In spite of the over-saturation, email marketing is great tool for lead nurturing and customer communications.
Yes, a lot never gets opened or acted upon - but so what, it's very inexpensive.
There are dozens of do-it-yourself systems out there that are pretty easy to learn and use. Constant Contact, iContact, Aweber and Vertical Response are just a few of them.
I've been using Constant Contact for several years - and I recommend them to all of my clients. It's just $15 month to start. Price is based on the size of your list. (For a list size of 1200, it might be $30 a month.) But you can send unlimited emails to your list. They also have a Survey feature which I like a lot.
Check it out - here's their link:
If you have any questions, please don't hesitate to contact me. I often set this up for clients, then work with them until they get the hang of it.