By: Javi Calderon
on Tuesday, August 24, 2010
How to Increase Your Business' Profits through Email Marketing
Have you realized that over the last couple years every retail store has begun asking for your Email address while you are paying for your purchases? Then, (not so) surprisingly, a week or two later you have an Email from them telling you about a new special, a new product, or one that’s coming out soon. This is Email marketing, it has evolved into a science, and it is a sure-fire way to increase your business’ income.
Laws Restricting Email Marketing
Before 2002 unsolicited spam marketing Emails were legal and companies were free to send Emails to mass amounts of recipients. This technique, however, is quite ineffective considering that the majority of recipients have absolutely no desire for nor connection to the products offered.
However, in 2002 the European Union passed a law called the Directive on Privacy and Electronic Communications which made spam Emails illegal in attempts to protect people’s privacy and facilitate easy use of the new internet-based forms of communication. The United States followed suit with the CAN-SPAM Act of 2003, or the Controlling the Assault of Non-Solicited Pornography and Marketing Act, which prohibits the use of spam Emails in marketing campaigns. Violation of the law carries a $16,000 fine per spam Email recipient.
Though the law is largely unenforced, most major retail stores have complied with the mandates which only allow for spam Emails to be sent to willing recipients, and also calls for the Email to be sent from a live Email account including a one-click option to remove oneself from the recipient list. The law has opened the door to internet marketing companies and software that help guide business owners through safe and legal avenues for Email marketing.
How and Why Email Marketing Works
Before the CAN-SPAM
act of 2003 Email marketing was largely ineffective because most of the recipients had absolutely no tie to the company or the product. Under the law however, recipients must agree to receive the Emails, and companies accomplish this by asking you for your Email address at the checkout counter. This means that you have already bought a product from them and are probably willing to do so again. Immediately, this simple fact increases the effectiveness of Email marketing dramatically. Seeing the name of a company that they regularly buy from some recipients are bound to open the Email, see a product they want, and buy it. By simply reconnecting with your client base you can easily convince 10-20% of them to buy from you again.
Did I mention that unless you use an Email marketing service there is almost no cost? You can see 10-20% profit with almost no cost. By sending coupons or newsletters through the postal service you have to pay the price of paper and postage, but an Email is free. However, an Email marketing service can be a great tool for a surprisingly low fee, especially if you have many customers coming through your doors. While you are the expert in your field, they are also the expert in theirs. They know demographics; they can help you target customers from New York
, or just within your city depending on your needs, and they know trends and strategies to make your marketing that much more effective. As a second benefit, the time you would spend sorting information, entering customer Email addresses and sending out Email newsletters, you could use to focus on other aspects of your business.
When marketing Emails are sent to a specific and targeted audience this technique is called direct Email marketing. These Emails are more personalized and authentic to the audience receiving them. Email blasts, on the other hand, are more general Emails sent to a wider audience. An Email marketing company would be able to lead you through these techniques and guide you towards the best Email marketing tools for your specific goals and needs.
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Every business keeps customer or client information. Basic information like name, phone
number, address, etc. By simply asking your customers for their Email address you can then add them as contacts in your office or business Email and compile them into a group. Then you can simply select the group when you are sending out the newest newsletter and it will be sent to all of your customers who have given you their Email address. As you can imagine, for a business with many clients this can be a daunting task, that’s why software and Email marketing services
are available that do all of this for you through the computer at the checkout counter. One of the most important aspects of advertising and sales is to keep your business or product in your customers’ mind. It is absolutely integral to maintain contact with your clients because out of sight is out of mind, and if they forget you they will end up at your competitor’s doorstep. With Email marketing you can be sure your customer will be up-to-date with your business and will never be out of touch.