Should You Hire an Email Marketing Agency for your Ecommerce Business?

Do you feel overwhelmed trying to figure out the best way to use email marketing for your e-commerce business? Do you wish somebody else could take over this task, but you're hesitant to do so because of cost or lack of trust in agencies?

Hiring an email marketing agency for e-commerce businesses is a great way to reach customers.

Also Read: Why Warming Up Email Is Essential for Successful Email Marketing

This blog post will cover the advantages of hiring such an agency. Keep reading as we dive into why utilizing email marketing services may be helpful for you.

What does an email marketing agency do for an e-commerce business?

As an e-commerce businessman, you understand the importance of email marketing. Email marketing is a cost-effective strategy for staying connected with customers, engaging them in your business’s story, and converting leads into sales. 

If you’re looking for an edge over your competition and want to get things done faster, consider working with an email marketing agency to build out your email marketing campaigns from start to finish.

Let’s explore what the top email marketing agencies can do for your e-commerce business. 

Strategy development:

E-commerce brands and businesses often have a large and diverse customer base, which requires targeted and personalized email campaigns to be effective.

According to a study by Experian, personalized email campaigns have a 29% higher open rate and a 41% higher click-through rate compared to generic emails.

An agency develops a comprehensive email marketing strategy that helps maximize the impact of each campaign and keep your customers engaged over time. This includes setting goals, establishing customer personas, determining the right frequency and timing of emails, defining KPIs, and more. 

For example, an e-commerce agency developed a personalized email marketing strategy for a clothing brand, segmenting their customer base by gender and purchasing frequency, and sending tailored recommendations based on their previous purchases. This resulted in a 15% increase in click-through rates and a 10% boost in overall sales.

List building and segmentation:

According to a report by Campaign Monitor, targeted and segmented email campaigns can increase revenue by 760%. An email marketing agency creates targeted lists and segmented email campaigns based on data such as past purchases or customer interests.

This ensures that each message is highly relevant to the recipient and encourages positive engagement with your brand. 

For instance, an email marketing agency implemented list-building and segmentation strategies for a beauty brand. By analyzing customer data and creating targeted email lists based on factors like past purchases and preferences, they achieved a 20% increase in open rates and a 15% boost in click-through rates, resulting in substantial growth in sales.

Additionally, research shows that segmented email campaigns can generate 58% of all revenue for businesses, as stated by the Direct Marketing Association.

Implementing list-building and segmentation strategies ensures that your email marketing efforts deliver the right message to the right audience, driving higher engagement and conversions.

Content creation:

Email marketing agencies ensure a deeper connection with customers by crafting messages in a language that resonates with the target audience.

In fact, a study conducted by the Content Marketing Institute revealed that an overwhelming majority of consumers, 82%, consider a brand to be more trustworthy when its content is customized to their specific preferences and interests.

To put this into perspective, let's consider an example.

Imagine an email marketing agency working with an e-commerce company that sells outdoor adventure gear. Instead of sending generic promotional emails, the agency conducts thorough research on the target audience's preferences, interests, and buying behavior.

They create content that showcases exciting outdoor activities, provides useful tips for gear selection, and includes captivating visuals of adventurers in action. By doing so, they speak directly to the customers in a language they understand and relate to, making the content more engaging and relevant.

Furthermore, the agency strategically incorporates effective calls-to-action (CTAs) in its content to drive conversions. These CTAs could be in the form of compelling offers, limited-time discounts, or personalized recommendations based on the customer's previous purchases or browsing history.

By leveraging data-driven insights, the agency optimizes the content to prompt the desired actions from the customers, such as making a purchase, subscribing to a newsletter, or sharing their experience on social media.

In short, an email marketing agency's content creation approach goes beyond simply sending mass emails. They invest time and effort in understanding customers' preferences, and creating customized content that builds trust.

Design and layout:

According to a study by Litmus, 56% of emails are opened on mobile devices, underscoring the importance of responsive design. An email marketing agency collaborates with clients to develop visually appealing emails optimized for desktop and mobile devices.

For example, let's consider an e-commerce client launching a new product line. The email marketing agency strategically designs the email layout using eye-catching visuals, compelling product images, and clear call-to-action buttons.

They also incorporate responsive design techniques to ensure the email renders well on various screen sizes and devices. As a result, the email stands out in crowded inboxes and increases the likelihood of recipients engaging with the content.

Furthermore, a study by Adobe revealed that 38% of users stop engaging with a website if the content or layout is unattractive. This highlights the importance of a visually appealing email design.

Automation:

An email marketing agency offers email automation. Email marketing automation will enable your e-commerce business to send messages at just the right time without having to execute every campaign or promotion manually.

Research conducted by Statista shows that automated emails have an average open rate of 47.1%, compared to 17.9% for non-automated emails.

For example, let's say you run an online fashion store. With email automation, the agency can set up triggers based on customer behavior, such as abandoned carts or product views, to automatically send personalized emails with targeted offers or reminders.

This saves time and ensures that your customers receive timely and relevant messages, resulting in higher engagement and conversion rates.

Analysis and optimization:

E-commerce email marketing agencies employ rigorous analysis and optimization strategies to improve their email campaigns' performance continually. 

For instance, an email marketing agency will closely examine key metrics such as open rates, click-through rates, and conversion rates to identify patterns and trends.

By analyzing this data, they can gain insights into what types of content, and call-to-actions resonate most with the target audience. This allows them to make informed decisions and fine-tune future campaigns for maximum impact.

6 reasons you need an email marketing agency for your e-commerce business 

Here are six reasons why your e-commerce business needs an email marketing agency. 

Expertise:

Email marketing is a complex process that requires specialized knowledge and skills. However, recent research has stated that email marketing offers the highest return on investment (ROI) compared to other marketing channels, with an estimated return of $42 for every dollar spent.

An experienced agency possesses the knowledge to optimize email campaigns for maximum reach. This includes strategies such as A/B testing, where different variations of subject lines, content, or design elements are tested to identify the most effective approach.

The agency can refine its strategies and achieve better results over time by continuously analyzing metrics like open rates, click-through rates, and conversion rates.

Time saving:

Running successful email campaigns requires time and effort. With the help of an experienced email marketing agency, you can save yourself time by outsourcing this task to professionals who know what they’re doing and can do it quickly and efficiently.

An experienced team of professionals can also provide valuable insights into how your campaigns are performing so that you can make adjustments as needed in order to maximize results. 

  Increased engagement:

Engagement is key when it comes to successful email campaigns. Experienced e-commerce email marketing agencies know how to craft emails targeting specific customer segments or demographics to ensure maximum engagement with your target audience.

Experian's research shows that triggered emails have a significantly higher open rate of 152% and an increased click-through rate of 70.5% compared to traditional email campaigns.

An email marketing agency understands the power of triggered emails and leverages automation tools to send timely and relevant messages to subscribers based on their interactions, such as abandoned carts, birthdays, or subscription renewals. This proactive approach maximizes engagement and drives positive customer actions.

  Improved ROI:

E-commerce customers tend to make purchases more frequently than customers of other industries, making email marketing a critical tool for encouraging repeat business.

According to a report by Omnisend, e-commerce businesses see an average repeat purchase rate of 27.6% with email campaigns. An email marketing agency can help an e-commerce business to optimize its email campaigns for better results and to re-market or upsell for higher ROI.

 Track results:

The best email marketing agencies can track the performance of each campaign they run for you - from open rates, clicks throughs, conversions, etc. They can then use these results to refine their strategy and achieve better outcomes from each campaign.

Email marketing agencies can provide thorough reports and also show the difference in results over time.

Boost in sales:

Ultimately, increasing sales should be one of the primary goals of any successful e-commerce business. By leveraging data insights along with creative messaging strategies, an experienced team should be able to deliver higher sales numbers from email marketing activities.

Why not hire an in-house email marketing agency for an e-commerce business? 

While there are pros and cons to both hiring an in-house email marketing team and outsourcing email marketing to an external agency, here's a comparison of why outsourcing to an external agency may be the better option for an e-commerce business:

Requires no training

Training your in-house staff can often be complicated. Not only do you need to invest resources into onboarding processes, but you also must provide continued support and guidance until they become comfortable with all of your processes.

This is why outsourcing to an external agency makes sense; it alleviates any worry regarding training. As they are experts, they already have all the specialized skills needed to oversee campaigns from start to finish. 

Around 50% of marketers state that they outsource content marketing tasks to external parties, similar to the percentage recorded the previous year (49%). However, there has been a significant shift when examining larger companies (with 1,000 or more employees). Last year, 61% of these marketers outsourced content marketing, but this year, that figure has increased to 75%.

Let's say you run a small e-commerce business that sells fashion accessories. You have a limited in-house marketing team with basic knowledge of email marketing, but you're looking to scale your business and achieve better results from your email campaigns.

Instead of investing time and resources in training your team and experimenting with different strategies, you decide to outsource your email marketing to a specialized agency.

The agency you choose has a proven track record of working with e-commerce businesses and a team of experts who understand the industry's nuances. As a result of outsourcing, you start seeing significant improvements in your email marketing metrics.

Your open rates increase by 40%, indicating more recipients engage with your emails. The agency's expertise in segmentation helps you target specific customer segments with personalized offers, resulting in a 25% increase in click-through rates. Moreover, your overall conversion rates improve by 30%, leading to a noticeable boost in revenue.

It is a hypothetical situation-but it explains what can happen - provided you hire a good agency.

Cost:

Many businesses find outsourcing their marketing needs a much more cost-effective solution than hiring an in-house team. Not only are hourly rates likely to be lower, but you don't have to worry about the additional costs associated with having a team of your own - like benefits, and training expenses.

External agencies are usually more efficient and better suited for tackling any particular project or task. So if it's cost-efficiency that you're looking for, consider engaging an external marketing agency.

Scalability:

Outsourcing your email marketing program to an external agency is a great way to ensure that scalability is maintained no matter what. You can stay ahead of the game without worrying about leave, sick days, or vacation-related issues and take your business to the next level.

For example, let's say you run an online retail business that experiences a surge in demand during the holiday season. By outsourcing to an agency, you can easily handle the increased workload without being limited by the availability of your in-house staff. This enables you to meet customer demands and capitalize on seasonal opportunities.

Additionally, let's consider the benefits of leveraging the time zone difference. For instance, if you're based in the United States and outsource to an agency located in a different time zone, you can assign tasks in a way that ensures work progresses around the clock. This means that while your in-house team rests, the agency can continue executing marketing activities, maintaining a steady momentum and maximizing productivity.

In the IT Services market, the IT outsourcing sector generates the most significant revenue, which accumulated to US$361 billion in 2021. It is anticipated that this sector will continue to expand and reach US$587.3 billion in revenue by 2027, as per reports by Statista.

This indicates the increasing trend of businesses outsourcing various aspects of their operations, including marketing.

Communication:

When outsourcing email marketing to external agencies, it's important to note that direct communication may be reduced compared to having an in-house team.

However, agencies often compensate for this by providing regular updates and detailed reports on the progress of email campaigns. This ensures transparency and lets you stay informed about your campaigns' performance.

On the other hand, while in-house teams offer easier and more immediate communication, they may lack the specialized industry knowledge and insights that external agencies bring to the table.

Agencies are immersed in the email marketing field and have access to the latest trends, best practices, and data-driven strategies that can significantly impact the success of your campaigns.

Let's consider a practical example. A company decides to outsource its email marketing to an agency specializing in e-commerce campaigns.

While direct communication may be less frequent, the agency provides regular updates with detailed performance reports, including open, click-through, and conversion rates. This allows the company to monitor its campaigns' effectiveness and make data-driven optimization decisions.

Meanwhile, an in-house team in the same industry might have more immediate communication, but they may lack the specialized expertise in email marketing, including knowledge of segmentation strategies, A/B testing, and automation.

This is where the external agency's industry insights and best practices come into play, enabling them to develop effective campaigns that drive results.

What is different about hiring a specialized email marketing agency for an e-commerce business?

The main difference in hiring an email marketing agency for an e-commerce business compared to other types of businesses is the unique nature of the e-commerce industry.

Here are a few key ways in which hiring an email marketing agency is different for e-commerce businesses.

Knowledge of e-commerce platforms and tools:

When hiring an e-commerce email marketing agency, it's crucial to consider their familiarity with e-commerce platforms and tools. E-commerce businesses operate on platforms like Shopify, WooCommerce, Magento, and others, which require specific expertise for effective email marketing integration.

An agency specializing in e-commerce will have hands-on experience and in-depth knowledge of these platforms and tools, allowing them to create tailored email campaigns that seamlessly integrate with the e-commerce infrastructure.

Research indicates that Shopify has the highest market share for eCommerce platforms in the United States, holding a remarkable 25% share by December 2022.

This further emphasizes the importance of understanding and utilizing different platforms based on their market presence and popularity.

For example; an e-commerce business operating on Shopify hires a specialized email marketing agency. The agency's expertise in Shopify allows them to smoothly integrate email campaigns with the business's Shopify store, utilizing features like abandoned cart recovery and personalized product recommendations.

This targeted approach maximizes the success of the email campaigns, resulting in higher sales and customer retention. Conversely, if the business hired a general email marketing agency without e-commerce platform knowledge, they may struggle to leverage platform-specific features, limiting the success of their campaigns.

Understanding the customer journey:

When hiring an email marketing agency for an e-commerce business, it's crucial to consider their understanding of the customer journey specific to e-commerce. E-commerce customers go through a distinct process, from initial product browsing to making a purchase and potentially becoming repeat customers.

An agency specializing in e-commerce email marketing will have the experience and expertise to run targeted email campaigns that engage customers at each stage of this journey.

Consider an e-commerce business selling fashion apparel. They decide to partner with an email marketing agency specializing in e-commerce. The agency understands the unique customer journey of the fashion brand and develops targeted email campaigns that align with each stage.

For instance, they send personalized product recommendations to customers who have previously browsed specific items but haven't made a purchase. They also implement cart abandonment emails to remind customers of their pending purchases.

These tailored campaigns help nurture customer relationships, increase conversions, and drive repeat purchases.

Automated email campaigns

E-commerce businesses rely heavily on automated campaigns like abandoned cart emails, welcome series, and post-purchase follow-up emails to engage customers and drive sales. An agency specializing in e-commerce email marketing will have the experience and knowledge to develop and optimize these automated email campaigns.

Let's consider an e-commerce business that specializes in selling electronic gadgets. They decide to collaborate with an email marketing agency that specializes in e-commerce. The agency's expertise in automated campaigns allows them to set up and optimize effective workflows.

They create personalized abandoned cart emails that include enticing offers and reminders to encourage customers to complete their purchases. Additionally, they develop a post-purchase follow-up email series that includes recommendations for complementary products and encourages repeat purchases.

These automated campaigns drive engagement, increase conversions, and enhance the overall customer experience.

Bottom line

In the end, whether or not you choose to hire an email marketing agency for your e-commerce business is up to you. Many factors should be considered when deciding what is best for your business and which things are worth investing in. Don’t forget to review ROIs and other financial factors.

While hiring an email marketing agency may seem like a challenge, it could also open new doors with unforeseen positive outcomes since emails remain one of the most effective forms of digital marketing. Therefore, they should definitely be a priority in your overall digital strategy. 

A good email marketing strategy is essential and can positively impact your brand’s trustworthiness, grow your customer base, and help you convert leads into consistent revenue.

To further refine and optimize your email campaigns, GoCustomer provides a powerful all-in-one email marketing platform that offers everything from A/B testing to an exclusive AI email writer.