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Email Marketing

Email marketing is the planned use of email to communicate offers, useful information or relationship messages to a defined audience in support of a business goal. Promotional newsletters and customer-lifecycle messages are common examples. The sender must respect applicable rules, service-provider terms and each recipient's communication choices; merely holding an address does not create marketing permission.

From the Money Master HQ dictionary, founded by Shihan Sheriff (FCMA, VP of Finance at Nomod, CFO at Esanjo Ventures). How these definitions are written.

What it means

A business can send a product update, a useful guide or a timely offer by email, and it can also create a welcome series for people who sign up. The aim may be a sale, a visit, continued use or a stronger customer relationship.

Mailchimp describes email marketing as promotion, loyalty building and keeping customers informed, and it also stresses permission, relevance, segmentation and measurement, so a bulk send to everyone in a database is not automatically good email marketing. Start with the audience and what they agreed to receive, because a receipt address, an enquiry form and a newsletter sign-up have different purposes.

Check the consent or other lawful basis that applies to the jurisdiction and message type. Distinguish transactional and promotional messages as well: a confirmation of a paid order can be needed to complete a transaction, but adding an unrelated offer to that message may change its legal and customer-facing character.

A list is not literally owned in the sense that people lose control over their addresses. The business may manage its first-party subscriber relationship, but it must honour opt-outs, deletion rights and platform terms where applicable, and a person who unsubscribes should not be re-added simply because they make another purchase, so suppression data should be maintained consistently across marketing tools.

A sender's legal requirements also vary: the US CAN-SPAM Act has commercial-email rules about truthful headers, identification and opt-out, but it is not a template for every country, so the current law and destination market should be checked. Plan content around the reader: a repair reminder for a purchased appliance can be useful, while a daily stream of unrelated discounts may not be, so explain the benefit of subscribing and the likely frequency at sign-up.

Use segmentation when evidence supports it, since a new buyer may need setup guidance while a repeat buyer may want product news, but avoid sensitive inferences or overly personal content that the customer did not expect. Email systems also need technical care, because authentication, clean addresses and a stable sending reputation affect delivery, and a perfect message has little value if it never reaches the inbox.

Measure more than open rate, since privacy features can affect open tracking and a click is not a purchase, so review delivered messages, qualified clicks, conversions, unsubscribe and complaint rates with revenue and cost. Attribution can overstate impact, because a customer may have planned to buy before the email arrived and an email-attributed revenue figure is a reporting rule, not a causal experiment.

Calculate the full cost too, as platform subscriptions, design, copywriting, data work and compliance review take resources, and the marginal cost of another send may be low while the cost of a good programme is not. Take special care with customer data by keeping access limited, storing contact preferences securely and not disclosing the list to an unrelated party merely because a marketing partner asks for it.

Review cadence and fatigue, since more sends can raise short-term attributed sales but drive complaints and long-term disengagement, so decide which messages are genuinely worth a place in the inbox. For an owner, email is a direct relationship channel, not a free broadcast pipe, and it works best when permission, useful content, delivery quality and honest measurement are treated as one job.

In practice

Real-world examples.

1

Example

A homeware shop sends a monthly product-care guide to people who signed up for that type of update, with a clear opt-out link. The shop records the sign-up source for each address, so it can show that every recipient asked to hear from it.

2

Example

A software business offers an onboarding series to new subscribers and stops the series when the customer completes setup, subject to their messaging choices. Support staff see fewer basic questions because customers receive the right guide at the right time.

3

Example

An online seller has $20,000 of email-attributed revenue from 100,000 messages sent. It reports $0.20 per sent message under that attribution rule, not $0.20 of proven incremental revenue, and notes that some buyers would have purchased anyway.

Formula

Calculation

Attributed revenue per message sent = revenue credited to an email campaign under a stated attribution rule / messages sent. For example, $20,000 / 100,000 messages = $0.20 per message sent. Costs belong beside that figure. If the campaign cost $4,000 for the platform, design and copywriting, the attributed revenue less cost is $20,000 - $4,000 = $16,000, a return of $16,000 / $4,000 = 4 times the spend. Both numbers depend on the attribution rule, so report delivery, costs and incremental evidence separately.

Case study

Seen in the real world.

This entirely fictional case follows Lake Books, an invented retailer. It collected email addresses at checkout and assumed every buyer wanted weekly promotions. Complaints rose and several customers asked how to leave the list.

The shop separated order communications from marketing sign-ups, clarified preferences and sent fewer, more relevant messages. It measured useful engagement and complaints alongside sales. The business and outcome are invented.

Watch out

Common mistakes.

  • Treating every receipt or customer-service address as permission for a promotional campaign.
  • Calling platform-attributed revenue proven incremental profit.
  • Ignoring unsubscribes, delivery quality or the full cost of producing emails.

Questions

People also ask.

Is email marketing always a sales offer?

No. It can share useful information and support retention, provided the communication fits the audience and permissions.

Is an email list free to use?

No. Tools, content, data care and compliance cost money, and people retain control over their choices.

What should be measured?

Delivery, useful engagement, business outcomes, complaints and opt-outs, using clear attribution limits.

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Last updated · October 8, 2026
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The information provided in this finance dictionary is for educational and informational purposes only. It should not be construed as financial, investment, legal, or tax advice. Always consult with a qualified professional before making any financial decisions. Money Master HQ makes no representations or warranties about the accuracy, completeness, or suitability of this information. Use of this content is at your own risk.