Is email marketing important for every small business? The short answer is YES INDEED!
In fact, there are businesses that survive solely on email marketing alone. And they’re not just getting by, they are achieving lucrative profits and revenue for their companies.
Here are the reasons why email marketing is important…
1) Consumers value their email – Believe it or not consumers still place a high value on their email inbox.
Even with all of the many new methods of communicating online email is still the mainstay and will be in the foreseeable future.
According to Venturebeat.com’s “State of Marketing Technology,” email marketing is the method that generates the highest ROI for businesses — and has been doing so every year for ten years. For every $1 spent, email marketing produces $38 in ROI.
2) List building is vital for small business – There’s just one thing that separates a thriving business from a failing one, and that is building a quality list of customers interested in your product/service.
You may be amazed, but there are only 4 ways a business can increase revenue and email marketing can easily assist with them all. Let’s take a look…
• Increase the number of your customers – The quickest and easiest way to increase the number of your customers is to first establish trust with potential prospects.
Using an inbound lead generation system in conjunction with an email marketing strategy is one of the best, if not the best way to attract new customers and build solid relationships.
Use an irresistible offer that your target audience can’t refuse and they will be eager to get on your list. Once they’ve been added, it’s just a matter of time before your messages begin to turn prospects into purchasers.
• Increase the average transaction size – Getting your customers to buy more of what you have again requires them to have trust in you and your brand.
Using email along with digital marketing events can dramatically increase the value perception that your customers place on your services.
Email marketing will allow you the opportunity to educate your prospects about your unique sales proposition. You know… What it is that makes you so much better than your competitors.
• Raise the cost of your product – You can’t effectively raise the cost of your product without letting your customers know why or else they’ll likely make the mistake of going with a cheaper brand.
The importance of email marketing is that you can directly communicate with your customers on major changes and price is definitely major.
In addition to a price increase, you can include backend sales of other related products that you may (and should) offer.
Upselling is essential to driving more revenue into your business. Without email marketing, your ability to upsell gets increasingly more complicated and expensive.
• Increase the frequency of transactions per customer – Many small businesses swear by word of mouth advertising, but purchase frequency is where that strategy gets turned on its head.
Although word of mouth works well in bringing new customers in for their first purchase experience, how can you get them to come back 2, 3 or more times without direct communication?
If you can persuade a customer who purchases your service just once a year to purchase twice a year will double your sales.
Even if you have a high dollar product where you only need a customer to purchase once, you can use email marketing to boost referrals.
3) Email Marketing Is Cheap – Another reason why email marketing is important is that it’s cheap.
There’s no other marketing method capable of reaching your target audience at a lower cost than email.
If you’re using traditional marketing methods like radio, tv, billboards, direct mail and others without capturing the email addresses of your prospects, then you are wasting a truckload of money.
Branding techniques work great for large businesses with limitless budgets, but small businesses on shoestring budgets need to take a more direct response position with their marketing.
Be proactive with your marketing! Get those email addresses and proceed to sell your services. There’s no sitting in the game of business. So stop waiting for prospects to come to you. You need to approach them and establish a trusting relationship. Email marketing is the way!
4) You’ll Increase Your Businesses Worth – Unfortunately, not many business owners think about the long-term worth of their business. So let’s do so right now…
If one day you wake-up and realize you’re ready to retire and would like to sell your business, which of these pitches would like to have:
A) “Mr. Buyer, I have a business that’s been valued at $100,000 and many loyal customers.”
B) “Mr. Buyer, I have a business that’s been valued at $100,000 and an active email list of 5,000 loyal customers.”
Mr. Buyer would jump at pitch B because he wouldn’t have to sit on his hands wondering how to connect with the “many” customers you claimed to have in the first pitch. All he’d have to do is pop out an email.
As a side note, if you did have an email list of 5,000 customers, your business would be worth way more than $100,000 comparatively.
So… Is email marketing important for every small business? Hopefully, YOU can now answer that question with a resounding YES INDEED!
And if you’d like to get started building a solid email marketing strategy for your business we recommend beginning with live & digital events.
Events are extremely powerful tools that will turbo-charge your list building efforts.