E-mail marketing is a form of direct marketing which uses electronic mail as a means of communicating commercial or fundraising messages to an audience. In its broadest sense, every e-mail sent to a potential or current customer could be considered e-mail marketing. However, the term is usually used to refer to:
Sending e-mails with the purpose of enhancing the relationship of a merchant with their current or old customers and to encourage customer loyalty and repeat business;
Sending e-mails with the purpose of acquiring new customers or convincing old customers to buy something again;
Adding advertisements in e-mails sent by other companies to their customers.
Studies have shown that the first thing people do when they turn on their computers for the day is open their e-mail. Because of this fact, email marketing is becoming a primary, effective tool for advertising. By using advertising banners, click through message options, and other routes, a business can interest a new customer as well as entice a previous customer into more purchases.
Internet direct mail has many advantages over traditional paper direct mail:
It's faster. E-mail can reach the target almost in seconds. You can get out a campaign, get results, and make money in days in a short period of time after sending your e-mail. This compares very favorably to traditional direct mail campaigns, which can take eight to twelve or more weeks to complete (from concept, copy, and design, through printing and mailing).
Response is immediate. Your customers will give a response the day you send your message, and you will receive 90 percent of your responses in about four days. As you get results sooner, you can plan the next campaign or rollout with confidence.
Traditional direct mailing is limited by geographically boundaries (currencies, time zones, varying postal regulations, and postal systems of varying quality and reliability), e-mail is a global medium. Successful campaigns can easily be rolled out worldwide.
It's less complicated to produce. The typical Internet direct mailing is a typed e-mail message created right on your computer. Unless you want to incorporate sophisticated graphics you do not need a professional graphic designer, Web developer or HTML programmer.
Costs are much cheaper to send. The cost to send a paper direct mailer is typically sixty to eighty cents per piece. This price includes printing, postage, mailing list rental, and production. At that rate, mailing 100,000 pieces would cost $60,000 to $80,000. E-mailing to the same number of prospects will cost about $300 - $1,500 depending on the services used.
E-mail services works as well as or better than regular direct mail in many instances. E-mail makes the purchase fast, easy and at a time and place of the buyer's choice. This increases response rates. Personalization, which increases response, is easy and inexpensive. You can create powerful presentations combining graphics, text, voice, video, audio, animation, color, and interactivity.
Email marketing does not work as well for a one-time quick hit marketing strategy. Email allows you to build a regular, ongoing dialogue with your best clients and prospects. That becomes self-selecting - those who most wish to do business with you will appreciate the regular communications. Those who do not can opt-out.
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