overall email marketing provides concrete data to supporting client satisfaction, increased customer loyalty, remarkable ROI and overall success and the promise of continuing business-consumer relationship. Email marketing works as a great tool for any company seeking to maximize sales and to build towards the future of technological means of communication and advertising. The decision to implement email marking into a company or invest in an email marking stock both offers an ROI and increased growth and efficiency.