Budgeting for Email Marketing
30th July 2015
Do I even need to do email marketing?
Email marketing is an art, and despite repeated talk of email marketing dying as of recent, email marketing is here to stay, with companies only looking to increase their email budgets in 2015 and onwards. Email marketing is one of the fine arts of digital marketing that have persisted and stayed with us for all the years that digital marketing has been a thing.
Email marketing is vast and effective, its reach is far wider than that of other techniques and its return on investment rate is much higher than some other methods of marketing. The beauty of email marketing is how accessible it is. Any company can create an email campaign just as good as any other, and if you can capture the right audience to send it to then you are almost guaranteed to get some amazing results. Sending emails is cheap and to get a return on the investment all you need to do is get a few people to click through and convert. You can send an email to 50,000 people and even if only 5% of those people click through onto your link and 1% buy your product then you have exceeded the investment you made when you sent the email by tenfold. When email marketing you can also personalise your campaign to each individual recipient, and this creates better engagement, brand favorability and sparks interest from the readers.
What do I need to think about when allocating a budget to email marketing?
Email marketing costs are fairly transparent, and it is very easy to accurately predict the costs of a fully-fledged email campaign. The costs of actually acquiring the emails of the people you want to see the email is one of these. Some people purchase a batch of email addresses and then send these campaigns to them, but a more intelligent way is to place an email capturing technique on your website. For example if you were a company that created custom made shoes for example, you could create a quote engine that requires you to input some details before a user can see the quote, or get the quote emailed to the user. This allows you to take the email addresses only of those actually interested in your brand.
Capturing email addresses directly on your site is much more effective because you know already that the people you are emailing are interested in your products. Emailing those who you know are interested in your products will increase open rates, and increase the click through rate. When you purchase an email list then you have no idea whose emails you are going to receive, and it is a possibility that every single person in a list that you purchase could simply discard the email before even opening it because they are not interested in the product you are marketing.
When email marketing there are a few things to think about, and one of those is the method you are using to actually send and create your email campaign. If you are using an email marketing tool such as MailChimp or Litmus then you can get charged for a multitude of things. You can get charged per individual email you send, or you can get charged a monthly subscription dependant on how many subscribers you have in your list, which in turn means your emails are free.
Also something important to note is that when you invest in email marketing you are actually investing into your relationships with your customers, and this is beneficial. With email marketing the returns are sizeable, and the returns keep getting bigger and bigger when you invest more and more. Email marketing represents a marketing technique that will never stop being effective, so pouring more and more money into email marketing may not be such a bad thing, as you are almost guaranteed to see positive results.
How can I measure how effective my campaign is?
With email marketing measuring how effective your campaign was is incredibly easy. If you use an email marketing tool then you can use this to track the statistics of your email campaign. What this does is allow you to measure whether your campaign is effective and returning your investment, and if it isn’t then it is easy to decrease the budget towards it, or even slash out email marketing completely. Because of this there really isn’t anything to lose in email marketing; if you do take a loss in one of your efforts then it does not represent a hard loss as one email campaign is not incredibly expensive. With email marketing you can compare the exact return made through conversions, and compare that to the exact figure it costed you to send out the campaign. You can also implement Google Analytics tracking within your email campaigns to measure how effective they are.
Other benefits to email marketing
Email is not only a one way market, and driving a successful email marketing campaign will actually drive your other campaigns. Email marketing is like a gateway to all of your other campaigns, and when budgeting for an email campaign you should remember that this budget will leak over into your over marketing avenues. Email marketing offers the opportunity to offer deals based around your other marketing methods, for example you could offer incentives to share your posts on social marketing, or post snippets of content from your site into your emails to encourage traffic to your site.
Email marketing has many, many exciting opportunities and it is simply not worth missing out on these. You do not have to break the bank to see a successful email campaign, and even if you do spend a lot on email marketing it is nearly a given that you will see all of your investment come back to you and then more.