Email Marketing Workshop Closing: Now What?

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.

jacaldwell@redpillemail.com | @jacaldwell