Email marketing - How to succeed with email marketing!

Learn how email marketing can boost your business and online store by creating strong customer relationships and increasing sales. Gain insights into strategies and tools for effective email marketing

Effective communication and increased sales with targeted email marketing

What is Email marketing?

Email marketing is a form of direct marketing where businesses use emails to communicate with their customers. It is an effective way to build relationships, increase customer loyalty, and drive sales. Through email marketing, companies can send newsletters, offers, updates, and other forms of content directly to their customers' inboxes.

For webshops, email marketing is particularly useful as it can be used to inform customers about new products, special promotions, and discounts, as well as follow up on previous purchases with recommendations for related products. It is also a cost-effective way to reach a large audience, as the cost of sending emails is much lower compared to traditional marketing channels like print ads or TV commercials.

How is Email marketing used in accounting?

From an accounting perspective, email marketing is relevant in several ways. First, the costs of email marketing campaigns must be properly recorded in the company's financial statements. This includes expenses for email marketing software, purchasing email lists, designing emails, and any consulting services.

Additionally, it is important to measure the effectiveness of email marketing to assess the ROI (Return on Investment). This can be done by analyzing data such as open rates, click rates, conversion rates, and sales data to see how email campaigns impact the company's revenue.

Email marketing can also affect inventory management and logistics. For example, if a campaign leads to a significant increase in sales, the business must be prepared to handle increased demand in inventory and shipping.

Example of Email marketing calculation in practice

Let's assume a webshop has decided to run an email marketing campaign to promote a new product line. The following are some key data points and calculations that may be relevant:

Email marketing software costs: 1,000 DKK per month
Email list purchase costs: 500 DKK
Email design and creation costs: 2,000 DKK
Total costs: 3,500 DKK
Number of emails sent: 10,000
Open rate: 20% (2,000 opened emails)
Click rate: 5% (500 clicks)
Conversion rate: 10% (50 purchases)
Average order value: 300 DKK

To calculate the revenue from the campaign, we can use the following formula:

            Revenue = Number of purchases * Average order value
                    = 50 * 300 DKK
                    = 15,000 DKK

To calculate the ROI, we can use the following formula:

            ROI = (Revenue - Costs) / Costs * 100
                = (15,000 DKK - 3,500 DKK) / 3,500 DKK * 100
                = 328.57%

In this example, the email marketing campaign generated revenue of 15,000 DKK with an ROI of 328.57%, indicating a highly successful campaign.

Learn how email marketing can boost your business and online store by creating strong customer relationships and increasing sales. Gain insights into strategies and tools for effective email marketing