Most marketers indicate that email marketing offers the highest return on investment (ROI) within their online marketing strategy. However, customers, revenue, and profits don’t just fall into your company’s proverbial lap. You have to take the right steps to generate revenue while mitigating costs along the way.
The following is a look at reasons for high email ROI, along with a discussion of a core factor in optimized email marketing, which is the growth of a quality contact list.
Email Expense
To understand the significance of building a contact list of targeted prospects, consider the following vehicle analogy. It takes a lot of fuel to start up your engine and get your car accelerated to maximum speed. However, after you reach your targeted miles-per-hour, your engine operates at max efficiency.
In much the same way, the greatest cost in email marketing is building your contact list. Thus, there is a lot of pressure on your team to invest wisely in attracting highly-qualified prospects that your marketing and salespeople can ramp up to max earning efficiency. Qualified people not only make initial purchases, but they more likely stay connected to your business and make additional buys over time. Your retention costs are much lower than your initial investment, so this point is where you begin to optimize ROI.
Grow Your Contact List Effectively
With the impact of a healthy contact list on long-term ROI, you should prioritize your targeting strategy within your broader email marketing plan.
Step one is to identify your buyer persona, or ideal customer profile, for each particular solution. Establish a deep demographic, geographic, firmographic, and behavioral picture of the prospects that generate the best revenue and profits for your business.
Then, figure out the best way to go about attracting and then capturing more of these ideal customers for your company. The following are some common approaches:
Build on Site: You should have email subscription forms and calls to action on your site. Ideally, give prospects the opportunity to self-segment by picking the types of content they want to receive based on need or interest.
Invest in Online Advertising: You can invest in other forms of digital advertising to attract prospects, but this strategy can amplify the costs of your digital and email marketing plan, adversely affecting ROI.
Acquire Subscribers: You can acquire subscribers from a third-party provider. There are risks to this approach, depending on the reputation of the firm with whom you partner. Salesgenie offers a subscription-based service where you can select targeted contacts whose data is routinely validated and verified.
Conclusion
If done right, email marketing gives your business an efficient way to attract the right customers and make money on the relationships over time. However, you need to build an effective strategy to grow your email contact list.
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