Marketing
From data to dollars: Why email marketing is key to scalable business growth
By developing a strategic, data-driven approach to email marketing, retailers can tap into the full potential of this powerful marketing channel.
June 10, 2025 by Austin Wright — Head of Strategy & Analytics, SVP, Tandem Theory
There are few things that keep marketers up at night like stretching a dollar further. Well, that and the words "budget cuts."
When it comes to seeking out cost-effective channels that nurture leads, drive sales and build lasting relationships, the data doesn't lie. According to the Data and Marketing Association, permission-based email marketing generates an ROI of $42 for every $1 spent. Tailored email journeys are a powerful tool for not only generating repeat business but creating a network of brand advocates who can propel long-term growth.
Getting started
Think of an email to consumers as a one-on-one conversation. As with any conversation, resonating with the needs and interests of the second party enhances the connection. A strong email marketing strategy starts with personalization. Personalization starts with data.
Collecting and aggregating customer information such as website behavior, purchase history and previous email interaction empowers marketers with holistic data for effective communications. Equally as important as the Customer Data Platform or repository that collects these insights is the ability to analyze them.
For example, looking at abandoned cart data and typical email and offer engagement metrics allows retailers to determine the best time of day and the best offer to email to re-engage customers. Similarly, segmenting customers by purchase history and browsing behavior allows brands to send personalized product recommendations. According to studies, this type of personalization has been shown to generate six times higher transaction rates.
Nestlé Purina leads the way with a CRM approach that integrates loyalty and personalization across its extensive brand portfolio. By leveraging data to provide relevant product recommendations and tailored offers, the brand strengthens customer engagement and encourages cross-brand discovery.
Reducing spend
Compared to other channels, email marketing offers unmatched ROI in both the short and long term. Automation, segmentation, and advanced analytics allow for campaign optimization without ongoing manual effort — making it the perfect recipe for a highly scalable solution. Unlike social channels, where constantly changing algorithms impact visibility, emails are delivered straight to a subscriber's inbox, right where brands want them. This creates a direct, uninterrupted line of communication, ensuring that the investment in content isn't lost in a sea of other posts. Even better, the cost of email marketing is often significantly lower than placing ads or engaging in influencer campaigns.
Although not revolutionary, it's worth repeating: retaining customers is cheaper than acquiring new ones. It's easy to get caught up in the hustle and forget the basics. Loyal customers spend more over time, and by nurturing these relationships through effective e-marketing strategies, brands can increase revenue and profitability.
Investing into advanced machine learning models can further elevate these efforts. For example, churn prediction models can identify customers at risk of lapsing before they actually do — enabling brands to trigger targeted nurture and retention journeys. By identifying a new guest's risk level of not coming back, European Wax Center activates tailored messaging that increases engagement, visit rates, and guest spend.
Similarly, next-likely-purchase models predict what a customer is most likely to buy next based on the actions of similar profiles. These insights fuel dynamic content strategies that deliver more relevant product recommendations, personalized offers, and smarter lifecycle campaigns — driving higher conversion rates and deeper customer loyalty.
These loyal customers then become a powerful business network, more likely to recommend products or services through word-of-mouth, and thereby influence positive brand perception and customer acquisition at little to no cost.
Measurable results
With advanced analytics and tracking capabilities, businesses can measure the performance of their email campaigns in real-time. Insights from email metrics such as heat mapping, click-through rates, and conversions provide valuable data for optimizing future campaigns.
It has been found that companies that leverage demographic and behavioral data for segmentation see a 15% increase in customer satisfaction. Even starting small with dynamic content blocks that change based on the consumer's behavior or preferences can lead to a 10-20% increase in conversion rates according to Accenture. Taking it to the next level with predictive analytics to anticipate customer needs with personalized product recommendations, brands have reported a 25% increase in average order value.
Email strategy unlocks growth opportunities for businesses by driving brand engagement, conversions, and ultimately, revenue generation. By developing a strategic, data-driven approach to email marketing, businesses can tap into the full potential of this powerful marketing channel.
About Austin Wright
Austin Wright is a problem solver and results maker. A data geek at heart. He has consulted with mega brands to growth companies to transform business strategies and outcomes. He has over 25 years of digital, CRM, loyalty, and customer tech experience to improve customer and brand experiences. He is a digital marketer with deep experience in strategy, testing, execution, and technology integrations. Much of his experience has been with "challenger" brands, helping them grow share through better customer engagement.
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