Why Email Marketing Should Be on Every SME’s Radar

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What Is Email Marketing?

Email marketing is a form of direct marketing and digital marketing where businesses send commercial messages to a list of subscribers who have opted in. These emails can include promotions, newsletters, educational tips, surveys, and announcements—all designed to achieve specific goals like driving sales, building relationships, or growing loyalty.

Unlike the generic “email blasts” of the past, modern email marketing is all about segmentation and personalisation. That means tailoring messages so they feel relevant to individual subscribers—speaking to their needs, interests, and behaviours. This builds stronger, long-term relationships with customers.

Fun fact: The first marketing email was sent back in 1978 by Gary Thuerk, a marketing manager at Digital Equipment Corp. His single email resulted in $13 million in sales. Fast forward to today, email is still one of the most profitable channels for SMEs (StartupMagazine, 2024; Mailchimp, 2024)

According to Mailchimp (2024), email marketing revenue is expected to grow 287% worldwide between 2024 and 2032. That growth shows why SMEs can’t afford to ignore it.

Benefits of Email Marketing for SMEs

Here’s why email marketing should be a core part of your digital strategy:

  1. Hasn’t Changed Much — Just Got Smarter
    The principles of email marketing are the same as in the 1970s. What’s new is automation. Today, SMEs can use ready-made templates and automated campaigns to reach thousands of subscribers in just a few clicks.

  2. You Own the Channel
    Unlike Facebook or TikTok, which control algorithms, email belongs to no single company. As long as subscribers opt in, you own your list—and no algorithm change can take it away.

  3. Local + Global Reach
    Perfect for UK SMEs. You can run a local campaign for a café in Manchester and, at the same time, reach international customers for your e-commerce shop.

  4. Performance Insights
    Every open, click, and purchase can be tracked. Unlike flyers or posters, email lets you measure what’s working in real time.

  5. Budget-Friendly
    Email marketing is affordable, with starter plans around £9–£15/month.

    • MailerLite: from £10/month

    • Brevo (Sendinblue): from £19/month

    • Mailchimp: from £11/month
      All three offer free tiers—ideal for SMEs and startups.

  6. GDPR-Compliant
    Tools like Brevo, EmailOctopus, and Mailjet make compliance with UK/EU data privacy standards straightforward.

  7. Direct Customer Connection
    You own your list, so no algorithm can limit your reach. Email is one of the most reliable ways to maintain long-term engagement.

  8. Proven ROI
    Email delivers the highest ROI of any channel:

    • ROI: £36 for every £1 spent (Omnisend,2024, SME News, 2024).

    • Median ROI: 122%, compared with Social Media (28%), Direct Mail (27%), Paid Search (25%), and Online Display (18%).

  9. Scalable Growth
    Start free or low-cost, then upgrade as your list grows. Platforms like MailerLite or Brevo make scaling seamless.

  10. Personalisation
    Example: sending a discount to a customer who abandoned their shopping cart.

  11. Increased Engagement
    People like being informed. Regular, valuable updates build trust and keep your brand top of mind.

  12. Lower CPA (Cost per Acquisition)
    According to Email Marketing Benchmarks (SimplyLearn, 2024; DMA, 2025), Email CPA averages £7.63, compared to Online Display (£7.70), Paid Search (£16), Social Media (£16.36), and Direct Mail (£20.39). 

Disadvantages of Email Marketing

Of course, email isn’t perfect. Here are the main challenges:

  • Spam Filters – If you don’t optimise subject lines and content, your emails may land in junk folders.
  • Overcrowded Inboxes – Competition is tough. To stand out, you’ll need strong subject lines, engaging copy, and sometimes incentives.
  • Design Issues – Not all emails look good on every device. Poor formatting can frustrate readers.
  • Engagement Drop-off – People might sign up for a one-time offer and then stop opening your emails. That’s why consistent value is key.
  • Costs at Scale – Free plans are great at first, but as your list grows, you’ll pay more for advanced features, designs, or higher send limits.
  • Size Limits – Large image-heavy emails can load slowly, leading to drop-offs.

Despite these drawbacks, the pros far outweigh the cons when email is done strategically.

The Bigger Picture

In 2025, about 333 billion emails are sent daily, projected to reach 392.5 billion by 2026 (Statista 2024). That’s proof email is far from dead—it’s only growing.

For UK SMEs, it’s one of the most affordable, measurable, and scalable ways to market. Whether you’re running a local bakery, a freelance consultancy, or an e-commerce store, email gives you:

  • Direct communication
  • A proven ROI channel
  • Scalability as your business grows

The question isn’t if you should use email marketing—it’s how soon can you start.

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