Email marketing works. Hopefully, I’m preaching to the converted here. Anyone working in online retail should know that email marketing, if executed correctly, will deliver the highest Return on Investment (ROI) of any online marketing technique.
By John Hayes, marketing strategist at iContact
Despite this, many small business owners fail to give email marketing the attention it deserves and focus more aggressively on more expensive acquisition marketing techniques (such as PPC).
Of course, acquisition is vitally important. But it is retention (powered by email) where your organisation will see real profits. Focus on this and you’ll find your marketing budget goes so much further and expensive acquisition costs are absorbed more quickly and efficiently.
Understanding the potential in your email marketing list is essential if you are looking to increase the returns from any online marketing activity. Having this knowledge will certainly help to justify marketing spend in acquisition techniques that eat into (or completely destroy) your margins.
iContact (www.icontact.com), the email marketing company for small and medium-sized businesses recently published the following infographic to help marketers understand the value of their email marketing lists.
Having a basic understanding of your Customer Lifetime Value (CLV) will undoubtedly help in your calculations. CLV is the amount of money you can expect a customer to spend with your business over the lifetime of their relationship with you.
For businesses without this information to hand, setting targets, adjusting expectations (up or down) on the job and a little ambition beyond the monthly newsletter will help you maximise the returns from your email marketing efforts.
Below is a neat little infographic from iContact which will help you work out the value of your email subscriber list. This could be your kick-start to a better email strategy.
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