E-mail marketing is one of the most effective ways to keep in touch with customers. It is generally cost-effective, and if done properly, can help build brand awareness and loyalty. At a typical cost of only a few cents per message, it's a bargain compared to traditional direct mail at $1 or more per piece. In addition, response rates on e-mail marketing are strong, ranging from five to 35% depending on the industry and format. Response rates for traditional mail averages in the 1-3% range.

E-mail marketing allows you to communicate more information, more often. Your communications can include newsletters, preferred customer promotions, sale notifications, new service announcements, event invitations, greetings and much, much more. Communicating via e-mail is an affordable way to stretch a tight marketing budget--it can cost as little as fractions of a penny per e-mail. With a better response rate than direct mail, e-mail marketing is the most effective way to increase your visibility and ultimately drive sales.

With a well-planned-out e-mail campaign, you can educate your customers. Information that educates will make your customers and prospects more likely to buy because they can make an informed decision. Your e-mail communications can gently lead a prospect through the sales process, provide important data, and drive the prospect to your website for more details and/or a purchase.

E-mail is also an easy and inexpensive way of establishing early and long-lasting relationships with your prospects and customers. When you inform and educate prospects and customers, they perceive you as capable of addressing their needs. Even better, they may look to you as an expert. This develops trust and opens the door to two-way communication, allowing customers to share their pain points so that you can better serve their ongoing needs. In the process, you may discover hidden sales opportunities that you may not already be addressing.


Points to consider when creating your email newsletter:

HTML vs. Plain Text: Response rates for HTML newsletters are generally far higher than plain text, and graphics and colors tend to make the publications look far more professional. The downside is that HTML email is slower to download, and some email providers may screen out HTML email.

Provide incentive to subscribe: Advertise the benefits of receiving your newsletter to get customers to sign up for your newsletter, such as helpful tips, informative content or early notification of special offers or campaigns.

Don't just sell: Many studies suggest that email newsletters are read far more carefully when they offer information that is useful to the customers' lives rather than merely selling products and services. Helpful tips, engaging content and humor are often expected to accompany email newsletters.

Limit questions: As each demographic question you ask may reduce the number of customers signing up, it's best to limit the amount of information you solicit or give customers the option of skipping the questionnaire.