What is Email Marketing? Reasons It Still Works in 2025

Automation & AI Solutions| Email Marketing

May 28, 2025•22 min read

TL;DR | Summarised by Our AI

Email marketing is far from outdated—it’s evolving. In 2025, it remains one of the most effective digital marketing channels, offering unmatched ROI, direct audience access, and scalable personalisation.

Modern email marketing goes beyond mass blasts. It’s driven by automation, AI, and customer data—delivering timely, tailored messages that convert. From welcome emails and newsletters to re-engagement and transactional emails, brands can nurture leads, boost retention, and grow revenue with minimal cost.

Why it works in 2025:

You own the audience—no reliance on algorithms.
Tools like Klaviyo, Mailchimp, and HubSpot enable smarter automation.
Consumers still prefer email over social channels for brand communication.
AI powers dynamic content, predictive send times, and higher engagement.

Whether you’re a small business, ecommerce brand, or enterprise, email remains a core growth engine. It’s personal, measurable, cost-effective—and future-proof.

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Email marketing is still one of the most effective tools in a marketer’s toolkit—and it’s not going anywhere in 2025.

At its core, it allows businesses to speak directly to their audience. Whether you’re sharing product updates, exclusive offers, or personalised content, you’re landing straight in someone’s inbox—no need to rely on social algorithms or third-party platforms.

Even with constant changes in the digital landscape, email marketing consistently delivers high returns. It’s trusted, scalable, and preferred by many customers over other channels.

What’s changed is how we do it. With smarter automation, better segmentation, and AI-driven insights, it’s now easier to send the right message to the right person at the perfect time.

Whether you’re a small business or a large enterprise, email marketing continues to be a key strategy for growth, retention, and long-term customer relationships.

Email Marketing Explained

Email marketing today is much more than sending bulk messages to a list. It’s a smart, data-driven way to connect with your audience—at scale and with impact.

Even with the explosion of social media and instant messaging, email continues to cut through the noise. It’s personal, direct, and familiar. In fact, studies show that in 2025, email is still the most-used digital marketing channel—and the preferred way consumers want to hear from brands.

The real question now isn’t if you should use email. It’s how to use it effectively.

Many businesses still fall back on outdated tactics—generic blasts, poor timing, or one-size-fits-all messaging. The result? Low engagement and rising unsubscribe rates.

To succeed, your email strategy needs to evolve. That means using automation, crafting personalised journeys, and aligning every message with where your customer is in their buying journey.

When done right, email marketing becomes a growth engine. It helps you nurture leads, convert more customers, and build trust that lasts.

It’s not just a tool—it’s the foundation of a modern, scalable digital strategy.

Why Email Marketing Is Still Effective in 2025

As customer expectations shift and new technologies emerge, one channel continues to prove its worth: email marketing.

Far from being outdated, email is thriving—fueled by automation, AI, and a growing demand for personalisation and privacy. It’s not just holding its place in the modern marketing stack—it’s leading the charge.

Here’s why email still outperforms even the flashiest new channels:

Larger Reach and Audience Ownership

Unlike social media, email gives you direct access to your audience. When you build an email list, you’re not at the mercy of shifting algorithms or rising ad costs.

You own the relationship. Your emails land directly in inboxes, giving you consistent visibility—no “pay to play” required. And in 2025, with over 4.5 billion email users worldwide, the potential reach is unmatched.

As long as you honour permissions and deliver value, that line of communication stays open and under your control. No other channel offers the same autonomy.

Higher ROI and Conversion

Email continues to be the highest-performing channel for return on investment. Industry data from Litmus and Campaign Monitor shows marketers earning $36 to $42 for every $1 spent.

Why? Because email is measurable, optimisable, and designed to convert.

From welcome series to abandoned cart emails, automated flows move leads through your funnel with precision. You can A/B test subject lines, tweak CTAs, and continuously improve performance with data-backed decisions.

Want more proof? Read Email Marketing Still Works in 2025—Here’s Why It’s More Powerful Than Ever

Preferred by Consumers Over Social Media

Social feeds are noisy, fleeting, and often overwhelming. Email offers a more focused, personal way to connect with customers.

In fact, 4 out of 5 consumers say they prefer email for brand communication—especially for promotions, order updates, and exclusive content.

Unlike social posts that vanish in minutes, emails are searchable, saveable, and trusted. And because subscribers choose to receive them, engagement rates tend to be much higher—when the message is relevant and respectful.

Need a reason to start now? Check out Why Email Marketing Is Important (And Why You Should Start Today)

Adaptable with AI and Automation

Modern email tools do more than send messages—they work smart.

AI now helps marketers understand customer behavior, predict engagement, and personalise content automatically. It can even suggest send times or write subject lines based on user data.

Automation brings scale without losing the personal touch. Triggered emails can welcome new users, follow up on purchases, or re-engage inactive subscribers—without manual effort.

This flexibility makes email marketing incredibly future-proof. It grows with your business and evolves alongside your customers.

What Are the Business Benefits of Email Marketing?

Email marketing isn’t just another digital tactic—it’s a true growth engine.

It allows businesses to speak directly to customers, nurture leads, build brand trust, and deliver real results—all from one scalable platform. Whether you’re a local business or running a global ecommerce store, the benefits go far beyond sending a weekly newsletter.

Cost-Effective Outreach

Email is one of the most budget-friendly marketing tools out there.

Unlike paid ads or print campaigns, email offers a minimal cost per impression—especially when you're reaching thousands of subscribers in one click. Most platforms use tiered pricing based on list size, making it easy to scale without breaking the bank.

For small businesses, email is a low-cost entry point into digital marketing. For larger brands, it’s a powerful way to run personalised campaigns across multiple audience segments without needing a huge advertising budget.

When powered by the right software, email becomes both affordable and effective.

Personalisation and Segmentation

The old “batch and blast” approach is long gone.

Modern email marketing is built on segmentation—organising your list by interests, purchase history, demographics, or behaviour—and tailoring messages to match.

Platforms like Mailchimp, Klaviyo, and HubSpot make it easy to personalise everything from product recommendations to subject lines. Whether it's greeting subscribers by name or sending content based on what they browsed, relevant emails lead to better engagement.

Personalisation isn’t just appreciated—it’s expected. And automation makes it easy to deliver at scale.

Dive deeper into this in:
12 Key Email Marketing Benefits That Drive Business Growth

Email Marketing for Business in 2025

Retargeting and Retention

It’s great to win new customers—but the real ROI comes from keeping them.

Email marketing is unmatched when it comes to retention. You can set up post-purchase sequences, loyalty programs, and win-back campaigns that keep your brand top of mind.

Automated flows ensure consistent, timely messaging—without a big team behind the scenes. Whether it’s a special offer, a reminder, or a thank-you note, these touchpoints build long-term relationships.

Measurable Performance Metrics

Email gives you full visibility into what’s working.

From open rates and click-throughs to conversions and unsubscribes, everything is trackable. You can A/B test different subject lines, designs, and calls to action—and adjust based on real data.

This level of insight helps you fine-tune every part of the funnel. And because results are clear and measurable, email is one of the easiest channels to justify from an ROI perspective.

Types of Email Marketing Campaigns

Email marketing comes in many forms, each crafted for a specific goal—from nurturing leads to announcing promotions, automating customer service, or collecting feedback. Here’s a breakdown of the most common and effective types used across industries in 2025.

Email Newsletters

Sent regularly (weekly or monthly), newsletters keep subscribers informed about brand updates, content, tips, or curated product highlights. They’re a great way to maintain long-term engagement and educate customers without being overly promotional.

Best for: Brand awareness, thought leadership, customer loyalty

Promotional Emails

These emails are designed to drive sales or conversions—think flash sales, new product launches, or exclusive discounts. With a strong CTA and a sense of urgency, they’re proven to generate quick results.

Best for: Seasonal sales, product announcements, time-sensitive offers

Transactional Emails

Automatically triggered by user actions (e.g. purchases, sign-ups, password resets), these emails are highly relevant and timely. They have the highest open rates because they deliver essential information.

Best for: Order confirmations, shipping updates, account notifications

Lead Nurturing Emails

This is a series of targeted emails sent over time to educate and convert prospects. These emails are tailored to the user’s stage in the buyer’s journey and often include valuable resources like case studies or guides.

Best for: Turning interested leads into paying customers

Re-engagement and Win-Back Emails

Targeted at inactive subscribers, these emails aim to revive interest. Tactics include exclusive offers, surveys, or personalised product suggestions.

Best for: Reducing churn, boosting email list hygiene, reactivating lapsed users

Welcome Emails

The first email a subscriber receives after joining your list. A strong welcome email sets expectations, introduces your brand, and often includes a sign-up incentive or CTA.

Best for: First impressions, guiding new subscribers, increasing engagement from the start

Confirmation Emails

Sent immediately after a form submission or purchase, these emails reassure users that their action was successful. They often contain a summary of details and next steps.

Best for: Purchases, bookings, sign-ups, newsletter opt-ins

Dedicated Emails (Standalone Sends)

These are one-off emails sent to a specific segment of your list. They focus on a single message, such as a product launch, event invitation, or important update.

Best for: Isolated campaigns to specific audiences

Invite Emails

Used to drive attendance for events, webinars, launches, or early access programs. These emails highlight event details and encourage RSVPs or registrations.

Best for: Community engagement, pre-launch hype, education-based marketing

Survey Emails

These help collect feedback, improve services, and show customers their opinions matter. Well-timed surveys can also serve as engagement touchpoints and increase retention.

Best for: Customer research, product validation, service improvement

Seasonal Marketing Emails

These campaigns are tied to holidays or annual events like EOFY, Christmas, Black Friday, or New Year. They often include themed offers or messages of appreciation.

Best for: Boosting Q4 revenue, holiday-specific sales, increasing urgency

Interactive Emails

Interactive emails go beyond text and images—they include elements like sliders, quizzes, carousels, live polls, or embedded videos. These improve engagement without requiring users to leave the inbox.

Best for: Boosting click-through rates, reducing friction, increasing on-email conversions

Email Marketing for Small, Local, and Niche Businesses

One of the biggest advantages of email marketing is its scalability—it’s just as powerful for a solo entrepreneur or local shop as it is for a multinational brand. In fact, for small, local, and niche businesses, email provides a cost-effective way to maintain personal relationships at scale, build community trust, and convert interest into loyalty.

Whether you’re targeting a local audience, a specific industry, or a specialised customer base, email helps you stay relevant and visible without the high costs of traditional advertising.

Small Business Success Stories

Small businesses often have tighter budgets and leaner teams—but that’s exactly why email marketing is such a smart fit. With minimal tools and time, business owners can automate campaigns that:

Welcome new subscribers
Offer exclusive discounts
Share product or service updates
Ask for reviews or referrals

For example, a local dog groomer might use automated reminders to encourage repeat bookings, while a boutique fitness studio could send weekly class schedules and early bird specials.

Even a few well-timed emails each month can drive repeat business and increase retention without adding more to your plate.

Local Campaign Targeting Tips

If your customer base is tied to a physical location—like a real estate agency, café, or salon—geo-targeted email campaigns can deliver incredibly relevant messaging. Some effective tactics include:

Segmenting your list by suburb, postcode, or city
Sending emails tied to local events, seasons, or public holidays
Promoting in-store offers or foot traffic campaigns
Featuring community partnerships or sponsorships

Using location-based personalisation ensures your emails resonate and feel timely—while helping you outpace local competitors who rely solely on social media or print flyers.

Use Case: Email Marketing for Authors

Authors and creatives often need to build relationships with audiences over time—making email an ideal tool. It enables direct connection with readers, helps build anticipation around new releases, and provides a channel for delivering value between launches.

Typical author email campaigns might include:

“Behind the scenes” content or writing updates
Exclusive previews or early access to new chapters
Launch announcements with links to purchase
Subscriber-only bonuses like deleted scenes, Q&As, or digital wallpapers

For independent authors or niche publishers, email marketing provides a platform that’s personal, measurable, and entirely owned—no algorithms to fight or platforms to pay.

Best Practices for Email Marketing in 2025

Email marketing success today hinges on relevance, respect, and responsiveness. Gone are the days of one-size-fits-all blasts. In 2025, effective email campaigns are automated, personalised, optimised for every device—and fully compliant with evolving data privacy laws.

Whether you’re just starting out or looking to fine-tune an existing strategy, these best practices will help you maximise engagement and ROI while building trust with your audience.

Segment Your List and Personalise

Segmentation is the foundation of a successful email strategy. Rather than sending one message to your entire list, divide your audience by demographics, behaviour, interests, or lifecycle stage. This allows you to deliver content that feels relevant to each individual.

For example, send a product recommendation to returning customers, onboarding content to new subscribers, or seasonal offers based on location. Tools like Klaviyo and Mailchimp make this easy to automate.

Personalisation can be as simple as using a first name—or as advanced as dynamic content blocks that adjust based on purchase history.

A well-segmented, clean list also improves deliverability and protects your sender reputation.

Optimise for Mobile and Accessibility

With over 60% of emails being opened on mobile devices, responsive design is no longer optional. Use mobile-friendly templates with single-column layouts, large CTA buttons, and concise copy.

But it’s not just about screen size—accessibility matters too. Use high-contrast colour schemes, readable fonts, descriptive image alt text, and semantic HTML so your emails are easily understood by users with visual or cognitive impairments.

The goal: every recipient, on every device, should be able to open and act on your email without friction.

A/B Test Subject Lines and CTAs

Even small changes can make a big impact. A/B testing allows you to experiment with different:

Subject lines
Preview text
CTA button wording
Email layouts
Send times

By running controlled tests, you can identify what resonates with your audience—and refine your strategy over time. Most email platforms offer built-in A/B testing tools to streamline this process.

Want to know which email types perform best and which ones flop?
🔗 Explore: 4 Emails That Convert—And 4 That Fail

Comply with GDPR and Privacy Laws

Respect your audience’s inbox. In 2025, data privacy is more important than ever—and global email laws reflect that.

Ensure your emails comply with regulations such as:

GDPR (EU)
CAN-SPAM (USA)
CASL (Canada)
Privacy Act & Spam Regulations (Australia)

This means getting clear opt-in consent, offering easy opt-outs, and being transparent about data use. Use double opt-ins to validate new subscribers and clean your list regularly to avoid spam traps and hard bounces.

Following legal guidelines isn’t just about staying compliant—it’s about building long-term trust with your subscribers.

4 Emails That Convert—And 4 That Fail

Email Marketing Strategy Essentials

A strong email marketing strategy is the difference between sending emails—and sending emails that drive real results. At its core, your strategy defines who you're speaking to, what you're saying, when you're saying it, and why it matters to the recipient. When thoughtfully executed, it aligns your brand’s goals with your customer’s needs—creating a win-win communication loop that drives engagement, loyalty, and revenue.

In 2025, successful strategies are powered by automation, informed by data, and built on trust. Here's how to build yours:

Set Clear Business Goals

Every email should have a purpose—and that purpose should tie directly back to a broader business objective. Are you trying to:

Generate leads?
Drive first-time purchases?
Increase repeat orders?
Reduce churn?
Boost event attendance?

Your strategy should map campaign types to those outcomes. For instance, lead nurturing flows may work best for long B2B sales cycles, while ecommerce stores might prioritise abandoned cart and win-back sequences.

Defining clear goals also helps you measure success. Use KPIs like open rate, CTR, revenue per email, or customer lifetime value to gauge performance.

Choose the Right Email Tools

Your tech stack should support your goals—not complicate them. Modern email marketing platforms do more than just send messages. They offer:

Drag-and-drop design tools
Segmentation and audience insights
Pre-built automations and workflows
A/B testing and analytics
CRM integrations and ecommerce triggers

Choose a platform that fits your business model. For example:

Mailchimp for user-friendly campaigns and small businesses
Klaviyo for ecommerce stores with rich Shopify integrations
HubSpot for B2B email tied to sales pipelines
Salesforce Marketing Cloud for enterprise-level complexity

The right tool empowers you to scale personalisation, optimise performance, and automate growth.

🔗 See how tools enhance strategy: What is Targeted Email Marketing?

Map Customer Journeys and Automate Workflows

Successful email marketing isn’t about one-off blasts—it’s about creating experiences that guide your audience through their lifecycle.

Start by mapping out key touchpoints, like:

First visit → Lead magnet signup
Signup → Welcome sequence
Product viewed → Follow-up content or promo
Purchase → Thank you + cross-sell offer
Inactivity → Re-engagement flow

Then, use automation to trigger the right email at the right moment based on behaviour, intent, or timing. This not only saves time but ensures consistency and relevance across every customer interaction.

Automation makes it possible to engage thousands of customers in a one-to-one way, improving efficiency and deepening trust.

Marketing Automation and AI in Email

In 2025, email marketing is no longer just about sending newsletters. With automation and artificial intelligence (AI) now deeply integrated into most email platforms, marketers can run highly sophisticated campaigns that are both efficient and deeply personalised.

This shift has transformed email from a static broadcast channel into a dynamic, behaviour-responsive experience. Automation handles the when and how, while AI enhances the what and why—making every message more relevant, timely, and effective.

Triggered Emails and Behaviour-Based Flows

Automation starts with triggers—specific actions taken (or not taken) by a user that initiate an email. These actions could include:

Signing up for a newsletter
Abandoning a cart
Viewing a product page
Making a purchase
Not engaging for a set period

Triggered emails are powerful because they align with a user’s intent in real time. For example, a cart abandonment email sent within an hour of the action has far higher engagement than a weekly batch send.

Behaviour-based segmentation further enhances this by dynamically sorting users into segments based on their ongoing interactions—ensuring each person only gets the emails that matter to them.

Result: Higher engagement, less unsubscribes, and stronger conversion paths.

AI-Generated Personalisation

AI has elevated email personalisation far beyond “Hi [First Name]”.

Today’s platforms use machine learning to analyse massive datasets, predicting what products users are most likely to buy, what topics will interest them, and how to tailor subject lines or CTAs.

AI can help you:

Write subject lines that improve open rates
Recommend products based on past browsing or buying behaviour
Serve different email content blocks based on user profile
Optimise image placement, layout, and send time dynamically

With AI-driven personalisation, every email becomes a 1:1 conversation—at scale.

Performance Prediction and Smart Scheduling

AI also supports strategic decision-making by predicting:

Which email variants will perform best (before sending them)
Optimal times to send emails to each recipient
Likelihood of conversion based on email content or timing
Engagement decay curves (i.e. when a user is likely to disengage)

Smart scheduling ensures your emails land in inboxes when recipients are most likely to open and act—whether that’s 8am on Tuesday or 6pm on Saturday.

Predictive analytics can even forecast campaign ROI before launch, helping teams allocate budget and resources more effectively.

What Does Email Marketing Cost?

Email marketing remains one of the most cost-effective digital channels available—but that doesn’t mean it’s free. Costs can vary depending on your business size, email list, sending frequency, and the complexity of your strategy. That said, the barrier to entry is low, and the return on investment is consistently high—making it a smart choice whether you’re a startup or an established enterprise.

When budgeting for email marketing, it’s helpful to think in two categories: platform/technology costs and labour/creative costs.

Platform Costs (Klaviyo, Mailchimp, HubSpot)

Most email service providers (ESPs) operate on a tiered pricing model based on your subscriber count or monthly email volume. Here’s a quick comparison of common platforms in 2025:

Mailchimp: Free for up to 500 contacts with limited features; paid plans start at approx. $13/month and scale with list size.
Klaviyo: Known for ecommerce automation; free for up to 250 contacts, then scales to $20–$100+ based on audience size and advanced features.
HubSpot: Offers a free tier, but powerful automation and CRM integrations are part of its Marketing Hub plans starting at $45/month and scaling into enterprise tiers.

Additional costs may include SMS marketing, landing pages, A/B testing, or integrations—so always check what’s included in each tier.

📝 Tip: Be wary of “freemium” email tools that charge extra for adding images, templates, or exceeding character counts.

Design, Copywriting, and Automation Setup

If you’re handling email in-house, your costs will be tied to time and tools. But if you outsource design, writing, or automation setup, expect to pay:

$400–$600/month for basic agency management (small business)
$2,000–$12,000/month for enterprise campaigns with custom flows, segmentation, reporting, and creative

Your team may also need to budget for:

Copywriters for content creation
Designers for branded templates and graphics
Developers or marketing ops for custom workflows or CRM integrations

For many businesses, these costs can be absorbed into existing marketing roles. However, as your campaigns become more complex, allocating a specific email budget ensures consistent quality and performance.

ROI Benchmarks and Cost Comparisons

Email marketing consistently leads the pack when it comes to return on investment. Recent benchmarks put average ROI between $36 and $42 for every $1 spent, depending on industry.

Why is email so effective?

Relevance: Thanks to segmentation and dynamic content, every recipient can receive a message tailored to their context.
Ownership: You’re not paying per click like in search or social ads. You own your list.
Measurability: Every email click and conversion can be tracked and optimised.

📊 Example: Brands like Rip Curl use segmentation and dynamic content to tailor emails by gender, geography, and season—ensuring maximum relevance and ROI.

Compared to paid search, social media, or print campaigns, email consistently provides more value at lower cost—especially when paired with a strong CRM and customer data strategy.

FAQs About Email Marketing

How do I start email marketing?

Start by choosing an email marketing platform that fits your needs—like Mailchimp, Klaviyo, or HubSpot. Next, build your list using a clear opt-in process (e.g. website signup forms or lead magnets). Then, create a welcome email or basic newsletter and segment your audience to personalise your messaging.

Even simple automations—like welcome sequences or post-purchase follow-ups—can deliver meaningful results right away. The key is to start small, stay consistent, and track performance as you go.

How often should I email my subscribers?

There's no one-size-fits-all frequency, but a good rule of thumb is 1–4 emails per month. For ecommerce or promotional campaigns, once per week is common. For B2B or newsletters, biweekly or monthly might be more appropriate.

Always prioritise relevance over frequency. Monitor unsubscribe and engagement rates to guide how often you should email your audience—and don’t be afraid to test different cadences with different segments.

What’s the best time to send emails?

The best send time depends on your audience’s habits, but general data suggests:

Tuesdays and Thursdays perform best
Between 9:00am–11:00am local time is often optimal

However, AI-powered tools in platforms like Klaviyo and HubSpot can analyse past engagement to determine personalised send times per user. A/B testing is also a reliable way to discover the best timing for your unique list.

What’s a good open/click-through rate?

Benchmarks vary by industry, but as of 2025:

Average open rate: 34%
Average click-through rate (CTR): 3.5%
Good open rate: 40%+
Good CTR: 4–6%

If your numbers are below average, focus on improving subject lines, send time, audience segmentation, and content relevance. And remember—clicks matter more than opens.

Ready to Get Started with Email Marketing?

Email marketing works—when done right. Whether you’re starting from scratch or scaling up, we can help you build smarter campaigns that get real results.

👉 Book a Free Strategy Session
📬 Contact Us

Let’s turn your email list into a growth engine.

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