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With new social platforms emerging every year, many entrepreneurs wonder if it's time to ditch email and explore new avenues. Did you know that email is still the second largest marketing channel for startups after social media? Yes! All thanks to its low cost and incredible return on investment (ROI). According to a Litmus study, email still has one of the highest ROIs, with businesses expecting to earn a whopping $38 for every dollar spent on email marketing.
As the CEO of Builderall, an all-in-one digital marketing platform that has helped over 2 million small businesses, I'm often asked if email marketing is still an effective strategy in this new phase of the digital age: Will email marketing be dead in 2024?
I am here to debunk the biggest myths and reveal the truth, and today I am giving you the inside scoop to help you realize the truth.
Email Marketing Definition
Before we clear up these misconceptions, let's make sure we're all on the same page about what email marketing actually is. Many people have misconceptions about this form of digital marketing that put them off and lead to missed opportunities.
Email marketing is a direct marketing strategy that involves sending promotional and informational messages to your target audience via email. It goes far beyond mass promotions and cold outreach. When done properly, it can build a meaningful relationship between your brand and your subscribers. It's a way to keep your subscribers engaged and, ultimately, another way to increase sales.
Some examples:
- Newsletter
- Promotional Offers
- Product Updates
- It also provides personalized content based on subscribers' interests.
Related: 8 Easy Email Marketing Tips to Increase Open and Click Rates
Myth #1: Email marketing is dead
First, let's address the elephant in the room: no, email is not dead! In fact, email is far from dead and is still going strong.
According to data provided by Oberlo, 80% of businesses use email as their primary customer retention channel, meaning they use it to engage and re-engage existing customers.
But that's not all: A HubSpot study found that 60% of consumers have made a purchase as a result of receiving a marketing email, a huge testament to the power of email marketing in driving revenue for businesses.
Myth #2: People don't read email
I can't tell you how often you hear this myth. It's true that our inboxes have gotten a lot busier over the years, with many of us receiving dozens or even hundreds of emails every day. It's also true that a significant portion of those emails may end up going straight to the trash or spam folder.
However, according to HubSpot, 46% of smartphone users still prefer to hear from brands via email over other channels.
If you build trust and send relevant content, your subscribers will be happy to accept your emails.
This statistic also highlights the importance of using compelling subject lines and other email elements to draw attention to your campaigns so they stand out in a crowded inbox.
Myth #3: Younger generations don't use email
Gen Z and Millennials are the next generation with serious buying power, and they are often described as glued to their screens and addicted to social media platforms, so it’s no surprise that businesses are looking for new and innovative ways to reach them.
These stereotypes lead many to assume that Gen Z and millennials are more into TikTok and Instagram than old-school strategies like email. Let us prove them wrong again: According to the Attest US Consumer Trend Report, 53% of Gen Z receive weekly emails from their favorite brands. For millennials, the figure is 66%.
Of course, you'll want to tailor your approach to each audience (think slang and memes here and there), but don't ignore email: these generational segments still use and prefer it.
Myth #4: Email open rates are low
The next myth we want to address is a bit more specific: Some people say that email performs poorly compared to social media platforms like Facebook and Instagram. In that case, you need to look at your open rates.
Open rate is an important key performance indicator (KPI) in digital marketing because it tells you how many people actually open and read your emails. According to a MailChimp benchmark, the average email open rate across all industries is 34.23%. While that may not be a shocking number, it's not bad either.
With optimization, that number can increase significantly and be beneficial, which is why, as mentioned above, many businesses still rely on email as their primary channel for customer retention.
Related: Here's the secret to increasing your email open rates
Myth #5: Email marketing is the same as spam
Finally, let’s backtrack and go back to the definition of email marketing. Too many people confuse email marketing in general with the somewhat shady practice of cold outreach.
Cold emails are unsolicited messages sent to people who haven't shown any interest in your brand or product. You basically buy or collect a list of email addresses without the recipient's knowledge and then send them a mass email in the hopes of grabbing a few leads. It's often used for lead generation and can come across as intrusive if not done correctly, since no one has given you permission to contact them.
Email marketing, on the other hand, is about building relationships with people who have already shown an interest in what you have to offer — they may have signed up for your newsletter or opted in to receive updates through a lead magnet — which is a big difference.
It's this latter form of communication that's why 81% of businesses use email as their primary customer acquisition channel, helping them get results without resorting to spam tactics.
Final thoughts
While many entrepreneurs may be attracted to the latest shiny products and technology, these myths will cause many entrepreneurs in 2024 to disregard email.
Done right, email marketing can be a vital growth tool for startups and established businesses alike. Now that you know the truth, use email marketing to increase conversions and retention. With a strategic approach, you may see even higher open rates and ROI than the studies suggest.
