E-Mail marketing is a form of electronic commerce which allows you to send messages to customers through electronic mail. This includes both promotional messages (also known as SPAM) as well as transactional messages such as order confirmation notes and password reset notes. Since the introduction of e-mail marketing, many businesses, have taken advantage of this inexpensive but effective method of communication.
However, getting started can be tricky. You’ll need to familiarize yourself with the basics of e-mail marketing, establish the correct tone of your messages, and gain a good understanding of how you should be measuring the success of your marketing efforts.
Understand The Basics
Before you begin your e-mail marketing journey, you should ensure you’re familiar with the fundamentals of sending e-mails and the terminology which is associated with this form of marketing. Let’s take a quick look at what you need to know:
You’ll need to decide whether you want to use a hosted solution or create your own SMTP server. The pros and cons of each method are discussed in detail below.
When you send an e-mail, you need to provide the e-mail address of the person you want to send the message to. This is the person you’ll need to convince to say “yes” to your e-mail marketing efforts.
The subject of your e-mail should be relevant to the content of your message. For example, if you’re promoting a new product and the subject line is “Special offer: Product X”, the recipient will know exactly what they’re getting into when they open your message.
The content of your e-mail should provide value to the reader. If you’ve got valuable information to share, make sure the information is relevant to the target audience you’ve chosen and deliver the message in a way that will appeal to them. You should always strive to provide useful information which will help them solve problems or attain goals. With marketing being so much about measurement and research, having high-quality content is critical so you can easily prove the worth of your efforts.
After you’ve gotten the “yes” out of your customers for the idea of getting email marketing, you need to determine how you plan to track the success of your efforts. Luckily for you, we’re going to discuss a method of measuring the open rate of your mail which can easily be implemented. The open rate of your e-mail is the most basic measurement of success. When a person clicks on a link in your e-mail, the recipient opens the message. The higher your open rate, the better.
This is the action which will result in a conversion. A conversion can be defined as a measurable event which is a result of your marketing activity. In the case of e-mail marketing, a conversion can be defined as a measurable event which is a result of your message being opened by a recipient. A high-quality message will generally result in a higher conversion rate than a low-quality message. When measuring the success of your e-mail marketing efforts, you should always look at the ratio of Clicks to opens. This is commonly referred to as the click-through rate (CTR).
After you’ve gotten the “yes” out of your customers for the idea of getting email marketing, you need to determine how you plan to track the success of your efforts. Luckily for you, we’re going to discuss a method of measuring the conversion rate of your e-mail which can easily be implemented. The conversion of your e-mail is the most basic measurement of success. When a person completes a transaction (such as making a purchase or signing up for a service) or takes some additional action (such as subscribing to a blog) as a result of your marketing activity, you can consider that a conversion occurred.
Depending on the nature of the action, you may want to capture a little more information about the person which performed the conversion. For example, if you’re selling a product and they make a purchase, you may want to track their name, email address, and transaction to ensure you can continue to market to them in the future. However, the most basic measurement of success – the conversion rate – will generally be enough information for you to continue your e-mail marketing efforts. If a purchase is the result of your efforts, you can have a look at your shopping cart to see how many people have actually made a purchase because of your campaign. If nothing noteworthy occurs within the first few days or weeks, you might want to consider aborting your efforts and moving to another marketing channel. On the other hand, if you see a steady stream of interest, you might be on to something.
Bounce rate is the amount of mail which is delivered to the junk folder (SPAM folder) after it’s been mailed. One of the main reasons why people’s email is put in the junk folder is because they never wanted to receive such messages from anyone. The bounce rate of your e-mail is the most basic measurement of its success. When calculating the bounces of your e-mail, you need to remember the following:
- The bounce rate will increase if your mail is undeliverable because of bad addresses.
- The bounce rate is irrelevant if you’re sending email to a restricted group (because of an unsubscribe link or some other feature in your mail).
- The bounce rate will decrease if your mail is undeliverable because the email address is not valid.
To ensure you get the best results from your e-mail marketing, you need to make sure your email is correct. Get your email verified by the major providers (such as Gmail or Hotmail) and make sure your email address is correct (ensure your email signature mirrors these details). These actions will help increase the chances of your mail being delivered successfully. When you’re starting out, you may not see many conversions and you’ll mostly be seeing a high bounce rate. However, as you get more experience, you’ll begin to see more conversions and fewer bounces.
Cost Per Acquisition:
This is the total cost you’re willing to incur in order to get a single conversion (click or action). In some cases, the cost per acquisition can be quite high due to the cost of the product or service being promoted. If you’re looking to allocate resources towards a marketing channel and you want to measure the return on investment, cost per acquisition is a common metric used because it allows you to easily compare the ROI of various marketing activities. If you want to avoid clutter in your inbox, you can use tools like Mailchimp or HubSpot to build and maintain a contact list. These email marketing tools can help you build a list of qualified leads which you can then follow up with a personalized message to get the conversion you’re after.
This is the number of individuals your message is reaching. This is quite a broad measurement and it includes everybody which has received your message regardless of whether or not they had interest in the subject matter of the message. In the world of digital marketing, reach is often presented in the form of a graph with X numbers of users (or potential users) and Y dollars (or potential dollars) or some other form of value being attributed to each user. Since Google introduced the concept of brand awareness in 2014, many businesses have sought to increase their reach by becoming familiar with their customers (or potential customers). By getting to know your customers (or potential customers) on a one-on-one basis, you can effectively reach them where they are and encourage them to interact with your brand.
RUM is an acronym created by Amazon which stands for “returning user”. RUMs are customers who have purchased a product from you and then subsequently purchased a similar product from your competitor. When you’re marketing on Amazon, any new purchases which are subsequently purchased from a competitor can be attributed to the success of your previous Amazon marketing activity. This is quite a useful measurement when seeking to optimize the performance of your marketing efforts on Amazon.