How Does Email Marketing Work?
When a company uses email to promote a product or service, it is known as email marketing. It's a sort of direct marketing in which the corporation connects directly with the customer without the use of a middleman.
Email may be used to nurture leads, convert prospects, and ensure that current customers have a positive experience. Here are some email marketing samples and different types of emails you might get in your inbox.
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| How Does Email Marketing Work? |
- Welcome email series: When a customer contacts a company for the first time, the company will usually send an automatic sequence of emails detailing more about the company and its product. A tech company that provides a free software trial, for example, will give instructional links to help the user get the most out of the item. They may send emails at the end of the trial with the goal of converting the user into a paying customer. These emails are extremely targeted based on how the customer responded to the offer.
- Email newsletters: Newsletters are periodic emails that are distributed to a large number of people. They usually include company news as well as links to blog posts or other material that the receiver might find interesting. Newsletters are an inexpensive approach to communicate with a large number of individuals. When a consumer responds to something in one of these emails, such as downloading an eBook, the company can move them to a more personalized email sequence.
- Email reminders: Customers who haven't completed a task that they have begun are sent email reminders. If someone visits an eCommerce business but does not buy, the store can send them an email asking them to complete the transaction.
- Transactional emails such as post-purchase emails: After a consumer makes a purchase, a sequence of emails informing them about the product is frequently sent. If your product is subscription-based, for example, post-purchase emails are critical for creating customer loyalty since they improve the likelihood that the consumer will find value in the service and continue to pay. Emails sent after a purchase can be used to upsell additional or new products, as well as execute referral programs.
- Nurture emails: Nurture emails send targeted material to prospects depending on the challenges they're seeking to address. This might be anything from blog entries to whitepapers to video tutorials. The goal of these emails is to deliver relevant information to the prospect that keeps your firm top-of-mind and eventually converts the prospect into a new customer.
- Cold emails: Businesses occasionally send cold emails to people with whom they have not previously communicated. These are usually the least effective email marketing communications. However, when highly targeted and sent from a personal account, they may work in some forms of B2B transactions.
- Promotional emails: Promotional emails can be used by email marketers to tell current and potential customers about special discounts, seasonal specials, and other sales promotions.
Why email marketing?
Email marketing is advantageous since it is low-cost but extremely effective. Here are a handful of email marketing's benefits.
Email marketing is low cost
Because you control your contact list, email marketing is completely free, save for the cost of the software. As a result, achieving a solid return on your investment is straightforward. According to the Direct Marketing Association's 2019 Marketing Email Tracker Report, email marketing offers a $42 return on investment for every $1 spent.
Email marketing is effective
Email marketing reaches out to people who have previously shown an interest in your organization or product, requiring less nurturing than those who are unfamiliar with it. By watching how prospects and customers interact with your marketing materials and fill out lead-generating forms, you can segment them based on their requirements and interests. This enables you to give them material and offers that are most likely to pique their interest.
Email marketing is flexible
Email marketing is a versatile tool that can be used at any point in the sales process. Prospects who are still in the early stages of the purchase process will benefit from knowing more about their issue. You can concentrate the material on your product once they begin to interact with your emails. You might provide offers or discounts to entice the prospect to buy as they get closer to making a decision.
When to not use email marketing
Email marketing is unlikely to help you grow your audience if that is your major marketing goal. This is because you need an email address from a consumer or potential customer before you can contact them. Other marketing methods, such as paid commercials, SEO, content marketing (e.g. webinars), or social media, may be more effective in raising brand awareness.
Email marketing best practices
What is the process of email marketing? There are some recommended practices you should follow when developing your email marketing plan. A few of them are shown below.
Segment your audience and send relevant content
You may create tailored email marketing campaigns by segmenting your audience and using material that each group is likely to relate to. You can segment your audience based on their preferences and where they are in the buying process.
Consider a company that sells air conditioners to both residential and commercial customers. Producing a distinct campaign for homeowners and business leaders will help the corporation.
In addition, the organization should think about where the customer is in the buying process. Those in the early phases of the process might respond to an email offering to download a product catalog. People who are ready to buy are more likely to respond to a quote-based communication.
Automate processes
By automating your email marketing operations, you can send at the best time for conversion while also minimizing the amount of human work your staff has to complete. Simply set up effective triggers and let the software do the rest. At the end of this post, we go through email automation in further depth.
Monitor and change what isn’t working
Email marketing isn't a science in the strictest sense. Some of the things you do will go as planned, while others will not. Most email marketing software includes data and analytics that you can utilize to improve your campaign.
Is the open rate on one of your emails lower than average? Then alter the subject line or the time the email is sent. Do you have a low click-through rate on one of your messages? Then consider placing the offer at the top of the email or modifying the CTA.
A/B testing is a good approach to increase the efficiency and conversion rates of your emails. To do so, simply create two different versions of the identical email and test which one works better with a small sample of consumers.
One of the most typical uses of A/B testing is to increase open rates. Simply write two subject lines for the same email and send both versions to the same amount of customers to see which one gets the most attention. Throughout your campaign, use the higher-performing email. You might also experiment with different offers, call-to-actions, and the time you send your email.
Don’t spam your list
It can be tempting to contact your entire list with product information on a regular basis. This, however, may appear spammy and cause individuals to unsubscribe. Stick to sending quality content to your contacts that are relevant to their demands and stage of the buying cycle.
How to choose the best email marketing software for your small business
Businesses have a lot of alternatives when it comes to email marketing software and email service providers because there are so many solutions available. Several considerations will influence which one is ideal for your firm. Here are a few examples:
The size of your list and the number of emails you send
Depending on the size of your list and the number of emails you plan to send, email marketing software vendors will often provide different alternatives. Make careful to pick one that fits your email marketing objectives. If you want to expand your list and get as many new members as possible, make sure the software provider can keep up.
Is the software compatible with the tools you use?
Email marketing tools should be able to work in tandem with your current workflow. Here are some examples of how your email marketing service can integrate with other applications.
- Solutions that work in tandem with your CRM can give you valuable insight into your customers' behavior.
- Email client connections allow you to import your contacts automatically.
- Abandoned cart emails can be set by using eCommerce store connectors.
Is it simple to establish effective email marketing campaigns?
You can rapidly design stunning emails with the help of a decent program. Look for software that includes pre-made, customizable email marketing templates and email themes to get ideas from. If you need more flexibility, drag and drop email builders let you construct templates that are tailored to your needs.
Does the software provide any extras?
Many email marketing systems include add-ons that assist you in creating efficient campaigns. Look for landing page builders, lead generation form builders, and in-depth analytics in the products you use.
Price
The obvious—yet crucial—factor is price. You need to find a system that is cost-effective while still giving all of the capabilities you require to have a positive return on investment (ROI) on your email marketing efforts.
Automated email marketing
Businesses can use marketing automation to automate the sending of emails. This allows businesses to engage with customers at the most efficient moments and send customized emails, all while minimizing the amount of manual work required of marketing teams. Here are a few methods for automating your email.
Automated email sequences
Let's say someone asks for your eBook. You can program your system to send the material automatically as soon as customers request it. You can then submit more messages about themes linked to the eBook throughout the next several days or weeks. This is made possible through automated email marketing, which eliminates the need for your team to do anything.
Send emails based on customer interaction
Consider a consumer who goes to your pricing page after clicking on a link in the eBook. This could indicate that they are ready to purchase. The customer will receive an email from automated email marketing asking if they would want to book a call with a sales representative to discuss their possible purchase. Customers can use scheduling tools to find a time period that works for them.
Automated reminders
Consider someone who looks at one of your products but does not purchase it. Set up an automated email to notify the consumer of their purchase when a certain period of time has passed.
Post-sales support
After-sales service is an important aspect of the sales process. Consumers are more likely to stay customers if they have a positive experience and value your goods. You can send out automated emails to customers after they purchase your product to assist them to get the most out of it.
