With all the furore surrounding the GDPR in the UK and EU this month and the public’s focus on data, I thought it would be an interesting time to go back to basics and look at the importance of email marketing and data capture to a business. Whether one is an SME or a FTSE 100 company, email marketing and correct data management is a key component to business success.
Digital Fire operates out of our London and Cape Town offices and we have the benefit of working with global clients in global markets, and being able to see the levels of skill, execution and competence in differing countries. South Africa is still some way behind the EU, US and UK in how it approaches data collection and how it executes email marketing. There is much opportunity in South Africa for businesses to harness this revenue driver.
Email marketing is a low-cost, yet hugely successfully revenue-generating tool that delivers a high ROI for all types of business. Research has proven that the more marketers can track, analyse and personalise, the more effective email marketing becomes.
Email is the most popular and powerful communication tool amongst online audiences due to its ability to get the right message to the right consumer at the right moment in time. The key is to be capturing email data in an effective (and legal!) manner and then using that data to achieve business objectives
There are five major benefits of capturing email addresses and incorporating email marketing into your business, including:
1: Email is welcomed
71% of respondents say that email marketing is their preferred way of receiving promotional material (Adestra). Once the consumer has signed up to your website and submitted their email address they have given you permission to open a line of communication. Email is a less intrusive way of connecting with the consumer, it does not intrude on personal details such as their home address and it does not distract from everyday life activities like a phone call may. Email is a straight-forward way to convey a message that the consumer expects and can read at their convenience.
2: Low cost – high return
Email marketing allows you to communicate to a large audience at minimal cost with a big impact and because the target audience has been qualified, the ROI is exceptionally high in comparison to other mass marketing sources such as sending leaflets or posting ads in publications. Email marketing is estimated on average to give a 200% return on investment across all verticals, eCommerce businesses often see higher ROI, with on average $40 earned for every $1 spent. Personalised and profiled mail campaigns can push the analytics and ROI envelope even further as each customer touch-point is tailored around that specific users collected data and purchase history.
3: Multi use medium
Email is a multi-purpose communication tool that can be used for direct sales, to educate and to add value to your consumers. The more targeted the email, the more specific the content can be. The aim is to provide the audience with the relevant content they require at the right moment in time. If a consumer purchased a new product they may be interested in information on how to care for the product, what related product could be of use to them, notified of an available update for the product. Emails do not have to be “just” sales based, informative emails have been proven to build loyalty which in the long term will increase your overall revenue.
4: Automatic data collection and profiling
Especially in eCommerce, one of the most vital pieces of information you require is the email address, however, to build a detailed buyer persona it is wise to collect as much data as possible during the sign-up process. Form fields during sign-up should be arranged as simple drop-down lists to help you segment your lists accordingly. Automated email marketing allows email marketers to ensure communication is sent to the right audience at a relevant time without having to manually construct and send individual emails.
5: The biggie: ROI and profit: email marketing done correctly drives more ROI than any other digital medium
Talk with us at Digital Fire and we will assist you to harness the power of email marketing and data capture to drive profit for your business whatever its size.