Today over 73% of all Australians use email.
Almost all of these would be looking every day at their email.
Now as anyone that uses email knows, we all get a lot of email newsletters.
Now here is my calculation on what a local shop, an SMB, can expect to earn from an email newsletter.
Say they have a file of 1,000 people, something that I think most SMB can get using there Point of Sale system and an aggressive VIP marketing campaign. Note for our clients we have an exclusive service that allows them to get an email listing free for many of the business accounts in their area.
Open rates percentage, this is the overall number of people that look at an email newsletter are generally about a third.
So at this point, you have about 330 readers.
After that, it gets very messy to determine what will happen as with a retail store most of the people reading your email are going past your shop often daily, so they are associating with your shop in some way.
If we assume that 1% of those people do come and buy something with say an average of $75 item with a 40% margin, we would have 330 x 1% x $75 x 40% = $105 per newsletter.
If you do one newsletter a month that is about $1,200 in profit a year.
Please put in your figures into this calculation and now ask yourself if it takes you a few hours to set up and an hour to do each email newsletter, is it worth it?
It’s your decision
If the answer is *YES*, then the service we recommend you start with is MailChimp.
Mainly as it is free if you looking at under 2,000 accounts and less then 2,000 emails a month. It integrates into our POS software, and as we use it, we can help you with it.
Overall we find it a solid product which will provide you with the basics that you need to do email marketing for your business. If after a while if you see that it is not good enough well you will know more about what you need and can start looking at the 100s of different email newsletter software systems out there.
I hope this gives you something to think about?
