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With new social platforms popping up every year, many entrepreneurs are wondering if they should leave email behind and look for new avenues. Did you know that email is still the second biggest marketing channel for startups, just behind social media? That's right! That's because of its low cost and incredible return on investment (ROI). According to Litmus's study, it remains one of the best ROIs out there; businesses can expect to earn a whopping $38 for every dollar they spend on email marketing.
As the CEO of Builderall, an all-in-one digital marketing platform that has helped over 2,000,000 small businesses, I'm often asked if email marketing is still an effective strategy in this new phase of our digital age. Is it dead in 2024?
I'm here to debunk the biggest myths and set the record straight. Today I'm going to share my insider knowledge with you to help you shed some light on the matter.
Definition of email marketing
Before we debunk these myths, let's make sure we're all on the same page about what email marketing actually is. Many people have misconceptions about this form of digital marketing, which can put them off – and that leads to missed opportunities.
Email marketing is a direct marketing strategy that involves sending promotional or informational messages to a specific audience via email. It goes far beyond simply spreading promotions or cold calling. When used correctly, it builds meaningful relationships between your brand and your subscribers. It's a way to keep them engaged and, ultimately, another way to increase sales.
Some examples are
- Newsletter
- Special offers
- Product updates
- Even personalized content based on a subscriber’s interests.
Related: 8 Simple Email Marketing Tips to Improve Your Open and Click Rates
Myth No. 1: Email marketing is dead
Let's address the obvious first. No – email is not dead! In fact, it's far from dead and still very popular.
According to Oberlo, 80% of businesses use email as their primary customer engagement channel. That is, they use email to retain their existing customers and keep them coming back.
But that's not all. HubSpot found that 60% of consumers made a purchase after receiving a marketing email, which is clear evidence of how revenue-boosting email marketing can be for businesses.
Myth #2: People don’t read emails
I can't tell you how many times I hear this myth. Sure, our inboxes have gotten pretty full over the years and many of us receive dozens or even hundreds of emails every day. It's also true that a large portion of those emails end up straight in the trash or spam folder.
However, according to HubSpot, 46% of smartphone users still prefer to hear from brands via email rather than other channels.
When you build trust and send relevant content, subscribers will welcome your emails with open arms.
This statistic also underscores the importance of being diligent in your campaigns and using compelling subject lines and other email elements to stand out in a crowded inbox.
Myth No. 3: Younger target groups do not use email
Generation Z and Millennials are the next generation that will have significant purchasing power. It's only logical that companies are looking for new and innovative ways to reach them, as they are often portrayed as glued to their screens and obsessed with social media platforms.
These stereotypes lead many people to assume that Gen Z and Millennials are too obsessed with TikTok and Instagram to resort to old-fashioned strategies like email. Let me prove them wrong again. According to the Attest US Consumer Trend Report, 53% of Gen Z enjoy weekly emails from their favorite brands. For Millennials, that number is 66%.
Of course, you'll want to tailor your approach to each audience (incorporating a bit of slang or a meme here and there), but don't rule out email. These generational segments still use and prefer it.
Myth #4: Emails have a low open rate
The next myth I wanted to address is more tangible. Some say that email underperforms social media platforms like Facebook or Instagram. To do this, we need to look at the open rate.
Open rate is a key key performance indicator (KPI) in digital marketing because it tells you how many people are actually opening and reading your emails. MailChimp benchmarks show that the average email open rate across all industries is 34.23%. While that doesn't sound great, it's definitely not bad either.
With optimization, this number can be much higher and bring benefits. As mentioned above, this is why so many companies still rely on email as their primary channel for customer engagement.
Related: This is the secret to higher email open rates
Myth No. 5: Email marketing equals spam
Finally, let me come full circle and return to the definition of email marketing. Too many people confuse general email marketing with a somewhat shady practice: cold calling.
Cold emails are unsolicited messages sent to people who have not expressed interest in your brand or products. Essentially, you buy or collect a list of email addresses (without the recipients' knowledge) and send out mass emails in the hopes of getting a few leads. They are often used for prospecting and can seem intrusive if not used correctly. That's because no one has given you permission to contact them.
Email marketing, on the other hand, is about building relationships with people who have already shown interest in what you have to offer. They may have signed up for your newsletter through a lead magnet or opted in to receive your updates. That's a big difference!
81% of companies use email as their primary channel for customer acquisition. This is the latter form of communication. It produces results without spam tactics.
Final thoughts
While many entrepreneurs are attracted to the latest shiny objects or technologies, these myths cause many entrepreneurs to overlook email in 2024.
When done right, email marketing remains an indispensable growth lever for startups and established companies alike. Now that you know the truth, use email marketing to increase conversions and customer loyalty. With a strategic approach, you can even achieve higher open rates and ROI than the studies show.
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