“I’m a Small E-commerce store ($10,000 -$20,000 monthly total revenue). What’s the quickest way to profit from email marketing?”
I recently received this question from an e-commerce store owner, and it’s incredibly common. I run into many stores who fall within this revenue range.
If this is you, you may already realize that it’s a bit of a tricky place to be because you clearly have a good product that’s selling, but you may not have a big budget for paid ads yet.
You’re riiiighht at the tipping point where it’s incredibly important to push the pedal to the medal as far as growth goes, but resources are still limited and decisions at this stage are crucial.
Good News: Email Marketing Yields an Incredibly High ROI
Email marketing is estimated to yield roughly $42 for every $1 spent, according to Litmust.com.
This makes email a no-brain investment for small to medium sized e-commerce stores (and a must-have strategy for big brands).
The ability to drive sales via email for small brands… with a very small investment is an important step toward growth.
And don’t just focus on the money you can make this month. Think of email as a long-term investment. As you build your % of owned revenue, your business becomes stronger and stronger, freeing up more resources for growth.
“Great. I’m sold on email. Now, how do I start?”
Step 1: Grow your list.
Yes, customers will likely join your list at checkout. But why limit your list only to those who have purchased when email is such an effective and inexpensive way to market your business?
If you don’t already have a prominent opt-in, get that set up ASAP.
Pop-ups perform best, hands down. Don’t get too concerned about annoying your customers. Simply adjust the settings so the pop-up shows up after being on the site for a few seconds, and make sure it won’t display again for at least 7 days after it’s been closed. This will prevent it from popping up on every page (a sure way to chase visitors away).
Offering an incentive will convert more people to your list than offering no incentive.
If you don’t want to offer a discount, don’t. But do create a compelling reason to subscribe.
Even small perks, like one-time free shipping can increase your opt-in rate. Considering the large potential to profit from a subscriber, offering a small incentive is usually the way to go.
Step 2: Put in place your highest-converting flows.
Most stores will see the biggest revenue come from these top 3 flows:
The Welcome Flow (for new subscribers, but non-purchasers)
The Abandoned Cart Flow (for those who have added items to the cart, but have not completed checkout).
The Browse Abandon Flow (for those who have viewed a product, but didn’t add it to cart).
Besides these three flows, I would also suggest considering other touch points along the customer journey that are important for your shop. Most stores will find the following necessities:
Post-Purchase Flow with Cross sell
Replenish Flow (for consumable products)
Lapsed Purchase Flow (for winning customers back who haven’t purchased after a set period of time).
The above flows are really good places to start. The good thing about investing in these flows is that once you get them set up properly, they can run for a very long time without needing much maintenance.
This makes flows the best investment at this stage of the game.
Step 3: Consistent Communication
At this stage, you may still have a small list.
That’s ok. It’s still important to nurture them.
If you don’t, you risk letting them go cold and, at some point, needing to restart the engagement process or lose a lot of the older leads.
My recommendation is to send at least one email per week to your engaged list.
Mix your emails up between nurture and sales to keep engagement and revenue up.
The nature of campaigns means you’ll need to invest more resources into this strategy to keep up. That can feel overwhelming, but I encourage you to commit to it.
As long as you’re actively growing your list, it won’t be long until you’re generating more and more revenue from your campaigns.
If you’re sending traffic to your site, capturing those leads, nurturing and selling those leads… you won’t be in the $10,000 - $20,000 monthly club for long!
When we started working with this brand a year ago, they were bringing in about $10,000 per month with a list just over 2,000.
Email has become a consistent and solid source of high-ROI revenue for them. Spending less on bringing back repeat customers and converting the new visitors they were sending to their site meant more money and time to invest in a growth strategy, and it’s paid off!
Here are their email stats from the last 365 days:
As you can see, their relatively small investment has paid off. But, it took consistency. Something we're happy to help you with!
If you'd like to see what email marketing can do for your brand, let's connect!
Click here to select a time on my calendar where we can talk about your "lowest-hanging fruit" opportunities, no matter your brand size.