Sometimes, our view of opens/clicks/conversions blinds us to the actual value the program generates.
For instance, consider this business ... one with an e-mail marketing list of 500,000 customers, sending one campaign per week to all customers who subscribe.
- Open Rate = 20%.
- Click-Through Rate (of those who open) = 30%.
- Conversion Rate (of those who click-through) = 5%.
- Average Order Value = $100.
- Total Program Sales = 10% of Company Sales.
Let's look at the results, on an annual basis:
- Annual Sales = 500,000 * 0.20 * 0.30 * 0.05 * 100 = $7,800,000.
- Annual Variable Profit = $7,800,000 * 0.40 (profit factor) - $500,000 (program cost) = $2,620,000.
- Total Company Sales = $78,000,000.
- Total Company Variable Profit (before fixed costs) = $11,500,000.
Then you look at the resources committed to e-mail marketing in your marketing department, and you probably observe that fewer than 1 in 5 of marketing person-hours are spent on e-mail marketing, right?!
In other words, this is probably a marketing channel that warrants increased investment.
If, however, the rates of conversion and sales as directed by e-mail marketing declines, it might not exactly be the decadence of the medium used, but the antiquity of the (written, otherwise tone in) approach to marketing.ReplyDelete
experiential marketing agency
I think email marketing is still an effective marketing strategy in reaching your customers as well as making new customers. I have to agree with you that e-mail marketing is one of the few disciplines where customers clearly ask you to push messages to them.ReplyDelete
People tend to forget to use email marketing since they think that their message might be sent in the spam folder.ReplyDelete