4 Emails to Boost Your Business Revenue

At Compass we spend most of our time analyzing data. And time and time again our data shows that Email Marketing is the most effective marketing channel in ecommerce. 

According to our studies, companies we call “top consistent emailers” (those who regularly use email to sell to their customers) get 14% of their traffic and 21% of their revenue from email. Since Email Marketing is one of the most inexpensive channels in ecommerce, their Return On Investment is massive. 

So how do top performers do it? We wrote about Email Marketing before, so this time we asked the pros from Soundest | Email marketing for ecommerce to give us some data-driven advice. Their experience will help you get inspired and thrive using this great sales channel.

The post below was put together by Karolina Petraškienė, a content marketing manager and email enthusiast at Soundest. She will show you 4 Emails to Boost Your Business Revenue. Enjoy!

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Though the email marketing field is not as complicated as astronomy, you may need some initial understanding before implementing it into your business. This is particularly so if you consider that there are up to twenty different kinds of emails, and that is not the limit!

Customer Acquisition Benchmark

Compare your Email, Advertising, Organic and Social performances with stores that are similar to yours.

This article discusses four types of ecommerce emails that have either the highest conversion rate or create the biggest value for your brand communication with your customer and help to build customer engagement. In the longer or shorter term they will boost your revenue significantly.

Welcome Email

This email should be sent to every new subscriber just after he/she subscribes to your newsletter. To make sure it happens immediately, some email service providers offer an automated welcome email (or series of them) and send it by itself once the new subscriber appears.

According to surveys, 74.4 percent of new subscribers expect to receive this kind of email. Their expectations are totally right, because if they express interest in you, the least you can do is welcome them.

From business perspective, these are the main reasons to start sending automated welcome email:

  1. By sending a welcome message, you consolidate your online store’s credibility.
  2. This email is the best way to personally introduce the new subscriber to your brand and product categories as well as the benefits of belonging to your brand community and buying from you. In some cases, you can even surprise a subscriber with an unexpected incentive to buy; i.e., a discount, etc.
  3. By delivering a highly relevant message at the right time, you can expect to move your new subscriber from interest to acquisition. Simply put, a welcome email works like an icebreaker for the first purchase of a new customer.

The effectiveness of this email is perfectly illustrated numerically. See the chart below:

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Source: Ecommerce Email Marketing Research by Soundest, 2016

Some brands send a series of welcome emails. The same analysis reveals that sending a series of three emails, instead of one, results in 23 percent more orders.

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To yield positive results, a welcome email should be attractive. Although the welcome email design does not have to be the same as the bulk email campaigns, it should be in line with the rest of your emails, displaying strong branding, an outstanding call-to-action button, high-quality images, etc. More tips and ideas for you to implement can be found in the guide to ecommerce email marketing for small businesses.

Promotional newsletters

An ecommerce email marketing strategy cannot be effective without a promotional newsletter. With these emails you repeatedly approach your customers, introduce your products and sell them. Promotional newsletters generate the greatest revenue among all marketing channels. The only challenge is the following – what should I say in the newsletter so it is effective?

Subscribers will open and read your newsletters if you they have value. This value should be varied from time to time to retain subscriber interest. Some ideas:

  • Send sales and discount offers. This retailer’s calendar will help you plan your seasonal campaigns.
  • Insert a column with articles from your blog or other blogs that your subscribers might find interesting.
  • Send updates of your store and new arrivals.
  • Dedicate some newsletters to attracting new followers on social media.

Check out these newsletter examples that might inspire your campaigns.

How I can achieve better results?

After recent analyses by Soundest of customer data, I would also like to highlight the importance of interactive elements in emails, such as videos or lottery elements. They can significantly increase customer engagement. My most recent findings on interactive campaign results are as follows:

  1.   The average click rate of promotional emails with videos is 8.98%. It is twice as much as the average promotional email campaign gets (3.82%). The average conversion rate of emails with videos is 0.39%. Meanwhile, a promotional email without any interactive element is only 0.17%.
  2.   A scratch card doubles the click rate and generates an average click rate of 6.59% and conversion rate of 0.38%.

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More findings about interactive emails can be read here:

Cart Recovery Series

Ecommerce email marketing is all about finding the best email campaign to maximize sales. For this purpose, you may also like to try abandoned cart recovery emails (one email or a series of three emails).

The goal of the cart recovery series is to encourage the customer to complete the order. Once he/she leaves a cart containing products and does not complete a purchase, the email service provider sends a series of email reminders. The last one usually offers a discount.

These emails are effective because of their high engagement with the customer. He/she has already picked something nice in your store and might be still thinking about it. We do not know the reason why he/she has left the store, so try to send an abandoned cart email and see what happens. For a successful email you may need:

  • Challenging/seductive copy
  • Images of the abandoned products in the cart
  • A big and clear call-to-action button
  • To send the email the same day and then of the following day.

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Due to the relevance for the customer, this kind of automated message is highly effective. The average conversion rate of abandoned cart emails is more than twenty times higher than a promotional email – at 4.64%. The average revenue per email is $5.46!

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Source: Ecommerce Email Marketing Research by Soundest, 2016

Usually, to achieve even better results, merchants use a cart recovery series of emails as it sometimes takes a few tries for the customer to notice, and this brings 131% more orders.

Reactivation Emails to Win-back Customers

To capture a new customer costs five times as much as keeping an existing one. All merchants have customers who have purchased once or twice but failed to become loyal customers. Reactivation emails can help you win them back.

This kind of automated email is sent to customers that have not purchased from you for a certain period of time. If you sell clothing, accessories, etc., reactivation emails should be sent 30–90 days after the customer becomes inactive. However, a different period of time may be necessary for retailers selling other products (e.g., household appliances). Think about your customer cycle and adapt accordingly.

In addition, the reactivation workflow is more powerful when you send a series of three emails instead of one. These emails typically use incentives, such as free shipping, personal discounts, etc. They highlight what is new in the store. Most often, the message is something like: “We miss you, please come back. + [special offer].”

In the example below, you can see how Glotrition uses an unexpected image, great copy, plus an incentive to buy.

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The Bottom Line

So there you have it – a short overview of eCommerce email marketing that every small business owner can implement without long hours of work. If you currently send other kinds of emails, you may complement them with the ones discussed above. If you are a beginner, then start from these to experience the true benefits of smart email marketing.


 

At Compass we measure your average Customer Acquisition Cost (CAC) for each acquisition channel (including Email Marketing) to verify how profitable they are. Then give you personalized recommendations. All you have to do is sign up and connect your Google Analytics account.