3.2 Email Marketing
What is Email Marketing?
Email Marketing is a form of direct marketing that utilizes electronic means to deliver commercial messages to an audience. At its core, email marketing is a tool for customer relationship management (CRM). Used effectively, this extension of permission-based marketing can deliver one of the highest returns on investment (ROI) of any eMarketing activity. It is one of the oldest yet still one of the most potent eMarketing tactics. The power comes from the fact that it is the following:
- Extremely cost-effective due to a low cost per contact
- Highly targeted
- Customizable on a mass scale
- Completely measurable
Email marketing is a tool for building relationships with existing and potential customers. It should maximize the retention and value of these customers, ultimately leading to greater profitability. Direct marketing has long played an integral part in marketing campaigns, but the high cost meant that only large companies could pursue it. However, technology is changing this.
Email Categories and Types
The following are some examples of emails a customer may receive.
- Transactional emails. This may include order confirmations, invoicing, or shipping notifications.
- Newsletters. These are e-mails that are sent to provide information and keep customers informed. They do not necessarily carry an overt promotion but ensure that a customer is in regular contact with the brand. These build relationships and foster trust between customers and their chosen brands.
- Promotional emails. Highlight any sales or promotions that a customer may be interested in.
There are two types of commercial emails:
- Promotional Emails: These are more direct and geared at enticing the user to take immediate action. These are more direct and are geared at enticing the user to take immediate action. They always feature a call to action designed around a specific goal.
- Retention-based Emails: Also referred to as newsletters, these may include promotional messages but should be focused on providing valuable information to the user geared at building a long-term relationship. Also referred to as newsletters, these may include promotional messages but should be focused on providing valuable information to the user, geared at building a long-term relationship.
As with all eMarketing activities, careful planning is required. Email marketing may be highly cost-effective, but the cost of getting it wrong can be very high.
Key Takeaways
- Email can be categorized as follows: transactional emails, newsletters, and promotional emails.
- There are two types of commercial emails: promotional emails and retention-based emails.
