The popularity and scope of marketing your products and services through email are increasing tremendously. Experts say the number of people using emails to make purchase decisions will rise to over 4.2 billion people in 2022.
However, the concept of email marketing is gaining popularity, and people have quite a few questions related to how much email marketing costs, the success rate (click-through rate), and many more.
All these questions will be answered in this article, so without wasting any time, let’s begin.
How Much Does Email Marketing Cost?
A small or medium-sized business will spend between $9 to $1000 per month based on their geographical location, the purpose of email marketing campaigns, and the marketing platform if they choose to run the marketing campaigns themselves. If they decide to go ahead with an experienced agency, they’ll spend around $300 – $500 per month.
The fundamental essence of opting for email marketing in your marketing mix is relationship building and customer retention. A well-structured and executed email campaign will not only remind your existing customers but also attract new potential customers that have signed up for your emails. Offering incentives and using catchy captions and subject lines will enhance your click-through rate and, ultimately, the chances of ultimate conversions.
Experts say that around 82% of digital marketers spend up to 20% of their overall marketing budgets on email marketing. However, ideally, you must allocate about 16% of your marketing budget to email marketing.
Factors Impacting The Email Marketing’s Cost
While calculating the cost of email marketing, you must include the expenses incurred on content creation, graphic designing, and email management in your overall email marketing cost. Many factors impact the email marketing cost of your company, and they are.
1- The Quality of Your Existing Email List And Subscribers
If your email subscribers list has many inactive users, the click0-through rate and overall conversions will drop dramatically.
The email marketing budget is different from one company to another. Thus, you should allocate a budget that matches your goals and budget. Email marketing is one of the most incredible marketing strategies you can adopt, as it earns you $44 for every $1 you have spent. Filter out your lists every month to remove inactive users, as it will help you create a list that will ensure better CTRs and ultimate conversions. Filtering out your email list regularly enables you to avoid your emails being labelled as spam. Spam filters and email providers see mail campaigns with a higher bounce rate and recognize them as a potential spam sources.
Related: Email Marketing Stats
2- The Complexity of the Email Design and Concept
If you want to design a complex email template or want to add a superior personal touch, then you can expect the prices to be on the higher end.
3- Types of Email
If you want to customize your email for each recipient, it will cost you more than the automated and triggered emails with dynamic codes.
Related: Best Email Marketing Examples
4- The Number of Languages and Countries Supported by Your Company
Running the email marketing campaign for multinational conglomerates can be costly as it requires content creation, professional support, and management in various countries and languages.
5- The Nature of Your Business
The industry’s competitiveness, the nature of your business, the type of your offerings, and the habits of your customers or potential customers highly impact the resources you need to strategize your marketing campaign. Marketers say B2B emails cost relatively less than B2C email marketing campaigns.
Related: Best Email Marketing Services
What is The Hourly Rate of Email Marketing?
It is a no-brainer that email marketing costs are different in various geographical locations depending on the complexity of your campaigns, purpose, the intensity of personalization, designing, and experience of the service provider (in the case of an agency).
Here are the hourly rates of email marketing in different countries:
Benefits of Email Marketing
Here are a few benefits that establish the importance of email marketing in your online marketing strategies.
- Allows you to create personalized content.
- Allows you to collect feedback and surveys.
- Enhancing sales.
- Allows you to interact with your audience.
- Generating quality traffic to your site.
- Surged sales.
- Allows you to reach out to the right people at the right time.
- Will enable you to produce cost-effective campaigns.
- Offers more value to your audience and potential customers.
- Owning your media lists and contacts.
Email marketing allows you to reach the right people with the right message at the right time, enhancing your chance of increased quality leads, ultimate conversions, and higher ROIs. Email marketing allows you to keep costs low yet achieve magnificent results.