This Marketing Strategy Yields 4,300% ROI, But Are You Using It Correctly?

Turning to this marketing strategy to drive sales makes sense, but are you doing it right?


Photo: Don Breckenridge, Co-founder at Hatchbuck; Source: Courtesy Photo
Photo: Don Breckenridge, Co-founder at Hatchbuck; Source: Courtesy Photo

Email marketing is a tried and true tool in the modern marketer’s tool belt, because it works. Studies indicate that “60% of marketers believe email marketing produces positive ROI,” according to Marketing Sherpa, and they are right.

 

Email marketing has a 4,300% return on investment.

 

In fact, the Direct Marketing Association (DMA) reports that email marketing has a 4,300% return on investment. Meanwhile, we see companies experiencing a 25% increase in click through rates with the right sales and marketing software and campaigns.

As an entrepreneur, you have a large task ahead of you –to get the word out about your business so you can grow. Turning to email to drive sales makes sense, but are you doing it right?

 

The Right Email Marketing Technology

 

Traditional: Disconnected and clunky

Traditional email marketing technology can be likened to experiences hanging out with friends 15 years ago. We had to get information from many places. We’d consult the newspaper to see what times movies were playing. We had to call our friends in advance and trust that they would meet us somewhere.

Traditional email marketing is no different. You pull contacts from a database or a list. Then you upload your Excel spreadsheet of contacts into your email marketing software. You can create lists in that system and then send your email blast – while you track clicks and opens. Then you can export that data into a different system (e.g., CRM software). There’s no connection between your contacts’ behavior in your email system and their behavior elsewhere – like on your company website. It is like when phones were stuck to the wall – there was no way of knowing what happens in between the time you call your friends and when they arrive.

 

Modern: Connected and Agile

Today we have a better tool–the smartphone. As a result, we are much more agile. We can get information all in one place and receive real-time updates from our friends. So if Jeff is stuck in traffic, he can send a text and let you know. In the meantime, you can look up the nearest shop to run an errand while you wait. With integrated tools, we can quickly adjust our strategy, to ensure fun is not sacrificed.

Email nurturing technology is just like that scenario. Your contact management and email systems can be connected. So you can see after Bob opens your email, and clicks a link to check out your website, he fills out a form for more information. You get the full circle, and can see the effectiveness of email to drive conversions and move prospects down the sales funnel. Having an interconnected system allows companies to automate processes that were previously a drain on resources and focus on value added activities that boost sales and increase prospect engagement.

 

The Right Email Marketing Strategy

 

Traditional: Batch and Blast

In traditional email marketing, you upload your list and blast the same generic email message to everyone. This is where those terrible one-size-fits-all email newsletters come into play. Trying to be everything for everyone means that you’re nothing to no one. These emails end up in the trash folder, unread and unloved. Old-school spray and pray emails are actually quite spammy.

 

Modern: Email Nurturing

Modern email marketing is all about delivering the right content to the right person at the right time. Not everyone wants vanilla – which is exactly what those generic batch and blast emails are…too bland for anyone’s enjoyment. We want our favorite flavor. When you can segment your contacts, you can send much more targeted emails, personalized to their preferences.

There’s no doubt that email marketing works. But the traditional batch and blast method doesn’t convert any more. Modern email marketing technology and strategy delivers email content tailored to prospects’ most pressing needs and desires. With email nurturing, you can take full advantage of one of the most powerful methods of communication, increasing conversions and boosting sales for your startup.

 

This article has been edited and condensed.

Don Breckenridge, Jr. is a lifelong entrepreneur and co-founder of Hatchbuck, an easy-to-use sales and marketing software designed to help small and midsized businesses grow. A passionate innovator, Breckenridge has a track record of launching and building successful software companies. Outside of driving the vision and development behind Hatchbuck, Breckenridge spends time with his wife and kids, is a member of the Entrepreneurs Organization, and impacts the community through involvement in the Muscular Dystrophy Association. Connect with @gethatchbuck on Twitter.

 

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