Facebook and Instagram have held the spotlight for too long, with advertisers spending more than US$114 Billion in 2021 alone. These numbers are expected to double in just a few years despite the rising CPC and limitations in consumer tracking due to heightened privacy laws. However, not all advertisers can (or will) dig deeper into their pockets, providing the opportunity for the long-lost hero of the past, email marketing, to make a valiant comeback.
For many smaller businesses, the cost of advertising on Meta, while remaining competitive against the big players, means their profit margins are much smaller. A small bump in the road, such as seasonal product demand or a restricted advertising account, could cause a company to fail. Because of this, paying more attention to retention channels is the most effective way for businesses to improve profitability and protect against the risks of paid advertising.
1. 60% of consumers say they’ve purchased due to email marketing, while only 12.5% considered a buy button as a purchase driver on social media, according to a 2019 Optinmonster report.
2. The National Law Review calculates that acquiring new customers costs 5x more than keeping current ones.
3. A Bain & Company cost-cutting guide values a 5% increase in retention rate as a potential 75% increase in revenue.
4. Loyal customers are worth up to 10x more than their first purchase.
With so much potential on the table, there is massive growth in retention-specialised agencies ready to reignite email marketing and help brands build cult followings. Multimerce agency, headquartered in Australia, is one of the emerging leaders unlocking the power of hyper-personalised experience from first-touch to brand advocate. Their approach has helped businesses grow their email lists up to 5X faster, improve the return customer rate by 8X, and increase store revenue by 83% without increasing advertising spending.
Email marketing is one of the few owned channels left, giving businesses full ownership to leverage consumer data for personalised experiences. Brands that neglect email marketing are restricting their profitability and are potentially more vulnerable to failing from external factors. Statistics show that quality email marketing setups deliver consistent, cost-effective and stable revenue almost unaffected by the fluctuations experienced (particularly by smaller brands) in paid ads.