What is EDM and why do you need it?

"EDM has been around for many years. Is there still any need or value to invest in doing EDM?" Many marketers frequently ask this question while planning for their website traffic or their marketing channel. In this article, we will cover the importance of doing EDM.

What is EDM?

Electronic Direct Mail (EDM), also known as Email Marketing, is a powerful marketing channel and a form of direct or digital marketing. Many enterprises send EDM to establish communication, convey relevant information to target customers, and promote sales. It lets customers receive first-hand information on the latest discount and product info. It can also wake potential customers and promotes brand awareness and loyalty.

What is the advantage of doing EDM?

[Topnotch Market: One of the largest private traffic]

It has been 45 years since the first marketing email was sent. Many enterprises believe that email marketing has passed its apex due to the long history of this marketing (advertisement) channel. In fact, email marketing is still the largest marketing channel overseas, with 3.9 billion email users in 2019. Hence, it is evident that your customers are using email regardless of your business type. Even in June of the same year, the total number of active Facebook users was 2.4 billion, which is only 60% of email users.

Based on the insights of global industry reports in recent years, email marketing can bring a great investment return and create real value for enterprises and customers. In 2018, ROI through email marketing was 36 USD for every $1 spent. Now, it has reached 40 USD. The 5:1 ROI ratio is usually regarded as an excellent marketing campaign performance.

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Besides, we have additionally observed two fascinating data

The time spent on reading emails has increased by 21% over the past two years. The average time spent reading emails in 2018 was about 13.4 seconds, showing that consumers nowadays spend more time reading emails while waiting for transport or watching TV. 66% of consumers are reported to check email for more than 8 seconds. Email marketing is the bridge between customers and media, which is not replaceable by other marketing channels (e.g., the median for viewing online ads is only 0.7 seconds).

The average time spent on checking email is 2.5 hours a day. 90% of consumers reported checking email at work, while 85% reported checking it before work. Almost a quarter of consumers checked their inbox first in the morning.

Many marketers have noticed that email marketing growth is still going strong. 49.5% of marketers plan to allocate extra funds to this year's email marketing budget. Those not planning on doing EDM might be at risk of falling behind.

[Incomparable Flexibility]

Since 2020, people have faced the challenges of public traffic marketing. The iOS privacy policy update has made many ad companies fail to promote ads accurately to target customers, resulting in a drop in conversions. Secondly, the rising traffic costs from several cents to 1 dollar per click also decrease enterprises' ROAS. For these reasons, EDM has become more important due to its flexibility.

Theoretically, EDM is also limited by "spam filtering." However, you can easily avoid these limitations with the right strategy. Therefore, marketers have high flexibility while creating their EDM content.

Such as "holidays/weekend promotion," "style and spot recommendation," "new products and hot products," "member's promotion," and "sales discounts."

How EDM affects website traffic?

EDM has an important role in the "conversion" and "customer retention" of your website. EDM is also responsible for converting the marketing funnel from top to bottom. 

To make it simpler, if you have spent high costs on Facebook or Google to gain sessions for your website but do not convert the customers into your private traffic, you might lose the conversion or even the customer. Undesirably, you will need to spend more costs to acquire them back by remarketing. At the same time, more brands have started to focus on the balance of the customer's lifetime value (LTV) and the customer acquisition cost (CAC). This is because the customer lifetime value predicts the brand value in the long run.

Then, why is EDM still the first choice for private channel marketing? The first reason is that EDM is more cost-effective than any other form of advertisement. Generally, The cost of sending an email is around $0.0009-$0.0018 USD, while the average GMV value of an email can reach $0.09(USD). (Simply take the Black Friday sale as an example, there are about 300 million EDM sent, which reflects the vast application of email marketing.)

Last but not least, you may already understand EDM further. Since different business models and products might have different results, you must try them yourself. But no worries, SmartPush provides 1000 permanent free EDM quotas and is equipped with effective tools to maximize your EDM performance. Understand your customer better and create an incredible ROI and customer value with SmartPush.

 

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