How to get a 3-6x ROI on customers

Hey guys,

I thought I should share some information within this subreddit about drop shipping/E-commerce and the No. 1 marketing tactic that 95% of Ecom entrepreneurs aren't using. THIS IS NOT A SALES PITCH OR A GET RICH QUICK SCHEME - This is just pure information. I know there will be one person who says “you don’t know what your talking about” - Actually I do, I am a E-mail marketing consultant for a couple of multi-million dollar E-com stores.

Within E-mail marketing there is ALOT to cover so im going over the basics and scratching the surface of the power that this can do for your company.


Every E-mail optin you receive is a potential sale that no one capitalizes on, yeah maybe you send them an E-mail saying don't forget to purchase this item or 'don't forget to use this coupon' but this has incredibly low conversion rates (if any conversion rates).

Then you also have the other end of the scale where people actually buy an item and there is no follow up or consistent contact with this customer. This is a customer that has already given you their money - Why not ask for more?
Do me a favor after you finish reading this:
Go look at your recurring customers (customers that have had multiple purchases on your store) I promise that it's an INCREDIBLY low number.

Now lets actually talk about the power of effective E-mail marketing. You should already have a list of hundreds of customers, this means you already have HUNDREDS of people to reach for free with just a couple of E-mails. With effective E-mail marketing you can get these leads to consistently come back to your store to buy items. Even alex becker has built multi - million dollar companies off this. The objective is to not sell the customer another product right away but offer them value and content to build the relationship with your company and then offer a product.
I am going to show you a practical example.

If you are running an Ecom store you should have already made a profit on the customers you currently have which is already amazing. So for this example we will say you pay ‘X’ amount per customer and straight away we will say you get a 2x investment on how much it costs to get 1 customer. E.g straight off the bat your at 2X.
Over the period of the next 3 months this should reach 6-8X PER CUSTOMER.
Now lets do the math.
I bought a customer for $7 and they bought an item worth $20 with $7 net profit. I am already at $7 profit from that one customer. Over the next 2 weeks I will send this customer content emails and value emails based off their purchase (e.g if they bought a fishing pole, send emails about fishing) then I will send them an offer with 20% off any purchase in the next24 hours (I usually get a 30% conversion rate off this) now they have spent an additional $15 with $5 net profit.
So they gave me $7 and now they have given me an additional $5 or so - this customer has given me a total of $12 in profit.
You keep repeating this process (which can be completely automated)
By the time you get to the 3rd month the customer SHOULD of given you around $24-28 in profit just from that one purchase 3 months ago. Now let’s imagine we do this for the 200 customers we currently have and we get the same results throughout (and on average they give us an additional $35 in profit)
That’s AN ADDITIONAL $7000 FOR JUST SENDING EMAILS - AT NO COST.


CAN YOU SEE HOW POWERFUL THIS IS??????? It’s insane I have generated an additional 20-30% in revenue monthly by doing this for my clients.

I am interested in what results you guys are currently getting with this? If you are even doing this?

 

Sarah, thats mainly because no business does it correctly.
Do you follow any big time business influencers or anything?

 

Yeah, A lot of people focus on sending promotions and newsletters constantly (which is wrong). I understand what you mean when you say it's ineffective but you also have to look at it on the other end of the scale. Once someone has got your E-mail they can send you anything for free as many times as they want. It's just the strategy behind the email marketing campaigns that are always awful. If a business has a passionate following then E-mail marketing is the best way to sell services/products.

This video demonstrates it really well. (it is an opt-in) but afterward, you will see the correct way to do E-mail marketing.
https://vagabondmarketing.clickfunnels.com/optin14760899

Disclosure - This isn't my business but I am the marketer behind that funnel, no need to sign up to it but if your interested its got great content on the other side of the opt-in.

 

Yeah Alot of businesses lack passion and a large majority of business focus on the short term value of things. Every niche has passionate readers and followers but ALOT of companies fail to attract these followers.

 

Dylan, I fully agree with you. Businesses nowadays use email marketing only for sending newsletters and it's a big fault. In my opinion, email marketing is the most profitable way of remarketing. For example, if your business is online store, you can send abandoned cart email to your customer - in 70% cases it causes new purchase, because now everyone use their smartphone and get email notification. This kind of remarketing is much more proficient then AdSense, Adwords of Facebook ads.

 

I have experience with email marketing. The newsletters weren't as effective as the emails that I sent regarding deals and promotions. Some things to think about is to keep the subject line interesting and use a good email template. You want your emails to look professional. Some might think that there's no use for newsletters, but actually there are. The email lists that do well are those filled with people who have opted-in. To get people to opt-in you include a box on your website where people sign up for a newsletter. Also be professional when you do email marketing. Don't send emails to people who haven't opted in. Also, you should always include an unsubscribe link in your emails. This is what distinguishes you as a professional marketer rather than an unprofessional one.