How does email marketing work?
Email marketing is a way to reach your audience and customers by sending them emails. It helps you boost conversions and revenue by providing subscribers and customers with valuable information to help achieve their goals.
Now let’s review when you should use email marketing and some benefits and statistics that support the reason why email marketing is so valuable.
This free online course will help you master the fundamentals of email marketing.
When to Use Email Marketing
There are many ways to use email marketing — some of the most common including using the tactic to:
- Build relationships: Build connections through personalized engagement.
- Boost brand awareness: Keep your company and your services top-of-mind for the moment when your prospects are ready to engage.
- Promote your content: Use email to share relevant blog content or useful assets with your prospects.
- Generate leads: Entice subscribers to provide their personal information in exchange for an asset that they’d find valuable.
- Market your products: Promote your products and services.
- Nurture leads: Delight your customers with content that can help them succeed in their goals.
Email Marketing Benefits
- There are over 4 billion email users worldwide, so if you’re looking for a way to reach your customers, email is the perfect place to find them.
- As of 2020, email generates $36 for every dollar spent.
- 79% of marketers list email marketing in their top 3 most effective marketing channels.
- Email visitors are the most likely to convert on forms.
- Perhaps the best reason to use email marketing is that you own the channel. Outside of compliance regulations, there is no external entity that can impact how, when, or why you reach out to your subscribers.
Email Marketing Stats by Industry
Email marketing methods that work for one industry might not work for another. The way you market to potential customers also varies depending on who they are. Some email marketing trends for different types of businesses are listed below. These trends can help you develop an email marketing strategy.
Email Marketing Stats for B2B
- 31% of B2B marketers say email newsletters are the best way to nurture leads.
- Email is the third-highest owned-media platform B2B marketers used to
distribute content in the last 12 months.
- B2B marketers say email engagement is the fourth most insightful metric when evaluating performance over the past year, more than social media, search rankings, and lead quality.
Email Marketing Stats for B2C
- Roughly 60% of e-commerce, consumer goods and services, and retail companies are personalizing emails based on past purchases.
- 37% of B2C marketers send daily marketing emails to their subscribers.
Email Marketing Stats for Ecommerce
- 57.2% of marketers say the ecommerce brands they manage have 1,000 to 10,000 contacts on their email lists.
- 85.7% of ecommerce marketers say the primary business objective of their email strategy is increasing brand awareness.
- Roughly 72% of ecommerce marketers say the biggest challenge they face with email is low open rates.
Getting Started with Email Marketing
There are a few key steps to creating a strong email campaign that will please your customers before you become overwhelmed with all the possibilities of email marketing.
You can think of these steps as the way to create a successful email marketing strategy.
Create an Email Marketing Strategy
You can learn how to build an effective email strategy and send emails that people actually want to read by enrolling in a course. You just need a plan that can be broken down into a few key steps.
The following five steps can be used as an outline for your email strategy. We will go into more detail about some of these topics later.
1. Define your audience.
An effective email is a relevant email. Start by understanding your target audience and what they want. Build your email campaign around that and cater to their needs.
2. Establish your goals.
Before creating your campaign goals, do some research to ensure they are realistic.
The average email stats for your industry can be used as benchmarks for your goals.
The benchmarks for each industry vary greatly. This guide will help you create goals that are achievable for your team.
3. Build your email list.
You need people to email, right? A list of email addresses (which we will cover how to cultivate in the next section) of people who have given you permission to contact them with targeted content.
You need to have several ways for prospects to sign up to receive your emails in order to build that list.
Do not be disappointed if you only have a small number of people to start with. It can take some time to build. It is important to treat every email subscriber and lead as if they are valuable in order to encourage growth.
4. Choose an email campaign type.
There are many types of email campaigns, and it can be difficult to decide which one to use. Do you send a weekly newsletter? Should you send out new product announcements? Which blog posts are worth sharing?
These questions plague every marketer. The answer is subjective.
There are several types of email campaigns, each with its own advantages. You should learn about the different types to decide which one best suits your needs.
You can segment your email list by creating different lists for different types of contacts. That way, people can sign up for only the kinds of emails that are relevant to them.
5. Make a schedule.
Tell your audience how often you plan to send them emails in advance.
This will allow them to know what to expect in advance. If you forget to do this, your unsubscribe list will be high, and you may end up in spam.
In addition, once you set a schedule, be consistent. Building trust with your audience is essential to staying top of mind.
6. Measure your results.
This should come as no surprise. As marketers, we measure everything. If you’re careful and attentive to every key metric, you can make small changes to your emails that will have a big impact.
We will go over the specific KPIs to keep track of in a bit (or you can move ahead to that section).
We will now look at what is required to construct your email list.
Is it a good idea to spend money on marketing tactics that don’t have a high monetary return? Obviously not.
More people than you would think go through this scenario. Many companies and realtors wasteful time and energy on marketing campaigns that are more expensive than they are worth.
You should not sacrifice your company’s financial stability in order to maintain strong customer relationships and positive public relations. How do you expect to keep going when all you’re doing is spending money all the time?
There is no need to worry; there is a marketing strategy that will result in a large amount of money coming in very quickly. What is it? Email marketing, my friend.
Isn’t email marketing dead?
Yes. For those who have bought email lists and sent spammy emails, wondering why no one is responding.
Email marketing is a popular method of marketing that is here to stay. This investment has a ROI of 4,400 percent. For every dollar you spend, you will receive $44 back. Let that sink in.
This means that the majority of email campaigns related to real estate are successful in engaging recipients. Strengthening ties with customers usually leads to more sales.
Why is email marketing so profitable? The reason this is the best example of permission-based marketing is because your subscribers have given you permission to contact them. Email marketing is not affected by algorithm changes in the way that social media is, and it doesn’t have the same high financial costs.
This section is for realtors who want to make money from email marketing. Get ready to note down these words of gold.
How can realtors generate revenue from email marketing?
Tom Ferry emphasizes that the majority of brokers discontinue working in the real estate industry within five years due to insufficient earnings. Don’t be like one of those lads.
There are ten ways that you can make money through email marketing that are listed below.
1. Sell your service
This is an obvious. You can make money from emails by promoting your service. The best way to market your real estate business is to tell people why you’re the best, invite them to open houses, and share client testimonials. This guide will show you how to get started with email marketing so you can start creating more successful campaigns.
The best way to ensure that your promotional emails are successful is to keep the focus on the reader and not on yourself. The best way to get someone to listen to you is to talk about their problems and how you can solve them. if you can show them that you understand their problem and have a solution that can help, they’ll be more likely to trust you and listen to what you have to say. Share why a property would be their dream investment. If you focus on building strong relationships, the money will keep flowing in.
This email is a perfect example of how a real estate email should be. It demonstrates how to grab a reader’s attention, provide clear and concise information, and close with a call to action.
2. Sell other’s products/services
Have you ever heard about affiliate marketing? You can earn a commission by marketing someone else’s product or service and every time it results in a sale.
The speaker is asking if decreases in sales are likely if the speaker markets their competing realtors, to which the answer is no. Be very picky with who you promote. The companies that you are interested in should ideally be related to you.
After a house is purchased, the first thing a buyer does is put their furniture in it. Buy furniture! Become an affiliate of a furniture business. There are also many companies that can help you with your move, like painting or home security. You probably know which companies would be best for you to use.
3. Create engaging emails
Your subscribers will not make a purchase if they are not engaged with the email.
The design of your email is the first step in creating an engaging message. We understand that realtors are busy people who can’t spend hours designing emails. That’s why we recommend using these real estate email templates. The former requires you to put in a lot of effort to create engaging emails, while the latter does it all for you.
You should additionally consider writing in conversational, easy-to-understand language. Keep your audience in mind when you are writing and remember that they are interested in investing in real estate, not your high school English teacher.
Interactive elements can be incorporated into the email design. Since most people get a lot of email, it can be hard to make yours stand out. Adding a special element, like a button, can help invite people to interact with your message.
4. Feature email ads
If you have been sending email to your customers for a while, you probably have a pretty good and valuable email list. It’s not easy to make money from your talent these days, but it’s your asset and you deserve to profit from it.
Rent out ad space in the emails you send. To get email ads, you can either go directly to advertisers or use an email ad network that provides you with programmatic email ads.
With email ads, be watchful of the following practices:
- Don’t bombard your emails with ads. You don’t want to annoy your readers and encourage them to click on the unsubscribe link.
- Don’t feature ads of companies not related to the real estate industry. Your readers are not interested in buying youthful serums or taking a vacation.
- Don’t include ads of companies with shady reputations or those offering poor-quality products/services. You don’t want people to associate you with negative encounters.
5. Segment your audience
You need to segment your mailing list in order to improve your results. If you want your audience to purchase your product, you need to send them personalized messages.
This means that segmented campaigns have been responsible for a 760% increase in revenue for email marketers. It’s important for realtors to segment their subscribers into different groups based on factors like geographical location, income class, family size, and property preferences. This allows you to better tailor your marketing messages and content to the specific needs and interests of each group.
If you create separate campaigns to target each customer segment, you will see an increase in the open and click-through rates for your emails.
Would it be beneficial to invite a Washington resident to an open house in Texas? We rest our case here.
6. Offer a tripwire
A tripwire is a great way to get potential customers to buy your product. A tripwire is a low-priced offer, usually between $5-$50, that is designed to convert customers.
People are understandably nervous about spending a lot of money on a service from an unfamiliar vendor, since there’s always a risk of being scammed. If you can get them to trip on the wire, they will be more likely to trust you and buy your more expensive products.
As a realtor, you can offer consultations to potential customers for a reasonable price; providing them with their financial analysis, showing them the best properties in their state, and discussing payment plans.
7. Upsell your services
Upselling is a great way of making more money because potential customers are already in the mindset of buying something.
If a customer shows interest in a property, you can always follow up with them via email with a better location. Highlight why they should spend their money on the expensive property; talk about the neighborhood, future land value, and security, among other features.
When someone is already buying a property that costs a lot of money, you can convince them to spend even more money. The higher the cost of a property, the higher the commission will be. Therefore, it makes sense to try to upsell potential customers.
8. Downsell your services
It’s not to say you should mix the two techniques up, but rather to use them both to your advantage. You should use both upselling and downselling techniques when trying to sell property. For those ready to purchase, suggest a more expensive option. For those who are unsure about buying, suggest a less expensive option.
Purchasing property is a big investment. Some people may not continue with the project because it is too expensive. This could be avoided by offering cheaper properties.
If you notice that a potential customer is hesitating to make a purchase, you can send them an email with a list of similar properties that are lower in cost.
You may be surprised how many potential buyers will respond positively to your emails when you advertise a lower-priced property.
9. Use psychology tricks
You can increase your email marketing revenue by using psychological tricks in your emails.
The truth is that people are impulsive. They’re excited to purchase when they see a limited-time discount because they believe they’re getting a good deal.
Use this to your advantage by making your emails sound urgent. You can increase your sales by segmenting your audience based on their property preferences and emailing them seasonal sales to encourage them to make a spontaneous purchase.
The below email shows a discounted property.
10. Reward buyers
What are some ways that you can turn a positive behavior into a habit? Through positive reinforcement.
Say a recently married couple bought a 2-room apartment. After the sale has been finalized, you can offer them a 10% discount on your services for their next purchase. The discount makes customers want to come back for more.
You can also entice buyers by giving them a referral bonus. If a referral uses your services and then purchases something, the referral will get a small percentage of the commission you earned.
Although you may have to give up a small percentage of your commission, it is worth it because you are earning revenue from referrals.