How does e-mail marketing work?

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June 17th, 2009 by Dan

Email marketing belongs in the direct marketing stable because essentially it is using electronic mail to communicate with an audience in order to advise, sell, offer a service or educate. The reasons for choosing this form of internet marketing are many.

This is how it works

Sending emails with the purpose of encouraging customer loyalty or repeat business. Sending emails with the purpose of getting new customers or convincing current customers to buy something.

In the USA alone, $400 million was spent on email marketing in 2006.

Advantages

Email marketing for companies offers many advantages such as

• Mailing lists, when gathered correctly, provide the avenue to distribute information to a specific audience
• Email is less expensive than conventional printed mailing methods
• ROI, or return on investment can be tracked
• Email marketing is second only to search marketing as an effective online marketing tactic
• Delivery time can be measured in terms of seconds
• Advertisers are able to push their message as opposed to web based advertising which relies on customer visiting a website
• Messages are easy to track using tools such as web bugs, bounce messages or autoreponders and read receipts. These tools help measure positive and negative responses
• Advertisers can generate repeat business automatically
• Advertisers can reach a huge number of email subscribers who have consented to receive their messages
• Almost half of all internet users check their emails each day
• Some kinds of interaction can trigger other messages to be automatically delivered or things such as updating a recipients profile to indicate interest in a specific category
• Email marketing is paper free and environmentally friendly

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