Reason #5 for Why Email Marketing is Critical to Ecommerce Success: $44 ROI for $1 Spent 

 June 7, 2021

By  HiFlyer

They say you need to spend money to make money, right?

Well, does your store break even on your ad spend? And are you making a profit?

Luckily, there’s a way to unlock free profit without spending a dime on ads.

It’s call email marketing and CRM for ecommerce.

If you haven’t seen our full email marketing agency webinar yet, look for it here. I go into that concept even deeper.

According to Litmus, email marketing generates $38 to $44 ROI for every $1 invested. 

When’s the last time a “like” or a “follow” got you THAT level of ROI?

In fact, let’s compare all the ROI for all ecommerce marketing channels and see what brings the highest ROI:

  • Organic Social Media – $3 ROI for $1 spent
  • Website Banner Ads – $2 ROI for $1 spent
  • SEO – $22 for $1 spent
  • PPC – $14 ROI for $1 spent
  • Paid Social – $6 ROI for $1 spent

Compared to email, no channel stacks up.

So why do so many brands struggle with it?

Well, that’s for a different series of posts we’re putting up.

Overall, most brands don’t know how to unlock their customer lifetime value.

They prefer to talk AT their email list instead of building a relationship WITH their email list.

Watch this video from Persado.

My line is “People are more than just an email address.”

Getting to THAT person is the best way to unlock $44 ROI for $1 spent.

I’ll give a clear example here.

Most brands focus on getting new customers. That’s great but finite.

They spend and spend and spend to get new people in the door.

In fact, using paid media to get new customers is great. But scaling an ecommerce store on NEW customers is a recipe for disaster.

Here’s why: while they’re spending all that energy getting new people, they forget that they have existing customers who need to be serviced.

And if these customers are simply serviced, personalized, and nurtured, they could be worth 2, 3 and 4 more purchases.

Now, you can’t nurture people profitably by running Facebook ads, nor should you.

Enter email marketing.

Since email is the most personalized channel and unique identifier for each customer,  you can market to that customer every day, all the time, at will.

And presto, that former one-time customer you painstakingly tried to obtain can become a repeat buyer.

That’s where the $44 ROI comes in.

A formerly $100 customer can grow into a $1000 customer.

So where do you feel your energies would be best spent: getting more NEW customers or nurturing EXISTING customers?


Let’s have a 15 minute chat about unlocking that $44 ROI >

Next, I’m going to share what makes email marketing the most customer-intimate channel.

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