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Email Marketing

With email marketing, companies deliver their message directly to the inboxes of prospects and existing contacts.

What is email marketing?

Email marketing involves reaching out via email with regular newsletters or personalized promotional emails. The advantage is that the email is sent directly and specifically from a company to a particular person. This type of direct communication is not possible, for example, with messages delivered via algorithms.

To do this, a company generally needs the explicit consent of the recipients, because in Germany, promotional emails are only permitted without consent under certain conditions. The success of email marketing can be measured, among other things, by click-through rates, conversion rates, and, to a limited extent, open rates.

Where did email marketing originate?

The first mass-mailed email dates back to 1978—at that time, there were none of today’s legal restrictions. Starting in the 1990s, email marketing became an integral part of the marketing portfolio. Since then, unsolicited bulk emails have become rampant, so consent and legal requirements are now an essential part of reputable email marketing.

Why is email marketing important?

Email marketing is one of the few channels that a company can largely control on its own, independent of changing algorithms and the costs of third-party platforms. With targeted emails, brands can cultivate direct relationships with prospects, maintain a presence, share knowledge, and build trust. Contacts can be nurtured over months without having to pay for reach every time.

Advantages

  • Email marketing is relatively cost-effective.
  • It reaches contacts directly, without going through third-party platforms.
  • It can be highly personalized and automated.
  • Clicks and other interactions are easily measurable, whereas open rates are only reliably measurable to a limited extent.
  • Email marketing relies on a database of first-party data, which is less dependent on cookie blocking and platform rules.

Challenges

Building a mailing list takes time and requires a compelling incentive, because no one gives out their email address without getting something in return. Legal requirements regarding consent and unsubscriptions are strict.

In addition, inboxes are full, which means only the best content gets opened. The rest ends up in the trash.

Example

A manufacturer of material handling equipment consistently gains new newsletter subscribers through the download of a guide. Practical tips on equipment maintenance are sent out every four weeks.

Now, one of the subscribers has a need. Thanks to its consistent presence, the manufacturer is the obvious point of contact.

Related terms

Open Rate The open rate indicates the percentage of delivered emails for which an open was technically recorded. Lead Nurturing Lead nurturing supports prospects with helpful content to help them cross the finish line. Marketing Automation Marketing automation automates recurring marketing tasks. First-Party Data First-party data is the information that a company collects itself and directly from its customers—with their consent, of course.