How To Leverage Your Email List For Huge Profit

Gabriel Gutierrez Sep 13, 2016

Reading Time: 4 minutes

Video Highlights

  • 0:06 Introduction
  • 0:11 Not Always Rainbows And Sunshine
  • 1:00 Tip Worth 1200% Increase ROI
  • 1:20 Dispel The Myth
  • 1:48 A Customer Email List Is Worth $0.20 Per Subscriber
  • 2:02 The Way You Get Your List Up To $1 Per Subscriber
  • 2:30 What This Does
  • 3:02 Doesn’t Need To Be In Large Segment
  • 3:47 Not Possible Without Segments
  • 4:04 Its OK To Have 1 Customer In 3 To 4 Segments
  • 4:28 Customers May Leave 1 Segment To Another
  • 4:41 Different Segments Are Critical
  • 5:05 Granular Segmentation Is The Secret
  • 5:15 Closing Remarks

Hey guys. Tanner Larsen here from Build Grow Scale. Another morning car video. First of all, just real quick, it’s not always rainbows and sunshine. I want to tell you real quick how yesterday was suppose to be an awesome day. I was real excited. We hired a new video guy at the office.

It was just going to be awesome. Walk in there, all we have are tech problems. We have fly problems. All of a sudden, flies are in the office so bad I don’t know where they’re coming from, that we can’t get anything done, and I have to make trips to Home Depot to try to find fly killers. We’ve got bright colored fly paper hanging all over our office trying to kill flies. The whole glamorous Internet marketing lifestyle where you’re working in these beautiful offices and stuff, well, that’s not the case right now. I’m driving to an office right now full of fly paper. Anyway, side note.

Back to what I actually want to tell you today, and that is I wanted to give you a little tip, real quick thing that you can do that is worth about 1200% increase in ROI from our email and customer lists. It’s something that most people don’t do, and that’s because it’s a pain to do, but it’s very important. I want to dispel this myth that your eCommerce list or your customer list, your email list is worth, on average, about $1 per subscriber.

People have been touting that for years that your email list is worth $1 per subscriber. Well, that’s bullshit. Most people’s email lists are worth way less than $1 per subscriber. Some peoples are worth way more than $1 per subscriber. On average, in the eCommerce space, a customer email list is worth about 20 cents per subscriber, 20 cents per subscriber. Not anywhere near a dollar, all right.

I wanted to give you a little tip, real quick thing that you can do that is worth about 1200% increase in ROI from our email and customer lists.

Now, if you have a big list and your mailing them, you can still make some good money there. The way you get that up to where it is worth $1 or $3 or as high as I’ve seen as high as $9 per subscriber is through granular segmentation. Segmenting your audience down into categories, groups, based on buying habits, spending habits, products purchased, lifetime value, position of the customer lifecycle, all these different things can be segments in both your email list, your customer mailing list, all of it.

What this does is it allows you to better target promotions. Instead of doing blanket promotions where you’re just mailing one mass promotion to everybody, segmenting allows you to customize and design various targeted specific promotions that speak to each one of those different segments.

On any given day in our businesses we may have, through our automated follow up campaigns and things like that in our email, we may have 10 or 12 different types of promotions running at the same time. Each going to a different customer segment or even a prospect segment. Each of these segments may not be huge. Some of these segments may only have a few hundred to a few thousand people in them, while other segments may have 10, 20,000 or whatever. It’s okay. Just because it’s a small segment doesn’t mean it’s not going to be profitable have an extremely high return on advertising dollar.

We may have 10 to 12 of these different campaigns going out automatically based on where these customers are at in the lifecycle, where they’re at in terms of what they purchase, how they purchase product A, product B, and product C. Have we shown them D or E, or people who purchase product B have a high propensity to purchase bundle Z. Well, let’s make sure we promote bundle Z to them. That’s all handled automatically on the back end.

None of that is possible if you don’t segment and start segmenting right away. If you haven’t been segmenting, go backwards, create those segments, set up the rules, the automation to make segmenting an automatic thing in your business so that based on the customer’s actions, they’re placed in these different segments.

Now, one customer may show up in 3 or 4 different segments. That’s okay. You have to set up some rule based systems there that would weight which segment is more important to get the promotion first. Then you just get this promotion is weighted 1, this promotion’s weighted 2, and 3, and so forth to make sure you’re not bombarding them with 3 promotions at the same time.

Also, customers may leave one segment and move completely into a new segment. That’s okay as well. It’s all part of how the customer transitions through your business, through the lifecycle of the customer’s journey, basically, with your business.

These different segments are critical to allowing you to really, really boost the effectiveness of both your email and your direct mail. Any kind of customer interactive marketing, including your retargeting lists, and even the different customer lists you have on Facebook. Why run one blanket Facebook campaign when you could run a lot of micro-targeted campaigns based on their exact buying habits?

Granular segmentation is the secret to us taking our customer lists and increasing their ROI by about 1200% on average. It’s the secret to getting that email list or that customer list actually worth $1 or more per subscriber. If you’re not doing that, I can almost guarantee you your list is 20 cents per subscriber or less. Not a bad thing but ideally not the best thing either, right? Let’s work on some segmentation in your business. See what you can do. Start setting up those targeted campaigns that market specifically to each of those segments.

All right, guys. Pulling into the office here. Catch you later.


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Gabriel Gutierrez

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