Does Email Marketing Generate Sales?

emailMost companies utilize email as part of their marketing strategy, but how effective is it? Email users are consistently blasted with promotional call-outs, which makes it difficult for your organization’s email to get opened and not sent to the junk folder. This blog will take a look into common email consumer behavior practices, and how the new “Tabs” feature on Gmail is affecting the click-rates on promotional emails.

Consumer Response To Emails

So let’s take a look into the general consumer response to promotional emails. Chron revealed that 97% of businesses claim to utilize email marketing to convert email recipients into buyers. According to a Smith-Harmon survey, 76% of subscribers have made a purchase in response to a promotional email they received. On the flip side, if companies send out too many emails, annoyed customers are more likely to hit the spam button instead of unsubscribing.

BlueHornet Networks revealed that 43% of consumers read most of their emails on their mobile device, so it is exceedingly important to make emails compatible with most devices. Over 30% of people reveal that they will unsubscribe to an email due to poor mobile display. This will cause companies to miss out on 63% of email-generated sales.

So what should companies do to encourage sales via email? Nearly 84% of consumers state that discounts are the most important reason for signing up for a list. It is important to meet these expectations and ensure your business provides adequate promotions so that your consumers stay engaged with your content.

How Google “Tabs” Is Affecting The Market

Gmail recently introduced a new “Tabs” option, which automatically sorts emails into categories such as Promotions, Social, and Updates. This new option could be detrimental to promotional email blasters. A recent survey conducted by StrongView revealed that 54% of users believe the new option hasn’t affected the amount of time they spend viewing promotional messages. However, 40% of Gmail users revealed that they spend less time viewing promotional emails since the implementation of Tabs. Only 12% of users believe the option has caused them to lose any email from their favorite brands. This means companies will have to work harder to establish their brand in the minds of email users in order to not be affected by Gmail Tabs.

Spinnakr estimates that the number of email users is predicted to grow 28% in 2014, and 23% in 2015, so it is more important than ever to ensure your content is worthwhile to users. Email is an easy way to convert target audiences into consumers, but it has to be done strategically. With the average cost equating to about $0.01 per customer, it is important that businesses take advantage of this opportunity.

Are you utilizing email to the best of your ability?

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Kailee Sisson is a writer originally from New York currently residing in Nashville, TN. She is an alumni of Belmont University with two degrees in Marketing and Music Business. During her free time Kailee enjoys writing music, playing with her dog Gatsby, running marathons, eating breakfast sandwiches, and watching Disney movies.

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