Email has been around in some form since the ’70s. It’s been used and abused and has become a marketing staple for retailers. So, yes, email is still a thing. 

But, we’re not talking about spam email; we’re talking about integrated email marketing to customers and potential customers with whom your business has enjoyed some interaction.

Today, email marketing can help you gain amazing return on investment (ROI), communicate with customers, target customer segments, generate ongoing promotions and education, and much more. The goals of email marketing are customer engagement and action.

Email service provider (ESP) Constant Contact’s report “Email Marketing Statistics & Trends for 2024 to 2025,” states that 81% of small- and medium-business professionals believe email marketing increases customer retention and helps in customer acquisition. They also report that for every dollar spent on email marketing, businesses can expect to earn $38 on average.

According to marketing guru Luisa Zhou, six out of 10 people make purchasing decisions based on email marketing. Specifically, 50.7% buy something from a promotional email at least once a month, while 23.8% do so multiple times.

Additionally, DemandSage reports personalized emails are responsible for 58% of all email marketing revenue. 

The data doesn’t lie. Retailers who aren’t using robust email marketing campaigns are falling behind, while those who do realize substantial return on investment (ROI).

William Altherr, the senior marketing manager at guns.com, is an email and digital marketing specialist. We asked Altherr to outline key points to consider about email marketing and its value to small retail businesses.

Universal Applicability: “Email marketing is crucial for all brick-and-mortar retailers to communicate with their customer base,” Altherr says. “Fortunately, most consumers use and rely on email communications.” 

Statista, a global data and business intelligence platform, reports that at the end of 2023 in the U.S., 93.1% of those aged 15 to 24 use email, as do 95% of those aged 25 to 44. At age 45 to 64, usage drops back to 93%, while 86.5% of those 65 or older use email.

Email Service Platforms: Email service providers like MailChimp and Constant Contact allow retailers to manage and send emails effectively and economically. However, depending on your needs, ESP companies offer a variety of different functionalities to help you achieve your goals. These include email and marketing automation, lead capture forms, A/B testing for email subject lines and email content, website tracking, audience segmentation, and email engagement tracking.

Advanced ESPs also can track customer behavior on websites, providing insights that allow for more personalized marketing approaches. Making the right ESP choice is important to meet your needs today and in the future. Compare ESPs, talk to their sales staff, and watch online demos.

Email Collection: Collecting customer and potential customer emails at every touchpoint, in-store, through your website or via social media promotions, is vital for building a contact email list. Without a list, you’re dead in the water. 

Key methods to collect email addresses include in-store checkout, website opt-in forms, pop-up forms, promotional offers, loyalty programs, social media campaigns, post-purchase opt-in emails, and live chat/chat bots.

Dedicated Staff: Jumping into email marketing willy-nilly, isn’t advisable. Having an employee dedicated to managing email marketing, even part-time, is essential for strategy implementation and content creation.

“An employee who can spearhead your efforts, greatly increases the effectiveness of email marketing,” Altherr says. “Initially, the person will be busy with the learning curve. But, once established, the ongoing management takes less time, approximately 10 hours a week.” 

If you’re understaffed, consider outside service providers who can run your campaigns or offer help in areas where your staff may not have expertise, like writing content, designing visual emails, or simply learning how to use ESP services to reach goals.

Content Creation: Creating visually appealing and informative emails increases open and click-through rates. “Don’t rely, however, on designs you feel will generate clicks and action,” Altherr warns. “Utilize A/B testing to determine which emails are most enticing to your customer base. Something as simple as background color can affect results.”

A/B testing, or split testing, is a method of comparing two or more versions of a webpage or element to see which one performs better. By randomly showing different versions to segments of visitors, businesses can determine which option drives more engagement or conversions.

A/B testing generates $42 for every $1 spent, compared to $21 for marketers who don’t do A/B testing. Test your assumptions so you can double down on what works.

In addition, creating reusable email templates for recurring promotions saves time and maintains consistency in communication.

Segmentation: Using technology, like customer relationship management (CRM), to segment customers based on their interests or purchase history allows for more targeted, effective marketing. 

“Over the last few years, the ability to segment customers by interest, buying habits, age, location, and more, and then personalize campaigns to match segment interests, has made email even more effective,” Altherr says.

Many ESP’s offer the ability to segment lists automatically. When researching services, keep segmentation top of mind.

Personalization: Delivering personalized email content based on behavior increases relevance, thereby increasing the likelihood of customer interaction.

Email personalization is a strategy where emails are tailored to individual recipients based on their behavior, preferences and interaction history. By leveraging data such as browsing activity, past purchases and engagement patterns, businesses can craft messages that feel relevant and personal rather than generic.

Remember, personalized emails are responsible for 58% of all email marketing revenue.

Automation: Email automation is all about timesaving. It uses email marketing software to send personalized emails to a target audience based on predefined triggers or schedules. It streamlines communication, nurtures leads, provides a personal touch, and enhances customer engagement.

Automation allows for ongoing connection without the need for ongoing content input. A few examples of automated campaigns include customer welcome emails, a monthly newsletter, new product/service announcements, birthday wishes/gift, or notification of discounts, sales and specials.

Cost-Effectiveness: Email marketing can be relatively inexpensive yet generates substantial ROI. Well-planned and executed campaigns generate an average of $35 to $40 for each dollar spent. ROI is the primary reason most retailers are increasing email marketing budgets, not cutting them.

Regardless of how you’re currently using email marketing, take a little time to see how you can grow or improve your efforts. Clearly, technology continues to change and augment capabilities, communications strategies evolve, and services abound. Review current efforts and service providers. Set or restate goals. Initiate a plan of action. Then, enjoy a huge return on investment.

B2C (Business to Consumer) Marketing Statistics

• 72% of B2C marketers utilize email marketing software to support content distribution.
• 50% of people buy from marketing emails at least once per month.
• 87% of B2C marketers leverage automation as part of their email marketing strategy.
• More than 8 out of 10 people will open a welcome email, generating four times as many open and ten times as many clicks as other email types. 
• B2C emails have an average open rate of 19.7%.
• Welcome emails have an average open rate of 68.6%.
• Personalized subject lines can increase open rates by 50%.
• 91% of US consumers would like to receive promotional emails from companies they do business with.
• 34% of consumers are more likely to purchase from an email they came across.
• 59% of consumers say marketing emails influence their purchase decisions.
• 60% of shoppers returned to complete their purchase after receiving a personalized abandoned cart email
•  80% of business professionals believe that email marketing increases customer retention.
• 42.3% of Americans subscribe to email lists to receive savings and discounts.
•  Approximately 1 in 3 US retail email list subscribers have purchased something from the brand whose emails they receive.

Sources: Hubspot, Website Magazine, and Mailmondo

Email Marketing Terminology

A fundamental understanding of terminology is foundational to understanding and optimizing email marketing campaigns. Mastering these metrics and tools can significantly enhance your ability to engage customers, drive sales, and maximize ROI.

• ROI (Return on Investment): A performance measure used to evaluate the efficiency or profitability of an investment or to compare the efficiency of different investments. In email marketing, ROI is calculated as the revenue generated from email campaigns divided by the cost of those campaigns, often expressed as a ratio (e.g., $42:$1).
• CTR (Click-Through Rate): The percentage of email recipients who clicked on one or more links contained in an email. It is calculated by dividing the number of clicks by the number of delivered emails, then multiplying by 100 to get a percentage. A higher CTR indicates more effective email content in driving engagement.
• ESP (Email Service Provider): A company or platform that provides tools and services to manage, send, and track email marketing campaigns. Examples include Mailchimp, Constant Contact, and HubSpot. ESPs help small businesses automate email campaigns, manage subscriber lists, and analyze performance metrics.
• OR (Open Rate): The percentage of email recipients who opened an email campaign. It is calculated by dividing the number of unique opens by the number of delivered emails, then multiplying by 100. Open rates help gauge the effectiveness of subject lines and the relevance of the email to the audience.
• CR (Conversion Rate): The percentage of email recipients who completed a desired action (e.g., making a purchase, signing up for an event) after clicking a link in the email. It is calculated by dividing the number of conversions by the number of delivered emails or clicks, then multiplying by 100. This metric measures the ultimate effectiveness of an email campaign in driving sales or actions.
• AOV (Average Order Value): The average amount spent by customers per transaction resulting from an email campaign. It is calculated by dividing the total revenue generated from email-driven purchases by the number of orders. AOV helps small retailers understand the monetary value of their email marketing efforts.
• BOUNCE RATE: The percentage of emails that could not be delivered to the recipient’s inbox. There are two types: hard bounces (permanent delivery failures, e.g., invalid email addresses) and soft bounces (temporary issues, e.g., full inbox). It is calculated by dividing the number of bounced emails by the number of emails sent, then multiplying by 100. A high bounce rate can indicate issues with email list quality.
• SPAM (Unsolicited Bulk Email): Refers to unwanted, unsolicited emails sent in bulk, often for commercial purposes. In email marketing, avoiding being marked as spam is critical, as it can affect deliverability and reputation. Compliance with laws like the CAN-SPAM Act in the U.S. is essential to avoid spam complaints.
• DKIM (DomainKeys Identified Mail): An email authentication method that allows the sender to digitally sign an email to verify its legitimacy and ensure it hasn’t been altered in transit. DKIM helps improve email deliverability and protects against spoofing, which is important for small businesses building trust with customers.
• SPF (Sender Policy Framework): An email authentication protocol that specifies which mail servers are authorized to send emails on behalf of a domain. It helps prevent email spoofing and phishing, ensuring emails from small retailers reach their customers’ inboxes rather than spam folders.