email marketing workshop closing: now what?
TRANSCRIPT
So Far….So Far….
• Email Bootcamp• Database
Management• Advanced Targeting• Creative Content• Deliverability
• Now What?
Selling It to The BossSelling It to The Boss
• Don’t– Talk Opens, Clicks, or
Deliverability– Talk Design, Content,
Timing, or Frequency• Do
– Talk Revenue over Costs
– Talk Percentage of Company Revenue
Doing the MathDoing the Math• You Know
– List Size– Open Rates– Click Rates– Conversion Rates– Average Order Value
• You Show– Annual Revenue = List
Size x Open Rate x Click Rate (of Opened) x Conversion Rate (of Clicked) x AOV
Determining ImplementationDetermining Implementation• Available ResourcesAvailable Resources
Program Name Current Rev
Proj. % Growth
Proj. Rev ($)
Proj. LOE (labor hours)
Internal Costs
(hourly)
Implementation Costs
Proj Gross Proj Annual Gross
Basic Broadcast $0.00 0.00% $10,000 5 $120 $600 $9,400 $9,400
Simple Segmentation
$0.00 0.00% $25,000 10 $120 $1,200 $23,800 $23,800
Behavior Based $0.00 0.00% $32,000 20 $120 $2,400 $29,600 $29,600
Program Name Current Rev
Proj. % Growth
Proj. Rev ($)
Proj. LOE (labor hours)
Internal Costs
(hourly)
Implementation Costs
Proj Gross Proj Annual Gross
Example Program $10,000 16.00% $11,600 5 $120 $600 $11,000 $138,600
Example Program $25,000 3.00% $25,750 10 $120 $1,200 $24,550 $307,800
Example Program $32,000 1.00% $32,320 20 $120 $2,400 $29,920 $385,440
• Level Of Effort / Return On Level Of Effort / Return On InvestmentInvestment
Determining Labor-HoursDetermining Labor-Hours• Content
– Research– Copy– Revisions
• Design– Artwork/Graphics– Revisions
• Coding– HTML– Text
• Data/Tech Support– Simple Data Pull– Automated Data Transfer
• Operations– Assembly– QA– Deployment
Automated Program ProjectionsAutomated Program Projections
1stmo
2ndmo
3rdmo
4thmo
5thmo
6thmo
0
10
20
30
40
50
60
Costs in 1k
ROI in 100k
• Costs are one-time development with minimal maintenance of program
• Maintenance includes content development as needed• ROI revenues amortize over time
ConclusionConclusion
• Don’t use geek-speak with the C-Suite– Translate your metrics values to dollar values
• Know costs of campaign implementation – It’s more than just deployment
• Balance ROI with LOE in determining implementation priority
• Compare short-term development costs to long-term revenue gains
John CaldwellJohn CaldwellFounder, Red Pill EmailAn email marketing practitioner since 1996, Red Pill Email founder, John Caldwell, has worked on the agency side, the client side, and as a consultant, using deployment tools from ESPs to in-house to homegrown email systems.
[email protected] | @jacaldwell