Email marketing is a tried and true technique that’s here to stay. Check out this post to see why you should be leveraging it with your current customers.
E-mail marketing is one of those online marketing techniques that can go either way- some people love it, while others do not. It has its admirers and it has its critics. The one thing that is certain throughout is that it arouses comments from everyone within the field. Anyone educated in the Internet marketing world is well aware of the benefits of e-mail marketing, spending considerable time and effort exploring the various options available.
Considering the popularity of e-mail marketing, it is hardly surprising that it is used to communicate with new and old customers. Consider this fact: It is far cheaper to retain an existing customer than acquire a new one. This is a well established concept within the Internet and e-mail marketing circles. Given this information it would be plain silly, if not positively foolish, for any business to ignore its existing customer base. And if this wasn’t reason enough, here are some more reasons why e-mail marketing to existing customers is the best and most cost effective method of increasing online revenues.
1. Increases the “eyeball to sales” ratio
Research indicates that repeat visits are the key to converting visitors to buyers. It takes the average customer nine visits before he or she finally makes a purchase. E-mail marketing allows you to keep in touch with customers who are interested in buying the product. It gives you the perfect opportunity to nudge them in the right direction – your website.
A potential customer who visits your website can be distracted by many things – the doorbell, a phone call, a visitor, and who knows what else. Unless you manage to capture the person’s e-mail address and send follow up e-mails, chances are you’ve lost that sale. So, e-mail marketing can significantly increase your eyeball to sales ratio.
2. Increases repeat sales
It costs almost 6 – 12 times more to acquire a new customer, rather than sell to an old one. With existing customers, you don’t have to spend money educating them about your website and various offers. They have already shopped there before and are comfortable with the store. An effective e-mail marketing campaign can garner major sales when sent to the existing customer database.
3. Can be used to up-sell and cross-sell products
Amazon.com found that they could increase sales by a whopping 30% by up-selling and cross-selling products. A customer who buys a book on parenting is immediately sent e-mails offering discounts and other promotions on books, magazines and products related to parenting.
4. Allows you to track the success of your campaign
This is one of the biggest edges that online marketing has over offline marketing. With e-mail marketing campaigns, clients can immediately track the leads generated and the sales made from a particular campaign.
Another major benefit of e-mail marketing is that it allows the client to make immediate adjustments and corrections within the campaign based on customer feedback and reviews. If a campaign is spread over two months and a glaring error or change is required to be made after the first two weeks, it can be done- saving the remaining six weeks from this error.
5. Sells to ‘interested’ customers
When e-mails are sent to existing customers you are marketing to ‘interested’ customers. The fact that they have already shown an interest in your products and services makes them more likely to buy from you again. These existing interested customers are also more likely to pay attention to offers and promotions within the e-mails. It is thus far easier and more effective to market to interested customers, rather than finding those that may be interested.
6. Can be used to encourage offline sales
Research shows that 50% of all people are driven to making an offline purchase after receiving an e-mail promoting that particular product. The power of e-mail marketing cannot be denied. Your existing customers have already indicated a high interest in your products and services. An e-mail marketing campaign can provide the impetus required to drive these customers to make offline purchases as well.
E-mail marketing is the perfect tool for maximizing the potential of your existing customer base. Use what you already have available to gain an increase in sales!
-Stacie Leonard, Volusion