Email marketing facts for kids
Email marketing is when businesses send messages to people using email. Think of it as sending advertisements or special offers directly to your inbox. The main goal is to connect with customers, tell them about new products, or encourage them to buy something. It's also used to build loyalty and keep customers coming back.
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How Email Marketing Started
Email marketing has grown a lot as technology has improved. Back in 1978, a person named Gary Thuerk from a company called Digital Equipment Corporation (DEC) sent the very first mass email. He sent it to about 400 possible customers using an early internet network called ARPANET. Gary Thuerk said this email helped his company make $13 million in sales! This showed everyone how powerful sending emails for marketing could be.
Different Kinds of Marketing Emails
There are a few main types of emails that businesses send for marketing.
Emails About Your Actions (Transactional)
These emails are sent to you after you do something with a company. For example, if you buy a new video game online, you'll get an email confirming your order. Other examples include emails to reset your password, update you on your order's shipping, or give you a receipt. These emails are mostly to give you important information about something you've already done. Because people usually open these emails, companies sometimes use them to share other helpful information or suggest related products.
Direct Promotional Emails
These are the emails that are all about promoting something. They might tell you about a special sale, a new product, or a discount. Companies often gather email addresses from people who want to receive these messages. Sometimes, they might even get lists of email addresses from other companies that specialize in this.
Email Marketing vs. Regular Mail
Email marketing has good points and not-so-good points compared to sending advertising mail through the post office.
Why Companies Like Email Marketing
Companies like email marketing for many reasons:
- It's much cheaper and faster than sending physical mail. Most of the cost is on the person receiving the email, not the sender.
- Companies can see exactly how well their emails are doing. They can track how many people open the email or click on links inside it. This helps them make better marketing plans.
- Special tools can send emails automatically at certain times or after someone does something. This saves a lot of time and effort.
- Businesses can learn a lot about what customers like based on how they react to emails. This helps them understand consumer behavior better.
- Many people check their email every day, making it a popular way for companies to reach them.
Challenges of Email Marketing
There are also some difficulties with email marketing:
- Sometimes, emails don't always reach the right inbox. They might get sent to a spam folder or simply not arrive.
- Companies must follow rules about sending emails. These rules, called "spam laws," stop businesses from sending too many unwanted messages. If they don't follow these rules, there can be consequences.
- Getting too many marketing emails can be annoying for people. If emails aren't interesting or are sent too often, people might unsubscribe. They might even start to dislike the company.
Getting Permission: Opt-in Marketing
Opt-in email advertising is when you give a company permission to send you emails. This is also called permission marketing. It means you've said "yes" to getting their messages.
For example, when you sign up for a website, it might ask if you want to receive their newsletter. If you agree, you'll get emails about new products or special events. Companies keep this contact information in a database. They can then send out emails automatically, like a series of messages over time. They can also send different promotions to different groups of people based on what they might like.
Rules for Sending Marketing Emails
Because email marketing is so common, many countries have rules to protect people from unwanted messages. These rules make sure that companies use email marketing fairly and respectfully.
- Australia has the Spam Act 2003. This law explains what "unwanted electronic messages" are and how companies must let you unsubscribe from their emails.
- Canada has the "Canada Anti-Spam Law" (CASL), which started in 2014. It requires companies to get your clear permission before sending you marketing emails.
- The European Union (EU) and the UK have rules like the Directive on Privacy and Electronic Communications and the GDPR. These rules say that companies generally need your permission to send you marketing emails. They also give you rights over your personal information, like being able to see or delete data a company holds about you.
- The United States has the CAN-SPAM Act of 2003. This law was created because many people were getting too much spam. It says that companies cannot trick you about who sent the email or what it's about. It also gives you the right to stop receiving emails from them. Companies must also include a way to unsubscribe easily and a valid physical address in their emails.
These laws help make sure that email marketing is used responsibly and that you have control over the emails you receive.