by the Numbers
Your business could be a
restaurant, a florist, a car dealership, an educational
institution, a vineyard, a nonprofit, a bank, a rock and
roll band – you name it! Success and profitability
is all about creating loyal customers (ex –diners,
buyers, prospective students, drinkers, donors, clients,
and fans) and driving interest, repeat business and referrals.
it is roughly six to twelve times less expensive to sell
to an existing customer than it is to acquire a new one,
the value of customer loyalty and repeat business is just
too compelling to ignore.
According to Bain and Company:
It’s All About Communication
Communication is a critical part of any relationship. Take
a lesson from small businesses that long ago grasped the
dynamics and importance of building customer relationships
through communication. They nurture their customers over
time by learning and remembering individual preferences
and interests. They acquire this customer information directly
from customers through personal interaction. And they keep
in touch with customers on a regular basis ensuring their
organization remains “top of mind.”
Statistics show that it takes six
to seven contacts before you can turn a prospect into a
customer. All of that contact can be expensive and
time consuming. That’s where email marketing becomes
a critical part of any organization’s marketing efforts.
Email Turns Prospects and Visitors into Loyal Customers
Email marketing enables you to proactively communicate
with your existing customers instead of passively waiting
for them to return to your Web site, visit your store or
office, call you on the phone, etc. With email marketing
you can solidify existing relationships, initiate new ones
and convert your one-time visitors, buyers and members into
repeat business and long-term customers or contributors.
No matter how your visitors, prospects and customers found
you; perhaps you paid for search engine placement, sponsored
a newsletter, rented an opt-in list, placed a banner ad,
distributed a flyer or sent a postcard; email marketing
adds to your bottom line because it allows you to maximize
your investment in those expensive and time consuming marketing
efforts and improve the return on investment (ROI) of every
dollar you spend to obtain new business and develop profitable
According to DoubleClick, good email marketing wins over
Why is Email Marketing the Answer?
Email marketing is one of the most powerful marketing tools
available today. It is easy, affordable, direct, actionable
and highly effective. When you add email to your marketing
mix, you spend less time, money and resources than with
traditional marketing vehicles (ex – direct mail or
print advertising). With email marketing you can communicate
more quickly which means your time-sensitive information
is disseminated in minutes, not days or weeks – and
you can see the results of your efforts instantly.
Email marketing is at it’s most effective when used
in communications to your existing customer list or “house
list” as a means of customer retention.
Communicate More Information, More Often
Email marketing is an affordable way to stretch a tight
marketing budget. With a response
rate five times greater than direct mail and 25 times
the response rate of banner ads, email marketing is the
most effective way to increase sales, drive traffic and
Unlike direct mail, there is very
minimal production cost (Only $99.00), and no material or
postage expense ($0.02 instead of at least $.37).
So, with email marketing, you can easily and affordably
create more communications that are valued by your customer,
and you can make those communications support and enhance
your brand in a way that substantially differentiates your
company from the competition.
Your communication can include newsletters, preferred customer
promotions, sale notifications, new service announcements,
event invitations, holiday greetings and much, much more.
Educate Your Customers
Information and education make your customers and prospects
much more valuable because they are more likely to buy when
they can make an informed decision. Why force prospects
to look elsewhere for the important information they need?
Your email communications can gently lead a prospect through
the sales process, provide important data and drive the
prospect to your website for more details and/or a purchase.
For example, an email newsletter is uniquely suited to accomplish
the long term goals of customer retention and loyalty, while
it can still contain calls-to-action that provide short-term
For most businesses, a well-educated customer uses products
and services to their greatest advantage. And, guess who
will be first in line to buy when something new becomes
The ideas are almost endless when thinking about an educational
event exclusively for your eClub members. Here are a few
off the top of my head for different types of businesses:
Just think of all the great
eClub events that you can have for your specific type of business.
Studies show that both senders and recipients increasingly
prefer email marketing. According to DoubleClick:
Foster Long-lasting Relationships
Email is an easy and inexpensive way of establishing early
and long lasting relationships with your prospects and customers.
And the benefits of these relationships are far reaching.
When you inform and educate prospects and customers, they
begin to perceive you as capable of addressing their needs.
Even better, they may look to you as an expert. This develops
trust, opens the door to two-way communication and allows
them to share their pain points with you.
Using the information you gain from your prospects and
customers, you will be able to better serve their ongoing
needs, home your unique selling proposition and slowly close
the door on your competitors. In the process, you may discover
hidden sales opportunities that you may not be addressing.
Easily Measure and Improve Your Results
The benefits derived from most types of marketing and advertising
are very difficult to measure. With email marketing, however,
you can easily measure the number of emails sent, emails
opened, bounce backs, unsubsribes and click-through rates.
You can also tell who opened your email, which links in
your email motivated the most clicks and, even more specifically,
who clicked on each link. All of this useful information
can help you send highly targeted campaigns to the individuals
most likely to respond to your offer, thus improving your
results going forward.