03/14/2024
The statistical ROI for email marketing is so high it seems too good to be true - and many small business owners end up skeptical that email could work for them too.
I promised to break down the concept (and math) around the claim "Email marketing has a 3600% ROI” so that you can decide for yourself if it feels relevant. This is part 1.
If reading statistics or claims like this prompts a nervous twitch near your eye, or your stomach drops out, please pat yourself on the back. 👏
When I hear statistics like that I also get irritated and I want to share why that is in hopes it creates permission and opportunity for you around this strategy.
Conversion statistics like this are often presented without context, and *context is everything.*
(Along with nuance and discernment - let’s all thank Randi for that trifecta! I digress, but not really, because they apply to email marketing too.)
So, context first:
My take on this is most definitely in part due to 10 years in a relationship with a computational neuroscientist. He’s not a statistician, and nonetheless, we talk about statistics A LOT.
(Y’all think I’m nerdy and you just have no idea. Neighborhood BBQs in my world are on another level, let me just assure you. I’m the “dumb” one. 🤣 )
Back to my story.
For me to talk about an alleged 3600% ROI - even though I can back it up - feels on par with a life coach in a big hat talking about quantum leaps when they wouldn't know Schrödinger’s equation if it smacked them on the ass. 🙄
And their excuse, “oh, well I don’t mean it in that sense.” Poppycocks. If you’re going to say it, you need to be willing to stand behind it.
It is both reasonable and appropriate to be skeptical of any statistic presented without context. In fact, even WITH context that is reasonable.
Now, for the nuance on why context is not enough:
This ROI “proof”—any sort of numeric claim in marketing really—is designed to make you feel a sense of urgency and scarcity without explicitly stating the gap you are experiencing—the gap between where you are, and where this marketer is implying you could or ought to be.
Thus, the marketer does not appear to be doing anything nefarious, meanwhile, your lizard brain is all: “Oh my gosh, I should be doing my email marketing and I’m not! Ahhh!” 😱
Now, it is true you’d benefit from doing email marketing, but I can help you see how that’s possible for you—despite your list being small or having not made sales that way before—without urgency or scarcity.
(Authentic urgency and scarcity are one thing, but that’s a topic that deserves its own post.)
The truth is you can make data say whatever you want it to say.
Find a health study with surprising results, then go trace the funding source. 😏
So, is it in an email marketer’s favor to talk about ROI that high?
It would be easy to say “OF COURSE!”
But the real truth is - and this is what I want you to get - THAT DEPENDS ON THE BUYER. How sophisticated are they?
Is it in the life coach’s interest to talk about quantum leaping with Aladdin? Sure, for a buyer who doesn’t have discernment.
So, your skepticism is warranted, and around me, even appreciated.
I am breaking this down so that you see the path forward clearly and are not jumping into a strategy you only partially understand because you read some impressive statistics and feel like you ‘should’.
Adapting our mindset to a new belief or possibility often *doesn’t* make sense logically at first. But that is a far cry from appropriating scientific terms for non-scientific writing, or dropping “statistics” without discernment.
If I am clear about one thing, it is that *I* do not want to be responsible for dropping statistics without discernment—and providing sufficient context for you to decide if the statistics genuinely applies to you is part of that.
As business owners who market online, we have a responsibility to our prospects, clients, and followers to choose our words wisely.
The nuance, in sum, is that this is an And/And situation.
It’s all true:
👉🏻 It’s reasonable and appropriate to be skeptical.
👉🏻 You CAN get that high of an ROI with email marketing; it’s not a lie.
👉🏻 That might make you feel some kind of way, that’s not exactly pleasant.
👉🏻 You would benefit from doing email marketing even if it feels uncomfortable.
👉🏻 Exaggerated claims do not help anyone, which is why I’m being thorough here.
👉🏻 Confused minds DO buy, but they generally regret their purchase.
👉🏻 Your marketing needs to make sense to your followers, especially if they are sophisticated, solution-aware buyers.
👉🏻 Sophisticated buyers often seek to become more problem- and solution-aware before making a purchase.
👉🏻 And last, but far from least, coming from a place of urgency and scarcity won’t help you in the long run.
Why?
Because urgency and scarcity are the black plague of marketing. They are like teenage boy socks… sophisticated buyers can smell that from a mile off and it ain’t a good look for you.
Does it work? Yes.
Does a savvy buyer know when it is working on them? Often, yes.
Does that mean they appreciate you for it? That depends on whether you deliver!
This is where discernment is required.
Email marketing hides urgency and scarcity behind hype and hyperbole.
That is to say, the inclusion of over exaggerated claims, used for emphasis and without context or discernment. And whether you take the claims literally or not, that style of marketing is designed to make you feel badly so that you will buy their service or offer.
Gross right?
This is why I’ve hesitated to talk about alleged statistical ROI of email marketing before now - because it leads directly to other marketing tactics that I really dislike - and it was important to me to do this topic justice.
I take a completely different approach to email marketing that focuses on slowing down the process, gathering nuances and details about your methodology, refining that into a story that helps your subscribers get to know you and your work on a deeper level.
This establishes a foundation of trust built on your expertise. No hype and hyperbole required!
In my 3-6 month programs, strong conversions is one of the main things I help small business owners to figure out to go from a small subscriber list with few sales to regular inquiries, warmer sales conversations, and increased conversions so that you can have your own impressive ROI.
We also work on refining your positioning, describing your methodology clearly, and optimizing your landing page design to support the overall goals - so that you have the best chance of the emails doing their job.
OK - so, this is getting long, even for me! - and only part of the story around the statistics (that your skepticism is valid). I will be back to break down the variables that cause us to get stuck and ...🥁🥁🥁 ... the math soon.
If this resonated and you're curious to learn more, please DM me and we’ll have a quick chat to see if it is a fit. My next openings are in Q2, and I expect the spots to fill quickly. ( ⬅️ Genuine Scarcity! 😅)
