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11 Irresistible Benefits of Email Marketing for Small Businesses

Written By: Mike Reyes
Reviewed by: Mike Reyes
Last Updated August 15, 2023

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When trying to sustain, grow and scale as a small business, do you constantly grapple with rising competition, constrained manpower resources, and limited marketing budgets?

Don’t fret. Email marketing may have the answers that small business owners seek.

Speaking of numbers, email marketing revenue worldwide, estimated to be an astounding $7.5 billion in 2020, is all set to cross the $10 billion threshold by the end of this year.

Add to it the fact that businesses can expect an average return on investment (ROI) of up to $45 for every dollar spent on email marketing, and you suddenly start to see the huge potential that email marketing could hold for your small business.

Neither are email campaigns over-rated, nor are email marketing benefits overhyped.

Here are 15 undeniable and proven benefits of email marketing that hopefully convince you to include them as an integral part of your overall digital marketing strategy.

15 Irresistible Email Marketing Benefits

Email marketing campaigns are more than just about getting your promotions out there. They are one of the most result-oriented and resource-efficient ways to stay in touch with your past and potential customers.

Here are some reasons why small business owners must include email marketing campaigns as a crucial part of their overall marketing efforts.

Drives Sales & Revenue

Person Writing on the Notebook

Email campaigns can help small businesses sell more through promotional emails sent to all opted-in subscribers. 

For instance, a clothing boutique can send an offer email about a summer sale and give a limited-time dollar discount to encourage its subscribers to purchase.

Boosts Customer Lifetime Value (CLTV)

Customer Lifetime Value (CLTV) measures how much revenue an average customer brings over time. 

Email marketing helps you send targeted messages to existing customers, generating repeat purchases and boosting the customer’s overall value to the business.

You can also use email marketing campaigns to run highly-personalized loyalty or subscription programs with exclusive offers for a targeted set of customers based on their recency, frequency, or spending quantum with your business.

Optimizes Ad Spends

Customer Acquisition Cost (CAC) measures how much a business spends to acquire a new customer. 

Various factors govern the CAC, and according to one study, it can range from as low as $7 for the travel industry and as high as $395 for technology companies.

With a data-driven approach, leveraged automation, and the need for only low-cost infrastructure, email marketing helps you sell more and sell again to already-acquired prospects and customers, pushing the average CAC value down. This gets you more paying customers for the same effective ad spends.

Supports New Product Launches

Email marketing campaigns can be a great way to test new offers on existing products and support the launch of new product lines on trusting and relevant audiences.

Using high-ROI email strategies such as pre-launch teasers, exclusive early access, early bird discount pricing, or even standard product announcement campaigns, small business owners can ensure high returns on their marketing efforts. 

For example, a new smartphone launch could involve a series of emails leading all the way up to the launch date, teasing features, and building anticipation at every communication touchpoint. On the launch day, you could offer exclusive, special pricing access to pre-ordering customers, creating a sense of exclusivity and rewarding loyal customers.

Increases Marketing ROI & Overall Profitability

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Email marketing campaigns are not just cost-effective in terms of converting prospects to paying customers, but depending upon the email marketing software you choose and the size of your customer list, they are also highly affordable to rent and run.

Compared to other marketing channels, the cost per unit email sent is low, and the potential for returns is high, leading to increased profitability and ROI.

Enhances Brand Awareness & Recall

Regular email correspondence with your subscribers can help your small business stay top-of-mind and increase its brand awareness and recall. 

This is further optimized by consistently including and maintaining powerful visual branding elements such as your business logo, brand colors, tone of voice, and more.

Familiarity over time breeds trust. Email marketing campaigns are no different in that they can help you reinforce your brand identity and leave a lasting impression on your readers’ minds. 

Higher Effectiveness Compared to Other Marketing Channels

Compared to other traditional and digital marketing channels, including but not limited to social media marketing, pay-per-click (PPC) ads, or display advertising, email marketing consistently outperforms them in terms of engagement and conversion rates.

Research giant McKinsey suggests that email marketing could be up to 40X more effective in acquiring social media than Facebook and Twitter combined. As a small business, you must do all you can to leverage this to your advantage.

Supports Deep Reach

Email marketing does not suffer from algorithm changes (like organic social media) or highly variable advertising costs (like paid social media). 

Suppose you’re using one of the reputed email marketing platforms with great deliverability. In that case, chances are your email marketing campaigns will be delivered to almost 100% of your subscribers’ email inboxes every single time without paying an extra dime.

This opens up the possibility of your offers and launches catching more eyeballs and attention, boosting chances of conversion and increased revenue.

Allows Laser-Sharp Audience Targeting

With email marketing, you can segment your prospects based on criteria such as demographics, interests, past buying behavior, or even custom information obtained through forms and popups. 

This will enable you to send extremely targeted and personalized campaigns and offers that resonate with the recipients leading to maximum chances of a positive engagement.

Boosts Customer Experience

Emails allow small businesses to interact and engage with their customer base directly. 

Sending relevant offers, such as product recommendations based on past purchases or tailored content based on their likes and preferences, strengthens relationships and enhances customer loyalty to your brand.

The more touchpoints you have with your customers, the better. That way, whenever a potential customer needs help, your business can stay top-of-mind. E-mails are one among dozens of touch points you could have. You could use a customer journey map to help plan and streamline these interactions. That way, you can visualize a customer’s whole path and plan all your emails accordingly.

Supports All-Round Business Goals

Maybe you’re looking to promote a new product or searching for ways to ensure maximum attendance at your webinars. 

No matter your niche or your custom business goals, email marketing campaigns can be tailored to align and fulfill specific objectives, be it website traffic, social media profile visits, signups, purchases, or even email replies.

Adopts a Data-Driven Approach

Your email marketing campaign allows tracking of key performance metrics such as open rates, click-through rates, spam complaint rates, and more, allowing you to measure the effectiveness of your marketing efforts quickly and effortlessly.

This marketing approach ensures that any and all corrections and optimizations are guided by data and numbers, bettering the chances of success.  

Improves Customer Retention

Email marketing boosts customer retention by supporting ongoing and constant communication that fosters loyalty through nurturing relationships through valuable and tailored content, offers, and promotions.

It is also a great tool for gathering CSAT (customer satisfaction) data points, understanding customer preferences, and identifying product development opportunities for existing audience sets.

To achieve this, businesses can make use of the best email management tools, which streamline the process and provide insights for optimizing campaigns.

For example, a clothing boutique can send out an email showcasing new arrivals and offering a limited-time discount code, encouraging customers to purchase.

By leveraging email campaigns, businesses can effectively announce and promote their new product to a targeted audience, generating excitement and driving sales. 

Encourages Permission-Based Marketing

Email marketing worldwide is strongly bound by national and sometimes international laws and regulations, which are strongly driven by user permissions and privacy concerns.

Only those subscribers who opt-in to receive your business communication must be emailed; every email should carry an unsubscribe link allowing them to opt out instantly.

Using such a non-intrusive, permission-based, and compliant medium to communicate with your subscribers builds trust for your brand in the eyes of your customers and prospects.

Embraces Scaling Through Automation

One-off manual broadcasts are just one aspect of email marketing. 

The most powerful feature of email marketing is how it lends itself to automation. Everything from onboarding new users using welcome series emails all the way to recovering revenue from abandoned carts on your e-commerce store can be done in simple steps.
Most email marketing software platforms support the setting up of trigger-based email sequences that fire based on customer behavior or at specific time intervals to help you communicate with personalization at scale, optimizing conversion outcomes.

Start Your Email Marketing Journey Today

Email marketing can help you build and grow your customer relationships meaningfully and profitably, helping you achieve your business goals far more easily than other marketing channels.

Everyone you know is using one email marketing platform or another, yet email marketing, by and large, remains one of those marketing channels that’s vastly underutilized. This also presents a great competitive advantage for you as your competitors are likely still sleeping on this high-ROI opportunity.

Hopefully, the email marketing benefits we have laid out above have persuaded you in part to consider leveraging an email marketing strategy’s full and true potential to sustain, grow and scale your business.

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