What is Email Marketing? A Complete Overview and Step-by-Step Guide

Introduction to Email Marketing

Email marketing is one of the most effective methods for connecting directly with your customers and driving business growth. Despite the multitude of digital marketing channels available today, email stands out for its ability to deliver personalized messages to individuals who have shown interest in your products or services.

This guide is designed to help you understand the power of email marketing and how to harness it effectively. You’ll learn:

• Why email marketing remains a vital tool for businesses
• How it outperforms other channels in engagement and ROI
• Steps to build a successful email marketing strategy

From growing your email list and crafting compelling content to implementing automation and analyzing key metrics, this comprehensive overview will provide you with the knowledge and tools to enhance your marketing efforts and achieve tangible results.

By the end of this article, you’ll be equipped with actionable insights to elevate your email marketing campaigns and connect with your audience more effectively than ever before.

Why Email Marketing Matters

Email marketing offers distinct advantages:

• Direct Access to Your Audience: Emails go directly to people who have already shown interest by opting in, creating a targeted and effective communication channel.
• Measurable and Trackable: Campaign performance can be tracked in real-time, from open rates to conversions, allowing for data-driven decisions.
• Personalization and Automation: Through email automation, businesses can deliver personalized experiences at scale, improving customer engagement and driving conversions.

These advantages make email marketing an indispensable tool for connecting with your audience effectively.

Email Marketing vs. Other Marketing Channels

While social media and SMS marketing are valuable channels, email marketing remains better in its reach and effectiveness.

More consumers check their email first thing in the morning before turning to social media.

Additionally, 87% of B2B marketers say email is their top organic channel, and 80% of small businesses rely on email for customer retention.

A Brief History of Email Marketing

Email marketing has come a long way since its inception. In 1971, Ray Tomlinson sent the first email, marking the beginning of electronic messaging.

By 1978, Gary Thuerk, a marketing manager at Digital Equipment Corporation, sent the first commercial email to 400 recipients, resulting in $13 million in sales—an event often considered the birth of email marketing.

The early days were unregulated, leading to the passage of the CAN-SPAM Act in 2003. This legislation set guidelines for commercial emails, giving consumers the right to opt out and imposing penalties for non-compliance. It significantly impacted email marketing strategies, emphasizing the importance of ethical practices and CAN-SPAM Act compliance.

Today, email marketing is data-driven, leveraging advanced automation, segmentation, and personalization to improve user engagement and drive business growth.

The evolution of email marketing reflects technological advancements and the increasing expectations of consumers for personalized and relevant communication.

Why Email Marketing Is Important

Email marketing remains one of the most powerful tools for businesses to reach and engage their audience.

As of 2023, the number of global email users has surpassed 4.3 billion, providing an extensive audience for businesses.

Additionally, 87% of B2B marketers consider email to be one of their top free organic distribution channels.

Small and medium-sized businesses rely heavily on email, with 81% using it for customer acquisition and 80% for retention.

The ability to deliver personalized marketing at scale, coupled with measurable engagement metrics like open and click-through rates, makes email marketing an essential component of any effective digital strategy.

Advantages of Email Marketing

Email marketing has its advantages.

• Cost-Effective: Email marketing is one of the most affordable marketing strategies, offering a high ROI.
• Wide Reach: With billions of email users worldwide, your potential audience is vast.
• Personalization: Tailor messages to individual subscriber preferences and behaviors.
• Automation: Streamline your campaigns with automated emails triggered by specific actions.
• Measurable Results: Track performance metrics to refine strategies and improve outcomes.

Disadvantages of Email Marketing

While email marketing has numerous benefits, it’s important to acknowledge potential challenges. While there are challenges to email marketing, these challenges can be overcome. Below, we’ll highlight some challenges, while also providing ways to overcome the challenge.

1. Inbox CompetitionYour emails compete with countless others in your subscribers’ inboxes, making it difficult to stand out.To overcome this challenge:
   • Craft compelling subject lines that grab attention and encourage opens.
   • Personalize your content to make it more relevant to each recipient.
   • Segment your audience to deliver targeted messaging that resonates.
2. Deliverability IssuesEmails may end up in spam folders or get blocked by email providers, reducing their effectiveness.To improve deliverability:
   • Follow best practices for email deliverability, such as avoiding spam trigger words.
   • Authenticate your emails using protocols like SPF, DKIM, and DMARC.
   • Regularly clean your email list to remove inactive or invalid addresses.
3. Unsubscribes and List FatigueSending emails too frequently or providing irrelevant content can lead to unsubscribes and decreased engagement.To prevent this:
   • Respect subscriber preferences regarding email frequency and content.
   • Provide value in every email to keep subscribers interested and engaged.
   • Monitor engagement metrics to adjust your strategy based on subscriber behavior.

By being aware of these disadvantages, you can take proactive steps to mitigate them and enhance the effectiveness of your email marketing campaigns.

How Email Marketing Works

Email marketing operates by sending targeted messages to subscribers who have opted into your email list.

At its core, it involves building a list of contacts, utilizing email segmentation based on specific behaviors or demographics, and sending personalized content that speaks to their needs.

We will look at the last two in this section – email segmentation and personalized content, offering help and suggestions for each. Then, in the next section – How to Get Started with Email Marketing, we’ll focus on building your email list, along with other tips and techniques to start marketing via email campaigns.

Personalization and Automation: Elevating Your Email Marketing

To make your emails stand out and resonate with your audience, personalization and automation are essential. They transform generic messages into targeted communications that drive engagement and conversions. Here’s how you can apply them effectively:

Email Segmentation: Tailor Your Messages

What It Is: Dividing your email list into smaller groups based on characteristics like demographics, interests, or purchase history.

Why It Matters:

• Increase Engagement: Subscribers receive content relevant to them.
• Boost Conversion Rates: Targeted offers are more compelling.
• Reduce Unsubscribes: Relevant emails keep subscribers interested.

Actionable Tips:

• Start Simple: Segment by basic criteria like new vs. returning customers.
• Use Sign-Up Data: Leverage information collected during subscription.
• Adjust Based on Behavior: Update segments as subscribers interact with your emails.

Personalized Content: Speak Directly to Subscribers

Why Personalization Works:

• Builds Connection: Personalized greetings and content make subscribers feel valued.
• Improves Open Rates: Customized subject lines catch attention.
• Enhances Relevance: Content tailored to interests increases click-throughs.

Actionable Tips:

• Use Their Name: Include the subscriber’s name in the subject line or greeting.
• Recommend Based on History: Suggest products or content related to past interactions.
• Customize Offers: Provide exclusive deals that match their preferences.

Email Automation: Work Smarter, Not Harder

Benefits of Automation:

• Saves Time: Set up emails to send automatically based on triggers.
• Ensures Timely Communication: Respond to subscriber actions instantly.
• Nurtures Leads: Guide subscribers through the customer journey without manual effort.

Key Automated Emails to Implement:

• Welcome Emails: Introduce your brand to new subscribers.
• Abandoned Cart Reminders: Encourage customers to complete their purchase.
• Re-Engagement Campaigns: Win back inactive subscribers with special offers.

Actionable Tips:

• Define Triggers: Identify actions that will initiate automated emails (e.g., sign-up, purchase).
• Create a Workflow: Map out the sequence and timing of your automated emails.
• Monitor and Optimize: Regularly review performance and make necessary adjustments.

Quick Start Guide for Small Businesses

1. Segment Your List Today:
   • Example: Create segments like “Prospects,” “First-Time Buyers,” and “Loyal Customers.”
2. Personalize One Aspect:
   • Example: Add the subscriber’s first name to the email greeting.
3. Automate a Key Email:
   • Example: Set up an automated welcome email for new subscribers.
4. Measure Results:
   • Check Open Rates: Are personalized emails performing better?
   • Monitor Sales: Do automated emails lead to conversions?

By incorporating personalization and automation into your email marketing, you enhance the customer experience and increase the effectiveness of your campaigns. Start with these simple steps to see immediate improvements in engagement and ROI.

Types of Marketing Emails

Different types of marketing emails serve specific goals within your overall strategy. Understanding these distinctions can help you deliver the right message to the right audience. As well as it it help you build your email marketing funnel.

1. Welcome Emails

Welcome emails are sent immediately after someone subscribes. They set expectations for future communications and often include a call-to-action, such as downloading a resource or setting account preferences.

Studies show that welcome emails generate 320% more revenue than other promotional emails.

• Best Practices:
  • Send instantly after sign-up to capitalize on initial interest.
  • Personalize with the subscriber’s name.
  • Provide valuable information or offers to encourage engagement.

2. Newsletter Emails

Newsletters are sent on a regular schedule (weekly or monthly) and provide updates on your brand, such as new blog posts, product updates, or industry news. They help keep your audience engaged by providing value consistently.

• Best Practices:
  • Maintain a consistent sending schedule.
  • Include a mix of educational content, promotions, and company updates.
  • Use engaging visuals and headlines to capture attention.

3. Transactional Emails

Transactional emails are automated messages triggered by a customer’s actions, such as order confirmations, shipping notifications, or password resets. They have some of the highest open rates because they provide essential, time-sensitive information.

• Best Practices:
  • Ensure timely delivery.
  • Include all necessary details related to the transaction.
  • Use these emails to cross-sell or upsell relevant products carefully.

4. Promotional Emails

Promotional emails focus on driving sales by offering discounts, special offers, or time-limited deals. They are highly effective at spurring conversions, especially when paired with a strong call-to-action.

• Best Practices:
  • Highlight the offer clearly in the subject line and content.
  • Create a sense of urgency with time-limited deals.
  • Personalize offers based on user behavior or past purchases.

5. Survey and Feedback Emails

After a purchase or interaction, survey emails are used to gather feedback and improve customer experience. Engaging customers in a two-way dialogue helps build brand loyalty, and feedback data can inform product or service improvements.

• Best Practices:
  • Send surveys shortly after the customer experience.
  • Keep surveys short and easy to complete.
  • Consider offering an incentive for completing the survey.

6. Re-Engagement Emails

Over time, some subscribers may become inactive or disengaged. Re-engagement emails target these users with personalized offers, content, or a simple “We miss you” message, aiming to revive their interest in your brand.

• Best Practices:
  • Personalize the message to acknowledge their inactivity.
  • Offer exclusive incentives to encourage return engagement.
  • Provide an easy way to update preferences or unsubscribe.

Examples and Best Practices

For further insights on how to design these emails for maximum impact, explore best practices for creating email marketing campaigns.

By using these email types strategically, you can engage different segments of your audience at the right moments, improving both customer satisfaction and conversion rates.

How to Get Started with Email Marketing

Now that we understand what email marketing is and the types of email marketing we can do, its important we understand how we can get started with email marketing.

The first step in email marketing is building your email list. An email list is simply a collection of email addresses from people who have opted in to receive your content.

But how do you get people to opt in so you can contact them by email?

Here are some strategies to help you build your email list:

Building Your Email List

There are a number of strategies you can employ to build your email marketing list. We’ll offer the most popular below.

1. Use Lead Magnets: Offer valuable resources in exchange for email signups.Examples include:
   • E-books: Provide in-depth guides on topics relevant to your audience.
   • Discounts/Coupons: Offer a percentage off the first purchase.
   • Webinars: Host live sessions on industry insights or product demos.
2. Implement Signup Forms: Place signup forms strategically on your website to capture visitor information.Consider placing these in the:
   • Header and Footer: Persistent forms always visible on your website.
   • Sidebar Widgets: Visible on blog posts and content pages.
   • Pop-ups and Slide-ins: Triggered by user behavior (e.g., exit intent, time on page).

   Best Practices:

   • Keep forms simple—ask for minimal information.
   • Use clear and compelling calls-to-action.
   • Ensure forms are mobile-friendly.
3. Promote on Social Media: Leverage your social media platforms to encourage followers to subscribe. Chances are, if they follow you on social media, they might want to hear from you off the platform.Tips for building your email list from social media include:
   • Promote your lead magnets on social channels.
   • Use social media ads targeting your ideal audience.
4. Host Webinars and Events: Organize webinars or live events to capture emails from interested participants. This approach not only grows your list but also establishes your authority and provides value to your audience.
5. Segment Your List: Organize your subscribers into segments based on their behavior or demographics to ensure personalized content. We talked about this above, but it is good to be reminded of it again, as it will make your email marketing campaign more effective by:
   • Allowing for targeted messaging.
   • Increasing engagement and open rates.

Building a well-segmented, engaged email list helps maximize the impact of your email marketing efforts.

For more strategies on segmentation, check out our article on 12 strategies to capture more email leads without annoying everyone.

We’ve put together a great guide, Email Marketing 101, that details how to get started with email marketing.

Writing Your Marketing Email

Once you have your email list built and loaded into your favorite email marketing platform, it’s time to craft the email and create marketing campaigns that convert.

Let’s break down the basic components of an effective email so that you can up your emailing game.

Subject Line

A successful email subject line is part art, part science. It’s the first thing your recipient reads, and it greatly influences whether they’ll open your email.

• Best Practices:
  • Personalize: Use the subscriber’s name or reference their behavior.
  • Keep it Short and Clear: Aim for 6-10 words or 25-50 characters.
  • Create Urgency: Use time-sensitive language if appropriate.
  • A/B Test: Experiment with different subject lines to see what works best.

For more tips, read 12 tips for email subject lines that won’t get ignored.

Preview Text

The email preview text is the snippet that appears next to or below the subject line in the inbox.

• Best Practices:
  • Complement the subject line by providing additional context.
  • Keep it between 40-130 characters.
  • Use it to entice the reader to open the email.

Below is an example from Gmail highlighting the various parts of an email in the inbox:

Email Body

When it comes to the body of your email, you can use HTML, plain text, or Google AMP.

• HTML: Most commonly used; allows for images, links, and formatting.
• Plain Text: Should always be included along with HTML for accessibility.
• AMP: New technology for adding interactive elements like forms and surveys.

Design Tips:

• Visual Cues: Use images and graphics to enhance your message but don’t overdo it.
• Alt Text for Images: Always include alt text for images so that text displays if images don’t load.
• Responsive Design: Ensure your email renders well on all devices, especially mobile.

Can You Use Custom Fonts in Your Email Body?

Kind of. But we recommend using web-safe fonts to ensure consistency across email clients. Common web-safe fonts include:

• Arial
• Helvetica
• Verdana
• Georgia
• Times New Roman
• Tahoma

These are fonts that all email clients support and the ones built into the DailyStory email designer.

Unfortunately, web fonts (such as Google Fonts) aren’t supported by most email clients. Instead, those email clients will revert to a web-safe font, which can cause emails to render differently.

For more information, please see this article.

Sending Your Email

The moment is finally here. After all your efforts to build your list and craft your content, you are ready to launch your campaign!

But before you do, we always recommend going through an email checklist before sending and making sure your IP address is warmed up. It’s also a good idea to use your seed list for your first send.

Mistakes are easy to avoid when you know what to look for.

Schedule Your Emails to Send

When people think of sending their email, they often think of picking a date and time as well as an audience to send it to. That’s called a scheduled email. But automation supports several other ways to send emails.

Automating Your Email Marketing

Email automation features a series of emails you automatically send to your prospects or customers.

Using a tool like DailyStory, you can schedule emails to send based on your audience’s interactions with your business, respond to a user’s actions (or inactions), and automate the delivery of a sequence of emails.

Email Automation Opportunities

Depending on your brand and business, there are a number of “low-hanging fruit” types of automated emails that you can begin with:

• Abandoned Cart Recovery: Remind customers of items left in their shopping cart to recover potentially lost sales.
• Post-Purchase Follow-Ups: Thank customers and provide additional value after a purchase to increase satisfaction and encourage repeat business.
• Re-Engagement Campaigns: Reach out to inactive subscribers to renew interest and reduce churn.
• Cross-Sell and Upsell Automation: Recommend products based on past purchases to increase average order value.

We’ve put together some automated email examples that you can start using today.

Email Drip Campaigns

Email drip campaigns are a type of time-release email marketing tactic. Drip emails are intended to land with purposeful timing and targeting with minimal waste (and minimal effort once set up to run automatically).

For example, an onboarding campaign to welcome new customers and welcome campaigns are both types of drip campaigns. Using automation for eCommerce activities, such as nurturing and cart abandonment, can directly impact your business’s sales.

Getting Your Email to the Inbox

In the email marketing industry, the consensus is that a good email open rate is between 15% and 20%, and the industry average for email click rates is about 2% to 5%. But with a little more work, you can get your email open and click rates much higher.

Strategies to Increase Open Rates

Below are some strategies to increase email open rates:

• Craft a great subject line.
• Personalize your subject line.
• Use emojis to help your subject line stand out.
• Consider different subject line lengths.
• Always use a personalized preheader.
• Don’t ignore the “from” address.
• A/B test to optimize email open rates.

Strategies to Increase Click Rates

Once you’ve optimized your open rates, start working on your email click rates. Here are some strategies to increase email click rates:

• First, optimize your email open rate.
• Segment your audience.
• Use a clear and specific call-to-action.
• Design mobile-friendly emails.
• Ensure your content and visuals are engaging.
• Optimize email send times.

Strategies to Avoid Bounced Emails

When a recipient’s email server notifies you that your email was not delivered, that’s a bounced email.

Bounced emails both lower your potential conversion rates (i.e., sales) and negatively impact your IP reputation, which can cause your emails to get blocked, flagged, or blacklisted.

Keeping a low bounce rate is critical for delivering to recipients’ inboxes. But not all bounced emails are the same.

Two Types of Bounced Emails

• Soft Bounce: A temporary issue that prevents your email from delivering. This can range from the recipient’s email inbox being full to the recipient’s server not being able to process the delivery. Soft bounces typically resolve themselves but can turn into hard bounces after repeated attempts.
• Hard Bounce: A permanent delivery issue, such as an invalid email address. Hard bounces can significantly impact your IP reputation.

Open rates, click rates, and bounce rates are also how you measure the success of your email campaign.

Wondering how to master email deliverability, read our guide on how to get your emails delivered to the inbox.

Check Email Deliverability

You can send test emails to platforms like MailTester to check if your emails are passing SPF and DKIM checks. These platforms simulate email reception and provide feedback on your configuration.

Remember that DNS record propagation can take time, so changes might not be immediately reflected. Double-check the configuration syntax and values to ensure accuracy.

If you’re uncertain about your DNS records or are experiencing issues with email deliverability on DailyStory, please check with our team.

What to Do If You Get Flagged as Spam

Spam complaints happen when an email recipient clicks on the “spam” button within their mailbox provider interface. These complaints affect your deliverability and sender reputation.

Because a spam complaint is a mailbox provider option rather than part of the email (like an unsubscribe link), that information is not automatically fed back to you.

Here is what to do if your email gets flagged as spam, and you should start with this overview of how to avoid the junk folder.

What Email Metrics Are Important?

There are several email metrics that are important to understand:

Best Practices for Email Marketing

Now that you have started sending emails and measuring performance, it’s time to tune up your email marketing with best practices.

Examples of Email Marketing Best Practices

Some examples include:

• Never Purchase Contact Lists: Build your list organically to ensure engaged subscribers.
• Timing Is Everything: Send emails at times when your audience is most likely to engage.
• Do Not Use “No Reply”: Encourage engagement by using a real email address.
• Invest Effort into Your Email Subject Lines: They are critical for open rates.
• Optimize Your Email’s Preview Text: It complements your subject line and can entice opens.

You can read about these five best practices and the other eleven in our email marketing best practices article, as well as email marketing do’s and don’ts.

Understanding Email Marketing Legal Implications

While sending an email may seem straightforward, navigating the legal landscape of email marketing is crucial to protect your business and maintain your reputation.

Non-compliance with email marketing laws can lead to severe penalties and damage your relationship with your audience. Here’s what you need to know to stay on the right side of the law.

Why Compliance Matters

Focusing solely on crafting engaging content and perfecting your email design isn’t enough. Overlooking legal requirements can result in hefty fines and loss of customer trust. Ensuring compliance not only protects your business but also enhances your credibility with subscribers.

Key Regulations to Understand

1. CAN-SPAM Act (United States)

The Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act sets the rules for commercial emails in the U.S. and gives recipients the right to stop receiving them.

• Main Requirements:
  • Clear Identification: Emails must not use deceptive subject lines or “From” names.
  • Physical Address: Include your valid postal address in every email.
  • Opt-Out Mechanism: Provide a clear and easy way to unsubscribe, and honor requests promptly.
  • No Harvesting: Avoid collecting email addresses through illicit means.

Penalties: Violations can result in fines of up to $43,792 per email. For detailed guidelines, refer to our article on six ways to comply with email marketing laws.

2. General Data Protection Regulation (GDPR) (European Union)

The GDPR is a comprehensive data protection law that affects businesses handling personal data of EU residents, regardless of the company’s location.

• Main Requirements:
  • Explicit Consent: Obtain clear and affirmative consent before sending emails.
  • Data Transparency: Inform subscribers about how their data will be used.
  • Right to Access and Erasure: Allow users to access their data and request deletion.
  • Data Protection: Implement measures to protect personal data from breaches.

Penalties: Fines can reach up to €20 million or 4% of annual global turnover, whichever is higher. Learn more about GDPR compliance in our comparison of GDPR vs. CCPA.

3. California Consumer Privacy Act (CCPA) (United States)

The CCPA enhances privacy rights and consumer protection for residents of California.

• Main Requirements:
  • Disclosure: Inform consumers about the personal data being collected and its purpose.
  • Right to Opt-Out: Provide the option to opt-out of the sale of personal information.
  • Access Rights: Allow consumers to request details about their personal data collected.

Penalties: Non-compliance can result in fines up to $7,500 per intentional violation. For more information, refer to our GDPR vs. CCPA comparison.

Practical Steps to Ensure Compliance

1. Obtain Explicit Consent
   • Use Double Opt-In: Confirm subscriptions with a follow-up email.
   • Clear Sign-Up Forms: Explain what subscribers are signing up for.
2. Provide Clear Unsubscribe Options
   • Easy to Find: Place the unsubscribe link prominently in your emails.
   • Process Requests Quickly: Honor opt-out requests promptly, typically within 10 business days.
3. Be Transparent with Your Identity
   • Accurate Sender Information: Use a valid “From” name and email address.
   • Include Contact Information: Add your physical mailing address.
4. Avoid Deceptive Practices
   • Honest Subject Lines: Reflect the content of the email accurately.
   • No Misleading Content: Be truthful about offers and promotions.
5. Maintain a Clean Email List
   • Regularly Update: Remove inactive or invalid email addresses.
   • Respect Preferences: Honor subscriber choices regarding the type and frequency of emails.
6. Include Your Physical Address
   • Add your valid postal address in the email footer.

Consult Legal Expertise

While this overview provides general guidance, laws can vary by country and may change over time. It’s wise to consult with a legal professional familiar with email marketing laws in the regions where your subscribers reside.

Final Thoughts

Understanding and adhering to email marketing laws is not just about avoiding penalties—it’s about building trust with your audience. When subscribers know that you respect their privacy and choices, they’re more likely to engage with your emails and remain loyal customers.

By taking these steps, you create a foundation for a successful and sustainable email marketing strategy that benefits both your business and your subscribers.

The Future of Email Marketing

While there hasn’t been tremendous innovation in the email market in recent years, there have been some notable developments, including the integration of AI tools like ChatGPT.

Limited by the Gatekeepers of the Inbox

Email marketing innovation is limited by the gatekeepers of the inbox (Gmail, Outlook, etc.). Therefore, any innovation is not in email marketing per se, but in the white space around it.

AI Is a Game-Changer

Creating emails with ChatGPT is a novelty—albeit a useful one—and something we support. At DailyStory, we believe the real game changer for email marketing innovation is AI-driven strategies, but not just for content creation.

For now, we have to settle for the innovations that the gatekeepers allow, such as Google AMP.

Google AMP for Email

Google AMP emails allow you to build lightweight emails with shorter loading times. This framework is created from HTML, CSS, and JavaScript but is currently only supported by a handful of email inboxes.

In a nutshell, AMP emails enable automatic content updates and interaction within the email itself, which can be very powerful. While AMP is new and innovative, you have to evaluate whether AMP emails are right for your business.

Google Verified Checkmark

Starting from May 3, 2023, Google introduced verified checkmarks in Gmail.

You might have received an email recently that looked like this:

These checkmarks appear next to sender names and help users distinguish genuine senders from impersonators. But getting the Google Verified Blue Checkmark isn’t so simple.

There Is Always Something New to Learn

Email marketing courses improve your email marketing skills and potentially lead to new job opportunities. Staying updated with the latest trends and technologies ensures your email marketing strategies remain effective and competitive.

By incorporating these strategies and insights, you can enhance your email marketing efforts and achieve better results. Remember, the key to success is continuous learning and adaptation.