When companies want to reduce their costs of finding and keeping customers, they often turn to the benefits afforded by using an email marketing campaign. Email marketing allows businesses to deliver a compact, precise and well-defined message to both existing and potential customers. While the practice is readily endorsed by many businesses, the question becomes whether email marketing only works for the general consumer, or whether it has a place in business to business sales? Well, there’s ample evidence to support that it not only works for business to business sales but that it should be the preferred marketing method for every business. We’ll look at what constitutes email marketing, and then provide quantifiable benefits when it comes to business to business sales and marketing initiatives.
What’s the difference between email marketing and spam?
Unfortunately, a number of people confuse email marketing with spam. While spam is merely sending out emails to anyone about anything, email marketing is far more precise and focuses its approach on a given market niche. In addition, email marketing focuses its efforts on those customers who’ve expressed interest in the company itself. Email marketing concentrates on a given demographic within a specific market. It allows companies to deliver a compact marketing message directly to those individuals most likely to follow through with a purchase. These contacts could be existing customers or ones that have visited the company’s website or blog. They could be contacts gathered from using business to business data lists or even contacts established at trade shows and conferences. Regardless of how these contracts are established, it’s important to note that email marketing only focuses on those interested contacts.
So, what are the benefits of an aggressive email marketing campaign for businesses?
1. Email marketing focuses on key decision makers
Email marketing is an excellent tool for identifying and selling to key decision makers within a given account. Email marketing allows companies to provide their own newsletters about market and industry trends and concerns. Decision makers within given accounts have concerns that go beyond just the price of a product or service. Most often they are concerned with their company’s entire cost structure and the direction of the market itself. What interests these individuals most are the big picture issues. Email marketing can deliver information on those issues that concern them most.
2. Email marketing is inexpensive
Marketing success depends upon a company’s ability to locate and find customers in a cost-efficient manner. Reducing the time and costs of finding customers is another benefit of email marketing campaigns. Aside from managing the email contact list, there really aren’t a lot of costs associated with email marketing. Because of this, it has an extremely high marketing ROI (Return on Investment).
3. Email marketing shortens sales times
Shortening business to business sales cycle times is another benefit of email marketing. Closing sales sooner mean the company has a higher inventory turnover rate, invoices sooner and gets paid faster. It’s also essential to increasing market share and incentivizing customer loyalty. Email marketing is an excellent way to provide discounts and helps to incentivize customers to continue to purchase. Many businesses use their email marketing campaigns in conjunction with their customer reward programs.
4. Email marketing helps to cross-sell of similar products and services
When companies want to introduce new products and services and want to stay one step ahead of their competition, they use email marketing to cross-sell similar products and services. This is a great way to get new products off the ground running and is considered by many companies as the preeminent way to introduce new products in a given market.
5. Email marketing lowers the costs of keeping customers
With some estimates that it costs a company up to four times more to find new customers than to sell to an existing one, there’s something to be said for the importance of customer retention. This is made possible with email marketing as it incentivizes existing customers to remain loyal by providing them with discounts and rebates.
Email marketing is an excellent tool for business to business marketing and sales efforts. It helps businesses deliver a concise message to market and provide time-sensitive information on a company’s products or services. Including a company, market or industry newsletter is a plus. Given the low cost of managing email marketing campaigns and their high level of ROI, they should be adopted by every business, regardless of the market.