Email Marketing

After this week’s discussion post, I thought I would write little more about E-mail marketing. I always thought that email marketing was not worth spending time and money for until I learned some facts about it. I mentioned in my discussion post that email usage has been on decline (Data source: www.Forbes.com) but according to few other sources, sales from email marketing has been on rise over the past few years. 91% of customers still use email. Even though social media use has increased over past few years, email is still the most effective tool to build 1-on-1 relationship with customers. Usually social media is an environment fo r group talks or general discussion and hence less personal than email. Email conversion rates to purchase are 3 times more than that of social media. Email provides an amazing ROI of 4,300 percent (Source: US direct marketing association). No other marketing channel provides an ROI as high as this. According to a direct marketing association:

• -          Email generates $39.4 for every dollar spent
• -          Search generates $22.38 for every dollar spent
• -          Display generates $19.71 for every dollar spent
• -          Social media generates $12.9 for every dollar spent

Below chart shows another fact about email marketing being a far more effective e-commerce customer acquisition channel.