Ever since the inception of email as a digital marketing channel (1978 to be exact), it has been a useful bottom of funnel marketing tactic and driver of revenue for many companies. Until about 10 years ago, when social media and digital advertising was still in its infancy, it was commonly known that email marketing tactics could drive revenue easily by reaching existing customers and leads with a high intent to buy. However, in today’s landscape, most people are inundated with marketing messages, not excluding email. Marketers now have to be concerned and aware not to exhaust their listserv, possibly the most valuable source of data for most organizations, especially as we live on the verge of losing our third-party cookies.
This brings us to the question: Has email’s impact and effectiveness changed as companies have fully adopted and at times overused this marketing channel? Statistics actually show that the answer is no. The way we use email should evolve as consumers are increasingly sensitive to spam, but email is still one of the best ways to reach customers and one of the highest ROI marketing channels. Even in 2023, the average ROI of email is around 4400%.
Instead of email blasts and regular newsletters, customers expect personalized emails. In the DTC and ecommerce space, this means abandoned cart emails, emails reminding customers and leads about the items they left in the cart or viewed, discounts for those items, and recommendations on similar items.
Value in an email can also come in the form of information. For the last several years, informative emails containing white paper downloads or infographics have been the norm for B2B companies, such as in the technology and SaaS spaces, as well as, for media companies. However, increasingly DTC companies, like Thinx and Flex, have also begun adopting this approach. The more brands can deliver value to their customer, the less likely customers are to unsubscribe or mark as spam. Additionally, the more likely customers are to engage, read, and save these emails for later. This tactic turns email into a tool for brand awareness and nurture for customers that already have some familiarity with your brand, and thus are more likely to purchase or purchase again.
The beginning of SMS marketing has also taken a stronghold over the last several years. This is a new channel, but bears the same risks as email of toeing the line between effectiveness and spam. Companies that spam consumers are likely to see unsubscribes. Customers engage with SMS at a higher rate, but if messages aren’t providing value, SMS could be rendered ineffective or worse, could tarnish your brand’s reputation.
Text messages have a 99% open rate, beating email. And 45% of mobile marketing campaigns generate a successful ROI. But don’t get too excited. So did email in the early days.
The more companies use SMS for marketing, the more numb consumers will become to marketing messages via SMS, similarly to how consumers have been numbed toward virtually every other channel.
Here are some best practices to make sure your SMS list stays engaged:
Make sure your customers opt-in
Identify yourself
Add value
Make your customers feel special
Make their customer journey seamless
Don’t send too many texts
The content points for SMS are not that different from email. At the end of the day, people want good products, but they also want to buy from good people behind the product. Not spamming your lists are a good way to show that you care about your customers.