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Email marketing has evolved rapidly alongside the technological growth that has occurred consistently throughout the 21st century. Prior to this growth, email marketing was not as effective because of a lack of reach, as emails were novelties to the majority of customers and potential customers. In 1978, Gary Thuerk of Digital Equpiment Corp [DEC] sent out the first mass email to approximately 400 potential clients via the Advanced Research Projects Agency Network [ARPANET]. It resulted in $13 million worth of sales in DEC products, and highlighted the potential of marketing through mass emails. As email marketing developed itself as an effective means of direct communication, a problem arose in that users were blocking out large amounts of content from emails by use of filters and blocking programs. It therefore became the case that in order to effectively communicate a message through email, marketers had to develop a way of pushing content through to the end user, without being cut out by automatic filters and spam removing software. This resulted in the birth of triggered marketing emails, which are sent to specific users based on their tracked online browsing patterns.
Historically, it has been difficult to measure the effectiveness of marketing campaigns because it is not always possible to fathom what portion of a target market has been reached. Email marketing carries the benefit of allowing marketers to immediately identify returns to investment and therefore measure and improve efficiency. Email marketing allows marketers to see feedback from users in real time, and to monitor how effective their campaign is in achieving market penetration and helps to reveals how wide or narrow a communication channel is. At the same time however, it also means that the more personal nature of certain advertising methods, such as television advertisements, cannot be captured.
Types of email marketing
Email marketing can be carried out through different types of emails:
Transactional emails are usually triggered based on a customer’s action with a company. To be qualified as transactional or relationship messages, these communications' primary purpose must be "to facilitate, complete, or confirm a commercial transaction that the recipient has previously agreed to enter into with the sender", along with a few other narrow definitions of transactional messaging. Triggered 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 convey information regarding the action that triggered it. But, due to its high open rates (51.3% compared to 36.6% for email newsletters), transactional emails are an opportunity to engage customers: to introduce or extend the email relationship with customers or subscribers, to anticipate and answer questions or to cross-sell or up-sell products or services.
Many email newsletter software vendors offer transactional email support, which gives companies the ability to include promotional messages within the body of transactional emails. There are also software vendors that offer specialized transactional email marketing services, which include providing targeted and personalized transactional email messages and running specific marketing campaigns (such as customer referral programs).