For every dollar spent on Email marketing, your should get four dollars back.
Yet many businesses struggling with proving ROI on their email marketing. So if you are struggling with email marketing ROI on spend, then you are not alone.
Actually, this post is a result of a recent piece written by a friend and also the result of a conversation with one of my a friend.
The discussion went this way.
Friend – Hi, do you do email marketing service?
Me- Yes. So how can I help you?
Friend- We usually send emails to our client but we are not seeing ROI on the emails to warranty investing in this medium, so we looking for someone to help us with our email marketing.
Me- Me thinking “here we go”.
In the piece, referred to, Tony talked about why purchased list offers low ROI than a built list. But sometimes even with a built list, sometimes, you may notice that you are not getting many sales or your list is not taking the desired action you desired.
When this happens, you may want to investigate the following:
- Your Product
- Your Messaging
- Your list
Let’s take a look at each of the points above and see if we can help our client
- Your Product- Depending on what you are selling, you may just not witness high sales via your email marketing activities. This is because your product can have an impact on how sales are achieved. For example, if you are in property industry where each sale is around 2M and above, purchasing cycle will be longer. This means buyers will need to be nurtured for a longer period than say, for instance, you are in the fashion industry where a single buyer can have 10 different shades of the same product
- Messaging- What you are selling is important but also how you sell it. With the average individual exposed to over 40 adverts in a day, the average Web user has developed what we call resistance to advert. This means they are able to ignore adverts which do not resonate with them. This is why your message is as important as how you say it. Take a look at your headline. Check out your CTA and check out your website itself. All these have roles they play in the purchasing cycle.
3: Your List- A third factor that can play a role in helping you achieve a high ROI via email marketing is the composition and behavioral pattern of your list.
Let’s use the analog of the real estate industry again. If a subscriber recently purchased a high-end product, there is every possibility that they may not be in the buying mood again for another 6-1yr.
Therefore you may want to segment your list based on your list’s behavior like those who recently purchased vice a vis those who have never purchased.
If someone recently purchased a product from you, their need will be different from those who have never purchased but might be considering.This is why the quote “segment or die” is important.
Again, you may want to look at the satisfaction of your current customer.A satisfied customer will drive a repeat purchase while an unsatisfied one will drive 10 people away from you.
I remembered a purchase I made last year on one of the online stores in Nigeria website. When the product arrived, it was a far cry from what I felt I was ordering. Am not sure the product lasted 6 months. That was the last time I made a purchase online in Nigeria.
- Data: Finally, you want to pay attention to your data.
You will be doing yourself a major disservice if you are not collecting data at all but what is worse is if you have access to data and you are doing nothing with it.
For example, you want to look at your metrics and use them to improve your system. You could ask yourself some questions like:
How effective is our delivery: This means how many of the emails we are sending are actually landing in the inbox of our client.
What is our open rate: How many of your subscribers are actually opening your emails. A poor open rate may mean you need to revamp your headline or check your sending time
What is our click through rate?: How many people out of those who opened click through to your sales page. Low CTR is an indication of poor copyrighting skill or wrong CTA offer.
A lot of things could be wrong even when you build your list and you are not dealing with a purchased list. If you struggling to justify the resources put into email marketing, you may want to sit down and see if any of the questions raised in this article can help you improve your campaign.
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