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How does Email Marketing Work in Business? What are its Benefits?

  • Bhumika Dutta
  • Nov 11, 2021
How does Email Marketing Work in Business? What are its Benefits? title banner

Marketing is a critical component of every company's growth. Good marketing may lead to the most efficient use of a company's resources and aid in quick expansion. The organization can use a variety of marketing strategies, one of which is Email Marketing


Email marketing is useful for all businesses of any size, but it is especially advantageous for small enterprises. In this article, we will learn about email marketing and how it can assist any business.


About Email Marketing


The act of sending promotional messages to a large number of individuals is known as email marketing. Its purpose is usually to produce sales or leads, and it may also include advertising. It is a strong marketing channel that uses email to advertise the company's products or services. It is a type of direct marketing as well as digital marketing


By incorporating it into any marketing automation efforts, it may assist make the consumers aware of their latest goods or offers. 


Various forms of marketing emails may also play a key part in your marketing strategy by generating leads, raising brand recognition, creating connections, and keeping consumers engaged between transactions.


( Suggested Blog: Top Internet Marketing Strategies )


There are certainly other, more modern ways to communicate with the audience and consumers, like social networking, live chat, and other communication tools are just a few examples. 


Even after all of these, email is the king of marketing channels, with a user base of nearly 4 billion individuals. Furthermore, according to Neilpatel, email marketing offers a return on investment of $38 for every dollar invested, indicating that it should be included in every marketer's toolkit. 


Email marketing continues to be the most successful marketing channel, outperforming social media, search engine optimization (SEO), and affiliate marketing.



How does email marketing work?


To start with email marketing, some requirements should be fulfilled. The required elements are given below:


  1. List of recipients:


The senders need to have an active email list, which is a database of relevant email contacts who have shown some sort of interest in the products or services of the company. 


This will create effective marketing communications of the brand with its customer base. Building an email list may be done in a variety of ways. 


One of the simplest is to design a lead magnet, also known as an offer, that the company's target audience will want in return for their email addresses, such as a voucher or coupon.



  1. An Email Service Provider (ESP):


An email service provider (ESP), usually referred to as an email marketing platform, is software that helps in the management of an email list. It also supports the creation and implementation of automated email marketing campaigns. 


One may use an ESP to automate activities that are triggered by the behaviors of your target audience. These allow businesses to customize each connection with them, resulting in higher engagement and conversion rates.


( Also Read: Conversational Marketing - Strategies and Examples )



  1. Designated Goals:


To be successful in email marketing, the company needs to decide the required goal for the company. 


Many types of growth can be boosted using email marketing, like driving sales, customer engagement, increasing customer loyalty, etc. The email list, ESP, and campaign goals must all be in sync to run a successful email marketing campaign. The first step is to categorize the email list by demographics or activities taken by subscribers. 


Create an email, or a series of emails, to persuade customers to take action. Finally, utilize the email service provider (ESP) to send emails and track the campaign automatically.


( Must Read: Marketing Management Goals )



Benefits of Email Marketing in Business:


There are many benefits of email marketing in any business. It creates a direct relationship of the company with its customer, and it is efficient and cost-effective as well. 


Therefore, it gives more control to the company and at the same time does not annoy any customer, as emails are permission-based. Some of the benefits of email marketing, according to the campaign monitor, are given below:


  1. Better Customer Relationships:


Any business must have a strong and loyal customer base, for it to be successful. It is also important to maintain a good relationship with the customers and have effective communication. 


This can be achieved via email marketing. It is impossible to contact every customer personally, as it would be tedious and time-consuming. But with the help of emails, companies can let their customers know about their latest updates or any other important news. 


Most businesses ask their customers for their email subscription through their websites, and if anyone has opted for that, the company should not hesitate to keep in contact with their customer base and send their latest updates in the form of regular newsletters. 


( Also Read: Advantages of Customer Relationship Management )


  1. Branding:


Many reputed brands in the world have already made their name to the top. Most of them are so popular that they are almost synonymous with the industry they operate in. 


But many brands still do not have enough recognition. Email marketing is a terrific approach to growing any brand since it allows direct access to their customer’s or potential customers' email inboxes. 


Regular updates help in establishing a distinct voice, style, and image for their subscribers. Emails give businesses a clear platform to build their brand according to themselves and present it to their customers without the involvement of any third party. 


Each email is an opportunity to communicate with the customers and reinforce the company's distinct brand identity in their thoughts.


(Suggested blog: Marketing analytics)


  1. Better Content Delivery:


Emails are free in cost and one can send as many emails as they want to. The only charges that the company might have to bear are the Email service provider’s charges. 


So, while sending emails, the content writer or creator will not have to worry about sticking to elements that are purely subjected to the advertisement. The freedom of content creation will help tremendously in building a unique brand identity and drive more traffic towards the business. 


Email marketing does not only have to be coupons or sales, it can also be certain content that the receivers might enjoy reading or watching, like articles, blogs, or videos.  


This not only enhances the credibility of the creator as an expert, but it also enhances the credibility of the business communications. People will look forward to receiving emails from the company since they know that they consistently produce high-quality information.


(Related reading: Marketing analytics tools)


  1. Economic and Efficient:


As mentioned earlier, emails are economic as they are a free source of advertisement. Growing businesses, especially the smaller ones, often have constraints of both time and money, as they have goals of achieving a lot in a short period. 


Even focused direct mail operations, such as delivering fliers to the mailboxes of people in the neighborhood, can be expensive. One might spend many dollars on every flyer delivery between design, printing, and mailing charges. 


The optimal use of time and budget is one of the most significant advantages of email marketing for small businesses. It's not difficult or time-consuming to create a professional email marketing campaign. It is also incredibly cost-effective to send emails to a huge number of subscribers. 


Companies receive direct access to potential clients' email inboxes without having to pay for direct mail. Email marketing is one of the most cost-effective forms of marketing available for any business. 


(Related reading: Elements of Marketing Communication Mix)

  1. More credibility:


Building credibility is one of the most difficult obstacles for a local company to overcome. Why should someone give you their business if the name of the company isn't as well-known as that of the big brand down the street? The reason consumers trust well-known brands is primarily due to marketing. 


Because consumers are familiar with these companies, they are more likely to trust them. One may establish credibility through email marketing by remaining in touch with the consumers and keeping them informed about the organization. The more people learn about the company and the more they hear about it, the more likely they are to trust it.


( Suggested Blog: Factors Influencing Consumer Behavior )





Email marketing has several advantages for small organizations. It all comes down to the reality that email marketing is extremely cost-effective while delivering outstanding results. 


Without breaking the marketing budget in one fell swoop, you may expand their business, build a brand, and establish themselves as an authority. Best of all, developing a visually appealing and efficient email marketing campaign does not take a long time.


But with advantages, there are some disadvantages of email marketing as well. It might be difficult to stand out in a crowded inbox. The email's originality and ingenuity can only help it succeed. The firm must also have a relevant and active email list for the campaign to function, which might be difficult to compile. 


Finally, several regulations control the use of email for business reasons. GDPR, CAN-SPAM, and the CCPA are just a few examples. All of them mention that you are not allowed to send unsolicited emails.

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