Why Email Marketing is Crucial for Small Businesses in 2017.
In a climate of technological innovation where new forms of communication are developed as this is written; Email remains the king of the hill. In a study released by AUT’s World Internet Project, a staggering 89% of people checked their Email daily.
Email is still the number one form of digital communication in New Zealand.
In 2016 Spike sent out 42,002,835 Emails with an average open rate of 39.2%.
See the rest of the stats in our Year in Review post here
In 2017, we expect the use of Email to increase as new innovations come along allowing businesses to communicate their message to current and prospective customers in creative and engaging ways using mediums such as video and gifs. As bandwidth and data become more plentiful we expect to see more animated content within emails in the near future.
Here’s why your business needs to use Email marketing this year:
1: Better targeting than any other medium
By segmenting your database you can choose which groups see which promotions, allowing for more direct targeting. Don’t waste time sending the same message to everyone when it only applies to 5% of your database. Get specific, get targeting, promote the relevant things to the relevant people and you’ll see better results.
Example: You have a company selling shoes, wardrobes, and fruit. Each marketing email goes to the entire list and contains a bit of everything to try to appeal to everyone. This is a diluted message. If the same people keep clicking the same thing you can add that person to a list (a segment) specifically targeted at their interests, so you’d have a list for shoes, one for wardrobes, and another for fruit.
Then you send a shoe mail to the shoe list, a wardrobe mail to the wardrobe list, and a fruity email to your list of people interested in fruit. With database segmentation you’re getting the message where it needs to go.
Other methods use very broad categorisations to cast a huge net and hope people respond. Email marketing can target only the interested people.
2: You Can Tell Where Your Money has Gone
With traditional forms of advertising, it’s hard to fathom where your money has gone. Maybe you’ve generated brand awareness, maybe you’ve generated a customer… In reality, it’s nigh on impossible to tell.
This is different with Email marketing.
Every email sent creates data. This data can show how long someone spent looking at the content, if they clicked any links, what links they clicked, if they made a purchase,how much they spent, and just about any other behaviour. This allows you to see which promotions/products are working well, those that aren’t working so well, and which customers are more likely to click through than others.
With this data, you’ll see the exact ROI on dollar-spent to dollar-earned and can make marketing decisions based on concrete sales data.
At Spike we also create live dashboards for our clients that show data in real time; how many clicks, when, who, where. It’s invaluable information for strategising.
3: Massive ROI:
In 2014 Experian reported that the average ROI for every dollar spent on email marketing was $44, which will only increase online shopping becomes more and more popular. In 2015 kiwis spent $4.7 billion online, a growth of 28% since 2012. Suffice to say ecommerce and email marketing go hand in hand. We can include direct links to products, generate promo codes, track every email and every click and create a revenue stream for a business.
4: Increased Customer Retention
Customer retention is a major challenge facing SMEs the world over with it costing up to five times more to find a new customer as opposed to retaining an existing one.
Regular personalised emails bring your business to the forefront of your customers’ minds. Personalised emails create a relationship that other forms of digital advertising can’t achieve. Every email is personalised with the receiver’s name as well as potentially their buying habits and location.
For inactive customers (those that are on your mailing list but haven’t bought in a few months) we recommend implementing Lifecycle Communications.
These are automated messages sent to clients after a certain period of inactivity, such as 1 month, 2 months, 6 months, or any frequency you like. These emails are used to remind the recipient to make an action (activate a card, pop in for an oil change, save 10% on something) and convert them into active customers, usually by offering them a reason to get back on track and involved with your business. As Lifecycle emails are generally automated they’re a great way to get in touch and reconnect with those customers who may have fallen through the cracks.
5: Helps You Reach Mobile Users!
In a time where it is expected that over 90% of New Zealand’s population will have a smartphone by 2018; it is crucial to have a form of communication that can reach these devices.
In 2016, Spike recorded that 53.3% of all emails were opened on a smartphone. This is especially important when you see that the average conversion rate on a smartphone is 64%. 50% of people grab their smartphone at the start of each morning and here at Spike we’ve painstakingly developed the expertise to get your email to the top of your readers’ inboxes.
So what are you waiting for?
At Spike, we send Email With Purpose and can put you in great shape for 2017.
Get in touch to add email marketing to your sales strategy.