Is there a perfect ROI for email marketing? While there is no exact figure, with the right strategy, you can achieve high returns on investment.
Email marketing is a form of direct marketing that allows businesses to send messages to potential customers. These customers have expressed interest in the company’s products or services, and they have provided their email addresses. As the recipient of an email message, the person is then more likely to visit the business’s website or to make a purchase from an online store.
The cost of your email marketing campaign will depend on several factors, including the size of your list, how long you send the emails, how frequently you send them, and what type of marketing platform you use.
Larger Lists, More Frequent And Personal Emails
According to HubSpot Blogs research, customers prefer to receive personal emails from business owners. This format provides a better user experience compared to mass emails, and it also shows that the business is willing to go the extra mile to ensure the customer feels like they’re connecting with a human.
Personal emails from business owners aren’t free, and neither are larger lists. If your business has a relatively small list, it might be cost-prohibitive to send personal emails. However, as your list grows, you can scale back on the personal touches and focus more on delivering value.
For example, if your list contains 500 email addresses, it might be more efficient to send out group emails regarding your company’s products rather than sending out 500 personal emails.
Marketing Platform Costs
Your marketing platform, or email software, will determine how much you’re going to spend on each component of your email campaign. There are free and premium versions of every major marketing platform, and the cost of each varies. Here are a few of the more prominent ones:
- Aweber: This is one of the most popular email marketing platforms available, with nearly one million subscribers. It’s extremely affordable, starting at just $2.95 per month. For a free trial, you’ll need to provide your email address. You can then choose to either continue with the free version or upgrade to the premium version.
- MailChimp: Similar to Aweber, this email marketing platform is quite popular, with nearly 150 million subscribers. Again, the pricing is quite competitive, starting at only $2.95 per month for the basic plan and $5.45 per month for the premium plan. The free version allows you to send up to 2000 emails per month.
- HootSuite: This free social media management platform provides businesses with a robust set of features, including email marketing. One of the more prominent aspects of HootSuite is its social media integrations. This means your branded hashtag can be used to find and connect with new customers, potential employees, and other vital stakeholders on social media sites like Twitter.
- ActiveCampaign: This is another great option for business owners who need an email marketing platform. It provides all the basics, and it’s extremely affordable, starting at $2.95 per month for the basic plan and $5.45 per month for the premium plan. The free version allows you to send a maximum of 500 emails per month.
Cost Of Getting Started
The cost of getting started with email marketing can range from free to hundreds of dollars. There are several tools that can be used to help you get started, such as HubSpot, which we discussed previously, or HootSuite, which we also discussed previously. These tools offer email marketing as part of their service, and they can get the job done for you, with the least amount of effort possible.
If you’ve never run an email marketing campaign before, the cost of getting started can be quite high. You’ll need to become familiar with email marketing software, such as Aweber, MailChimp, or HootSuite, which we discussed previously. Once you have your list, you can then create emails and send them out to your contacts.
Each month, you’ll incur several costs that are connected to your email marketing campaign. Not only will you need to pay for your email marketing software, but you’ll also need to pay for a mailing list service, either via an autoresponder or a list broker. You’ll then need to purchase postage to send out the emails, and you’ll need to track the performance of your campaign, either through analytics software or via staff members who manually review each email and its success.
Depending on the size of your list and how frequently you send emails, the monthly costs of an email marketing campaign can vary. For example, if you have a smaller list and you send out a few emails per month, the cost of your mailing list may only be a few dollars per month. On the other hand, if you have a much larger list and you send out dozens of emails per month, the cost of your mailing list will increase, potentially to hundreds of dollars per month.
What About Return On Investment?
The ultimate goal of any marketing campaign is to achieve a return on investment. In other words, you need to determine whether or not the costs of the campaign are worth it. Does sending out a few emails increase brand awareness and turn browsers into paying customers?
If you’re looking for a free option, HubSpot Blogs research suggests that email marketing can be quite effective when used in tandem with other digital marketing channels, like SEO and paid ads. In these cases, email marketing provides an inexpensive and easy way to get started with digital marketing, and the investment can be measured in terms of increased brand awareness and revenue. To make sure you get the most out of your investment, monitor your website’s traffic, social media performance, and Google search rankings for your brand.
If you’re looking to achieve a quick return on investment, simply follow the three steps we discussed previously and you’ll be on your way to a successful email marketing program within no time.