The Costly Inefficiency of Email Segmentation in Ecommerce

– More than 50% of people won’t open the first email after signing up, leading to inefficiency in collecting data.
– Relying on a 10% click-through rate to collect data is costly, with a potential $45 premium per email.
– Collecting data during sign-up can save costs and result in a higher conversion rate, creating a tailored customer journey.Collect data during sign-up to save costs and increase data collection by 90%.Segment, segment, segment! The rallying cry of every email marketer known to the earth. But… More than 50% of people won’t open the first email after signing up (it only goes down from there), 25% of the list will churn annually, and relying on a maximum 10% click-through rate to collect single points of data is pretty inefficient. But Jon, we have to collect more data about our customers! By the time you get those first data points about them, you’ve already lost more than 90% of people that showed intention and were willing to provide you with information about themselves when they typed in their email address. At ~$5 per email, things change a bit. A 50% open rate means you’ve doubled your cost per email to $10. A 10% click-through rate to collect data means you’re paying $50 per email with data. Quick math tells me that you’re paying between a $5 – $45 dollar premium on an email to attach data to it while chasing using the current inefficient methods of segmentation. You could front-load those costs for a fraction and collect 90% more data by collecting it during sign up. You could do it frictionlessly where you make sure that you collect the email first before collecting other data points. You could, because that’s what we currently do. Remember that 25% that will churn out while probably not telling you anything about themselves. 1,000 List size – 250 x $5 = $1,250. 10,000 List size – 2,500 x $5 = $12,500. 100,000 List size – 25,000 x $5 = $125,000. It’s a double whammy in sunk costs with little to no value. Change the approach, change the methods, shift your cost basis, and create a customer journey tailored to someone which results in higher conversion rates. It’s seriously a win-win on all fronts. This is the future of the customer journey for ecommerce. #ecommerce #marketing #customerjourneyhttps://www.linkedin.com/in/jivanco

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