Explaining the popularity of e-mail marketing

We here at Apogee Results are all about marketing, and e-mail marketing is powerful.  Just ask Groupon. Their billion dollar business is essentially based on it. You are sending e-mails either about existing products, deals for specific products, or notice for future products.  It’s so effective that most companies incorporate e-mail marketing into their overall business strategy, and it is so popular that the U.S. spent 1.5 billion on e-mail marketing in 2011 alone, a number that is expected to almost double by 2016.  Let’s break down e-mail marketing to explain why it’s so popular.

First, e-mail marketing is directed to specific customers.  In its correct form, it’s not spam. People receiving these e-mails have either signed up for them or bought products and thereby agreed to receive them.  It’s not like regular advertising where you attempt to target certain customers or display ads to the masses. While those methods are effective, e-mail marketing is much more targeted.  You KNOW your customers are interested, so it becomes a matter of making a sale or drawing their attention.

Second, with the rise of an abundance of mobile devices, people check their e-mail several times throughout the day, are immediately notified of new e-mails, and even chat through programs while logged on to their e-mail .  In this sense, e-mail marketing is almost instantaneous and has the benefit of word of mouth. Think about this: If you were a company and you sent out an e-mail at 2:00PM saying that the first 2,000 people to buy a certain product get it half off, and you sent that deal to an e-mail pool of 300,000 people, by 2:30 (or probably before depending on the product and the price) 2,000 people will have purchased the product.  It could’ve happened through the e-mail pool, or friends chatting with other friends to buy the product now, or even people verbally telling others in an office to jump on the deal. Regardless, word would get around, which shows that the possibilities of e-mail marketing spread far beyond the realm of e-mail.

Third, companies offer deals for people that forward their e-mails to others.  If you refer an e-mail deal to someone else, i.e. Groupon, and that person buys the deal, you get a reward.  So not only does e-mail marketing send out e-mails to its intended customer base, but those customers are likely to forward the message along if there is a proper incentive.

Finally, when e-mail marketing is done correctly, an exact return on your investment can be tracked.  This way you can see what e-mail deals and strategies are working, what’s not working, and it can give you great direction for future marketing endeavors.

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