The first-ever email blast was sent in 1978 and the results were a clear indicator of just how successful this tactic could be. Here we are in 2021 and the question is asked: does email marketing still matter? Let’s take a look at why email marketing is a digital slam dunk, proving that this digital pioneer is still relevant and that there’s an exciting future for email marketing.
Return On Investment
The first email marketing campaign in 1978 was sent by Gary Thuerk, a Marketing Manager at Digital Equipment Corp, to 400 users via Arpanet, promoting DEC machines. This little email campaign resulted in $13 million in sales. From the start, the return on investment has been incomparable to traditional marketing, launching email marketing as an effective channel for direct marketing.
Today, marketers can expect an average ROI of $42 for every $1 spent. This creates a 4200% ROI, making it one of the top-performing marketing options available.
In the summer of 1996, during the wake of the growing popularity of email, the first free email service was born (Hotmail). Consequently, 20 million users signed up for a unique email address. Hotmail, AOL and others created a direct line from businesses to customers, paving the path of success for email marketing. Just last year in 2020, around 306 billion emails globally were sent and received every day. Although this number shows there’s still a huge demographic for marketers to reach, it doesn’t totally prove email marketing still matters.
It’s not a new fact that email marketing systems allow marketers to target a very specific audience. But how does this help in 2021? With today’s extensive data collection tools, marketers can target demographics with finely tuned precision, and businesses that use segmented campaigns have reported as much as a 760% increase in revenue.
Interactivity. When new email coding became available, marketers jumped on the opportunity to incorporate interactive elements into their messages. This new way of communicating was soaked up by users and marketers haven’t stopped developing new ways to engage. Today, augmented and virtual reality can give customers a fun and rewarding experience each time they open their email. This creates a strong relationship with subscribers and their favourite businesses.
Geolocation. Geographic segmentation isn’t new but geolocation takes target marketing a giant leap further. This new technology can estimate a subscriber’s location. Even though it can’t pinpoint an exact location, geolocation service providers can detect when someone is near a certain area, like close to a physical store. Marketers can then jump on the chance to create “buzz” and even offer a promotion enticing the customer to drop in, generating even more sales.
Hyper-personalization. Another trend in email marketing is hyper-personalization. With data collection ability, marketers learn from each user interaction. They interpret data and can alter their message and content based on user experience. This gives businesses more control and an opportunity to connect with their customers one-on-one, personalizing each experience.
So, does email marketing still matter? Without a doubt. Email marketing not only still works, but the latest technology has made it even more effective.
Through the years, many new forms of communication have become available to businesses. Despite the overwhelming number of tools now available, email marketing has remained top of its class and is continuing to grow.
Email marketing provides businesses a highly effective space to engage with subscribers, keeping customers loyal. And knowing that email marketing DOES still matter, businesses can’t ignore the potential of an awesome email marketing campaign.
Before your business dives into the undertaking of email marketing, a digital marketing plan should be in place. We can help. Speak with one of our experts. Contact us at email@example.com