Why Use Email Marketing: 7 Benefits for SaaS Startups

Why Use Email Marketing


Email marketing can be an extremely effective way to keep in touch with your customers, promote new products or services, and increase customer loyalty. No wonder about 81% of marketers use email for customer acquisition, according to a report by email marketing provider MailChimp. 

Email marketing is one of the oldest ways to market your company but remains a great way to reach out to customers who may not have visited your website recently, or who may not be aware of all the latest products or services that you offer. SaaS businesses, in particular, should be emailing their customers regularly to stay on top of the latest news, offers and deals. 

Still not convinced? Here are 7 surprising benefits of using email marketing for your SaaS business.


What Is Email Marketing?


Email marketing is a type of direct marketing that uses electronic mail as its primary means of communication. It is a digital marketing technique where businesses can directly send promotional messages to a group of email addresses. Email marketing allows you to reach out to your target audience more accurately, and often at a lower cost than traditional advertising methods.


How Can SaaS Startups Benefit From Email Marketing?


There are many ways by which you can benefit from this marketing technique. Here are some of the key benefits that you can expect from email marketing:


1. Reach More Customers


Email marketing is a great way for a small business or a SaaS startup to reach more customers. It allows you to build relationships with potential and current customers by sending them regular emails that contain useful information or promotions. According to a recent survey, more than half of the respondents said that they had signed up for or purchased a product due to an email campaign.

You can also use email marketing to gather feedback from customers and learn more about their needs. You can also use email marketing to promote upcoming events and promotions. For example, you can send out an email asking customers to RSVP for the next event.

Additionally, email marketing can help you keep track of customer interactions and track the success of your marketing campaigns. For example , you can use email marketing to track the number of people who have downloaded your app, or who have signed up for a promotional offer. You can also use email marketing to send out personalized messages to customers with relevant information and content.


2. Cost Effective


Email marketing is an effective way for SaaS startups to reach out to their customers because it is a relatively low-cost means of communication but yields high return on investment (ROI). According to marketing firm Litmus, the typical ROI for email marketing is $42 for every $1 spent.

Email allows startups to send text, images, and videos to their customers, which can help promote new products or services.

Email marketing is an effective way for SaaS startups to reach out to their customers because it is a relatively low-cost means of communication.

Email marketing automation , which automates the sending of emails, can also be a good investment. You can use email marketing to automate the sending out of promotional offers and discounts to your customers.


3. Easy to Use


Email marketing is easy for startups to use and understand. In many cases, email marketing requires only a few minutes of programming time and knowledge of HTML or other coding languages. The ease of use also makes it a good option for startups that are just getting started with their business.


4. Increase Brand Awareness


Email marketing can help SaaS businesses increase brand awareness and in turn, attract more customers. According to a report, SaaS companies can get more customers when they use email marketing to promote their products and services. This is because email communications are more highly regarded among 72% of consumers than other media such as banner ads.

By creating targeted emails, businesses can reach out to potential customers who may not be aware of the product or service. Ultimately, email marketing can help businesses create a strong relationship with current and potential customers, strengthening the brand in the process.


5. Keep Customers Informed


Email marketing is a powerful way for SaaS startups to keep their customers informed. It’s an efficient way to reach a large number of people with a message, and it allows customers to control how often they hear from you. According to Marketing Sherpa, 61 percent of clients and subscribers prefer weekly promotional emails.

As a SaaS startup, you have a large number of users who are interested in your product. By sending out these promotional emails, you can keep those customers engaged, and give them reasons to come back. Email also gives customers a way to easily share your content with their friends.


6. Build Customer Loyalty


Email marketing is an effective way to keep customers engaged and loyal to a SaaS startup. According to a study, 37 percent of customers say they will be loyal to a company that has effective email marketing. This is a huge number compared to the 11 percent of consumers who say they will be loyal to a company with good social media marketing.

Email marketing allows businesses to keep in touch with their customers on a regular basis, providing valuable information and updates about the company. Additionally, email marketing can be used to promote new features or products, as well as special offers and discounts. Ultimately, email marketing helps SaaS startups build customer loyalty and keep them coming back for more.


7. Increased Sales


Email marketing can help SaaS businesses increase sales in a few ways. In fact, according to a study by the Annuitas Group, email converts 40% more effectively than the most popular social media platforms, Facebook and Twitter. There are a few good reasons for this.

First, email allows businesses to keep in touch with their customers and remind them of the value of their product. Additionally, email marketing can be used to target specific customers who may be interested in purchasing a subscription. Finally, email marketing can be effective in increasing the overall customer base by promoting the product to new customers.


How to Use Email Marketing to Grow Your SaaS Startup


Email marketing can be a powerful tool for SaaS startups. It can help you connect with your customers, keep them updated on your product, and create a strong relationship with them. Here are some tips for using email marketing to grow your SaaS startup:


1. Start by creating a list of subscribers


This can be done by collecting email addresses on your website or through other marketing channels. Another way is to add subscribers manually. If you’ve put your email address on your website or social media channels, you can use a tool like MailChimp to automatically add customers who visit the page.


2. Send regular updates about your product or company


This helps keep your customers informed and engaged. You can send frequent updates about new features, releases, and sales.


3. Create email templates for different types of emails


If you’re using MailChimp, you can set up automatic email campaigns. You can also create an email template for each campaign.


4. Use email marketing to drive traffic to your website or blog


You can do this by including links in your emails, or by creating targeted ads that specifically promote your content. For example, you can create an email that tells people who sign up for your newsletter when a new article is posted.


5. Draft a catchy email subject line


This is important because your subscribers will see it when they open. Examples of catchy headlines are : “Your Daily Dose of Awesome,” “Wondering How to Get Free Stuff?,” “Freebie Alert! Get our new guide to earning $50,000 a year.”


6. Use email marketing to create value for your customers


This can be done by sending them a free e-book, a free guide or an offer to join your mailing list.


7. Use email marketing to drive traffic to affiliate sites


This is similar to the previous point, except that you will include a link on the offer to your site or blog.


8. Personalize your email messages


This is a great way to make email marketing more personal. You can do this by including photos and links to your social media pages and blog. You can also make your messages more personal by including a note to your customer. For example, you could include a handwritten note on the invoice or invoice proof.


9. Automate your email marketing campaigns


This is a great way to get your emails out without having to spend valuable time manually sending them out. Some of the best email marketing software to use are : Mailchimp, Aweber, GetResponse and Constant Contact.


10. Segment your email list


This is a great way to keep your subscribers happy. You can do this by providing them with different offers based on their personal interests, such as:

  • Free tips and guides;
  • Discounts and sales; or
  • Industry specific news and information.


11. Test different email content and formats


This is a great way to improve your email marketing campaigns. If you have trouble getting subscribers to open your emails then try different subject lines, content and images.


Measuring the Success of Your Email Marketing Campaign


Email marketing can be a great way to keep in touch with your customers and to promote your products or services, but how can you tell if your campaign is successful? There are a number of ways to measure the success of your email marketing effort, including the following:


Open rates


Open rates are the percentage of people who open your email. Open rates are important because they tell you how many people are seeing your email and how well it’s performing. To improve your open rate, try creating personalized emails, make them catchy, and send them at the right time.

One way to measure open rates is to use a tracking pixel. A tracking pixel is a small piece of code that is embedded in an email. When the email is opened, the pixel will be activated and count as an open. This can help you to determine not only how many people have opened your email, but also which links within the email were clicked on.

You can also use other methods to measure open rates, such as using a unique identifier in the subject line of your email. When the email is opened, the identifier will be revealed and counted as an open.

You can also use email marketing tool like MailChimp to help you track your open rate and improve your strategy.


Click-through rates (CTR)


CTR is a metric that can tell you how many people click on your email and then read it. This is important because it tells you how successful your email marketing campaign is, and if people are actually reading your emails. To improve your CTR, send emails to people who you know are interested in your brand, and monitor how many people click on those emails.

CTRs are one of the most important measures of success for email campaigns. However, CTRs can be difficult to measure. In order to calculate CTRs, you need to know how many people clicked on a link in your email and how many people received your email.

There are several ways to track clicks in emails. One way is to use a unique tracking URL for each link in your email. This will tell you which links were clicked on and how many times they were clicked. You can also use an image that contains a tracking pixel to track clicks. This will tell you which images were clicked on and how many times they were clicked.

Once you have tracked the number of clicks, you can calculate the CTR by dividing the number of clicks by the number of recipients.


Cost per Click (CPC)


CPC is a metric that suggests how much it costs to get someone to click on your email. To improve your campaign, send emails to people who you know are interested in your brand, and monitor how many people click on those emails.

CPC is determined by dividing the total cost of an email marketing campaign by the number of clicks it receives. This calculation can help businesses determine whether or not a particular campaign is worth investing in.

Low CPCs indicate that a campaign is affordable and generating a lot of traffic, while high CPCs suggest that the campaign may not be worth the investment.

In order to achieve low CPCs, businesses should create catchy subject lines and use relevant keywords in their content. They should also make sure that their website is properly optimized for search engines so that potential customers can easily find them.


Conversion rates


There are a number of ways to measure how well your email marketing campaigns are converting. The most important metric is the percentage of people who click through to your website from your email. You can also track how many people open your email and how many people click on any links inside the email.

However, simply measuring these statistics doesn’t tell the whole story. You need to also consider how many people you’re reaching with your campaign and how much money you’re spending on it. By combining all of this data, you can develop a picture of how well your email marketing is performing and make adjustments as needed.


Unsubscribe rates


Email unsubscribe rates are a key metric for email marketers. If your unsubscribe rate is high, it may be an indication that you are sending too many emails, or that your content is not resonating with subscribers.

Measuring your unsubscribe rate can help you to optimize your email marketing strategy and improve your open and click-through rates. There are a few ways to measure unsubscribe rates, including using standard tools provided by email service providers (ESPs), or using Google Analytics.

To measure unsubscribes using ESP standard tools, you will need to create a segment of subscribers who have unsubscribed from your list within a specific time period (e.g., the past month). You can then compare this segment’s size to the total number of subscribers in order to calculate your unsubscribe rate.


Spam complaints


Email marketing can be a great way to connect with customers, but it can also lead to spam complaints if not done correctly. Here are a few tips for measuring and minimizing spam complaints:

  • Always get permission before sending email marketing messages. This is the best way to avoid spam complaints and maintain customer trust.
  • Use an opt-in or signup form on your website so that customers can sign up for email marketing messages. Make sure the opt-in form is easy to find and clearly states what kind of messages will be sent.
  • Send email marketing messages only to those who have opted in to receive them. This will help you avoid spam complaints and keep your subscribers happy.
  • Use double opt-in confirmation when subscribing new subscribers. This helps ensure that only those who want to receive your messages will actually receive them.


Email bounces


Email bounces can be a valuable tool for email marketers to measure the effectiveness of their campaigns and determine whether their messages are being delivered to subscribers’ inboxes. bounces can be broken down into two types: soft bounces and hard bounces.

Soft bounces occur when an email is temporarily unavailable or when the recipient’s mailbox is full. Emails that have soft bounces are typically delivered if they are tried again later. Hard bounces, on the other hand, occur when an email cannot be delivered for a permanent reason, such as an invalid address. Emails that have hard bounces are not typically delivered, even if they are tried again later.

Bounces can be measured in a couple of different ways: by number of bounced emails or by percentage of bounced emails. You can also track bounces by their delivery type. For example, you can track whether they are soft or hard bounces.

By tracking these metrics, you can determine whether or not your campaign is achieving its goals and make necessary adjustments.


Final Thoughts


Email marketing is a valuable tool for SaaS startups. It can help you acquire and retain customers, promote your product, and build relationships with your audience. With the right strategy, email marketing can be an extremely effective way to reach your goals. Follow the tips above and you should see your email marketing strategy start to take off. If you have any questions about email marketing or SaaS startups, feel free to reach out. Don’t forget to check out our blog too for more SaaS marketing tips.


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Ken Moo