Understanding the Importance of Email Marketing

Did you know that in 2023, for every $1 spent on email marketing, made the marketers $42 as return on investment (ROI). Email marketing is one of the most profitable digital marketing channel when it comes to conversions, and this, of course, makes it incredibly important.

But you might be wondering: isn’t email marketing an old-school technique? Let me tell you why email marketing remain as a crucial marketing channel in 2025:

• Direct and Personalized Communication: Email marketing allows businesses to send personalized messages directly to their audience.
• High ROI: It consistently delivers a high return on investment due to its cost-effectiveness and precise targeting capabilities.
• Ownership of the Audience: Unlike social media, email marketing enables businesses to control their audience list.
• Automation and Segmentation: Marketers can automate campaigns and segment audiences to send timely, relevant content that matches individual subscriber behavior and preferences.
• Measurable and Adaptable: Detailed analytics help marketers track performance.
• Long-Term Relationship Building: Email helps you nurture customer relationships over time through consistent communication.

Don't worry—by the end of this article, you'll know exactly what each item means. But before that, I want to share a personal story that you might relate, to explaining why I believe email marketing will be the most important digital marketing channel 2025.

With AI and social media becoming increasingly involved in our lives, our attention spans have shortened. Doom-scrolling through endless content and getting answers with the snap of a finger has become the new normal.

Even though AI models are still in their early stages and don’t always provide "reliable" information, many people no longer bother to fact-check.

But why email marketing? What is the importance of email marketing? What is its purpose, and how can it survive when even search engines are struggling?

Let me share a personal story. Yesterday, I had an issue with my bank. I used the mobile app, but something felt off, I didn’t feel secure and wanted to speak to someone familiar with the bank’s processes, specifically customer service.

I tried calling, but the automated system kept repeating the same thing without offering a logical explanation. Next, I tried the AI assistant, but it was the same story.

Then I thought, why not ask my favorite AI model? I provided all the details and even referenced the bank’s website, but all I received was inaccurate information or an apology for not being able to access the data.

I turned to Google and spent hours reading outdated content from large publishers that was no help. I needed a real human experience to solve my problem.

I went to the bank, and they informed me that this was an issue that needed to be handled by the main branch and that they weren’t authorized to process it. Frustrated and angry, I sent an email (not one that I was particularly proud of, as email correspondence wasn’t my first priority).

Within an hour, I received a response requesting a simple document. I scanned it on my phone, and voila, my problem was solved in three hours.

I was able to explain myself clearly, attach the necessary documents, and communicate with a real human who understood the process.

AI will never be able to empathize with my problem; search engines will never fully grasp what I mean, and even if they do, they tend to promote big publishers rather than real people who can offer genuine help.

While social media just drowns me in content that’s identical and forgettable once I turn my phone off.

Emails, however, solve problems and provide solutions that matter only to the recipient and the sender. This direct and clear communication is unmatched.

What is Email Marketing?

You might wonder why email marketing is so important. To begin, it’s helpful to define it.

Email marketing is a digital strategy used by businesses to connect with potential customers or retain loyal ones by promoting or selling their products and services through email marketing campaigns.

This can include new product launches, system updates, newsletters, and purchase alerts, all of which fall under the umbrella of email marketing content.

While it may seem as simple as sending emails to potential customers, it’s crucial to recognize how powerful email marketing is.

Think about the last time you signed up for a social media platform or any other digital service. What did you need? A name, a password, and your email address. This alone highlights the significant impact email marketing can have.

Since almost everyone who connects to the internet must have an email account, your target audience becomes highly accessible through marketing emails. Additionally, email marketing allows you to focus on a specific audience, customize your message, build and strengthen relationships with them, and more.

Now that we’ve covered what is the main purpose of email marketing, we can move on to its advantages.

The Different Types of Email Marketing Campaigns and Their Benefits

If you're new to email marketing, it might feel overwhelming at first. However, since this marketing strategy has evolved over the years, there are many types of email formats available to choose from. By pinpointing your specific goals, you can develop templates tailored to different occasions.

1. Welcome Emails:

Imagine opening your shop and greeting a customer. For a first-time purchase or subscription, sending a welcome email helps establish a warm and authentic tone.

Welcome emails have an average open rate of 50%, making them 86% more effective than regular newsletters. This is a great starting point for building your professional relationship.

By creating a friendly tone, you’re more likely to encourage engagement. Customers who receive a welcome email demonstrate 33% more engagement with the brand over time. Using personalized subject lines can further capture attention and boost open rates.

1. Promotional Emails:

This type of marketing email is one of the most widely used, as it encapsulates what is the main purpose of email marketing. As a small business, you can increase sales by up to 60% through promoting a product, service, or special offer.

72% of people prefer receiving promotional content via email rather than social media.

By sending promotional emails, you are directly reaching an audience that is more likely to engage with your content.

You can even create exclusive limited-time offers for your email subscribers to boost engagement. Creating urgency with such offers can result in a 70% increase in transaction rates.

1. Holiday and Seasonal Emails:

Connecting with your target audience on a personal level is crucial in the online marketplace. Since they don’t know you personally, they may have certain reservations. However, sending holiday and seasonal emails can help break the ice.

Most people enjoy holidays (unless they’re like the Grinch), and researches show that holiday-themed emails experience a 14% boost in open rates and a 10% increase in click-through rates during peak shopping times like Black Friday or Cyber Monday. By planning these holiday campaigns ahead of time, you can capitalize on increased consumer interest and intent to purchase.

1. Transactional Emails:

Building trust takes effort, and sending informational emails that offer customer support can be highly effective. Transactional emails, such as order confirmations, have open rates that are 2 to 3 times higher than regular marketing emails.

By creating templates for customer actions—like purchase confirmations, shipping updates, or feedback requests—you can streamline your process. You can even use email bots to automatically send recipients their tracking numbers, making your workflow smoother and more efficient.

1. Newsletter Emails:

Companies that regularly send newsletters experience up to a 28% increase in engagement over time.

Sharing product updates, business news, special offers, or educational information is key to keeping your audience informed.

If you're worried about overwhelming your recipients with too many emails, you can blend educational content with promotional messages. This approach helps build brand loyalty while subtly encouraging subscribers to convert without feeling pressured.

10 Key Reasons Why Email Marketing Is a Powerful Tool

So far, we've clearly established why email marketing is important in business. Now, let’s explore the key advantages it offers for business owners.

• Direct Communication Channel: Reaching your audience on other digital platforms can be challenging—ads may be ignored, and direct messages deleted without being read. However, emails provide a direct line of communication. This also allows for a more intimate connection, as you can personalize each message.
• Personalization and Segmentation: Addressing recipients by name or referencing their previous purchases fosters a sense of care and trust. By building this genuine connection, you can significantly improve engagement. Mentioning personal preferences or past interactions helps further personalize your emails.
• High ROI and Cost-Effectiveness: As noted earlier, for every $1 spent on email marketing, you can expect an average return of $42. This makes it one of the most cost-effective marketing methods available.
• Builds Customer Loyalty and Retention: Retaining existing customers is often more difficult than acquiring new ones. By establishing a trusting relationship, you can maintain long-term communication. Sending loyalty program updates or exclusive offers to newsletter subscribers strengthens this bond and encourages retention.
• Analytics and Measurability: Tracking marketing data is crucial to assessing performance and success. Research shows that businesses that analyze their email campaigns can improve performance by up to 30%. Email marketing provides valuable metrics such as open rates, click-through rates, and conversions, helping you fine-tune your strategy.
• Scalable for All Business Sizes: One of the best aspects of email marketing is that it doesn’t rely on privileged algorithms. Whether you’re a small business just starting with email marketing or a larger enterprise, you can effectively promote your brand. All you need is a solid template, an email list, and passion!
• Supports Omnichannel Marketing: Omnichannel marketing integrates multiple platforms such as social media, content marketing, and e-commerce. Email marketing fits seamlessly into this strategy, driving traffic and engagement across channels.
• Provides Tangible Results: In email marketing, your goal is for recipients to open the email and respond to your call-to-action. The beauty of email marketing is that its effectiveness is measurable through key metrics. From driving website traffic to boosting sales, the impact of your campaigns is immediate and visible.
• Nurtures Customer Journeys: Crafting a well-thought-out customer journey is vital. Understanding your customers’ needs allows you to adjust your email strategy to better serve them.
• Compliance and Privacy Considerations: Building trust with your customers requires adherence to privacy policies. Following regulations like the General Data Protection Regulation (GDPR) ensures that your email marketing remains a secure and compliant communication channel.

The Importance of Email Marketing for Small Businesses

Email marketing isn’t governed by privileged algorithms, which means you don’t need to reach a certain level of success to make it work for you. If you’re wondering why email marketing is important for small business, the answer is simple: visibility. But let’s explain it with a simple list.

• Cost-Efficient and High-Impact: As a small business, operating on a tight budget is common. Investing heavily in marketing right from the start can be risky. This is where the importance of email marketing in digital marketing shines—it’s affordable and effective. You can avoid overspending while still reaching your audience.
• Builds Brand Awareness: While instant results might be unrealistic, email marketing helps you stay in front of your audience. Regularly showing up in their inbox keeps your brand on their radar, and over time, they’ll start engaging with your campaigns. Patience and persistence are key.
• Supports Local Marketing: Despite sounding traditional, local marketing collaborations are still highly effective. With email marketing, you can directly target your local community, announcing sales, special events, or even sharing community updates. It's a simple yet powerful way to stay connected with your audience.

Pros and Cons of Email Marketing

Every strategy has its pros and cons. We’ve already discussed the 10 importance of email marketing, but it’s important to address the drawbacks as well. Here’s a brief overview of the advantages and disadvantages of email marketing.

Advantages:

• High ROI & Cost-Efficiency: There’s no denying that email marketing is a popular choice in the marketing landscape. It’s favored for good reason: it offers great cost efficiency and a high return on investment since you’ll be spending less while generating substantial revenue.
• Personalization and Automation: Email marketing allows you to connect with your audience in a targeted way. By utilizing personalized data and automation, you can reach out to them based on their specific needs. This approach fosters a sense of familiarity and creates a friendly tone in your communications.

Disadvantages:

• Deliverability Challenges: On the flip side, emails can end up in spam folders. Given the vast range of email lists available for purchase or online use, there’s a risk that your emails may not reach their intended audience. It’s crucial to be mindful of your content and avoid overused phrases to prevent spam filtering.
• Over-Saturation: With the popularity of email marketing, your messages will compete with many others in your recipients’ inboxes. To stand out, you need to craft creative and attention-grabbing subject lines and opening sentences. Engaging templates can also help capture attention.
• Time and Content Effort: Effective email marketing requires consistent effort to build a rapport with your recipients. If you don’t maintain visibility, they may overlook your messages. Creating engaging content can be time-consuming, but utilizing existing templates, like those offered by Tabular, can make this process easier.

Conclusion

If you’re in any type of business, you’ll undoubtedly hear about email marketing frequently. Every part of an email is a tool for achieving your goals. It’s up to you to decide whether to try this direct communication channel or not, but email marketing is undoubtedly one of the most important digital marketing channels, and it’s not going to disappear anytime soon.

In this article, we explored the main purpose of email marketing and its significance. With its numerous advantages, such as cost-effective planning, broad reach, and personalized data, email marketing can greatly benefit businesses, including small enterprises looking to establish themselves.

At Tabular.email, we encourage you to experiment with simple email templates that align with your brand. Starting with welcoming email templates or informational templates can help you embark on your email marketing journey. Happy emailing!

Frequently Asked Questions about Email Marketing

What is email marketing?

Email marketing is a digital marketing strategy that involves sending targeted messages or promotional content to a group of individuals via email, with the goal of building relationships, promoting products, or increasing sales.

How to start email marketing?

To start email marketing, you need to choose an email marketing platform, build an email list, create engaging content, and develop a campaign strategy that aligns with your marketing goals, ensuring compliance with regulations like GDPR.

How much does email marketing cost?

The cost of email marketing varies depending on the platforms and the size of your email list. Basic plans can start from $20-$40 per month for small businesses, while advanced features for larger businesses might cost several hundred dollars monthly.

How to use email templates for email marketing?

Tabular.email offer a variety of customizable email templates. Simply click on the desired template, customize it to suit your campaign needs, and start building your email marketing strategy.