One Little, Two Little, Three Little Customers…
If you had the opportunity to either tell ten people about your business or tell one million, which would you do?
I’m really hoping you said “ten thousand”.
Marketing is nothing more than telling people about your business while prompting them to take action. And while it’s true that marketing to ten pre-qualified targeted people will always give a higher percentage of conversions, they don’t let you pay your light bill with conversions. Sometimes, you have to put the marketing blowgun away and bring out the shotgun. Why?
Simple…if 80% of those ten people make a purchase from you at $10 each, you’ll have $80 in your pocket. But if only one percent of the larger group acted on your marketing message and spent that same $10 each, you would see a revenue of $10,000. And guess what? According to Jupiter Research, the average conversion rate for untargeted marketing email is 1.1%.
If you segment your list and mail to a targeted group, the conversion rate jumps to almost 4%.
There is a very good reason why companies are willing to pay millions of dollars to have one thirty second television commercial run during the Super Bowl…it’s the numbers game. Of course, to make the most out of getting your message in front of a ton of people, you’ve got to track your results. I’ll talk about that (and what should be in your email marketing message to improve your conversion rate) next week.