The many benefits of email marketing for SMEs mean you can get the best out of your marketing investment. Because SMEs may not have the budget for large marketing campaigns, return on investment is crucial.

The best thing about email marketing is that it works. And you don’t need to make a massive marketing investment to reap the benefits of email marketing.

Of all the marketing channels, email marketing still delivers the highest ROI. It generates $42 for every dollar you spend.

We’ll outline five ways SMEs benefit from email marketing in this article. But first, let’s find out what email marketing is.

What is email marketing?

Email marketing is a way to reach your target market directly via electronic mail. Unlike spam, direct email marketing targets those interested in your products, services, or business knowledge.

No matter your business, it’s a way to reach thousands of potential customers directly. And you can do that at a relatively low cost compared to advertising or other forms of media exposure.

Email marketing communicates your message directly to people who may not have heard of your business but are knowledgeable and interested in your area of expertise. Text, graphics, and helpful links in your emails can make your business stand out and look more attractive to potential customers.

Ultimately, you can reach more customers, generate leads, and turn them into sales with email marketing!

5 Benefits of Email Marketing for SMEs

It Works

According to an AWeber study, 79% of small businesses said email marketing is essential to their business strategy. Over the past 12 months, 77% of marketers have seen an increase in email engagement.

According to Statista, there are 4 billion daily email users, with users expected to grow to 4.6 billion by 2025. The more people who use email, the more you can take advantage of it.

You know email marketing works when 37% of brands are increasing their email budget while just 1.3% are making cuts (Litmus 2021).

So, the main benefit of email marketing for SMEs is that it works. You can grow your business with this marketing strategy, and email marketing revenue is only going to increase.

By the end of 2023, email marketing revenue is estimated to reach almost US$11 billion (Statista 2021).

The graph below shows the revenue rise and the projected rise.

Increase Website Traffic

Email marketing benefits SMEs because it redirects readers to your website, products, and blogs. It makes your website visible to potential customers.

You can direct your target market to specific landing pages on your website. The target audience can visit your website through links in the email campaign.

That increases ROI if your website has a call to action that appeals to visitors and leads.

Strengthens Relationships, Loyalty, and Trust

With email marketing, you are effectively building one-on-one relationships with current and potential customers. Well-written, engaging e-newsletters and emails that show the personality of your business help readers learn to know you, like you, and trust you. People do business with people they know, like, and trust.

Increases Brand Awareness

Each email you send builds awareness of your business and brand. That keeps you top-of-mind with customers and prospects. The next time they need your products or services, they’re more likely to purchase from you than from someone they barely know.

It’s Easy

Most email marketing services offer nice-looking templates which are easy to fill in with your content. With a few clicks of the mouse, your email is ready to go.

Even better than a pre-made template, though, is one custom-designed just for your business. It adds that personal touch and is specific to your brand.

Whichever way you go, email marketing is a quick and easy way to reach your current and potential customers right in their inbox.

Is Email Marketing Still Effective?

Yes, email marketing is still effective. While social media is trending now, email is still a tried-and-true marketing channel that you shouldn’t overlook. Forbes said email marketing is still the most powerful tool to take your business to the next level.

Email Marketing Laws Australia

There are email marketing laws in Australia that you must follow when running email campaigns. Following these laws ensures your business won’t get penalised.

When you do email marketing, you must comply with the Australian Spam Law. The Spam Act 2003 outlines how businesses can run email marketing campaigns.

Email marketers in Australia should understand three legal rules: consent, identification, and unsubscribe options.

Consent means you must get permission from customers before sending them emails. One way a customer can consent is by opting in to your emails.

However, you can also infer consent from the customer. If a customer has already interacted with your business, you may infer consent to send them marketing emails.

Identification means your marketing emails must include the details of your business so customers can contact you. Emails should contain your registered trading name and contact information like phone number, address, email address, etc.

Your details should be easy to read and accurate for at least 30 days after you send the email.

Unsubscribe Options allow recipients to stop receiving emails. You must always include a clear and easy option to unsubscribe when sending marketing emails.

People have the right not to receive your marketing emails. Therefore, you must offer the option to unsubscribe without charging any fees.