New Strategies for Growing Your Email List

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New Strategies for Growing Your Email List

  1. 1. New Strategies for Growing Your E-mail ListArthur Middleton HughesSenior StrategistSilverpop
  2. 2. Begin by computing Lifetime Value Subscriber Lifetime Value Rates This Year Next Year Third YearThe 3 year projection 1 Subscribers 219,467 208,199 197,510of what these 219,467 2 Unsubscribers 2.38% 5,232 4,963 4,709 3 Undelivers 2.75% 6,036 5,726 5,432people will do during 4 End of Year Subs 208,199 197,510 187,369the next three years. 5 E-mails Delivered 60 13,168,020 12,491,940 11,850,572 6 Opens 9.23% 1,215,886 1,153,459 1,094,238This shows that for 7 Unique Clicks 26.68% 324,422 307,765 291,964 8 Conversion Rate (% Opens) 3.54% 11,477 10,888 10,329every sale in the e-mail 9 Off-E-mail Multiplier 2.00 22,954 21,776 20,658there are 2 more sales 10 Total sales due to e-mails 34,431 32,664 30,987off-line due to the e- 11 Total Revenue from E-mails $135.68 $4,671,741 $4,431,881 $4,204,337mail. Costs 40% $1,868,696 $1,772,753 $1,681,735 12 Subs Acquisition Cost $0.12 $26,336 0 0 13 E-mail Sending $6.50 $85,592 $81,198 $77,029Each of these 219,467 14 E-mail Creation $11.39 $150,000 $142,299 $134,993Subscribers is worth 15 Total Costs $2,130,624 $1,996,249 $1,893,756$30.37 in three year 16 Profit $2,541,116 $2,435,633 $2,310,581 17 Discount Rate 1 1.1 1.21profit to this company 18 Net Present Value $2,541,116 $2,214,211 $1,909,571– even though 90% do 19 Cumulative NPV $2,541,116 $4,755,328 $6,664,899not open and 20 E-mail Subscriber Value $11.58 $21.67 $30.37thousands unsubscribe 2
  3. 3. Set a goal: add 100,000 Subscribers• If you can sign up 219,000, you can certainly add 100,000• All you need is the willpower and a budget.• Anyone can do this. Here’s how… 3
  4. 4. There are many methods• Appending e-mails • ECOA• Fix the website • Reward phone reps• Provide rewards to • Birthday Rewards subscribers • Make it easy to change• Popover on the website your e-mail address• Promote in transactions • Have a contest Create a goal and a plan and budget to achieve the goal 4
  5. 5. Fix your website Excellent website… but the website signup is hard to find. There is no reason given for why you should sign up. Result: not enough sign up. Study your website. Make signing up very rewarding for the subscribers. Here’s a good one: 5
  6. 6. Popovers are powerful They can be triggered when you open a web page. They can be triggered when you leave a web page. They can be triggered when you click a link in a web page. They can be triggered by a timer that is activated when you open or leave a web page. 6
  7. 7. Reward your subscribersRules: The reward is an inducement to subscribe. Not available to others Free shipping for subscribers Lower prices on some products for subscribers A contest where subscribers are eligible for prizes A discount A birthday present News of new products before anyone else gets them A white paper on an important subject Games, screen savers, etc. 7
  8. 8. Why not try a contest?Rules: Tell them about the contest as an inducement to subscribePrize given away every month.To win, you just have to open your e-mail in that month and click onanything. 8
  9. 9. Reward Phone Reps• Anyone who calls up should be asked, “Do we have your e-mail?”• Phone reps get a salary. If you also give them $3.00 per e-mail signed up, you will get many more.• The reward is given only when you send a welcome e-mail and the subscriber clicks, “Yes, I want to receive your e-mails”• If each subscriber is worth $26.01, why not give $3.00? 9
  10. 10. Make it easy to change your e-mail address • Many undeliverables occur because subscribers have changed their e-mail address. • Put a box somewhere on every page that says: “Are you changing your e-mail address? If so enter your new address here, and we will make sure that we do not lose you” • As soon as anyone has entered a newThat was easy… address, be sure to thank them and send them a confirming e-mail. • This simple step may prevent you from losing hundreds – or thousands – of subscribers every year. 10
  11. 11. Birthday E-mails WorkRules: Tell them about the birthday gift as an inducement toregister. 11
  12. 12. Use ECOAASPCA Sheds Dog-earedDonor Email Addresses with ECOAASPCA uses Email marketing to stay in touch with its constituents. Due to thehigh churn rate of email addresses, however, email bounces were an ongoingproblem. By sending to incorrect addresses the high bounce rates could triggerunwanted attention from ISPs in the form of blocking and blacklisting.ASPCA contracted FreshAddress to perform an ECOA project to findupdates, confirm deliverability of the updated email addresses and ensure itsconstituents’ permission. Within a week, the problem was solved. 12
  13. 13. Use transactions to gain subscribers• Buyers should be thanked for any purchase.• All thank you messages should have a link that says “Keep me up to date on the latest fashions.”• Result: your subscriber list will grow each day 13
  14. 14. Append e-mails to postal addresses• One company sent eight million customer names and addresses to FreshAddress. He received back 1,016,454 new e-mail subscribers. The cost was about $0.13 per subscriber added. 14
  15. 15. Create an annual goal and plan Profit from Added Budget for new Tactics to Boost Subscribers Subscribers Cost Each Program subscribers LTV 1 Improve Website 4,000 $0.50 $2,000 $121,480 $30.37 2 Append E-mails 20,000 $0.20 $4,000 $607,400 $30.37 3 Popover 6,000 $0.67 $4,000 $182,220 $30.37 4 Transactions 6,000 $0.67 $4,000 $182,220 $30.37 5 Contest 20,000 $1.50 $30,000 $607,400 $30.37 6 Birthdays 10,000 $2.00 $20,000 $303,700 $30.37 7 Reward Subscribers 19,000 $0.79 $15,000 $577,030 $30.37 8 Reward Phone Reps 5,000 $3.00 $15,000 $151,850 $30.37 9 ECOA 8,000 $0.38 $3,000 $242,960 $30.3710 Easy to change e-mail address 2,000 $0.50 $1,000 $60,740 $30.37 Total 100,000 $0.98 $98,000 $3,037,000 Set up a system so you can learn how many you have every month. Keep your eye on the numbers till you reach your goal. 15
  16. 16. Available on Amazon.comAhughes@silverpop.comAlso see:www.dbmarketing.com

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