Email Marketing ROI For Small Business

Online Marketing, especially email marketing, will increase a Small Business’ bottom line more than by traditional means.   Beginning an email marketing campaign is the first step towards freeing up the company or organizational resources that may be underutilized by other types of marketing such as direct mail campaigns, print, radio, and television advertising.  Even if resources are not being dedicated to these types of marketing, small and medium-sized business owners and entrepreneurs will want to embark upon an email campaign – because it’s so cost-effective and the Return on Investment is high if it is done properly.

Traditional Marketing Versus Email Marketing

Let’s face it: marketing of any type can be expensive.  ROI is not always guaranteed and it can be hard to measure.  For example, the traditional return on investment from direct mail and print advertising is 1-3%.  Essentially, if a company invests $100,000 per year in one of these methods, the sales department can expect to bring in $1,000-3,000 per year.  This is an enormous cost for marketing that is quickly becoming outmoded and outdated. Is it worth it?

The answer depends upon how much money company stakeholders want to spend on marketing.  Today, many companies and organizations are interested in conserving resources and getting more mileage from their marketing investments.

By comparison, an investment in email marketing will yield far better results. The Direct Marketing Association just released an economic impact study on the ROI of email marketing, “Commercial email returned a whopping $43.62 for every dollar spent on it in 2009.” Statistically, Email marketing ROI is outperforming traditional types of marketing.

Segmented Email Marketing Campaigns Yield Better Results

A return on investment can be driven even higher with proper market segmentation and expansion of an email list.  Targeted lists tend to bring in more ROI because customers and prospects are either familiar with the brand or are already searching to buy a specific product or service.  Chances of closing sales on this type of prospect are much greater — and often involve a commitment of less time and money.

How an Email Campaign Can Help Search Engine Marketing

Email marketing campaigns have additional benefits to a company or organization’s bottom line. Targeted email campaigns can also increase website traffic. The purpose of email marketing is to either inspire a client or prospect to buy (or contact the sales department immediately) or to drive traffic through a website where an individual may become more familiar with the brand. Prospects and customers that visit a website via an email campaign are better informed about products, services, and specials and are likely to become return visitors and loyal clients who want to build a relationship with the company or organization.

Three Steps to a Successful Email Marketing Campaign

There are many facets to the beginning and continuing a professional email campaign that is effective.  First, a company or organizational leader must select the right email service provider, because a large volume of emails cannot usually be sent via most email addresses without being ‘flagged.’ Some examples of email platforms include Vertical Response and Constant Contact. Second, a targeted email list must be compiled and converted into the proper format for the email service provider website or software. Third, and perhaps most importantly, the content for a monthly, bi-monthly or weekly email campaign must be in sync with other marketing strategies, and created and executed on a regular basis.

Online Marketing for Small Business Should Include an Email Campaign

If emails received from any company are to remain ‘in-box worthy’ then the information must be interesting and offer relevant information to the intended audience.  Email marketing is similar to other online marketing methods because there must be a steady stream of a generation of new, interesting content for it to be a success and generate real ROI. Without proper strategy and execution, an email campaign might just fall flat and not produce the results anticipated.

At the beginning of the Internet’s popularity, when email marketing was in its infancy, not much was known about the ROI of email campaigns.  There was very little written about effective Email campaign methodology and measurement of ROI. Now, email marketing has become a type of science, with most Web analytics programs providing accurate measurement of results.  Small businesses marketing online benefit greatly by hiring a consultant or expert in email marketing to formulate, execute, and measure the results of Email campaigns.

For more information about email marketing that converts visits to sales, visit