Strategy
3 min read

3 Reasons Why Your Email Marketing Is Not Working

Written by Andriy Boychuk
Strategy
3 min read

Do you send emails to your customers but they’re just not paying off?

If as an eCommerce business your email marketing is not bringing at least 30% of your revenue, chances are, you’re doing something wrong.

Through countless email marketing audits we’ve done for our clients, we were able to pinpoint the top 3 mistakes almost everyone makes.

Hi, my name is Andriy, I’m the founder of Flowium, the fastest growing e-commerce email marketing agency in the world. In today’s video, I want to talk about the three reasons why your email marketing does not work.

After doing dozens of audits for my clients and potential clients or who purchase our audit package, I come up with the three most common mistakes everybody does, and I would like to discuss with you.

You are using one list or one segment

So the first reason is you are using one list or one segment, so you’re sending all of your emails to everybody. Bigger is better, correct? Wrong! It does not work like that in email marketing.

You have to send a relevant message to the right people. I’ll write a T-shirt, the right message to the right person at the right moment, because we are in the era of relevance. We cannot do those generic email and send a blast to everybody.

So let me give you one good example and show you one campaign, which we tested, I mean, for all of our clients, as a proof, we do this, but this is the latest and it shows you that greater difference.

 

Okay, so a little bit backstory. So we sent two campaigns exactly the same. There’s no difference in the content. The difference only is the segment. So first segment is at all subscriber, engaged subscribers. So it was close to 100,000 subscribers. And the second segment was specific segments, specific segment who expressed interest in a specific collection.

So as you can see at the first list, segment size is 100,000 and the other is 19,000, so let’s say rounded up 20,000. So how many? Five times smaller.

Okay, good, so we send it to both. Open Rate, as you can see in the second, because it’s more relevant, it’s much higher, but still 33, 3%, good enough. Where we see the big drop is in the click through rate, you see, 4.4% versus 1.4%. So the engagement in terms of clicking is four times bigger, almost four times bigger.

And here’s the thing, revenue. You might say like, “Hey Andriy yes, it’s cool, we do understand, but still the first email made $13,000,” I agree with you, but how many people will continue buying from you if you’re sending them irrelevant message, irrelevant message, irrelevant message?

Okay, so $13,000, it’s a good chunk of money. So I agree with you, secondly, is $46,000. But it’s very important for you to understand how much you make per recipient. So the first campaign made 13 cents per recipient. Good, bad? You judge. The second campaign made $2.45 per recipient. So I did my quick maths. We have, in the second campaign, we made 18 times more than in the first one. So here the power of relevance. Here’s the power or segmentation.

This is the thing, a lot of people are missing because it’s require hard work to segment, it’s require hard work to think and understand who you should send and who you should exclude. And the biggest, the biggest issue is our ego. Because we have a big list size, let’s send it to everybody, like we cannot go wrong with that, correct? Wrong.

Not understanding the data

The second reason, not understanding the data and based on the data where you should move. What does it mean? Depends on your industry, are you fashion? Like you sell clothes? Or are you selling like food and beverage? Or are you in the pet industry? Depends on your industry, there is a benchmark and you should be aware of those benchmarks and you should compare it to what’s already in your system.

If your open rate, let’s say 5%, it’s a big, big, big red flag. You need to work on a lot of things to improve it. But if your open rate is 50%, you’re doing something right. And call me, I would like to learn from you what you’re doing right.

So, yeah, but let’s cover basic benchmarks that you should be aware of, and they are very generic. They are for e-commerce industry in general and not specific industry.

First let’s do open rate. So what does affect open rate, your subject line, subject line and preview texts. So your goal to be about 20%, even better, about 25%. Our internal goal is to stay about 25%.

Same thing with click-through rate, you want to stay about 2.5% or higher. So evaluate less 10 campaigns or evaluate all campaigns you send this month or the last month and see what are your numbers, and this will give you actions where you should focus and where you shouldn’t.

And bounce, unsubscribe, spam rate, you should check those as well, but they are not as important as the first part, because if your open rate is high, click rate is high, I guarantee that the rest will not be important for you because those numbers will be in the green zone anyway. If you have 5% open rate, probably your bounce rate is high, your unsubscribe rate is high and spam rate is high as well.

You’re not connecting all of your technologies together

And the last but not least reason is you’re not connecting all of your technologies together. So if you use Klaviyo or any other platform as an email marketing software, you need to connect all of your free view app, logistic apps, loyalty program to email marketing software. Why? Because it push data in your email marketing software. And based on that data, you can segment, personalize, and talk to people in personalized and relevant ways.

So we covered those three reasons why e-commerce email marketing does not work. So think about them. Check them yourself if you’re doing them right. If not, you should work on it and you should fix it.

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