Around 64% of small businesses use email marketing to reach customers, proof that it is a popular strategy that is here to stay.
Email marketing does wonders for businesses, from reaching new customers to notifying subscribers about your latest product launch. But if you’ve never considered taking this route, you likely don’t realize the impact that email marketing can have on your business.
If you’re on the fence, asking yourself “But how much does email marketing cost?”, you’ve come to the right place. Here’s everything you need to know.
AdvertisementWhat Is Email Marketing?
Before we dive into email marketing pricing, we should cover what we mean by the term. Email marketing is a marketing strategy that uses emails to promote your business, boost customer loyalty, and brand awareness. It also lets customers know what’s happening with your business, such as launching a range of products or having a sale.
It’s important to note there are three types of email marketing. Newsletter emails are popular because they keep your subscribers in the loop and help you stay at the forefront of their minds. The beauty is you can choose how often to shoot off emails, whether it’s weekly, bi-monthly, or another timeframe that works for your business.
Another option is transactional emails that are triggered by an action, such as a recent purchase or a password reset. Although they are less exciting, transactional messages show that your company is credible and transparent.
A similar example is behavioral emails, like if a prospect abandons their cart. As a business owner, you want to remind them via email so that you encourage them to continue shopping.
Benefits of Email Marketing
Another consideration to take onboard is the perks of email marketing. There are many reasons businesses choose this form of marketing, one being that companies can directly target their customers. An added benefit is that because subscribers choose to opt in, you know that a majority of your contact list is interested in your services.
Additionally, businesses love the low cost of email campaigns. Unless you’re working with a high-end agency, you can enjoy an excellent ROI with only a few hundred dollars. In fact, the average ROI is $40 for every $1 spent, making email marketing a no-brainer for businesses.
How Much Does Email Marketing Cost?
Now to the burning question: What can businesses expect from email campaign expenses?
Although it’s not advised, it is possible to run a campaign yourself. If you’re not in the position to outsource, the cost will be anywhere between $0 to $99 every month, depending on several factors.
On the flip side, if you are able, there are plenty of email marketing companies available that align with your industry and business. On average, expect to pay between $51 to $1000 because it includes the marketing tools and company’s time.
Factors Affecting Email Marketing Costs
As you can imagine, various factors affect email marketing costs. Make sure that you take these into consideration before drawing up an email marketing budget, as it could change your approach. Common factors include:
Size of Current Email List
Companies must use email marketing software to automate the process and directly contact customers, which come in different packages.
Because of this, the size of your subscriber list affects the cost. For instance, a company will give you a cheaper package that can support 300 customers, but if your list is over that, you must pay for a larger one. To know where you stand, predict how many customers you want to reach monthly and slip it into your budget.
Getting New Subscribers
Your email marketing campaign will only be successful if you have enough subscribers. But acquiring subscribers happens before drawing up a campaign and must eventually work alongside your email marketing strategy.
A common example is using a lead magnet, such as a free eBook, to encourage customers to subscribe. By offering value, clients are more likely eo sign up to your email list. However, many email marketing platforms provide opt in forms to help you with this, which is included in the price.
Complexity of Email Designs
The complexity of your email designs will affect your campaign’s budget. Generally, the more detailed the email design, the higher the cost. If you’re interested in a custom design, chat with the agency and they will charge you a flat or hourly rate.
Further, companies will charge more if you send drip emails, which are automated messages to people who have been on the website. For instance, businesses should launch a welcome email drip campaign for new subscribers.
Type of Content
Decide whether you want to craft your own email copy or curate it. The former is when a team member like a freelancer writes unique copy for your email campaigns. Note, that the cost will vary depending on the length of the message and the writer’s experience.
Businesses with a smaller budget can simply curate content, which is where you collect external links and share them in the email. As it takes less time, this is great for teams with fewer resources.
Frequency of Your Emails
One of the biggest factors affecting email marketing is how often you’re sending out emails in your campaign. If, for example, you only send one monthly newsletter, then that is far cheaper than a weekly campaign. Generally, the more emails you send, the more you will pay.
Technology and Features Used
Email marketing is constantly evolving, thanks to the development of technology.
The term refers to the features you can access while using the email marketing software. If you have a small budget, choose a package with limited features so you don’t eat into it. Later on, when you’re ready to upgrade, you can simply add features to boost your marketing strategy.
A popular feature is list segmentation, where you categorize your email subscribers. For instance, you could group all the newer subscribers together and send “welcome” emails while you could send your loyal customers promotional ones.
AdvertisementAdditionally, business owners swear by A/B testing as it measures how well your email campaign is going. Certain packages have this feature where you can experiment with different elements, such as design or copy, to see which combination is the most successful.
Customer Support
As with anything tech-related, you want to have a lifeline if there are any issues. Although you’re likely to pay more, contacting someone directly about your problems is invaluable, especially when running a business.
However the cost will depend on the communication portal. For instance, contacting customer service via the phone will be more expensive than by email or a live chat.
Hidden Fees
To avoid being fooled by hidden fees, always look at the fine print. Most email marketing software companies are transparent but can charge for certain add-ons and have email limits. If there aren’t any hidden fees mentioned, contact a representative for peace of mind.
How to Find a Credible Email Marketing Platform
Your choice of email marketing platform can make or break your campaign.
The first step is to figure out the type of emails you want to send as that will determine the platform. For instance, if you want to send transactional emails, check how the platform will integrate this with your website. Or, if you also need to send marketing emails, check whether the platform offers a package because it could be cheaper.
Regardless of whether you’re using Monday.com or another credible platform, consider how easily you’ll be able to use it. If you’re managing your campaigns, shortlist platforms that let you customize templates and create your own layouts to save time.
How to Create a Budget for Your Email Marketing Campaigns
You may have found the perfect platform for your email marketing campaign, but it doesn’t fit into your budget. Shoot!
Don’t make the mistake of falling in love with a platform; only to find that it doesn’t align with your goals or finances. Luckily, you can avoid this by learning to create a budget for your email marketing campaign. Let’s jump in.
Define Your Goals
Like with all finances, you need goals to guide you. Analyze your current situation and see which area you should focus on. For instance, if you’re struggling with low conversion rates, set aside a set amount of money towards that.
Analyze Your Previous Costs and Earnings
Businesses should also look at their past earnings for a starting point. See how many conversions you had, clicks, and the ROI, so you get a ballpark figure for your budget. Once you have this figure, you’ll know how much to set aside.
But don’t overlook your total marketing budget and solely focus on email campaigns. You must also factor in SEO, social media, and content marketing, depending on your goals.
Calculate How Much Your Current Campaign Costs
Once armed with this data, you can compare it against how much your next email campaign costs. Make sure that your budget is sustainable and can cover the entire timeframe, otherwise; you’ll have to dip into other areas of your business, which isn’t ideal.
To get a clear idea, look at the average value of a conversion and rate so you get the exact cost.
How to Improve Your Email Marketing Results
You’ve got your budget ready, now it’s time to maximize your efforts. The key is understanding the email marketing metrics to measure, so you can tweak elements wherever necessary.
An effortless way to boost results is to personalize your emails. Customers respond to content that connects, whether it’s mentioning their name in the email or a “happy birthday” message. You could even sprinkle subject lines with emojis to stand out in your recipients’ inboxes.
If you haven’t already, businesses should use numbers instead. Instead of the subject line “Save Money Today”, you could say “Save $30” as it’s more punchy. As numbers are easier for the prospect to visualize, they are more likely to engage with your email.
It’s wise to create a sense of urgency with your email marketing campaign. Like you would with an in-store sale, use language to encourage customers to act now. A top tip is to try time-sensitive words like “last chance” or “before it’s gone” as it forces customers to take the next step.
You should also strive to send dynamic content. If, for example, a customer has recently bought a product from your store, send a sales email with a list of potential add-ons. Not only does it help the customer remember you, but it increases your chances of landing a new sale.
Business owners should look at the list growth rate, which is how much your subscriber list increases each month. If you’re stagnant or prospects are unsubscribing, analyze your current emails to figure out what’s wrong. It could, for example, be the topic or when you’re sending out your emails.
Another essential key performance indicator (KPI) is the email’s open rate, which is the percentage of subscribers that view your message. And, for a more in-depth analysis, you can look at spam reports, and the number of subscribers that flag your emails as junk, so you can authenticate your email and avoid common trigger words, such as “buy now” or “limited time only”.
Additionally, businesses should want to know their unsubscribe rate, which is calculated by the number of unsubscribes over the total number of emails delivered. If you have a high rate, go back to your market research and figure out where the disconnect is between your messaging and your audience’s needs.
How Much Does Email Marketing Cost?
Now that you know the answer to “How much does email marketing cost?”, it’s easier to find a package that suits your budget and goals.
At RealBusi, we understand our user’s needs and provide them with essential resources to elevate their business to the next level. Our content covers a range of topics, from perfecting your business strategy to smashing sales, so you can tackle every area of your company.
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