Have You Checked Your Inbox Today?

Email remains one of the most powerful marketing channels worldwide, particularly in the subscription and fintech sectors. However, while email excels in specific verticals, it shows limitations in others, highlighting the need for a more comprehensive, multi-channel marketing approach.

Email’s Success in Fintech

In the fintech sector, email, along with push notifications, in-app messages, and App Inbox, accounts for 31% of conversions. Email is particularly effective due to its perceived security. Fintech is an industry where data protection is paramount, and email’s trusted reputation makes it an ideal channel for sensitive information, including financial transactions and account management. Email conversion rates in fintech reach 26%, driven largely by users’ trust in email as a secure communication method. This high engagement rate underscores email's critical role in helping fintech companies build and maintain customer relationships.

Subscription Services Benefit from Email’s Personal Touch

For subscription services, email proves to be a driving force in customer engagement, contributing to 21.16% of first-month engagement rates. The personalized and informative nature of email content is key to its effectiveness. Unlike generic marketing messages, subscription-based emails often provide tailored content that resonates with the individual user. This could include personalized offers, reminders, or helpful information related to the subscription, which fosters engagement right from the start of the customer journey.

The Struggles of Email in E-commerce

Despite its success in fintech and subscription services, email performs poorly in the e-commerce sector. Email engagement accounts for only 0.9% of conversions in e-commerce, far below the average of 6.32%. This disparity suggests that while email remains a useful tool, it is not as impactful in the fast-paced world of online shopping. However, it still plays a vital role in addressing cart abandonment, promoting sales, and sharing information about loyalty programs, wish-listed items, and product comparisons.

Geographic Reach and Potential

The global dominance of email as a communication channel is also noteworthy. The U.S. leads the world with 9.7 billion daily emails, followed closely by Germany and Ireland at 8.5 billion each. The U.K., Belgium, the Netherlands, Japan, and India each contribute 8.3 billion daily emails. Given its widespread use across multiple regions and industries, email’s high open rates make it an excellent channel for initiating customer engagement, even if it may not always deliver the highest click-through rates (CTRs).

While email is a dominant and highly effective tool in sectors like fintech and subscription services, it has its limitations. Businesses must recognize its strengths and weaknesses and adopt across-channel marketing strategy to ensure sustained engagement and conversion.

Cate Bender, the author, is Project Coordinator of Marketing Keys