E commerce companies are a dime a dozen today, but very few have been able to actually cash in on the revolutionary concept. Companies like SnapDeal.com, Myntra.com, MyDala.com, Fashionandyou.com, dealandyou.com have all managed to attain optimal success not simply out of the sales but also with thoroughly calculated and designed Email Marketing campaigns. According to the recent reports, E-mail marketing budget made by e-commerce companies has been growing tremendously; it increased by 100 percent in this FY. It has become an imperative marketing communication tool for e-commerce brands that majority of them are deriving approximately 30 percent of their overall ROI through solely e-mail marketing.
Commercial email marketing reigns supreme as the best channel for marketers. According to this year’s Direct Marketing Association’s Power of Direct economic impact study, email returns higher ROI than search, display, social networking and mobile. Email is bringing in Rs 30.56 for every rupee spent on it. This is compared to catalogs’ ROI of Rs 7.30, search’s return of Rs 22.24, Internet display advertising’s return of Rs 19.72 and mobile’s return of Rs 10.51. It is the highly effective marketing medium over all other digital marketing communication channels be it social networking, Mobile Marketing The experts expect digital channels to continue to increase their share of the marketing budget from 19% in 2011 to 21% in 2012. The total spend on digital marketing has increased many folds since 2006, out of which e-mail marketing contributes maximum.
Email is the only channel where recipients raise their hand and request marketing content. Users give permission for marketers to contact them, and that relationship produces results. And Email is one on one conversation, when you are reading an Email your sole attention goes into the email content and if the product proposition presented is really engaging meeting your specific requirements, can generate immediate revenue to the marketer. Interesting Email is 100 % track able too.
Email marketing is the best resource for both start up and established companies, especially e-retail ventures. Everyday updates, announcements, change in patterns, reviews, newsletters, and so many other factors make the foundation of such companies. Email marketing puts the ability to connect with potential and existing customers at the touch of a button. Despite this simplicity, however, deciding how to approach and manage the process of email marketing can still be a challenge for businesses looking to leverage the channel to communicate competently and achieve a high return on investment.
Ensuring the technology which can be seamlessly integrated with web and other social channels is very crucial to the success of your email programs. Proving a robust email marketing business model which helps your customers track the real ROI from your email programs requires strategic planning and in-depth understanding of the end user behavior and servicing with specific product or content propositions.
With a well planned email marketing campaign based on demographic propositions and smart tactics, e commerce companies can not only maintain uniformity but also create a healthy database for future growth because I truly believe that delivering mail is not the only task, but a good conversion rate adds to the success of any e-mail marketing campaign which is only possible with a smart e-mail marketing strategy.
- Jacob M George, Cofounder iCubes