While the arrival of messaging services such as Slack might lead many to believe that email is beginning to lose its place in the 21st Century, the volume of emails being sent on a daily basis continues to grow year on year. In fact, research looking at email trends has predicted that by the end of 2022, the number of business and consumer emails sent per day will exceed 333 billion – representing more than 4 per cent growth per year for the next four years.
The bottom line is that email is still essential for everyday interaction - be it at work, at home, or even on the move. Despite the attempts of newly developed messaging services to disrupt the way people communicate, email is here to stay.
For that very reason, what possible excuse could a business have for not utilising email to its full potential? It’s one thing to use a reliable and pain-free system, but too many companies overlook the benefits of optimising email hosting for their business. Tapping into this potential can be vital for a company in its quest for brand power.
So how can telecommunications companies and Internet Service Providers (ISPs) get their brands at the forefront of their customers’ thoughts - and stay there - using email? The answer is white label email. Branded email can boost company recognition, value and trust, all while allowing companies to cross-sell, upsell, and have a direct digital channel into their customers’ inboxes, without relying on third parties such as Facebook, Google and Twitter.
Delivering your brand straight to the inbox
On the face of it, white labelling is straightforward: customising an email hosting platform with your own name and branding, so that every time your customers log into webmail, it’s you they remember, not Google or Yahoo. However simple it may seem, the effects of this can be extraordinary. According to DMA Insight, 99 per cent of consumers check their emails every single day. Furthermore, across the course of that day, through mobile, home and work channels, on average, those consumers are peering into their inbox around 20 times.
It’s a marketer’s paradise. No advertising algorithms are needed to navigate to reach your target audience. White label email hosting enables marketers to deliver their brand directly to their customer for mindshare, as well as enabling easy access for cross-sell and upsell opportunities.
Getting your brand into a customer’s inbox on a frequent basis can have a lasting effect. Imagine, for example, that you provide internet access for a customer, and another company provides the same customer’s phone lines. Even if your service is impeccable, and the phone lines that your competitor is providing are prone to faults, it might not even occur to the customer to move their phone lines to you as well. That is, unless that brand recognition earned by email hosting has put your company front of mind consistently for long enough that your customer decides to transfer their phone business to you too.
The build-up in brand recognition only works alongside the knowledge that a business can actually deliver on what is being promised. Let’s be clear, branded email hosting alone will not transform a company’s marketing efforts from nothing to everything; but will it complement any good work already being done? Absolutely. And as long as there is substantial backing to what this white labelled email is offering, there is no reason whatsoever for a customer to forget about you.
The power of sticky customers
Sticky customers are hugely important to a company, and it is well recognised that business flourishes if a brand has an army of sticky customers. Building a brand through white labelled email hosting is a critical way of contributing to customer loyalty. Research suggests that a loyal customer is more than 11 times as likely to buy more from a company, and 17 times as likely to recommend that brand to others than those not considered ‘loyal’.
From a financial point of view, reducing customer churn should be paramount to a business - and the numbers speak for themselves. In missing out on opportunities to upsell, combined with having to attract new business, churn can quite heavily dent a brand’s profit margins.
It’s straightforward. It might cost a company $400 to acquire a new customer contract that is worth $1,000, for a total of $600 profit. If you lose that customer, you not only lose the recurring contract value, but you also have to spend $400 acquiring a new customer to replace them. However, if that customer stays loyal, you might be able to upsell that same customer to a new contract worth $2,000, taking the overall profit to $2,600 when that renewal rolls around.
Without sticky customers, a business will lose recurring revenue as well as revenue through expansion opportunities, all while still have to fork out on the cost to acquire new customers in order to only replace those that have been lost.
Email customers have an inherent motivation to stay loyal because unlike phone numbers, email addresses cannot be ported to another provider, so it is a huge hassle to change. This means that if you can win customers over to your branded email, you might just be able to keep those customers for life.
A white labelled email service won’t magically increase the number of sticky customers that a business has, but what it will do is facilitate better marketing through a welcomed and recognised brand name - resultant from a build-up of good work over a period of time. On top of this, you’re also more likely to attract new customers through recommendation; increasing business while keeping the rest of your customer base happy.
Add another string to your marketing bow
White labelled email hosting is no magic wand or silver bullet. But used alongside an array of different marketing tactics, it can make a huge difference. Brand customising your email is the simple foundation that gives another level to a whole host of email marketing techniques. It places your brand in the customer’s inbox, keeps your company at the front of thoughts, and creates a smart, professional and recognisable platform from which your business can continue to develop its brand.
Dave Richards, CEO, atmail
Image source: Shutterstock/Bloomicon