The simple answer to this question is "yes," but like all other things in life, this kind of marketing comes with its own set of rules and regulations. E-mail marketing is a form of direct marketing by using e-mails to communicate messages about a product or service to a targeted audience. E-mails are sent specifically to people that already are, or are expected to become customers. It is also used to enhance relationships between existing or previous customers and the company to increase customer loyalty. Companies also attach existing print adverts to emails to grab more attention.
Compared to traditional mail and advertising, an exact return on investment can be tracked ("track to basket") and advertisers can reach a very high number of future and current customers, because most people today use the Internet and have an email account which they check regularly. However, people still regularly report undelivered mail and the 2008 delivery rate was 56%. Many times, marketing emails are rejected or filtered to other inboxes, for example SPAM boxes. A company using emails to market their products should take care not to violate SPAM laws and read their Internet service provider's acceptable use policy.
When marketing through email, try and use "opt-in" email advertising or permission-based marketing. This method allows people to give consent to receive emails and thus eliminates the disadvantages to email marketing. This option was created to result in a higher degree of satisfaction between marketers and consumers, because the customers want to receive the mail and will not reject it as "junk mail." Ideally, opt-in e-mail advertisements will be more personal and relevant to the consumer than untargeted advertisements. These emails usually inform existing customers of upcoming events, promotions and new products. These emails are convenient to the marketer, because they are mostly automatic.
Marketing through emails comes with a few laws that marketers have to comply with. In 2002 the European Union introduced the Directive on Privacy and Electronic Communications. This law prohibits the use of email addresses for marketing purposes and this is where the "opt-in" function came in. The law soon spread over the whole world and applies to all organizations that want to use emails to market their products. The CAN-SPAM Act of 2003 in the USA states that when a company "spams" an individual, they must pay an $11000 penalty.
Software and services have since been developed so organizations can comply with this rule. To comply with the Act's regulation of commercial e-mail, services typically require users to authenticate their return address and include a valid physical address, provide a one-click unsubscribe feature, and prohibit importing lists of purchased addresses that may not have given valid permission. E-mail service providers, like Google, MWEB and Yahoo also began to help customers establish and manage their own marketing campaigns. They supply email templates, general best practices and methods for handling cancellations and subscriptions automatically. They also provide statistics on how many emails are ultimately received by targeted customers.
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