Frequently Asked Questions about Email Marketing

 

 

Is Email Marketing Effective?

Not only is email marketing highly effective, it is considerably more cost effective than other traditional advertising methods. A survey by the Direct Marketing Association in April 2002 states these results:

  • two thirds of US companies report sales increases from email marketing
  • medium-sized business reported 59.8% increase in sales
  • large business reported 47.1% increase in sales
  • 15% of online sales came from email promotions
  • 63% of respondents said email marketing was their most effective customer retention tool
  • 37% said it was an effective customer aquisition tool

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Should I buy a list of email names to send advertisements to my potential clients?

It depends. Let's start by defining two terms: spam and permission-based. Spamming is the practice of sending out as many emails as possible to everyone and anyone. Customer response rates to this type of untargeted marketing is dismal. It will also reflect negatively on a company. Permission-based is the practice of sending emails only to people who have shown an interest in receiving emails from you. It is a targeted audience that expects communication from your company, and customer response rates to this have been hugely successful. Purchasing a list of hundreds of thousands of random email addresses can be cheap, but it is so ineffective that the return-on-investment is poor. Purchasing targeted lists is much more effective, but prices per 1000 addresses quickly rises to the hundreds of dollars reducing their ROI. The most effective, successful, and most targeted lists are those that you start yourself and grow over time.

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How do I start a list of my own email names?

You need a place to store email addresses. An online database is most efficient as it allows email addresses to be added automatically from your website, and it interfaces with online email systems for easy mass emailings. You also need methods to encourage people to signup for your list and keep it growing. Some methods include:

  • newsletter signup on website
  • require email address to access portion of website
  • send-to-a-friend feature on any emails you send out
  • promotions/discount offers to people who sign up their friends
  • always send useful information or money-saving promotions to people on your list, this will help prevent unsubscriptions from your list

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Who manages the list once I get it started?

You can manage the list yourself, or we can assist you. Simply log in through your web browser and you are able to see who is on your list, add/change/delete contacts, track past emailings, and even create your own HTML email and send it to your list. Of course, we offer fully-managed email marketing services that include:

  • customer aquisition programs
  • customer retention programs
  • data management
  • professionally designed HTML graphical emails
  • integration with your website
  • reporting and click-through tracking

Whether you're unfamiliar with email marketing strategies, or simply don't have the time to implement a program in-house, emailROI can help. We've developed a specific set of services targeted at companies that can't afford not to get it right the first time around.

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Is the list part of my website?

 

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How Much / Return on Investment
The following chart, prepared with industry-accepted figures, demonstrates the value SEM brings to its users!

The comparison assumes 10,000 "contacts" and includes production, labor and delivery costs.

  Direct Mail Banner Ads Text Email SEM Mail
Cost to Send $11,000 $900 $700 $600
Response Rate 3% 0.5% 0.4% 4.8%
Conversion Rate 30% 20% 20% 20%
Cost/Conversion $120 $90 $88 $6
Sources include Forrester Research, Jupiter Communications, USA Today, Opt-In News, Clientize, and the performance of CoolerEmail users

Some Facts:

  • 42% of e-newsletter producers enjoy click-through rates greater than 20%
  • 93% of Internet users have and use email on a regular basis
  • 101 million Americans were on the web as of January 2001
  • 10 billion emails are sent EVERY day (3.6 trillion per year

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Interested in email marketing? Contact us today via our online request for proposal form or call us at (303) 837-8100.


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