Glossary Term
Email marketing
History and Types of Email Marketing
- Email marketing evolved alongside technological growth in the 21st century.
- In 1978, the first mass email was sent by Gary Thuerk, resulting in $13 million worth of sales.
- In the 1990s, email marketing faced challenges with spam filters and blocking programs.
- Email marketing allows for measuring effectiveness and returns on investment.
- It provides real-time feedback and market penetration insights.
- Email marketing can be carried out through different types of emails.
- Transactional emails are triggered based on a customer's action with a company.
- Direct emails involve sending promotional messages to a list of email addresses.
- Other types include newsletters, abandoned cart emails, and order confirmation emails.
- Specialized software vendors offer transactional email marketing services.
Advantages of Email Marketing
- Email marketing is cost-effective, with most costs falling on the recipient.
- Detailed analytics provide insights into open rates and click-through rates.
- Automation tools save time and effort in scheduling and sending emails.
- Email service providers gather information on recipient behavior.
- A significant number of internet users check or send email daily.
Comparison to Traditional Mail
- Email marketing is cheaper and faster than traditional mail.
- Detailed analytics are available to track campaign performance.
- Automation tools make scheduling and sending emails easier.
- Insights from email marketing help understand consumer behavior.
- Emails delivered between 1 am and 5 am have higher open and click rates.
Disadvantages of Email Marketing
- Email deliverability can be an issue, with legitimate email servers averaging a 73% delivery rate in the US.
- Compliance with spam laws and acceptable use policies is essential.
- Excessive or untargeted emails can irritate consumers and lead to unsubscribing.
- Untargeted emails result in low click-through rates.
- Email marketing performance can be hindered by legal restrictions and negative brand associations.
Legal Requirements for Email Marketing
- Australian Spam Act 2003 enforced by ACMA
- Canada Anti-Spam Law (CASL) implemented in 2014
- European Union Directive on Privacy and Electronic Communications introduced in 2002
- UK incorporates the directive into the Privacy and Electronic Communications (EC Directive) Regulations 2003
- CAN-SPAM Act of 2003 passed in response to spam complaints
- GDPR in 2018 imposes new requirements on companies collecting personal data from EU users