October 08, 2017

Hillstrom's Optimizer: Email Marketing Is REALLY Important

Ok, here's our base case for this business.

We can play all sorts of "what-if" games with Hillstrom's Optimizer. For instance, we can look at what happens when we double the number of email contacts per week.

Look at the sales line for email marketing - you can see sales increase from $18.3 million to $22.5 million (as opposed to increasing to $18.9 million). So, duh ... sales increase. We already know that will happen.

But look at the search row ... search sales (and expense) increase as well.

Think about this for a moment. What you do in one channel today causes sales to increase/decrease in another channel in the future. As you activate an email buyer and move the customer up the loyalty chain, the customer becomes likely to participate in other channels, causing sales/expense gains in other channels.

What happens if we discontinue email marketing altogether?

Oh ... my ... goodness.

Email is essentially responsible for the bulk of company profit. Take email marketing away, and you take away all of the profit - the business slowly becomes a break-even business that is 20% smaller.

By the way, this is a very common outcome across my client base.

Isn't that fascinating?

Go hug your email marketing team, ok?

P.S.: Don't like the idea of being more profitable by understanding how your marketing channels fuel future success and would rather dabble in tech? Then click here to read this article.

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