Before we dive into the 2 types of email marketing, let’s first understand how does an email work (we don’t have to consider the technical factors here).
How email works?
1st Case: Let’s say there are 2 friends: Sarah & Kim
Sarah’s email address: email@example.com
Kim’s email address: Kimisalwaysawesome@yahoo.com
Sarah wants to send her wishes via an email to Kim on Friendship day.
Let’s see what will happen when an email is sent by Sarah (sender) to Kim (receiver).
When an email is sent from firstname.lastname@example.org to email@example.com, gmail checks the domain of recipient (yahoo) and here it passes through 2 spam filter mechanism. Gmail would have its own spam filter and Yahoo would also have one of its own.
2nd Case: Let’s say Romeo & Juliet are a cute couple and they have the below mentioned email addresses.
Romeo’s email address: firstname.lastname@example.org
Juliet’s email address: email@example.com
Romeo wants to send his wishes via an email to Juliet on Valentine day.
Let’s see what will happen when an email is sent by Romeo (sender) to Juliet (receiver).
So, let’s summarize the working of email and spam filters.
If gmail >> gmail then 1 spam filter (local delivery). This one is faster and the receiver would receive the email in about 20 seconds or less.
If gmail >> yahoo, then 2 spam filters (foreign delivery). There would be a little delay of may be up to 1 minute for the receiver to receive the email.
Email Marketing Lingo:
It can be confusing right? You’re reading an In-Depth article on Email Marketing and all of a sudden if we start popping off with words like Open Rate and CTR and Bounce Rate and,,,
… you’re like WHAT THE F**K?
Yeah that’s difficult no doubt so we wanted to make sure that we gave you a resource here to simply show you “here’s what all this stuff means” and it’s a place you can frequently come back to if you get stuck or happen to forget something.
Here you go…
- A/B Split Test – This simply refers to “testing” two different email creatives to your list. You’re splitting it 50/50 to see which one gets the better response rate and statistics.
- Ad Swap – This is where two email marketers agree to send emails to each others offers or “squeeze pages”. This helps you build your list without spending money on subscriber acquisition.
- Auto-Responder – This is an email that “automatically” goes out to someone on your list. It’s typically activated by someone “subscribing” to the list, although there are other options to activate an auto response message. Typically mailers have a complete “sequence” of emails that are sent to their subscribers over a certain period of time.
- Bounced Email – This is an email that is not delivered. There are 2 types of bounces soft and hard. Soft bounces are emails that are not delivered to real email addresses and are less problematic. Hard bounces are typically spam traps or invalid email addresses. Having a large % of hard bounces is very bad and can result in your sending account being shut down.
- Call To Action – Also known as CTA is simply the part of an email that tells the user to “take action” and click on the link provided in the email creative.
- CTR – This is your CLICK THROUGH RATIO it’s just the amount of times someone clicks on your links in your email vs the amount you have sent out.We often times check our CTR in two different ways:The % of people who clicked based on the “Open Rate #”The % of people who clicked based on the total amount of mail sent.
- Double opt-in: A process that requires new list joiners to take an action (such as clicking on an emailed link to a personal confirmation page) in order to confirm that they do want to be on the list. If double opt-in is turned on when you acquire subscribers you are unable to send emails to anyone who doesn’t click on the confirmation link sent to them.
- Open Rate – This is just the number of people who opened an email you’ve sent divided by the number of total emails sent out. This is one of the key factors we look at when determining if our mailing strategy is working.
- Personalization: A optimization method in which an email message looks to have been created only for a single recipient. Personalization techniques include adding the recipient’s name in the subject line or email message. You can also include the recipient’s email address, location or any other valid information to make the email “personalized”.
- Unsubscribe: To remove yourself from an email list. Typically all emails have an “unsubscribe” link located at the bottom of them.
Types of Email Marketing
As we mentioned earlier that, email marketing is all about promoting your brand or service via an email where the receiver has given you a permission to send them an email which is essentially any e-mail a company sends out to people.
This email can be categorised into different types:
- Transactional Emails or Autoresponders: Transactional emails are usually triggered based on a customer’s action with a company. Transactional messages include dropped basket messages, password reset emails, purchase or order confirmation emails, order status emails, reorder emails and email receipts. The primary purpose of a transactional email is to acknowledge an action of a visitor on the website that has triggered it. As per the latest numbers, transactional emails have a higher open rates (51.3% compared to 36.6% for email newsletters). Because of this, transactional emails are an opportunity to engage customers & build the email relationship & trust with customers or subscribers. This in the long run will help the business to cross-sell or up-sell products or services.
- Direct Emails or Broadcasts or Newsletters: This is an email where in a business is trying to communicate a promotional content via its email. Eg: An update regarding some product launch. This can be done by 2 methods which we can categorize as Legit Marketing (Permission based) or Illegit Marketing (Spamming).
Legit Email Marketing Permission Based or Opt in email marketing
Let’s say Romeo has developed a new energy drink and he is super excited about his product. He wants to message as many people as he can about his newly launched product.
He thinks that the more people will hear about my energy drink product the more he will get sales.
So he sits down on his computer and starts jotting down an email with some eye catchy headline and fancy promotional message inside the email.
After writing a quick, flashy paragraph about the drink he opens up Google.com and searches for as many email brokers as he can. He wants to get a huge list of email address to whom he can shoot out his fancy email.
He thinks that the more his message goes to people, the more potential you he has in making money.
Somehow, he gets an email list of 10,000 people and he sends out his email to everyone.
This might sound easy, right? Unfortunately, not only will people probably identify his message as spam or an e-mail marketing scam and delete it.
A couple of people might not even open it because they might think that who is this guy? I don’t know him. (Even you might have done this with many of your emails, am I correct?)
So, here comes one of the most important concepts in e-mail marketing which is permission based email marketing.
In simple terms, a business or a website must receive a visitor’s authorization before sending out any promotional e-mails. (How to get permission is an another topic which we will discuss later)
If a person receives an e-mail from a business that he never requested, chances are that e-mail is considered spam.
So to summarize we can say that email marketing has 2 ways:
- Legit (Permission Marketing) >> Collecting emails or building lists and then sending them periodic emails.
- Illegit (Spamming) >> You buy a list of emails and send bulk emails which might be treated as spam email.
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