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How to Use Email Marketing to Grow Your Small Business

Email marketing has the highest ROI of any marketing channel. Here's how small businesses can use email marketing effectively to generate repeat business and referrals.

7 min read7 April 2026
email marketingemail marketing small businessnewsletter marketingmailchimp

How to Use Email Marketing to Grow Your Small Business

Email marketing consistently delivers the highest ROI of any digital marketing channel — an average of £36 for every £1 spent according to Litmus research. Yet many small businesses don't use it effectively.

Here's how to change that.

Why Email Marketing Works

  • Owned channel — Unlike social media, you own your email list
  • High intent — Subscribers have chosen to hear from you
  • Direct communication — Lands directly in someone's inbox
  • Cost-effective — Low cost per email sent
  • Measurable — Open rates, click rates, and conversions all trackable

Step 1: Build Your Email List

You can only market to people who've opted in. Ethical, effective list building methods:

  • Sign-up form on your website — Offer something valuable in exchange (discount, guide, checklist)
  • At point of sale/service — Ask customers if they'd like to receive updates
  • After delivering work — Add clients to your list when you onboard them
  • Social media promotions — Drive followers to a sign-up landing page

Never buy email lists — it's spam, it's ineffective, and it can get your domain blacklisted.

Step 2: Choose an Email Platform

For small businesses, the main options are:

  • Mailchimp — Free up to 500 contacts, easy to use
  • Klaviyo — More powerful, better for e-commerce
  • ActiveCampaign — Great automation capabilities
  • ConvertKit — Popular with content creators

Step 3: Create a Welcome Sequence

Your welcome email series is the most important thing you'll send. When someone joins your list, send:

  1. Immediate welcome — Thank them, deliver what you promised, tell them what to expect
  2. Day 3 — Share something valuable (a guide, tip, case study)
  3. Day 7 — Introduce your main services with social proof
  4. Day 14 — An offer or invitation to get in touch

Step 4: Regular Newsletters

For most small businesses, a monthly newsletter is sufficient. Include:

  • One genuinely useful tip or piece of advice
  • A recent project or case study
  • Business news or updates
  • A clear call to action

Step 5: Promotional Emails

These are sent for specific campaigns:

  • Seasonal offers
  • New service announcements
  • Event invitations
  • Referral incentives

Limit promotional emails — too many and subscribers disengage.

Measuring Email Marketing Success

  • Open rate: Industry average is around 20–25%. If below 15%, your subject lines need work
  • Click rate: Average is 2–3%. If below 1%, your content or CTAs need improvement
  • Unsubscribe rate: Should be below 0.5%. If higher, you're sending too often or the content isn't relevant

Combining Email With Your Website

Email marketing works best when it drives traffic to well-designed, conversion-optimised landing pages on your website. Talk to us about building a website that converts your email subscribers into customers.

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