Tuesday, June 22, 2010

Email Marketing - Why Not?

Email marketing is a great way for businesses to build loyal customers. Why don't more businesses use email marketing? The number one reason I am told why businesses do not use email marketing - "my customers don't want to give me their email address". This usually comes from a business owner that has been in business for 10+ years. People at one time viewed giving out their email address like giving out their phone number.

A new attitude is prevalent in today's market place. If a business does not ask for my email address, then they do not want my business in the future. Businesses should show interest in their customers and communicate with them on a consistent basis. If you want to have loyal customers that come back time and time again, make them feel wanted. Give them special offers that only loyal customers receive.

Businesses can set themselves apart from their competition by using email marketing to make their customers feel important. Providing information to customers with no strings attached shows that the business cares about the customer. It takes the seller/buyer relationship to a much more personal level. The great thing is the amount of time spent on email marketing compared to individually speaking to each customer is hundreds of times less.

IBM noted in a study that an email contact is worth $948. Compared to social media, unless you have millions of fans, $3.60 per fan (Value of a 'Fan' on Social Media, Brian Morrissey) does not compare to the value of an email contact. How much time is spent on social media fans compared to an email list? A thorough analysis will enable you to determine and realize that your ROI for email marketing is much higher than for social media. "The cost of acquiring a new customer can be as much as 5 times the cost of keeping an old one." (Source: Peppers and Rogers)

An organized and well planned email campaign will build you a more loyal customer base and will in turn, increase your revenues. "A 5% increase in retention yields profit increases of 25 to 100 percent."(Source: Bain and Co.)

If you don't ask for your customers email address - you don't want their business in the future.