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The insights provided by consumer response to email marketing help businesses and organizations understand and make use of consumer behavior.

Businesses and organizations who send a high volume of emails can use an ESP (email service provider) to gather information about the behavior of the recipients.

Email marketing is significantly cheaper and faster than traditional mail, mainly because with email, most of the cost falls on the recipient.There are both advantages and disadvantages to using email marketing in comparison to traditional advertising mail.Įmail marketing is popular with companies for several reasons: Companies usually collect a list of customer or prospect email addresses to send direct promotional messages to, or they rent a list of email addresses from service companies. Direct emailsĭirect email involves sending an email solely to communicate a promotional message (for example, a special offer or a product catalog).

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There are also software vendors that offer specialized transactional email marketing services, which include providing targeted and personalized transactional email messages and running specific marketing campaigns (such as customer referral programs). Many email newsletter software vendors offer transactional email support, which gives companies the ability to include promotional messages within the body of transactional emails. But, due to their high open rates (51.3% compared to 36.6% for email newsletters), transactional emails are an opportunity to introduce or extend the email relationship with customers or subscribers to anticipate and answer questions or to cross-sell or up-sell products or services. The primary purpose of a transactional email is to convey information regarding the action that triggered it.

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Triggered transactional messages include dropped basket messages, password reset emails, purchase or order confirmation emails, order status emails, reorder emails, and email receipts. To be qualified as transactional or relationship messages, these communications' primary purpose must be 'to facilitate, complete, or confirm a commercial transaction that the recipient has previously agreed to enter into with the sender' along with a few other narrow definitions of transactional messaging. Transactional emails are usually triggered based on a customer's action with a company. At the same time, however, it also means that the more personal nature of specific advertising methods, such as television advertisements, cannot be captured.Įmail marketing can be carried out through different types of emails: Email marketing allows marketers to see users' feedback in real-time and monitor how effective their campaign is in achieving market penetration, revealing a communication channel's scope. Email marketing carries the benefit of allowing marketers to identify returns on investment and measure and improve efficiency. Historically, it has not been easy to measure the effectiveness of marketing campaigns because target markets cannot be adequately defined. To effectively communicate a message through email, marketers had to develop a way of pushing content through to the end user without being cut out by automatic filters and spam removing software.

However, as email marketing developed as an effective means of direct communication, in the 1990s, users increasingly began referring to it as ' spam', and began blocking out content from emails with filters and blocking programs. He claims that this resulted in $13 million worth of sales in DEC products, and highlighted the potential of marketing through mass emails. In 1978, Gary Thuerk of Digital Equipment Corporation (DEC) sent out the first mass email to approximately 400 potential clients via the Advanced Research Projects Agency Network (ARPANET). Before this growth, when emails were novelties to most customers, email marketing was not as effective. Email marketing has evolved rapidly alongside the technological growth of the 21st century.

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