May 30, 2023

Oh Look, Email Marketing Works

Here's a scenario I ran through our Marketing Budget Experiment framework. I simply ended email marketing for the next five years ... none of it whatsoever. What happened?

Oh my goodness.

The impact is multiplicative over time.

Top-Line Demand drops from $229 million to $191 million to $173 million to $149 million to $141 million ... the brand loses $272 million over five years. Woo-boy!

The profit hit is nasty ... dropping $11 million in year one, then $12 million, $14 million, $15 million, and $16 million.

Almost all of the buyers impacted are existing buyers ... down 218,000 five years from now (vs. just 8,000 newbies per year). Take away a key purchasing channel and these customers buy less often ... and they buy less often across all channels because of the dramatic loss of file power.

Rebuy rates? They fall from 49.7% to 37.0% five years from now. There are fewer buyers, and it's a weaker file of buyers.

Next time somebody grumbles about what you're doing with email marketing, put this scenario in front of them ... run it for your brand. Show the critic that s/he doesn't have the slightest idea what s/he is talking about.

And if you don't have the scenario readily available, contact me right now ( ... and we'll get busy, ok?

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