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Email marketing

Definition

Email marketing

Email marketing is the practice of sending commercial messages to a targeted audience via email to nurture leads, drive sales, and retain customers over time. It remains the highest-ROI digital channel today, returning about $36 for every $1 spent, per Litmus.

Key takeaways

  • Email drives about $36 back for every $1 spent (Litmus).
  • Global email users are on track to hit 4.9 billion by 2028.
  • Campaigns split into broadcast, automated, and transactional flows.
  • Segmentation and clean lists lift open rates above the 21.5% industry average.
  • Outsourced teams manage list hygiene, copy, creative, and analytics at scale.

The channel is older than the web. Gary Thuerk sent the first marketing email in 1978 and pulled roughly $13 million in sales, and email is still growing — 4.6 billion users in 2025, projected to hit 4.9 billion by 2028.

Unlike paid social or search, the list is owned — a direct channel that survives algorithm shifts, ad-price inflation, and platform bans.

That durability is why marketing leaders pour budget into segmentation, deliverability, and creative testing rather than chasing the next platform.

Every serious email operation lives inside a stack: an ESP (Mailchimp, Klaviyo, Braze), a CDP or data warehouse, and analytics tooling. The stack decides how quickly a good idea moves from brief to sent to measured.

How it works

Email marketing runs on three components — a subscriber list, a sending platform, and a content stream tied to buyer intent. Marketers segment audiences, trigger messages on behaviour signals, then measure opens and clicks against industry benchmarks.

Modern platforms plug into marketing automation workflows so a new sign-up enters a welcome sequence in seconds. Sync to your customer relationship management system tightens lead generation and customer retention across the funnel.

Campaign typeTriggerExample
BroadcastManual send to a listWeekly newsletter to full subscriber base
AutomatedBehaviour or date-basedCart abandonment, welcome series, birthday
TransactionalUser actionOrder receipt, password reset, shipping alert

Deliverability is the invisible first step. If your domain lacks proper SPF, DKIM, and DMARC authentication, half your careful campaign work lands in Gmail’s promotions tab or the spam folder. Fixing sender reputation is often the single biggest lift.

Segmentation is the second lever. Splitting a 100,000-name list into ten cohorts by lifecycle stage, product interest, or region typically doubles both open and click rates versus a broadcast blast, without changing a single line of copy.

A/B testing is the flywheel. Subject lines, preview text, CTAs, send times, and segments get isolated tests, and winners feed the next campaign’s template. Small teams skip this; it’s the biggest gap between average and top-quartile programs.

Campaign Monitor’s benchmarks put the industry-average open rate at 21.5% and click-through rate at 2.3% for 2025. Segmented campaigns routinely double both figures.

The gap between average and top-quartile is about list hygiene, subject-line testing, and send-time discipline, three things a dedicated offshore team can systematise for you.

Examples

Named brands run the full playbook. Amazon leans on transactional receipts and personalised recommendations, Airbnb ships automated re-engagement flows for lapsed travellers, and The Hustle built newsletter-first broadcasts into a $27M acquisition by HubSpot in 2021.

HubSpot turned educational newsletters into a content marketing growth engine, using free templates and industry reports as opt-ins.

The “Marketing Blog” list funnels hundreds of thousands of leads into HubSpot’s digital marketing products each quarter, backed by content teams in Manila and Bogota.

Warby Parker runs an automated abandoned-cart sequence that pulls shoppers back with try-on reminders — a workflow the brand credits with recovering millions in revenue since 2019.

The optical retailer pairs behavioural triggers with home try-on offers, boosting conversion rate by double digits and moving repeat purchases without paid re-acquisition costs. Its email team runs cross-functional with product and CX ops.

Morning Brew built a daily-newsletter business into a $75 million acquisition by Business Insider in 2020, blending native ads with premium subscriptions.

Its editorial and ops teams sit across New York and remote hubs, and the sponsorship-heavy monetisation model still relies on subject-line testing that boosts open rates above the 21.5% industry baseline.

Many BPO firms in the Philippines run white-label email programs for US and UK SaaS clients. See Outsource Accelerator’s directory for 4,000+ vetted suppliers, or the Top 40 BPO companies guide for shortlists focused on marketing operations.

Providers in Manila, Cebu, and Bogota dedicate teams to ESP administration, template building, deliverability monitoring, and QA.

That unglamorous work keeps campaigns compliant with CAN-SPAM and GDPR while the on-shore marketing lead stays focused on strategy and creative.

For a broader outsourcing primer, OA founder Derek Gallimore covers the buyer-side playbook in the Ultimate Guide to Outsourcing, a useful read before you brief an offshore email team on lifecycle sequences and reporting cadences.

Related terms

FAQ

Is email marketing still worth it in 2026?

Yes, Litmus’s most recent industry guide pegs ROI at about $36 per $1 spent, well above paid social or search benchmarks. The channel keeps growing because you own the list, not a platform, and inbox delivery costs stay flat while ad prices climb.

How much does an outsourced email team cost?

Manila-based email marketers typically bill $8-$15 an hour fully loaded, versus $45-$75 in the US or UK. A three-person pod covering copywriter, designer, and ops runs roughly $6,000-$9,000 a month. Retainers usually beat hourly for lifecycle-heavy programs.

What KPIs should I track?

Open rate, click-through rate, conversion rate, list growth, and revenue per subscriber cover the basics.

Segmented cohorts should beat the 21.5% open-rate industry average by 5-10 points. Deliverability metrics like bounce rate and spam complaints protect sender reputation.

Can I outsource strategy or just execution?

Both work. Mature BPO providers assemble senior CRM leads who own the roadmap, calendar, and reporting, not just the button-pushing. Junior offshore teams handle production against a brief you set in-house.

How often should we send?

Send frequency depends on list expectations: B2B newsletters usually land weekly or bi-weekly, while consumer brands can push two to five commercial sends a week if unsubscribe rates hold below 0.3%. Test cadence in small cohorts before rolling out.

Explore more OA terms and guidance at Outsource Accelerator

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About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

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Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

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About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.

“Excellent service for outsourcing advice and expertise for my business.”

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