How can I encourage local customers to sign up for my email list?

Build your email list by offering compelling incentives like first-time customer discounts, exclusive content, or early access to sales. Place sign-up forms prominently on your website and in-store, using QR codes or tablets for easy registration. Train staff to mention email benefits during checkout, and consider running contests or special promotions exclusively for subscribers. Always clearly communicate the value proposition of joining your list, such as being the first to know about local events, special offers, or insider tips.

Email Marketing for Local Businesses

Let’s start with a riddle:

What gives you an average return of $42 for every $1 spent?

Stumped?

It’s email marketing!

I really wouldn’t thought the headline would give that away though, so you probably had an inkling that was the answer…

Another tidbit: 80% of retail professionals say email marketing is their greatest driver of customer retention? For local businesses, it’s a game-changer.

However, many local businesses struggle to effectively use email marketing to engage customers and drive recurring revenue.

In this guide I’ll show you how to leverage email marketing through newsletters to keep your local business thriving and boost your bottom line.

Source: Litmus

(Links to all sources are at the bottom of this post)

TLDR
What are the Categories of Email Marketing?
Why Email Marketing is Crucial for Local Businesses
Building a Solid Email List for Your Local Business
Crafting Engaging Newsletters for Your Local Audience
Designing Newsletters That Capture Local Attention
Optimizing Email Campaigns for Local Business Success
Measuring and Improving Your Local Email Marketing Performance
Key Takeaways
FAQs
Sources

TLDR:

Email marketing offers local businesses a direct line to customers, with an impressive ROI of $42 for every $1 spent.
Build a solid email list through website opt-ins, in-store sign-ups, and social media campaigns, focusing on value-driven incentives.
Craft engaging newsletters with an 80/20 split of valuable content to promotions, and design for mobile-first readability.
Optimize campaigns through A/B testing, personalized subject lines, and clear CTAs to improve open and click-through rates.
Continuously measure and refine your strategy using key metrics like open rates, click-through rates, and conversion rates.

What are the Categories of Email Marketing?

Okay, I know this seems obvious, but let’s get on the same page since email marketing can come in many forms.

Email marketing can be categorized into several types, each serving a specific purpose in a business’s overall marketing strategy.

Here are the most commonly accepted types (you don’t need to remember all of these, but it’s helpful to be familiar with them):

Newsletter Emails

Purpose: To keep subscribers informed about company news, updates, and valuable content
Frequency: Usually sent on a regular schedule (weekly, monthly, quarterly)
Content: Mix of informative articles, company updates, and light promotional material

Promotional Emails

Purpose: To promote specific products, services, or offers
Frequency: As needed, often around sales events or new product launches
Content: Focused on driving sales with clear calls-to-action (CTAs)

Welcome Emails

Purpose: To greet and onboard new subscribers or customers
Frequency: Automatically sent when someone signs up or makes a first purchase
Content: Introduction to the brand, what to expect from future emails, sometimes includes a special offer

Transactional Emails

Purpose: To provide information about a specific transaction or action
Frequency: Triggered by user actions (e.g., purchase confirmations, shipping notifications)
Content: Details about the transaction, often including next steps or additional information

Abandoned Cart Emails

Purpose: To remind customers about items left in their online shopping cart
Frequency: Triggered when a customer leaves the site without completing a purchase or if they’ve reached out for a service but haven’t yet made a buying decision
Content: Reminder of items, sometimes with an added incentive to complete the purchase

Re-engagement Emails

Purpose: To win back inactive subscribers or customers
Frequency: Sent to subscribers who haven’t engaged with emails or made purchases in a while
Content: Special offers, reminders of benefits, or requests for feedback

Survey/Feedback Emails

Purpose: To gather customer opinions and data
Frequency: As needed, often after purchases or significant interactions
Content: Request for feedback, often with a link to a survey

Event Invitation Emails

Purpose: To promote and drive attendance to events (online or in-person)
Frequency: Leading up to an event
Content: Event details, benefits of attending, and registration information

Seasonal or Holiday Emails

Purpose: To capitalize on seasonal trends or holiday shopping
Frequency: Aligned with seasons or holidays
Content: Themed promotions, gift guides, or seasonal tips

Educational or Content Emails

Purpose: To provide value through informative content
Frequency: Regular schedule or as part of a content series
Content: How-to guides, industry insights, or expert tips related to the business’s field

Cold Emails

Purpose: To initiate contact and generate leads from prospects who haven’t previously interacted with the business
Frequency: Typically sent as part of a targeted outreach campaign
Content: Introduction of the business, value proposition, and a specific call-to-action (e.g., scheduling a call, visiting a website)
Note: While cold emails can be effective for B2B outreach, they require careful consideration of legal requirements (such as CAN-SPAM Act compliance) and best practices to avoid being perceived as spam

Each of these email types, including cold email, can be effective for businesses depending on their specific goals, audience, and resources.

The key is to use a mix of these types to create a well-rounded email marketing strategy that engages customers and prospects at different stages of their journey.

For local businesses, it’s important to note that while cold emailing can be a strategy for reaching new potential customers or partners, it should be used judiciously and in compliance with all applicable laws and regulations.

Since building an organic email list through opt-ins is generally considered a more sustainable long-term strategy for most local businesses, that’s what we’re focused on in this post.

Why Email Marketing is Crucial for Local Businesses

Email marketing isn’t just for large corporations that want you to spend extra money when items are on sale.

In fact, it’s even better suited to small to medium sized local businesses.

Consider the fact that now more than ever we like to make buying decisions based on our connection with a business.

Whether that be an agreement on values or wanting to support a part of our local community, many of us are leaning in to our community at a time when it seems the large bohemoths of Amazon, Walmart, and Google have inched their way into every part of our lives.

Not convinced?

Let’s talk about what good email marketing does.

Direct Line to Your Customers

Email provides a direct connection to your customers’ inboxes. Unlike social media or search engines, where algorithm changes can affect visibility, email allows you to reach your audience directly.

What’s more, it’s your audience.

That means you own the email list and you decide when to reach out, rather than letting an algorithm decide whether to show your content.

So you’re in the driver’s seat for your marketing.

According to a 2021 Litmus report, 4 out of 5 marketers said they’d rather give up social media than email marketing - and this is exactly why.

Cost-Effective Marketing That Actually Works

As I mentioned above, email marketing offers an impressive return on investment (ROI) and almost immediately.

Email marketing ROI trend line showing short time to payoff and diagonal positive ROI

The Data & Marketing Association reports that email marketing has an average ROI of $42 for every $1 spent. This makes it one of the most cost-effective marketing channels available, especially for budget-conscious local businesses.

With a small initial investment you can quickly see dividends in return from a strong email marketing campaign.

Building Relationships, Not Just Transactions

Email allows local businesses to nurture customer relationships. You can share your business’s story, provide valuable content, and engage with customers beyond transactions.

A study by Epsilon found that 80% of consumers are more likely to make a purchase when brands offer personalized experiences, which email marketing facilitates.

To maximize on this sentiment, however, the content of your emails should reflect your business, values, and brand, as well as what the subscriber has shown interest in.

This requires thoughtful data collection and strategy, with secure data storage so you don’t alienate your audience.

Staying Top-of-Mind

MarketingSherpa chart on how often consumers want to receive email promos

Regular, valuable emails help local businesses stay on customers’ radar.

Additionally, they give SMBs the opportunity to utilize the same psychology behind impulse buys to highlight seasonal or one-time deals.

The key is to provide useful information or exclusive offers, not just sales pitches.

This may shock you, but according to a study by MarketingSherpa, 61% of consumers enjoy receiving promotional emails weekly, and 38% would like emails to come even more frequently.

Measurable Results You Can Actually Use

Even though it’s gotten easier to measure the impact of many forms of marketing - much to the frustration of privacy advocates - measuring the success of email marketing campaigns is extremely easy.

You get detailed analytics such as open rates, click-through rates, and conversion rates. All of which allow you to refine your approach and improve results over time.

The Email Marketing Benchmarks report by Mailchimp shows that the average email open rate across industries is 34.2%, giving you a benchmark to measure against.

The Local Advantage

We’ve touched on this already in relation to customer sentiment, but as a local business, you have a unique advantage in email marketing beyond clients/customers wanting to support a local business.

You can tailor content to local events, weather, or news, creating a more personalized experience that has real effects.

A study by Accenture found that 91% of consumers are more likely to shop with brands that provide relevant offers and recommendations.

A little message tailoring to demonstrate that you recognize and remember your audience can go a long way.

Complements Other Marketing Channels

Email marketing integrates well with other marketing strategies and is often a natural extension of them.

It can drive traffic to your website, promote in-store events, or amplify your social media presence.

By echoing other marketing efforts in language, tone, and style, it allows you to show consistent messaging while driving urgency or showcasing new service offerings.

HubSpot reports that 59% of marketers say email is their biggest source of ROI.

You can use email marketing to effectively engage customers, drive sales, and build lasting relationships between your business and your local community.

Building a Solid Email List for Your Local Business

Creating a robust email list is the cornerstone of successful email marketing for local businesses. It’s not just about collecting email addresses; it’s about building a community of engaged local customers who want to hear from you. Let’s dive into how you can build and maintain an effective list that drives results for your business.

Strategies for Collecting Email Addresses from Local Customers

First things first: you need to make it easy for people to sign up.

Kinda like this very naturally placed subscribe button…

Your Website

Your website is prime real estate for this.

Place opt-in forms prominently on your homepage, footer, and sidebar.

Don’t be shy about using pop-ups or slide-ins, but be careful. Google cares deeply about the UX (user experience) on a site for SEO, so you need to make sure pop-ups are not intrusive. If users exit your site right after arriving due to these pop-ups, it can hurt your business’s SEO.

The key is to offer value. What’s in it for the subscriber?

Maybe it’s a discount code, a free guide, or exclusive local insights. Whatever it is, make it clear and compelling.

Your Place of Business

But your website isn’t the only place to grow your list. If you have a physical location, you’re sitting on a goldmine of opportunities.

Set up a tablet or good old-fashioned signup sheet at your point of sale. Train your staff to ask customers if they’d like to join your email list for exclusive offers.

Here’s a pro tip: Just like on your website, in your office you want to offer an immediate incentive for signing up, like a small discount on their current purchase. It’s a win-win: they save money, and you gain a subscriber.

Community Events

Don’t forget about events and trade shows. These are perfect for face-to-face interactions and list building.

Set up a dedicated area for email sign-ups, use a tablet for quick registration, and offer event-specific incentives.

People are more likely to sign up when there’s a personal connection.

Now, let’s talk social media.

It’s not just for likes and shares; it’s a powerful tool for growing your email list.

You can do any (or all) of the following to build your list on social media:

Share snippets of your email content to showcase value
Run contests where entry requires an email sign-up
Use platform-specific features like Instagram’s “Swipe Up” or Facebook’s CTA buttons to direct followers to your sign-up page

What to Collect

When it comes to the sign-up process itself, keep it simple.

You can start with just their email address, or at most their email address and name, until you’ve developed a relationship and they’re willing to share more with your business and brand.

One great thing about email lists is that you can always gather more information later through your email interactions.

You’ll also want to implement a double opt-in to ensure list quality and comply with regulations. Yes, it’s an extra step, but it’s worth it for a cleaner, more engaged list.

Importance of proper list segmentation for local markets

Segmentation is your secret weapon and really allows for personalization.

If you’re offering something valuable enough, or you’ve developed a relationship with a client or customer over time, then you can use your sign-up forms to collect key information that’ll help you target your emails better.

For example:

Ask for zip codes to send hyper-local content
Let subscribers select their interests or preferences
Create separate lists for different types of customers – new vs. returning, product preferences, frequency of visits.

The more targeted your emails, the more effective they’ll be.

Tools and techniques for effective list management

Use Data to Manage Your List

List hygiene is crucial.

You need to regularly clean your email list by removing bounced emails and unengaged subscribers.

Before you cut anyone loose though, try a re-engagement campaign.

Other email marketing KPIs you’ll want to pay attention to:

List growth
Sign-up rates
Open rates
Click-through rates

Use this data to refine your strategies continually and pay attention to the trends - especially of different audience segments.

Email Compliance

Compliance isn’t the sexiest topic, but it’s non-negotiable.

To be compliant with US laws (other countries tend to be more strict) you need to include clear unsubscribe options in every email and honor those requests promptly.

It can help to familiarize yourself with CAN-SPAM, GDPR, and other relevant regulations if you have clients in countries outside of the US.

This may seem like a pain, but it’s not just about avoiding fines; it’s about building trust with your subscribers.

You should always prioritize what’s best for them.

Incentivizing Your Subscribers

Finally, harness the power of your existing subscribers to grow your list.

A simple way to do this is to implement a referral program that offers incentives for subscribers who bring in new sign-ups.

Make it easy for current subscribers to share sign-up links. Include “Forward to a Friend” options in your emails, with a clear sign-up option for the recipients and, of course, make sure your emails are worth sharing!

Building a solid email list for your local business isn’t a one-and-done task.

It’s an ongoing process of attracting, engaging, and retaining subscribers.

But with these strategies in your toolkit, you’re well on your way to creating a valuable asset that will drive engagement and revenue for your local business.

Remember, every email address represents a real person in your community – treat them with respect, provide value, and watch your business grow.

Crafting Engaging Newsletters for Your Local Audience

Now that you’ve built a solid email list, it’s time to create content that’ll keep your subscribers coming back for more (or at least opening your email) each time.

If someone is subscribed to a local business’s newsletter, they want content that’s relevant to their community as it relates to the business, so give them what they want!

Focus on providing useful, helpful information and promos first and foremost, but don’t hesitate to mix in relevant local news, events, and seasonal tips with your promotional offers.

Got a local success story?

Share it!

Feature customer spotlights to build that community connection. Remember, personalization is key – use those segments you created to deliver targeted content that speaks directly to each group’s interests.

Here’s the golden rule of newsletter content: aim for an 80/20 split. That’s 80% valuable, non-promotional content and 20% offers or promotions. This approach keeps subscribers engaged and prevents email fatigue.

After all, nobody wants to feel like they’re being sold to 24/7.

Every email should provide value, whether it’s information, entertainment, or exclusive deals. Think of it this way: if you’re not excited about sending an email, your subscribers probably won’t be excited about receiving it.

Hold yourself to a high standard.

Designing Newsletters That Capture Local Attention

You’ve got great content, but how do you make sure it gets noticed when the average person gets 121 emails per day according to EmailListVerify?

Well, it’s all about first impressions and that starts with your subject line but doesn’t end there.

Some basic tips to help you get started:

Use a subject line that’s directly related to the contents and doesn’t bury the lede (or lead - I just found out you can use either word as it all means the same thing)
Keep your design clean and consistent with your brand
Use a responsive template that looks great on both desktop and mobile devices – because let’s face it, over 60% of emails are opened on mobile these days
Break up text with subheadings, bullet points, and images to enhance readability

And here’s where being local gives you an edge: you can incorporate local imagery to create an immediate connection.

Feature photos of your storefront, team, or local landmarks
Use colors that reflect your brand and resonate with local culture

One last tip: keep your main message and call-to-action (CTA) above the fold. In email terms, that means it should be visible without scrolling.

You always want to make it easy for your subscribers to take the action you’re encouraging them to take.

Optimizing Email Campaigns for Local Business Success

Alright, I know this is a long article, but we’re almost done.

You’ve got a great list, engaging content, and eye-catching design. Now let’s talk about getting those emails opened and acted upon.

Sending Frequency

First up: frequency. Finding the right email cadence is crucial.

Start with once a week and adjust based on engagement metrics. Pay attention to local schedules – avoid sending emails during major local events or holidays unless it’s relevant.

You don’t want your carefully crafted email to get lost in the shuffle of the annual town festival.

A/B Testing for Email

Second, but still first in my heart: A/B testing.

It’s your secret weapon for email optimization (and life?). Test different subject lines, send times, and content types to see what resonates with your audience.

You might be surprised – many local businesses find success sending emails in the evening when people are home from work.

But remember to track everything! Testing is only as good as your data collection, and in A/B testing the concept is to make one change and test the control vs the change. So you may need to invest in software or manually split your email list to test different subject lines or CTAs between two groups of subscribers, keeping everything else the same.

Using Subject Lines to Improve Open Rates

Speaking of subject lines, if you’re looking to boost your open rates, then you want to focus your attention there.

Craft compelling subject lines that highlight local relevance or exclusive offers without going over the top and sounding spammy. Personalize them with the recipient’s name or location for an extra touch.

Optimizing for Click-through Rates

For click-through rates, ensure your CTAs (calls-to-action) are clear, compelling, and mobile-friendly.

Additionally, be extra clear on what the primary CTA is, and emphasize that. Don’t include too many CTAs or you’ll dilute your audience’s attention and they’ll be less likely to take the action you’re focused on.

Remember, you’re not just competing with other emails – you’re competing with everything else vying for your subscriber’s attention on their phone. The last thing you want to do is also compete with other CTAs within your own email!

Measuring and Improving Your Local Email Marketing Performance

Now, let’s talk numbers. Don’t worry, I promise it won’t be too painful!

Focus on these key metrics:

Open rate: Aim for 15-25% for local businesses
Click-through rate: A good benchmark is 2.5%
Conversion rate: Track how many email recipients take your desired action. This means you’ll want to pay attention to UTM parameters or other tracking
List growth rate: Monitor how quickly your subscriber list is growing

Use these metrics to continually refine your strategy.

If open rates are low, experiment with different subject lines or send times.

Low click-through rates? Time to revisit your content and CTAs.

And don’t forget to regularly clean your list by removing unengaged subscribers to maintain high deliverability rates.

But remember that proper experimentation means only adjusting one thing at a time.

That means it may take awhile to really nail down what works best for you, but it will be worth it.

Here’s the big one: track the impact on your bottom line.

Set up tracking links to measure how email marketing drives in-store visits or online purchases. Use this data to calculate your ROI and justify your email marketing efforts.

Trust me, it may feel like there’s not much payoff at first and it’s a lot of work to set up, but, when you see the numbers, you’ll wonder why you didn’t start sooner!

Key Takeaways

Whew! We’ve covered a lot of ground, haven’t we?

I, for one, am exhausted and am ready for nap time.

But look at how far you’ve come! From understanding why email marketing is crucial for local businesses to building your list, crafting engaging content, and measuring your success – you’re now armed with the knowledge to take your local business to the next level with email marketing.

Remember, improvement is an ongoing process.

Stay updated with email marketing trends and continuously experiment with new techniques. But most importantly, always prioritize providing value to your local subscribers.

Have fun with it and don’t take yourself too seriously. Really let your business’s personality shine through and connect with your subscribers.

By focusing on their needs and interests, you’ll build a loyal email audience that supports your local business’s growth.

So, what are you waiting for? An awesome poem about email?

Fine:

Start your email marketing strategy today.
Your future customers are just an email away!
Don’t forget your testing, that is B/A.
To increase and improve your click-through-rates!

I’m pretty proud of that.

Now go get ‘em, Tiger.

FAQs

How often should a local business send marketing emails?

The optimal frequency depends on your audience and content quality, but once a week is generally a good starting point. Track engagement metrics like open rates and click-through rates, and adjust your frequency based on these metrics and subscriber feedback.

Some businesses may find success with bi-weekly or monthly newsletters, while others might benefit from more frequent communication. The key is maintaining consistency while providing valuable content that resonates with your local audience.

What are some effective subject lines for local business emails?

The most effective subject lines for local businesses emphasize local relevance, time-sensitive offers, and personalization. Include location-specific references, upcoming events, or the recipient’s name to increase open rates.

Examples include “Jane, join us this weekend on Main Street!” or “[Your City] exclusive: Members-only preview sale.” Keep subject lines under 50 characters when possible, and avoid spam trigger words while maintaining a sense of urgency or exclusivity.

Build your email list by offering compelling incentives like first-time customer discounts, exclusive content, or early access to sales.

You can also place sign-up forms prominently on your website and in-store, using QR codes or tablets for easy registration. Train your staff to mention email benefits during checkout, and consider running contests or special promotions exclusively for subscribers.

No matter what you do (and you can do all of it!) you should always clearly communicate the value proposition of joining your list, such as being the first to know about local events, special offers, or insider tips.

What’s the best way to re-engage inactive local subscribers?

Launch a targeted re-engagement campaign for subscribers who haven’t opened emails in 3-6 months.

Start with a compelling subject line acknowledging their absence, followed by exclusive offers or local event invitations. Ask for feedback through surveys to understand their preferences, and segment your list based on engagement levels.

If subscribers remain inactive after 2-3 re-engagement attempts, remove them from your list to maintain healthy deliverability rates and engagement metrics.

Are there any legal considerations for email marketing that local businesses should be aware of?

Local businesses must comply with email marketing regulations including CAN-SPAM Act (US), GDPR (EU), and CASL (Canada) depending upon where their audience lives.

Key requirements include having a valid physical address in emails, clear unsubscribe options, honest subject lines, and prompt handling of opt-out requests (within 10 business days). Maintain proper documentation of how and when subscribers joined your list, and never purchase email lists. Consider consulting with a legal professional to ensure full compliance with all applicable regulations in your area.