What is the ROI of Email Marketing for SMEs?

Email marketing continues to grow in popularity. Why? With over 4 billion daily users of email, it’s the common marketplace. And you need a stall at the market.

As with all marketing, measuring the return on investment and the KPIs you’ll be tracking is essential. Fortunately, you’ve chosen a marketing medium that is big on benefits and can deliver huge results when executed effectively.

Here’s what we believe are the most important returns when you choose to invest in email marketing.

Author: Liz Clarke

First – let’s talk about revenue

Financial return is important. But, it’s equally important to note that the ROI of email marketing isn’t exclusively financial.

When it comes to the cold hard stats, it’s estimated that on average email marketing will deliver $36 for every $1 spent. Don’t wipe your eyes, you did read that correctly.

The bang for your buck is unrivalled. If you’re working with an email list of a good size, and have a service offering that’s at the right value, there’s no reason you can’t achieve those results too.

One conversion via email marketing can result in ££££s of business from a new or returning customer. But to achieve that conversion, you’ll need an audience that trusts you. That’s where the next vital benefit of email marketing becomes relevant.

Nurtured audiences

Your audience is growing. You’ve got more buyers than ever, and more people want to hear from you.

Email marketing is the #1 nurturing tool in any marketer’s arsenal. Use it to tell stories, share customer successes or remind them that you’re there. Whatever your email marketing strategy is geared towards, you should prioritise making your audience feel heard and wanted.

A nurtured audience understands your brand, and your place in the market and knows they can trust you should the time come that they need you.

Unfettered access to your subscribers

With algorithm changes across all social media platforms and direct mail becoming harder to execute, email marketing has something that few other channels can rival.

With every email (excluding what is deemed as spam), you’re getting access to your subscribers. There’s no algorithm at play, no chance of it not arriving – it’s always going to arrive.

Your main task with email marketing is getting your subscribers to take a moment to open your message. By working with a copywriting team, you’ll be able to combine high open rates with 100% delivery rates and create a marketing strategy that gets your message seen.

Metric tracking – and analysis

As we said earlier, you’ll likely have determined what you want to see from your campaigns when it comes to financial ROI. But beyond new enquiries and sales – what can you measure?

Most commonly, you’ll be looking at open rates and conversion rates and tracking the demographics of your audience and their associated behaviour. Analysing this data is extremely valuable for ongoing email marketing as it helps you create segments within your email lists.

Segmentation of your lists helps you not only conduct thorough customer research at a fraction of the cost of traditional research methods but also allows you to optimise messaging for those segments and increase conversions as a result.

Targeted promotion of sales and products

At different times of the year, you’re likely to have had an inbox flooded with offers, sales and nurture emails from brands of all shapes and sizes. (Black Friday we are looking at you!).

Whether you’ve bought once, a hundred times or never at all, their email still finds its way to your inbox. And sometimes, you’ll read it.

Utilising email throughout the year with a thorough strategy means you can promote new events or offers to your audience that are tailored to the strategy for that quarter.

** An important note to consider here is that events like Black Friday often lead to such an influx of emails that your audience could be driven to a mass unsubscribing spree. If you don’t regularly add value to their inbox and only pitch up these mass bandwagons, you’re at high risk of being culled!

We’re ready when you are

We create email marketing campaigns for small businesses across the South and beyond.

There’s no fluff or unexpected costs – we’re results-driven and focused on achieving the best for your business with every campaign we undertake.

Chat with us now to find out how email marketing will help you achieve the growth you’re craving.

Our clients include:

Unlock Your Freedom to Grow!

For a marketing strategy and system as unique as your business, contact the Freedom-CS team and discover how bespoke solutions can drive your growth.