No other marketing tool is as successful as email. This is also due to the fact that it does not cost a lot and delivers measurable sales. Only cheap is far from good.
The dead live longer. This is especially true for email in the marketing mix. Those who do not use them belong to a minority, as numerous e-commerce studies have shown over and over again for years. However, success is not guaranteed. If you get into the wrong partner, you will burn your marketing budget.
The study “E-Commerce-Markt Deutschland 2020” by the EHI Retail Institute and Statista has shown that of the 1,000 online shops with the highest turnover in Germany, 93.4 percent operate e-mail marketing. According to US email marketing expert Litmus, email is one of the two most effective marketing channels for 77 percent of marketers.
Litmus explains why this is so in the study “2020 State of E-Mail, Fall Edition”: One US dollar invested in e-mail marketing results in sales of 36 US dollars. No other marketing channel can keep up. Compared to other channels such as posters, TV or radio advertising, the ROI in email marketing is also very easy to measure.
Flexible billing with CPO, CPL or hybrid models
The marketing tool e-mail is also so successful because professional providers provide flexible contract models that can be adapted to the individual requirements of small, medium-sized and large companies.
So exist z. B. different billing models such as cost-per-order (CPO) or cost-per-lead, where payment is made for each order placed or for each contact made. A disadvantage of this type of billing is that neither a specific dispatch volume nor a budget are defined, so that many agencies cannot manage these campaigns at all.
With the thousand contact price (CPM), the advertiser already pays for the display of his advertising material in the mailbox of the potential customer. This billing method usually leads to a high level of awareness, but the advertiser does not necessarily get new customers.
The combination of the models mentioned, the so-called hybrid model, enables individual target agreements. Normally, the CPM and the lead price are reduced. The advertiser benefits not only from the increased visibility of the advertising message to the users, but also from guaranteed leads. With this added value, the calculated costs are further reduced compared to the performance.
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Budgets adapt to the campaign
The flexibility continues with the budget. Professional email marketing can be set up with a small test budget. The Interactive One approach makes it possible: A small test run including reporting reduces the risk for the advertiser and is quickly scalable if successful.
Because with email marketing you don’t have to work with fixed monthly budgets. Instead, you can use them flexibly, for example for seasonal promotions, or you can raise the budget when a product launch is to be advertised and lower it again when the holiday season begins.
Where advertisers can still save costs
A cost item in marketing that should not be disregarded is the creation of advertising material. Companies that invest in email marketing can save costs here by using templates from existing customer communication.
Anyone who also has the legal risk in mind will quickly benefit from the high ROI in email marketing. Therefore, you should contact a reputable agency with your marketing plans from the outset, where the focus is demonstrably on legal certainty.