Email Campaign Management

How the VAT rise will effect email marketing

There is a certain lack of consensus on how the VAT rise will effect the country generally and this increases when we come to specifics, such as email marketing. Last year’s emergency rise to 20% gives us no real clue as market conditions were so different and it was known that it was likely to be temporary so retailers were able to absorb it in the short term.

This time it is different. A rise to 20% VAT, an increase of a bit more than 14%, puts us in line with the majority of the EU and a reduction in the foreseeable future is unlikely. You are probably wondering what it means for you and your business.

First the good news. For those engaged in email marketing and on line sales there is a distinct possibility that the value and volume of sales will increase. If you have well-populated email lists then it would seem that you are in a great position to benefit from the changes that the VAT rise will cause.

The single most likely outcome of the change will be a reduction in the overall volume of sales in the retail sector. The most likely result of this will be the closure of a considerable number of high-street retail shops as customers go online for cheaper prices. The best bit of news for those engaged in email marketing is that online sales are forecast to grow, the estimates being from around 12% to 17%.

Your email lists will become a valuable asset. Whilst it is probable that more companies will move into online sales as outlets close, anyone already established in email marketing has a distinct advantage.

Given the range of predictions, and the variations between experts, there is little doubt that the full effects of the VAT rise will no be known for some time. However, it seems clear that with reduced disposable income customers will seek savings. Most forecasts suggest that online sales will increase, and to a substantial degree. Email marketing is likely to be immune from the downturn and might even experience something of a boom.



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