Email marketing has been a staple of the marketers' toolbox almost as long as email itself has existed.
But these days nearly every purchase you make involves being asked to join some email list or other.
This begs the question: with so much competition for eyeballs, is email marketing still effective?
Or are you just annoying your customers with yet another email that will be left unread in their inbox?
Well, first let’s put any doubts to bed, email marketing is without question one of the strongest marketing tools businesses can use in 2024.
You just have to do it right and your email marketing will be very effective.
Let’s dive into why.
The Effectiveness of Email Marketing
On average per $1 spent, email marketing returns $42 in revenue.
That’s not a typo - email marketing is that efficient. A simple email campaign can be highly successful.
There’s a good reason for this, email is one of the few avenues through which you can speak to your customers directly.
Think about it, your email list is full of consumers who have specifically signed up to hear from your business or brand. Of course they will be interested in what you have to send them.
To really illustrate the effectiveness of email marketing take a look at this stat:
Google Ads reports an average ROI of $2 for every $1 spent
This means that for paid advertising most marketers would be very happy with a 2X return on spend.
Email is so much more effective than most forms of advertising.
Advertising is the equivalent of cold calling a potential customer who may never have heard of you before, Conversely email is a warm invite to a customer who already knows and likes your brand.
Which of these customers is more likely to part with their hard earned cash?
It goes without saying that if you have bought and enjoyed a brand’s product before you are more likely to be a repeat customer than to go somewhere new.
That’s what email does so well, it gives those loyal customers a little nudge, a reminder of a brand they like.
Every email sent gives them a chance to act on that brand loyalty with their wallet.
Of course, both advertising and email marketing have their place in your marketing mix but any doubt about emails effectiveness should be put aside.
Why Does Email Marketing Have Such a High ROI?
Email Marketing’s $42 returned for every $1 spent is an insane statistic, almost like a real life infinite money glitch. But how does this high ROI come about?
There are 6 primary reasons - let’s explore them.
#1 It's Great Value For Money
The most obvious reason, one that I’m sure you already know: email marketing is very cheap to do at scale.
For example Mailchimp will let you send a million emails a month for under $1000. That’s one tenth of a cent per email and other providers can be even cheaper.
Even with an open rate of 10% you are only paying 1 cent per click on an email you send.
Whereas with GoogleAds you can expect to pay a comparatively massive $4.22 per click on average.
#2 Targeting and Personalisation Produce Results
Aside from being inexpensive, email marketing’s ability to be highly targeted and personalized is one of the key reasons it consistently outperforms other marketing channels.
it's not just about sending out a generic message to everyone; it's about reaching the right person, with the right message, at the right time.
Take segmented lists for example, you can easily divide your audience into groups based on criteria like demographics, purchase behavior and how they’ve interacted with your emails in the past.
Tommee Tippee provides a great example of effective audience segmentation.
As a baby bottle and child care brand, they strategically time their emails to align with where customers are in their pregnancy journey or the developmental stage of their child, ensuring the content is both relevant and helpful.
A customer who’s bought from you before is far more likely to engage with a message tailored to their specific needs, compared to someone who just stumbled upon your brand.
By sending targeted messages to different groups you’re speaking directly to what they care about.
This leads to higher engagement and, crucially, better conversion rates.
And then there’s personalization, one of email marketing’s biggest strengths.
Emails that address recipients by name and recommend products based on their preferences or purchase history feel relevant and tailored.
This personal touch increases the likelihood of the customer taking action, whether that’s making a purchase or engaging with the brand.
So, why is this so effective? It’s simple. People are overwhelmed with generic, irrelevant marketing messages every day.
But when they receive an email that speaks to them directly, it cuts through the noise. They feel seen, understood, and more inclined to engage with the content - whether it’s clicking through to your site or making a purchase.
#3 The Engagement Rates Are Amazing
Then there’s the engagement rates. A good open rate is 15 to 25 percent, that’s a marketers dream - and it’s not uncommon!
One reason for this is simply because consumers prefer it. People check their inboxes constantly whether on their phone, at work, or during downtime.
73% of consumers say that email marketing is their preferred marketing channel.
And when the content is relevant, they’re more likely to engage with it. Compared to a social media ad that might get scrolled past, an email offers a direct and personal way to reach them.
It's communication that people expect and often welcome, especially when it offers value.
#4 It Excels at Customer Retention
Email marketing is highly effective at customer retention. It’s not just about sending one-off promotions; it’s about nurturing relationships over time.
Regular, thoughtful emails keep your brand top of mind, reminding customers why they chose you in the first place.
A big part of this is running retention campaigns, where you share offers, discounts, and content that encourages repeat purchases.
This continuous engagement drives up the customer lifetime value (CLV), which is crucial because retaining existing customers is far more profitable than constantly trying to acquire new ones.
retaining existing customers is far more profitable than constantly trying to acquire new ones.
Email also excels at upselling and cross-selling. By analyzing a customer’s purchase history, you can suggest complementary or higher-value products directly through email.
Not only does this increase engagement, but it also boosts the average order value.
When done right, a well-crafted email keeps those loyal customers engaged and coming back, maximizing their value to your business over the long term.
#5 Measurable Results
One of the biggest advantages of email marketing is how measurable it is.
Most platforms provide detailed analytics on everything from open rates to click-through rates and conversions.
You know exactly how your campaigns are performing, down to the smallest detail.
This data isn’t just for show. It allows for A/B testing, where you can experiment with subject lines, content, or CTAs to see what resonates best.
You can see who’s clicking, who’s converting, and who’s dropping off, giving you immediate feedback.
Over time, you can fine-tune your emails for maximum impact, improving engagement and conversions with each send.
If something isn’t working, you can pivot fast, making quick adjustments to ensure you’re always maximizing your ROI.
#6 Automation Maximises Email Marketing’s Effectiveness
One of the best things about email marketing is how automation makes your life easier.
Automated email campaigns generate 320% more revenue than non-automated campaigns.
With tools like drip campaigns and triggered emails, you can send personalized messages to your customers at just the right time—without lifting a finger.
Imagine a potential customer abandons their cart, and they get a reminder email an hour later.
Or someone signs up for your newsletter and immediately gets a welcome series tailored to their interests.
These automations run in the background, constantly working to nurture leads and convert them into paying customers, all while you focus on other parts of your business.
Is Email Marketing Effective: The Bigger Picture
It’s 2024 and most brands should still be looking at email marketing as an excellent channel to engage with customers. That isn’t going to change anytime soon.
Even a small amount of effort can yield great results, and if you give email the time it deserves the rewards will speak for themselves - $42 for every $1 spent!
The bottom line is that email marketing’s effectiveness at maximising the value of your existing customer base is unparalleled.
Is email marketing still effective? The answer is an emphatic yes!
So get out there and start designing some campaigns!
Looking to level up your email marketing game? At Mailscout, we provide cutting-edge services from campaign inpsiration to in-depth competitor insights. Let us help you stay ahead, explore our solutions today!