A short and simple answer is: Anywhere between $9 and $49,999 a month.
The beginning of a long answer is: It depends!
When it comes to figuring out the cost of a marketing channel, the answer isn’t binary. This is even more prevalent for email marketing that has many dynamics attached to it. There are so many factors that influence the budget it demands.
Moreover, a lot also depends on individual business owners. How serious they are about email marketing?
Even in your industry, there surely are those still high on leveraging emails, and then also those who have bought into the clamoring noise of Messenger marketing.
So, in reality, when you’re scheming how much of your marketing budget should you separate for email marketing, the key isn’t to find out answers for “how much it costs” – the important thing is putting your own needs and requirements on the pedestal.
After all, while email marketing does have 4,400 percent ROI, it might not necessarily how it pans out for you.
Yes, it’s a boring answer and it isn’t something you’re here for. But that’s really the truth.
Interestingly, knowing how much email marketing should cost you isn’t that difficult. Just do the following things and you’ll be on your way to ace marketing budget optimization:
Get a Slow and Steady Start
After hearing just how good of an investment it could be, so many businesses rush to spend a fortune on an email marketing services agency. Don’t be one of them.
Unless you’re well-acquainted with the game and have a definite idea of conversion, you want to start slow by taking measured steps.
You must spare enough time, before getting in the full gear, to learn the basics and advanced concepts so as to avoid any future blunders.
So, sign up to a good email marketing solution and opt for a basic plan.
In the following weeks, once you get the hang of how things work and what you should be doing, progressively, per your need, expand your email marketing budget.
Understand Your Conversion
Once you’re spending enough in your email marketing efforts, time to analyze the conversion.
Find out the deliverability rate, open rate, and CTR.
If you have robust analytics, you can easily track your audience and measure how many of them are converting no matter what your CTA is.
So, take out some time to measure your conversion.
Focus on CRO
Your existing strategy isn’t perfect. There’s a lot of room to improve. Before judging your efforts, and email marketing in the whole, you must try to optimize your strategy.
Spend some in your email conversion rate optimization.
Give these articles a quick read:
- How to Maximize Your Email Conversion Rate in 2020?
- 5 Fundamental Tips to Convert Website Visitors Into Email Subscribers
Compare it With Other Channels
After weeks of it, once you CRO have possibly yielded some good results, your numbers are now legible for comparison.
Compare your email marketing conversion to the conversion on other channels and departments.
How much your investment in SEO is yielding? What’s the conversion of Facebook, Twitter, LinkedIn, and other platforms? How are those ads returning in benefits?
Compare thoroughly the ROI of each platform to know exactly which of them is bringing your business the most value. This will have you sort your priorities to proportionately allocate your marketing budget per the benefits you’re seeing at present.
Adjust Email Marketing Spending
Following the comparison in the previous step, adjust your email marketing spending. Spend on it an ideal amount that’s worth the returns it’s bringing you.
This is exactly the sum you should be spending on email marketing for a span until your next budget auditing.
But this doesn’t end here. As mentioned, your strategy isn’t perfect. As you get streams of incoming data, you can further improve your approach and techniques.
So, in the coming weeks and months, you must focus on running successful email campaigns – a part of which must be diverted to cost optimization.
Optimize your email marketing cost, which will cascade to boost its ROI further.
Now, there are many ways to optimize costs.
Optimize Your Cost
Foremost, ensure your delivery rate and deliverability is high. If your emails are ending in the Spam folder, it’s all a waste. A simple way to ensure this is to use a clean, non-shared IP address. Sign up to a good provider of email marketing services for large companies for that.
Next, always clean up your email list. Get rid of subscribers who aren’t engaging with your emails. They are unlikely to convert.
Most importantly, deliver high value to your subscribers. Send them emails that actually cover their problems and provide them functional solutions. The more you help them, the more responsive will they be to your CTAs.
These are three fundamental tips to optimize your email marketing cost.
So, “how much does email marketing cost” – there’s no definite number for this. It varies from business to business.
For your competitors, it might be $899 a month. For you, it could be $249.
The above-mentioned tips will help you figure out the magical number that you must spend on email marketing that extracts you the highest value.