Email vs. Social Media 08/29/10

Social media is one way to disaggregate your customer database so you’re not completely reliant on email.  Social networking usage has surpassed email and web marketing budgets will need to be adjusted to reflect this shift in your customers’ online habits.  This post cites quantitive  research as evidence of this shift in behavior and also provides guidance with regard to budget allocation.  I conclude with six reasons why social media communications can be more effective than email.

This chart from Morgan Stanley shows that social networking usage has now surpassed email usage.  Diversification is important.

Source: Internet Trends 2010 by Morgan Stanley
Corroborating Source: 2009 Marketing Trends by StrongMail

Furthermore, with this shift in behaviour, comes a shift in marketing budgets. Forrester estimates Social media spend of US$3.1 billion by 2014 versus only US2.1 billion for email.  This is a role reversal of current budget allocations.

Source: Internet Marketing Nears $55 billion by Forrester

We are past the tipping point.  Social media can be more effective than email because:

1. You can offer seamless experiences that keep the prospect on one channel and medium throughout the sales funnel, thereby reducing friction.
2. Overcome the noise associated with email marketing and reach prospects through a channel of their preference.  People who ignore your emails may listen to your message via an alternative channel.
3. The perception of a brand on a social network, is a brand that listens.  a brand that cares about me. And that asset – that social capital will deliver you customers that are worth more than those who you are not connected with on social networks.
4. It’s easier for a recipient to share your message within a social network, than from an email client.
5. It’s faster and easier for you to create a brief (and more easily consumable) post rather than produce a much longer html newsletter.
6. There are more relevant targeting opportunities than was possible with email segmentation, especially in the early stages of the customer lifecycle (discovery and customer acquisition.)

What’s critical to remember, is that the tone of social media communications and it’s approach is starkly different to email messaging. It’s typically shorter and contains more rich media.  It’s also a more passive message,  entertaining and has a level of personalisation that is unseen in email marketing.  It’s ideally suited for targeting a niche group of subscribers who are interested buyers and / or influencers who are likely to think your message is remarkable enough to share it with their friends.

Here’s how you can start integrating social media into your email marketing.