But why is email marketing so important in eCommerce?
Posted: Sun Dec 15, 2024 6:02 am
Customer acquisition is becoming more and more expensive for all online businesses. This is true for almost all online categories. But it is especially true for e-commerce companies.
Gone are the days of cheap Facebook and Google ads. Using third-party data has become impossible or really expensive. And in almost every e-commerce category, competition has increased. It’s also become harder to track the effectiveness of specific paid customer acquisition efforts using Google Analytics. This leaves you with a lot of unknowns and makes it harder to decide whether you should increase or decrease your spending.
Social Media Advertising Prices Rise in CPM - by Gupta Media
If you are going to be successful and profitable as an eCommerce company, you must have a regular and consistent source of traffic. There are simply no other channels that can compare to email marketing when it comes to email.
Email provides a huge return on investment
Estimates vary, but on average, email marketing has a 38-42x ROI. Compare that to the 1-3x ROI of most paid acquisition channels, and it’s clear why you need to invest in email marketing for your eCommerce business.
Email open rate in 2024 - 42x
A huge percentage of people in the world use email.
Statista reports that over 4.3 billion people worldwide use email. That's a huge potential audience for your online store.
4.3 billion – Number of email users worldwide in 2024
Most email users check their email every day.
In fact, it is reported that 99% of all email users check their email daily!
Most people check their email daily.
Email is in huge demand
Since the average click-through rate in e-commerce is often over 2-3%, and in some cases significantly higher, email has huge engagement rates.
Email marketing for eCommerce is affordable compared uk whatsapp number list to other channels
You can start with very affordable email marketing tools when your email list is small, and your costs tend to only increase as your subscriber count increases.
The conversion rates of email marketing campaigns in the eCommerce space are very high compared to many other marketing channels.
Clicks from eCommerce campaigns usually have a lot of context and intent. This means that conversion rates from email marketing campaigns are usually quite high.
Email is a great way for your customers to recommend you to their friends.
The best marketing is word of mouth, and email automates this process as you can encourage your email subscribers to simply forward your emails to increase awareness and attract additional subscribers.
It's important to know how much each of your email subscribers is worth.
If you’re an e-commerce company with an online store, you have many goals. You want to build a community. You want to increase awareness. You want to grow your social media following. But your main goal is to drive sales and, more importantly, drive profitable sales.
I’ve said before that email marketing for ecommerce can be your most profitable marketing channel. But to make this channel successful, you need to do something that many other ecommerce companies don’t do – you need to determine how much each of your email subscribers is worth to you.
Gone are the days of cheap Facebook and Google ads. Using third-party data has become impossible or really expensive. And in almost every e-commerce category, competition has increased. It’s also become harder to track the effectiveness of specific paid customer acquisition efforts using Google Analytics. This leaves you with a lot of unknowns and makes it harder to decide whether you should increase or decrease your spending.
Social Media Advertising Prices Rise in CPM - by Gupta Media
If you are going to be successful and profitable as an eCommerce company, you must have a regular and consistent source of traffic. There are simply no other channels that can compare to email marketing when it comes to email.
Email provides a huge return on investment
Estimates vary, but on average, email marketing has a 38-42x ROI. Compare that to the 1-3x ROI of most paid acquisition channels, and it’s clear why you need to invest in email marketing for your eCommerce business.
Email open rate in 2024 - 42x
A huge percentage of people in the world use email.
Statista reports that over 4.3 billion people worldwide use email. That's a huge potential audience for your online store.
4.3 billion – Number of email users worldwide in 2024
Most email users check their email every day.
In fact, it is reported that 99% of all email users check their email daily!
Most people check their email daily.
Email is in huge demand
Since the average click-through rate in e-commerce is often over 2-3%, and in some cases significantly higher, email has huge engagement rates.
Email marketing for eCommerce is affordable compared uk whatsapp number list to other channels
You can start with very affordable email marketing tools when your email list is small, and your costs tend to only increase as your subscriber count increases.
The conversion rates of email marketing campaigns in the eCommerce space are very high compared to many other marketing channels.
Clicks from eCommerce campaigns usually have a lot of context and intent. This means that conversion rates from email marketing campaigns are usually quite high.
Email is a great way for your customers to recommend you to their friends.
The best marketing is word of mouth, and email automates this process as you can encourage your email subscribers to simply forward your emails to increase awareness and attract additional subscribers.
It's important to know how much each of your email subscribers is worth.
If you’re an e-commerce company with an online store, you have many goals. You want to build a community. You want to increase awareness. You want to grow your social media following. But your main goal is to drive sales and, more importantly, drive profitable sales.
I’ve said before that email marketing for ecommerce can be your most profitable marketing channel. But to make this channel successful, you need to do something that many other ecommerce companies don’t do – you need to determine how much each of your email subscribers is worth to you.