Permission Based Email Marketing

Direct and affiliate marketing are important for building a good customer base. Affiliate marketing is not as easy as it seems. Compared to affiliate marketing, direct marketing using email is much simpler. However, the efficacy of email marketing depends entirely on the target audience. Unsolicited emails are never welcome, since people get annoyed on receiving spam mail. This is why permission based email marketing is useful. The email list, in this case, consists of people who have voluntarily chosen to receive mails on products that are of interest to them. Permission based email marketing is a cost effective way of promoting the products of a company.

Advantages of Permission Based Email Marketing

The CAN SPAM Law came into effect on January 1, 2004. According to this law, it is not illegal to spam people in the US, provided certain guidelines are followed while sending out bulk emails. However, in the UK, there are strict laws against spamming, and permission based email marketing is mandatory since the Privacy and Electronic Communications Regulations came into effect in December 2003. Regardless of the legal issues, it would be a good idea to encourage people to opt-in rather than flood them with unsolicited mails. The following are the advantages of permission based marketing:

• People read through the mail rather than ignoring it.
• The company builds a reputation for itself as a permission based email advertiser.
• There is good response to advertising since information is sent to people who choose to receive the same.
• The company reaps the benefit of promotions and marketing at a very low cost.
• In countries where bulk mailing is illegal, permission based email marketing helps the company build its business without violating any laws.
• Even in countries where bulk mailing is allowed, permission based marketing ensures that a company does not violate guidelines and get sued in the bargain.

How to Build a Marketing List?

Since permission based email marketing is the best way to increase the customer base, a company should focus on building its mailing list. The mailing list can be built in the following manner:

Offering Free Stuff: People generally find it hard to resist getting something for nothing. An advertiser should try giving free stuff, like e-books and software, in exchange for their mail id. However, the advertiser should not force people to give their mail id in order to download the e-book. It may be a good idea to allow the user to download one e-book without making any demands. This may inspire trust and encourage the user to visit the site again. In case the viewer returns to the site and tries to download another e-book, it would indicate a sustained level of interest. The user may now be willing to supply his mail id in exchange for the free gift. The advertiser now has the mail id of a genuinely interested client. He can get in touch with the person and send him information on a number of products that would be of use to him.

Easy Subscription: Many times, a user is interested in signing up, but finds the subscription process painstakingly difficult. A company should keep this in mind while designing their subscription form. The form should not ask for too many details. After all, a mailing address is all the company needs. People who provide their mail id are obviously interested in the product. The company can then take the relationship to the next level.

Studies have shown that contrary to popular belief, email marketing has been very successful in generating revenue. The success of an operation is measured in terms of ROI. Return on investment, or ROI, is defined as the ratio between the cost of investment and the revenue generated. For the year 2009, it is expected that email advertising will outperform other direct advertising techniques and generate a revenue of $43.52 for every dollar spent on advertising. There is enough evidence to prove that targeting the right audience, with the aid of permission based email marketing, yields results. It is up to the firm to find innovative ways of encouraging people to sign up for information on the products being marketed.