Are you looking to be a successful subscription business in 2015? Then you’ll need an email list to develop leads, sell your subscription business and upsell to your current subscribers. In fact, the commercial success of your business could rely on your ability to grow and maintain an email marketing list.
Why Is Email Marketing So Important?
Many businesses believe that email lists are an expensive and time consuming endeavour. Yet in truth they can save time and cut the customer acquisition costs for your subscribers. This will give you more long term funds for you to grow your business and invest in technology and other customer service needs required.
One of the principle benefits of email marketing is that it is permissible. That means that customers actually want to receive your content and are actively looking at your promotions. This is backed up by research. Merckle found in a customer survey, that 74% of consumers prefer promotional material to be sent to an email address than any other customer interaction point (telephone, door, mail, etc).
Therefore, you can gain a significant advantage in gaining new customers and selling products to your existing customers.
At the same time, email users are more active than users on Facebook or Twitter. Statistics show that 91% of email accounts are checked every day for new messages. Social media performs particularly badly. Only 11% of accounts are active every day and while Facebook performs significantly better; only 66% of registered users check their status daily.
Therefore, you have a higher chance of getting your message to a targeted audience who are interested in your marketing message and the services you offer through email marketing.
Likewise, when you’ve reached that audience, it is going to return better results. Research has stated that only 1% of all online sales can be attributed to social media. In contrast, 13% of all online sales can be attributed to email marketing. Email marketing is actually the second best performer after organic searches.
LinkedIn is also a particularly poor seller as no users like to receive promotional material through the social media platform.
Not Just For New Customers
As well as selling your subscription service to potential customers, you can also use email marketing to sell add-on services, complimentary products or advertise affiliate products. This helps you to earn more money from your existing customers who are easier and cheaper to sell to.
It can also be used to bring back customers who have left your subscription business as it is unlikely that they have unsubscribed from your mailing list at the same time.
To be effective at email marketing you have to actually ensure that you are following several international laws. Here are some of those rules for you to consider:
- Subscribers have to state they want to receive your marketing messages. Pre-ticked acceptance does not demonstrate this. It is therefore best to use a double opt-in process.
- You must provide an unsubscribe link, physical address and a way to contact you via email.
- You cannot cold email an individual.
- Sole traders and partners count as individuals, even if you are selling something to their business.
- If there are any personal details in the email address (e.g. email@example.com) they cannot be cold emailed, even if they are part of a limited company.
Email marketing is an effective way to grow your online subscription business. It helps to reduce your costs, improve returns on investment and will be received better by your audience. Therefore, for little effort you can improve your subscription business.