Why Email Marketing Services Have Such A Good Return On Investment 

In this blog article and podcast, we are going to talk about why email marketing services have such a good return on investment. We'll discuss the philosophy behind why email marketing continues to generate a good return on investment and give you some tips on how you can optimize your email marketing to generate even more revenue. Profitworks Inc. is an expert in the field of Email Marketing, which is one of the highest average ROI marketing mediums available to businesses. Contact them now to learn more!

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Executive Summary

  • People are always checking their emails which means a high level of interaction with your email
  • Emails can be personalized so that potential customers only see what's applicable to them
  • Email marketing is one of the lowest cost forms of marketing available
  • Email marketing allows you to make repeat impressions
  • Growing your distribution list is simple and effective
  • It's incredibly simple to test and improve your marketing emails


Sales & Marketing ROI Podcast: Episode #32

Why Email Marketing Services Have Such A Good Return On Investment. Click the link below to listen to the podcast. 

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Why Email Marketing Services Have Such A Good Return On Investment 

Email Marketing High ROI infographic

With the influx of companies using social media outlets such as Facebook, Youtube, and Twitter to market online these days, why should you even bother to use email marketing? Well, the easy answer to that question that email marketing has proven time and time again to be one of the most effective methods of small business marketing. According to econsulty.com, email marketing was actually marked as the best channel in terms of return on investment in 2014. 68% of those involved in email marketing claimed the method produced either excellent or good ROI, while on the other hand the ever growing field of social media marketing actually had one of the lowest ROI satisfaction rankings. You can check out more on the topic of which marketing methods have the best ROI here. Despite the fact that companies are seeing results from their email marketing, small business are only spending approximately 16% of their marketing budget on emails. Why is email marketing so effective, and why aren't more people committing to it? Here are our top 6 reasons why email marketing services have such a good return on investment.

1. People check their email all the time

This is one of the major reasons why email marketing is so effective. Not only do most people have an email account already but according to expresspigeon.com approximately 91% of consumers check their emails at least once a day. That means that if you have an email list of 5,000 people approximately 4500 people are going to come in contact with your email. Now, suppose that instead of sending out an email you posted on twitter or facebook about a new promotion. Even if you have 5000 followers the chances of 4500 of them interacting with your post is fairly slim.

2. It's a marketing vehicle that can easily be personalized

NametagTesting has shown that people who use more personal email styles have a higher rate of success than those who don't. There's a few ways you can do this. We've all gotten those emails that have our name included and we're incredibly curious as to how they knew our name. If you use forms to gather your subscribers it's simple enough to ensure they include not only their email address but their first and last name as well. Most email marketing platforms will allow you to import subscribers along with personal information so that you can actually send a personalized email to each subscriber. Other ways you can personalize email marketing is to group your subscribers into different email marketing lists, allowing you to only send emails to each list that concern their interests. For example, if you run a makeup business, you could create a subscription form on your website that suggests they put in their favourite makeup brand. You can then build separate lists and emails based on their preferences. For more ideas on how you can personalize emails, check out this article.

Personalizing other types of marketing methods is definitely more difficult than this. When you send out a tweet or even run a commercial there's no way you can control who views it. Instead, you just have to hope the right people come across it. We believe that this aspect of personalization plays a large part in allowing email marketing to generate such a high ROI. If you need help from an email marketing expert who can help you create high ROI personalized emails contact us today!


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3. It's cost effective

Most marketing methods that cost your company an arm and a leg will not produce a very high ROI. Luckily enough email marketing is actually an incredibly cost-effective form of marketing. According to this article from the Harvard Business Review, "...compared to other media, email messages are dirt cheap to send...its low cost only makes the argument stronger that email marketing is the most cost-effective advertising method available today". Email marketing is exactly what small businesses should be craving: a cheap, effective, and high-return marketing method. Essentially you can make email marketing as cheap or expensive as you'd like. You can certainly do it yourself, which will cost virtually nothing, or you can invest in the services of an email marketing company which will save you time and ensure you that your email marketing plan is effective and high quality. We would also suggest you create an account with a company like Mailchimp, which is an incredibly low-cost but efficient way to create and send 1000's of emails each week.

4. It allows for repeat impressions

When you use email marketing you're able to target the same audience over and over again, which is incredibly beneficial. According to Dr. Jeffrey Lant who created the "Rule of 7", it takes a person on average 7 interactions with something in order for it to make an impact on them. What are the chances that other marketing investments are going to be able to interact with potential clients at least 7 times? If we use Google Adwords as an example, there is a very slim chance that a potential customer will come across your ad at the top of Google over 7 times. It's much more likely that they will have found what they were looking for after only 2 or 3 searches.

5. It's easy to grow your distribution list

One of the best things about email marketing is that your target audience can grow automatically. By creating simple forms on your website anyone who visits can enter in their email which will be compiled into a list to be uploaded and added to your distribution list. A lot of people create forms with wording such as "Subscribe to our weekly newsletter here" or "Want to be the first to hear about our specials and sales?". These types of forms will add some emails, but in general, they are very ineffective. Instead where most companies see the best results is when they offer promotions or valuable content/tool downloads in exchange for an email address. This won't add a single dollar more to your email marketing costs if you pay for a flat fee, and it will easily create more sales given the increase in your email list size.

6. It's easy to continually test and improve results

With email marketing, you can create new tests with every send to determine what works best for open rates, click-through rates, and more importantly, creating sales. Because data is digitally collected on each email send, it is incredibly easy, especially when compared to other methods such as direct mail, visiting trade shows, or going door to door. Testing different send times, subject lines, or even the font size that you use in the emails to determine what works best with your audience can have a significant impact on the sales the emails deliver. As you perfect your emails you'll find that the conversions only go up.


Tips and tricksSome tips to create more effective emails

There are a few ways that you can create an effective marketing email that generates a high click rate, but more importantly, sales for your business. Here are a few tips that we've picked up throughout our years of creating emails for our clients.

  • Keep your subject line short and simple: We have found that having a short simple subject line is key to generating a higher open rate for your emails. Some of the most effective ones we have used involve either a couple words about the topic of the email itself or about the industry it's being sent to.
  • Personalize: As mentioned previously personalizing your email tends to produce a much higher click rate. This can include anything from using the receiver's name in the email, to creating specific lists and having a signature on the emails. You can also use more personal terms such as "you" and "I" rather than "we".
  • Include plenty of linking opportunities: The goal of most emails is not generally to sell them on the idea through the email, but rather to get people to click through to your website. It may seem obvious, but the best way to do this is to ensure you have plenty of linking opportunities throughout the email. This can include things such as "Call To Action" buttons, or a bulleted list of hyperlinks that lead to your website.
  • Know when to send: Understanding the appropriate time to send an email can make a huge difference. If you show up to work on a Monday morning with over 25 emails in your inbox what are the chances of you opening even half of them? When you start your email marketing campaign, spend the first few weeks testing what time results in the highest open and click rates.

If you follow some of these simple tips you should be able to create effective marketing emails in no time! Even starting up an email campaign can take less than a week! Always make sure to continually test new ideas through A/B email testing to help you discover what works best at generating high levels of response from your subscribers. For more tips, click here to check out these other articles!



Profitworks Small Business Services provides email marketing, website traffic, and website conversion optimization services which increase the number of sales generated from a website. The focus of our services is on increasing sales and providing a positive return on investment. To learn more about Profitworks, click here


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