Sophi Fox
Ekko DM
Why is an optimized email marketing strategy so critical for E-commerce Brands?
AD COST IS SOARING
The average E-commerce brand can no longer effectively run cold Facebook Ads and continue to scale. Ad costs have been dramatically rising every year.
As Ad costs get higher, your margins get slimmer and slimmer.
Email marketing is the golden solution to that problem. The cash-flow generated by an effective email marketing operation makes it so brand owners can afford to acquire new customers through Ads.
SCALING
Apart from word of mouth, the only way to for you to grow you customer customer like a wild fire is by being able to pay for new customers.
The cash generated by your Email marketing is "pure profit" because it doesn't require any ad spend.
Once you have optimized your email marketing you will see an influx of profit which you can then reinvest into ads. And because your margins are wider you will be able to afford to pay for even more customers.
A FOURTH OF YOUR TOTAL REVENUE
An optimized email marketing system should account for at least 25% of your total revenue.
Imagine 1/4 of your revenue requiring absolutely 0 ad spend...
It's a game-changer.
CUSTOMER LTV INCREASE
A higher customer LTV (Life Time Value) not only means more profit in hand, but you have more room to acquire new customers.
If your customers LTV is $50 you must constantly be acquiring new customers for less than $20-30... The LTV of one customer can only buy you one new customer. But if your customers' LTV triples to $150 you can now afford to buy 3 new customers.
That's how you scale.
INCREASE AOV
A high AOV (Average Order Value) is one of the most predictive measures for the success of E-commerce companies.
The #1 way to boost your AOV is through Email.
Through post-purchase up-sells and transnational cross-sells, every customer that buys is given multiple opportunities to buy MORE. Your brand becomes a drug that they just can't get enough of.