Small costs, big impact! Why an email marketing budget plan is so important

Email marketing: achieving big goals with a small budget

It doesn’t matter if you’re a big enterprise or a small business: Nurturing your customer relations is a definite must!

There’s no better way of getting to your customers than newsletter marketing. So it’s no surprise that spending on email marketing has been rising continuously for years – without putting a heavy strain on the marketing budget. This is because the use of our professional email marketing software, for example, is free of charge, you only pay for sending the newsletter – and this item doesn’t tear a hole in your cash register. Conversely, clever newsletters generate a multiple of their costs. This makes email marketing your secret superpower in your marketing budget plan.

Infographic: How will your budget for the following forms of marketing change?

Why it’s worth planning a budget for email marketing

Email marketing is a very effective tool for reaching your target group, whether they are customers, patients, clients, readers, fans or whatever. If you haven’t already budgeted for email marketing, now is the time to do so. Here are some of the benefits you might otherwise miss out on:

  • Email marketing is easy and flexible to implement. This is especially true if you use a newsletter tool as flexible and simple as CleverReach. The application is intuitively understandable, so that you need few resources for familiarisation – which in turn has a very positive effect on your budget.
  • You reach your target group directly. Unlike other marketing channels such as social media or display adverts, emails are sent directly to the recipient’s email address. This brings us straight to the next advantage:
  • Email marketing is cost-effective. You don’t have to place expensive adverts or pay for search engine placement. All you need is an email address list and an email marketing platform. We offer various plans tailored to your exact needs.
  • You can carry out event-related (e.g. “Black Friday“, company anniversary, in-house exhibition) or behaviour-based campaigns (e.g. abandoned cart) at strategically important points in the customer’s decision-making process (customer journey).
  • You can personalise and segment your emails: By using names, interests and other personal data (age or place of residence), you can build a more personal relationship with your customers and send more targeted – and therefore more successful – newsletters.
  • You can set up automated emails that are sent at specific times or events. For example, you can set up automated emails for birthday offers or purchase confirmations. This saves time and resources and allows you to focus on other aspects of your business.
  • Email marketing is measurable. You can see exactly who opens your emails, who clicks on a link and who buys something. With this knowledge, you can continuously optimise your email campaigns because you get to know your target group better and can adapt your emails to them.
  • One of the most important reasons why companies should integrate email marketing into their marketing budget is the high ROI (return on investment). And because this is so outstanding, we have dedicated a separate paragraph to the ROI in email marketing:

Email has the highest return on investment!

Planning a budget for email marketing is one of the best investments a company can make: The result per euro invested (ROI or return on investment) is measurably better than that of other common marketing measures.

In comparison, email marketing offers an average ROI rate of 3,600 %. This means that for every euro you invest in email marketing, you get back an average of 36 euros. So if you want to make the most of your marketing budget, email marketing is the best choice.

Infographic: ROI in Email Marketing

Email versus physical mailing: cheap(er) and eco-friendly

Let’s assume you run an online shop or a medium-size enterprise (such as a travel agency or car dealer) and regularly send product catalogs. In this case, the following calculation is realistic:

Catalog delivery

  • Delivery: Once a yearHigh
  • High gloss, 10,000 recipients
  • Costs: 1.50€ /copy plus 0.50€ delivery charges per copy. Total: 20,000.00€

What you don’t know is how your customers have reacted to the content of your catalog – you can’t calculate KPIs or ROI. Hand on heart – you’re completely groping in the dark.

In comparison: 

Electronic newsletter

  • Also 10,000 recipients, created and sent with a monthly plan at CleverReach
  • Costs: 100 € per month
  • Your benefit: send as many catalogs per month as you like!

Depending on the tariff, the price applies to an unlimited number of emails, in our example for 10,000 recipients, to whom you can send emails as often as you like. This means that you can even follow up at no extra cost! As you can see: Sending emails once costs less than 0.6 percent of sending by post and is much more effective.

Sending emails is also more favourable in a completely different respect, namely in terms of environmental impact and CO2 emissions: the difference between sending emails and sending them by post is also a big plus – or rather minus!

The entire process of printing, packaging and transport is eliminated – and with it considerable energy costs and emissions, not to mention paper consumption.

This means that email marketing is also good for the climate budget!

Improve email marketing ROI with automation

When comparing the physical mailing of advertising brochures and email mailings, it is already clear which measure puts significantly less strain on the marketing budget while having at least the same effect.

An even better result per euro invested can be achieved with the help of automation.

By using email marketing automation, you can send emails to your recipients without having to manually create a new campaign each time. This saves working time that you can use for other purposes.

Create different automations for frequent events such as

  • Welcome emails or emails after a registration,
  • Follow-up emails after an action such as a purchase or downloading a whitepaper
  • Sales funnels to guide your customers through a purchase process until they take the desired action, such as a purchase or registration.

With CleverReach, the most common automations are already stored in the system, so you simply need to fill them with your content and activate them.

How do you calculate your email marketing costs?

Let’s take a look at our prices: At CleverReach, either the total number of your recipients or your monthly email newsletter dispatch volume is decisive for choosing the ideal price model for you.

In the first case, your rate is calculated according to the number of recipients and you can send as many newsletters as you like, as often as you like. This pricing model is particularly suitable for regular mailings and e-mail automations.

In the second case, your monthly newsletter quota, i.e. the number of emails you send, determines your price, but the number of recipients is unlimited. This tariff model is particularly suitable for on-demand mailings. But regardless of whether your recipient database continues to grow in the future and you want to gain more subscribers or send more newsletters, your rate can be flexibly adjusted. There is no minimum term and the contract can be cancelled at any time.

Activate our abandoned cart automation, for example, and automatically benefit from more sales and more turnover on a very manageable budget:

Once set up, emails are sent automatically to remind you of the products left in the shopping basket. Apart from the one-off set-up, there is no additional labour budget for you.

This leaves the budget for the e-mail dispatch itself: If you have selected a tariff that is based on the number of e-mail addresses in your address list, the corresponding e-mails will be sent at no additional cost.

If your tariff is based on the number of emails sent each month, automations will be sent up to the upper limit of your quota. Once this limit has been reached, you will receive a message and can decide whether or not you want to increase your quota.

Email marketing is a worthwhile investment even with a small budget

No other marketing measure has a return on investment as high as email marketing. With a professional newsletter tool such as CleverReach, an email campaign can be implemented quickly and easily – at a very manageable cost. With the help of one-off automation routes, the time required is also kept to a minimum. This saves you time that you can use for other purposes. And with the help of recipient behaviour, i.e. clicks and website visits, conclusions can be drawn about the preferences of your recipients so that they can be better addressed. The recipient thus receives more relevant, because more appropriate, information. The result: You make more sales. The outlook: You invest in more email marketing. A win-win-win situation!

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