Now imagine how a similar email marketing campaign through a monthly newsletter of balanced product information and relevant industry articles could produce the same results in your customer base.

Do you want to increase repeat business from people who have already proven their purchasing power, promote brand loyalty and build a strong sense of community between you and your customers?

Why Does Email Marketing Work?

True customer-based email marketing – not spam – now makes up an estimated 27% of a users inbox. This illustrates how receptive your previous customers are to receiving email marketing from you!

And there are obvious price benefits to producing an email campaign instead of a direct mail advertisement with the removal of printing and delivery costs.

So if the average internet user is willing to receive such a high amount of marketing material on a regular basis, and email marketing is far more cost efficient than traditional direct mail, doesn’t it make sense to analyse ways of improving the performance and click through of this marketing?

Are You Talking to Your Best Customers Enough?

Let’s crunch some numbers.

It is a well established economic fact that, for most businesses, 80% of their sales will come from 20% of their customer base. For some, the ratio is closer to 90 / 10. What this means is that the business coming from a small number of established customers usually far outweighs that from new customer acquisitions. Yet most businesses spend 80% of their effort and marketing budget chasing new customers that will most likely only produce 20% of their business income, a complete reversal of that ratio.

Why are companies only spending 20% of their time talking to their best customers? Because the common assumption is that sales growth is generated by converting new customers. Genuine sales growth is almost always produced by maximising results from an established customer base, and that means giving them more attention.

Wouldn’t it be better for your business if you could increase business from this group to 85% or 90% of your sales? By doing so, you would be relieving pressure elsewhere in your business and reducing the need for so much effort on customers that don’t have a major impact on your bottom line.

Understanding this ratio and managing resources accordingly is the secret of many of the most successful businesses. Email marketing is one way of building sales from your best customers – the 20% that make up 80% of your business – and doesn’t that make more sense?

Email Marketing Means Repeat Business

Email marketing should not be an afterthought to your online marketing campaign. It can become the jewel in your business crown as you build strong repeat business and powerful brand recognition for a much clearer return on investment than other more popular areas of online marketing.

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About the Author

Jonathan Crossfield is the Marketing Communications manager for Netregistry. He is a regular contributor on internet business to Nett Magazine and also produces a successful blog on writing.