Why Email Marketing Is Important For Your Business | LimeLight Marketing

Why Email Marketing Is Important For Your Business

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Email marketing is important for businesses because, as a targeted campaign, it helps nurture your relationships with potential clients as well as established customers. On this page, we explain why email marketing is so crucial in maintaining customer loyalty and growing your business, and how you can leverage email campaigns to achieve results.


What’s The Importance Of Email Marketing?


  • Businesses can take advantage of big opportunities

The mileage that email marketing gives your business brand voice is almost unrivaled – and if that isn’t enough to sway you, it can also be completely free (although putting together a quality campaign will take time and effort – it’s completely worth it). Targeted email campaigns are a great way of reaching pre-qualified leads (they’re pre-qualified as they’ve taken an action to sign up to hear from you). 

Based on a 2019 study conducted by a technology research company, The Radicati Group, Inc., more than 50% of the global population have email accounts. The number of email users is even expected to rise to more than 4.3 billion by 2023 – and this number doesn’t include multiple emails held by individuals, either.

According to data collected by Pew Research, approximately 92% of adults in the United States have at least one email account, and a majority of email users (61%) use their email accounts every day. The numbers really do speak for themselves here; if you don’t take advantage of email marketing for your business, you might be missing out on an enormous audience.


  • Consenting subscribers

In terms of business opportunities, email marketing is an excellent way for businesses to promote their products or services. This is because you can frame what you offer in a personal, friendly message. Reaching out to the target market of your business through personalized emails can, therefore, be a very effective way of converting them into customers. The key factor here is active consent, which isn’t asked for in things like social media marketing or paid advertisements, and means these types of strategies can feel colder and more impersonal.

Some people confuse email marketing with spamming. Although it could be part of a strategy to send emails to random people based on a data-mined list of email addresses, these are called “cold” emails, and they aren’t a very effective way of converting your target audience. Email marketing is about contacting the leads who willingly subscribed to your email list, providing them with quality content, and gaining their loyalty or trust.

By only contacting consenting subscribers, it means that your leads will be expecting updates from your business. Suddenly, what was once considered spammy promotional content, like discounts or exclusive offers, is now seen as welcome news because the lead has a familiarity with your brand – and actively wants to hear from you. This makes them much more likely to open, read, and act on your email, rather than if you were to just send cold emails to unsuspecting prospects. 


  • Segmenting your audience

If you have a business, whether it’s a purely online business or has a brick-and-mortar counterpart, email is a cost-effective way of reaching your audience. When you have your email list at the ready, it’s important to then spend some time personalizing and customizing your message according to your leads’ and customers’ preferences. This will make them more receptive to your content.

But you can go a step further than this. With email marketing, you can categorize your audience based on its various demographics, as well as psychographics and online behavior. This is called segmentation or segmenting your audience, and it’s an effective way of delivering emails that land with impact. 

For instance, if one segment of your leads is composed of teenagers, the emails they receive should be different from the emails sent to, say, working twenty-somethings or corporate professionals. You can do this by carrying out some market research about a particular segment and tailoring your content to match. Over time, you’ll notice that this is much more effective than using a one-size-fits-all template that might ultimately alienate sections of your audience. 

Segmenting your audience is also useful because it can help you understand what time would be best to send emails to a given group. Based on your data, you can time your emails so that they’re sent during hours that a particular segment is likely to check their emails. For instance, in the previous example, teenagers are most likely to check their emails after school hours, while working professionals tend to do this during the workday. 


5 Reasons Every Business Should Use Email Marketing


1. To build trust and relationships

Unlike cold marketing strategies, subscription-based email campaigns are a great way to build trust with your audience. This is because by simply asking for subscriptions, you are already showing a level of respect that isn’t felt with other forms of marketing – you’re not simply serving people an ad they haven’t asked for. This inspires a greater level of trust in your brand, and by using personalized templates that appeal to their specific interests, email marketing allows you to nurture that trust and build a loyal customer base. 

Building loyalty with your leads can be done via regular updates, like company newsletters and exclusive offers. As your leads get to know your business and product better, they’re likely to become more trusting and interested. Familiarity is key to the success of any business, whether online or offline. It’s the sense of being part of the community, like the local barbershop or the neighborhood bakery, that establishes trust.


2. To establish authoritative credibility

Not all emails should be about sales pitches and products. Instead, try to break these up with emails that include educational or useful content. For example, you can provide ‘how-to’ advice on solving some of the common problems that your potential clients may have. You can also use interactive content, like informative quizzes, to engage your audience, as well as personal content, like brand stories, to humanize your company more. 

Of course, your email content should still focus somewhat on your product, or at least on the industry to which you belong. But always try to tie this in with creative content that will break up the cycle of promotional literature and product updates. If your business is an online piano tuition service, for example, you might engage your audience with content about music theory, in addition to promoting your lessons. This provides your leads with valuable content and shows them that you care about their interests, not just their money. 


3. To generate inquiries

Depending on which stage of the customer journey your target audience is, you can stimulate curiosity with well-thought-out emails that pique curiosity. Instead of showing all the goods in one email, leave your audience wanting something more, something that will tantalize them into contacting you for more information or visiting your website.

[Related: High converting email templates for businesses]


4. To reach mobile users

Most online activity is now done using smartphones and tablets. According to one Radicati study, about 85% of email users will access their emails through their mobile phones. In fact, about 78% of marketers observed an increase in email engagement through 2019. 

That means using email marketing to promote your business helps you reach mobile users. 


5. To achieve excellent ROI

Compared to other types of online marketing, email marketing is very affordable and has a high ROI: for every $1 spent, the ROI is $38. This is almost a 400% ROI, besting all other types of marketing. This list includes the approximate ROI per dollar for other marketing channels:

  • SEO: $22
  • Internet display: $20
  • Keyword ads: $17
  • Mobile: $10
  • Catalogs: $7
  • Banner ads: $2


How To Measure The Success Of Email Marketing For Businesses

Several parameters can be used to measure the success of email marketing for businesses. The success level of any campaign should be based on email marketing metrics. These are also applicable to other types of marketing campaigns, and include the following:

  • Clickthrough rate: The percentage of email recipients who clicked on one or more links contained in the email message.
  • Conversion rate: The percentage of sales as compared to the number of emails sent. It also refers to completed the desired action, such as filling out survey forms.
  • Bounce rate: Emails that didn’t reach their intended recipients. Typically, email addresses are either wrong or don’t exist anymore.
  • List growth rate: Simply put, this is the rate at which your email list increases as more and more people subscribe. This shows you how popular your subscriptions are getting.
  • Email sharing/forwarding rate: This is the percentage of recipients who shared the email content compared to the total number of email recipients.
  • Overall ROI: This is calculated by taking the total amount of revenue generated and dividing it by the total amount spent on the campaign. You then multiply the figure by 100% to get your ROI.
  • Open Rate: The percentage of email recipients who opened the email.


Even in this age of social media and new digital channels, the importance of email marketing can’t be overstated. It has a high response rate, builds trust, and can help your business reach more people. 

Need support for your business email marketing? Let’s chat.

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