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
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Email marketing is the act of sending a commercial message, typically to a group of people, using email. In its broadest sense, every email sent to a potential or current customer could be considered email marketing. It involves using email to send advertisements, request business, or solicit sales or donations. Email marketing strategies commonly seek to achieve one or more of three primary objectives: build loyalty, trust, or brand awareness. The term usually refers to sending email messages with the purpose of enhancing a merchant's relationship with current or previous customers, encouraging customer loyalty and repeat business, acquiring new customers or convincing current customers to purchase something immediately, and sharing third-party ads.
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