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How Email Marketing Can Increase Your Profit Margin

Email marketing has been one of the effective means of communication for any business and is also often referred to as the best revenue-driven machine for an organization. The channel acts as one of the powerful marketing channels in terms of the ROI generation.

As the main criteria for the businesses are reaching out to the potential customer at the right time, email acts as the perfect medium for the same. When one can connect with the prospect at the right time, then there are high chances, it will increase the profit margin with increased conversions. A study by Marketing Sherpa even found that 72% of the consumers prefer receiving promotional messages through email.

Why Email Marketing?

It has been seen that 69% of businesses spend their time and money on email marketing.

The channel really works, as stated by David Mihm, the founder of the newsletter generator Tidings. “When you own the email list, you even own the subscribers. It’s not that you are renting it from Instagram, Google, Facebook, Twitter, and any other platform.” The other reason why most of the marketers choose email marketing is that it helps in staying top-of-the-mind of the customers. An email should not always have to be a sales pitch mail. What matters most is the valuable communication with the customer.

Email marketing helps businesses in reaching a large number of customers with an easy and inexpensive method. When compared to traditional marketing, email marketing is much cheaper and helps in reaching out to the customers at their convenient time with additional facilities such as regular follow up with them. The customized promotions by segmenting the audience and sending a tailored message to them are one of the effective strategies for increasing the profit margin of an organization.

As per a report by Campaign Monitor, 74% of marketers stated that targeted personalization had increased their customer engagement. Email marketing is one of the essential processes in building relationships with leads, prospects, existing customers, and new ones. As it gives an opportunity of connecting directly with the customer by landing into their inbox, an email has to be personalized and friendly. You have to make the recipient comfortable by not invading their space with the right message.

Find some of the popular strategies for increasing profit margin through email marketing:

Strategy No.1 – Developing Relationships & Establishing Credibility:

Sending the free and valuable information to the subscribers helps the subscriber trust your brand. Once the credibility has been established, it greatly increases the conversion chances of the subscribers into loyal customers. Offering a free trial version of the software, a free report are some of the tactics for getting the attention of your potential customer.

Strategy No.2 – Following Up With The Hottest Leads:

You would have segregated the hottest leads as the priority ones. As a marketer, you have to closely monitor these leads so that you do not lose them to your competitors. Emails are a perfect communication channel through which regular follow up can be maintained.

Strategy No.3 –Sometimes Delivering The Product Electronically:

Creating a digital version of the book and then mailing it to the customers can delight the customer. The hassle of printing, packaging, warehousing, and delivery is removed, thus increasing the profit margin.

Strategy No.4 – Using The Email For Selling The Knowledge:

If you are an expert in a specific subject related to your service, then promoting the knowledge-based content aligned with your service can help in targeting the right customer. This process helps in winning the trust of the new customer, thus increasing the conversion numbers and profit margin.

Measuring The Success Of Email Marketing

Every marketer has to measure the success of their email marketing campaign to develop effective strategies. The success rate can be measured through several metrics such as open rate, conversion rate, deliverability, click-through rates, unsubscribe rate, bounce rate, and others.

Email marketing is a powerful medium of connecting with customers. As it is easy to track and measure, a marketer’s task relies on the host of data for gaining the right insights.

A well-run campaign helps in the:

  • Right generation of the leads
  • Increase in sales
  • Improved client loyalty
  • More opportunities for repeat business


Every organization in the world requires some form of email marketing. Elevating the brand value is made hugely possible with email marketing. Although there has been a huge influx of other forms of marketing, email marketing will always be one of the powerful forms to increase the profit margin.

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