Understanding The Cost Of Email Marketing
Email marketing is an efficient and affordable tool that helps businesses increase their reach and improve sales. With 88% of people checking their emails daily, it is one of the best ways to contact your target audience and build connections with existing customers or consumers.
With a low cost, email marketing offers a high return on investment compared to social media marketing. Email marketing gives an ROI of $36 per dollar, making it a favorite among marketers. Due to its widespread use, the estimated revenue from email marketing in 2024 is $12.33 billion.
As these figures show, email marketing is a tool that every growing and upcoming business should include in its marketing plan. That said, it is expected to wonder about the email marketing cost. Various factors can vary the average cost of email marketing, which will be discussed below.
Factors Affecting The Email Marketing Service Cost
Various aspects are included in email marketing that help determine the overall cost of the service, such as:
Number Of Subscribers
One of the most significant factors determining the cost of email marketing services is the number of contacts on your email list. Since most service providers charge you based on the subscriber count, your basic plan price will vary with the same. Therefore, if you have many subscribers, you must pay more as an average monthly email marketing cost.
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Frequency Of Emails
Email marketing platforms with pricing models based on the number of emails you send or with a pay-as-you-go pricing model will charge you a lot if you plan to send multiple emails every week, mainly depending on your subscriber list.
Thus, if you have an email marketing campaign that involves sending multiple emails to an extensive list of subscribers within a week, upgrading to an email service provider offering unlimited email volume is best.
Email Quality And Design
Any email marketing platform or service provider can offer a range of email designs for your marketing campaign. Including attractive and responsive designs in your emails can improve your reach.
You can create attractive email designs using platforms with built-in templates and drag-and-drop editors and create a customized email. However, this can be time-consuming, and the platform may charge you extra for high-end emails.
You can take the help of an email marketing service company to help design a unique and attractive email. This will also incur an additional cost to the designer as their hourly or per email rate.
Service Provider
Another factor that significantly impacts your email marketing cost is your chosen service provider. You can use a variety of email marketing platforms, such as MailChimp and HubSpot, to create your emails and send them to your subscriber list.
These platforms offer different packages. In addition to the platform fee, you may need to hire a designer to help curate the emails.
Another option is to hire an email marketing service provider, such as iTrobes, who will design, create, and send the emails involved in the marketing campaign on your behalf. Outsourcing the work means you will not have to hire any in-house employees for your email marketing.
Additional Tools
If you want to reduce the average cost of your email marketing spend while increasing the ROI, you may need to invest in a few tools initially. This includes email validation tools that help you remove inactive subscribers from your list, therefore helping reduce the volume of emails.
Taking the help of an email validation tool also ensures that you are reaching out to engage subscribers, improving the quality of your email marketing campaign.
In addition, you may need to use tools that offer pre-built email templates, email list segmentation and management tools, and software to analyze the reach and effectiveness of the email campaign.
Acquisition Costs
Another added cost to the overall email marketing costs is the money and resources spent on building your subscribers list. This includes buying or renting email lists and running ads to grow the list.
Therefore, you will have low acquisition costs if you rely on organic sign-ups. However, if you run ads with a CTA to sign up, you will have to pay for the development and running of ads.
The acquisition cost will also differ with the audience you are targeting. For example, if you want to target a particular geographic location, you must pay more for the targeted approach.
It is important to remember that most of these factors are under your control. You can easily manage your company’s email marketing cost by prioritizing your needs. It is best to start small and add features and subscribers as you grow.
Comparing In-House Vs. Outsourced Email Marketing Costs
In-House Email Marketing Cost
If you are a small or medium-sized enterprise, you can easily perform email marketing in-house with the help of software that enables you to design emails and send them to your subscriber list.
A few popular software include:
- HubSpot – 2000 emails free per month, and a basic plan starting at Rs. 3600/- Monthly
- MailChimp – allowing 10,000 free emails per month; basic plan starting at Rs. 899/- Monthly
- Bravo – 300 emails per day with plans starting at Rs. 1499/- Monthly
Outsourced Email Marketing
You can also outsource the job and hire an email marketing service to review the complete project, from designing the campaign to sending the emails. Depending on the size of the project, your subscriber list, the quality of the emails, and various other factors, the average cost of an outsourced email marketing service can be anywhere between Rs. 5,000 – 50,000/- per campaign.
On average, the following are the charges for monthly email marketing services:
| Number Of Subscribers | Cost |
|---|---|
| 1-1000 | Rs. 10,000/- |
| Up to 20,000 | Rs. 30,000/- |
| Up to 100,000 | Rs. 40,000/- |
Find The Best Email Marketing Cost
Email marketing is a relatively cheap marketing technique with a high ROI. Since most people check their emails daily, leveraging this marketing tool can help your business grow quickly and efficiently.
Considering the various factors involved in creating and sending emails for marketing, email marketing prices vary greatly. You can contact iTrobes as your digital marketing service provider, where the experts will create a customized package based on your needs, providing the best prices with effective results.
