Think about email marketers. Their primary method of measurement is centered on open rates, click through rates, and conversion rates. None of these metrics map to what CEOs/CFOs care about ... namely net sales and profit.
Look at this example:
This is an e-commerce brand that generates 19% of annual net sales via email marketing, and 17% of annual profit comes from email marketing.
This isn't an uncommon situation. I frequently see direct channel profit and loss statements where 25% of direct channel profit is sourced from email marketing.
The next time you are being beaten up for managing a "dead" channel, pull out a profit and loss statement (just like the one above), and ask the individual offering the hypothesis a couple of questions.
- If email marketing is dead, then why is my company generating so much profit from email marketing?
- If email marketing is dead, then we can discontinue it right now, without seeing a negative impact on sales, correct?
- What channel will replace the $13,000,000 demand and $3,594,500 outlined above within twelve months, at minimal or no cost?