Last updated on August 4th, 2025 at 01:24 pm
Cost effective internet marketing and marketing in general is all about knowing your clients. A company cannot expect to have a cost effective marketing campaign without a specific target market nor without knowing it target customer. This is where market research comes into play.The best way to explain the advantages of using marketing research is thru an example so here goes:
Most of us receive on average about 5 spam emails a day for various products or services like SEO, Viagra and hair growth products. Unfortunately for us, these spamming companies purchase random list of non-target emails at the rate of 1 cent per email (yes, this is how much your email is selling for).
Now let’s say that an online pharmacy called Company X is spamming people at random to sell their hair loss products and sends out 12 million emails per month at the cost $102,000. The acquisition success rate of such a spam email is usually very low at about 0.00124% and the value of a customer for that particular industry is about $1,000.00 per year.
So basically, Company X will make a profit of $1,367,876.00 from its spamming email campaign for that year.
Now, if the proper market research had been done the company could have doubled its profit by finding some general information about its target market like:
- 50 million Americans over 25 are experiencing hair loss.
- 151 million of Americans are male.
- Out of those about 120 million are over 14 years of age.
- Out of those 75 million of these are over the age of 24.
Huge Saving from Market Research
If Company X had known these facts, they would have instead purchased an email list with the above criteria at the cost of 0.05 cents per email for a total cost of $600,000.00.
The list would probably only have about 3 million emails but it would be a better targeted list which would improve the acquisition rate by about 0.1%.
This means that instead of spending $102,000.00 to send out 12 million emails they would now be spending $25,500.00 to send out 3 million emails.
These emails would have brought in about 3,372 new clients instead of only 1,148 equaling a total profit of $2,746,500.00, thus almost doubling their profits.
The mentioned facts about hair loss are publicly available on the internet. If Company X would have purchased or hire a market research company to find out every little details about people with hair loss problems the results could have been even higher.
Little details like knowing which city to target, which ones purchase more products online and which by phone to tailor allows for a more targeted email campaign as well as more targeted email content.
Market research data is easily available for a price and a market research company like www.Datascension.com for example can find out market research data for any market and industry a company desires.
And that is the power of market research and how it can create a more cost-effective marketing strategy for any company.
About the Author
Frederick Saint-Jacques is a seasoned Digital Marketing and SEO expert with over two decades of experience driving results in the competitive marketing landscape. Throughout his 20+ year career, he has built a reputation for creating and executing high-impact marketing campaigns for some of the world’s most recognizable brands, consistently delivering measurable growth and market expansion.
His expertise particularly shines in sportsbook marketing, where he has developed innovative strategies that navigate the unique challenges and opportunities within the gaming and sports betting industry.
When he is not managing an advertising campaign or consulting about online marketing, you might find him camping in some unknown part of the world with his son and his dog.