Why you should be doing Email Marketing

Before you start clicking the next button, hear me out! I’ve worked with a lot of small business owners and it seems like almost every time I bring up email marketing in my assessment, hackles rise. So many people have had bad experiences with email on the receiving end with spam email for some work at home programs, over-eager companies sending the same coupon 5 times a day, or some, lets say, unsolicited “adult content” that shows up occasionally. Sure that happens, but in recent years with CANSPAM legislation and more reputable Email Service Providers (ESP’s) on the scene, customers are not just warming back up to promotional emails, they’re popularity is growing by the day and so is the ROI. I knew those three little letters would catch your attention.
Many of you have known about email marketing for a while but have never had the resources to put it to work in your business or have never had good enough reason to get it going, Solent me count the reasons why email marketing will work for your business.

1. Put your brand center stage!
With more people owning smartphones, people are checking their email twice as often as they did 10 years ago. Chances are, you wake up in the morning and reach for your phone and look over your emails. You make some breakfast, check some more emails. Get to work, check your emails again. Get back from lunch, check your emails, you get the picture. Whatever the order you do it in, it happens. We all check our email way too much, but that makes for prime real estate for your brand. Don’t believe me? here are some numbers: Xobni, the maker of an email plugin for outlook performed a study that stated that 72% of respondents checked they’re email on vacation, on sick days, and in bed. 1 in 5 respondents stated that checking their email is the first thing they did in the morning.

2. Make some money!
You’ve all heard the old adage, “you’ve got to spend money to make money,” such a frustrating phrase to anyone that operates a small to medium sized business. Sure you’ve got to spend money, that doesn’t mean you want to. I suppose that saying would be more appropriately stated “You’ve got to spend marginally less per dollar and make exponentially more to make real money.” Although ideal, you probably won’t see that on a fortune cookie anytime soon, but Email Marketing will bring you that return your are looking for. The Direct Marketing Association, an independent group that focuses on fine tuning marketing data, has stated that the numbers drive a compelling case for email. Email provided $39.40 in sales per dollar spent of advertising this year, followed by $22.38 through Web search, $19.71 from Internet display ads and $12.90 from social networks. Who doesn’t want to see that type of return?

3. Keep ’em coming back!
Most sales professionals will tell you that you have to constantly be adding to your pipeline to be making money, that’s certainly not wrong, but not 100% true either. A study done in the reent years by Bain & Company states “It is 6 to 7 times more expensive to acquire a new customer than to retain an existing one.” The beauty of email marketing is it not only allows you to reach out to new, quality leads, but it also allows you to re-engage with customers who have purchased with you in the past. Think about the virtues, you know what the customers like now, you know what they’ve purchased in the past, by offering something you know that they would like or what will compliment their most recent purchase, they’re more likely to not only come back, but spend marginally more per purchase on subsequent returns.

Now, stop reading and start growing your business today, I’ve just outlined for you the tip of the iceberg of the benefit to your business. Write a comment or email me today about how to get started.

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Should Johnson Be Given More Time, They’d Be Fools Not To.

This last week, JCP CEO Ron Johnson has come under renewed scrutiny as fourth quarter 2012 numbers have come back worse than expected for investors. I think investors of JC Penney are making a huge mistake in calling for a reckoning with new CEO Johnson, I think that he has had a year to implement a new branding change, a change to 102 years of unchanged roots, a change that can really revitalize the JC Penney brand, a change that will take couple of years, much more than the than the 12 months they’ve given him. Investors are saying that many of their customers are straying because of the loss of coupons and sale events. It’s hard to tell bottom line, dollar driven investors to be patient, however I think that’s exactly what they need to be told and to do. The type of customers who are up in arms about JC Penney’s branding shift are those who are in their late 50’s to early 60’s. That’s an aging demographic to appeal to, in another 10 years this demographic will be spending marginally less than they were today, or even 10 years prior to today. The strategy is to breathe life into the aged, brittle brand by attracting a younger demographic, those who are not so coupon/ sales event driven like their parent-aged counterparts. It is painful to undergo a strategy shift, but one that is necessary if the JC Penney investors are to see the long term survival of their company.

Take a look at other companies that are in a similar situation, Kmart is the biggest of these aging brands; an aging demographic and the small baby steps to try and resuscitate it are moving too slow for the brands long term survival. Sears Holdings Corp, the owner of the dieing Kmart brand predict the same painful sharp decline if major overhauls were to take place but they seem unwilling to endure a short drop in revenue to see the longterm health improved. Of smaller brand names who have struggled to reinvent themselves is RadioShack. Aside from JCP, RadioShack has been one of the more aggressive retail joints in blazing a new strategy from that of the past. What was once known as the place to find all odds and ends electronics, they have decreased offerings of general electronics and increased their offering of mobile devices. This shift in strategy dates back to 2009 with the signing of the exclusive deal with T-Mobile. That was somewhat of a failed attempt for both RadioShack and T-Mobile, but since then RadioShack has inked deals with AT&T, Verizon and the largest of deals with Sprint. RadioShack has made an agressive strategy shift but have failed to rebrand themselves over the last 4 years, hardly a fair comparison to JCP. JCP’s trajectory, with a modern sales strategy and targeting a younger audience with a new look, is set high and if given more than just six months, as Reuters is reporting, JCP will soar far above it’s retail counterparts who have failed to launch even with the most honest of attempts.