Why Email & CRM is So Important Right Now
Full Transcript:
hey everybody and welcome back to the ecom 80 20 podcast i'm here in Yaakov Rosenberg with my partner Isaac Hyman and we're excited to be back for guys number one of our podcast
isaac what what do we have on the agenda today
so today i think we're going to talk about you know why email sms and crm is so critical you know a lot of brands tend to sleep on it right they tend to think you know it's funny because we had you know we had a client what was about it's about probably a year and a half we had this client and no well they we had them on our list and they were we were prospecting them what was it like three years ago yeah three years ago we were approximate i think you know what i'm talking about but three years ago we were prospecting them and they're like no no no um i don't want to grow my e-commerce brand or you know maybe they do but they just didn't see us as you know you know potent enough and you know eventually they we approached them and said you know we noticed we're on your email list you know i'm not getting anything personalized not getting anything relevant to me um why don't you let us handle your your email list and i checked off right we checked off our products seven eight nine bullet points of like here's what's wrong the personalization doesn't exist the products you know are not relevant to me the best is to point out the problems the write to the client write to the customer and say yeah what you're doing wrong and this is how we're going to fix it right right so his first response was well well yeah i might have an email list i have an email so maybe like 50 000 subscribers um and it's just it's you know i probably could do blah but i figured email was dead it's dead yeah no one talks about it it's just dead it doesn't exist you know it's not dead you know i mean i mean we know right now that that's that's our that's our comeback our comeback is the email channel isn't dead the relationship you have with the customer is kind of dead so you know no no clear cleaner jump start yeah give me the pedals so so why do you think it was it that that tip scales for him what do you think it was actually right so i mean it was just kind of like we we said it's not dead you just need to know how to work it and that's kind of what we're talking about today is why email and and certainly sms which is coming up you'd agree right sms is coming up and crm which is custom relationship marketing why why is it why is it critical it's not even just not dead or not possible or or okay to do it's literally critical so much more so much money is left on the table by companies that don't utilize their email right it's just it's it's sad you know we feel for them we want to help everybody make that that extra revenue that they're just missing out on from their email list so yeah it's so i mean there's there's a ton of potential there and when you look at like we said in the last episode we said you know it's about the relationship you have with the person behind the email yeah if you don't have a relationship with the person behind you know you got you're not going to make any money there's no revenue it's just no relationship not it's not personal it's not personal exactly so it's a good line it's not personal it's not that personal it definitely is personal you have to make it it's personal to me yeah so uh so so tell us some of the the tricks of the trade why why now why now in 2021 the end of 2021 q4 why is email so critical right now
are we going into white email is critical now we're going to email this critical the email is critical as a whole now before you get to email critical now but let's talk about why email is critical to a
business great question i mean this is why email sscrm critical comes down to like i think we boiled it down to maybe five or six main key reasons right why email is is so critical and i'd say email right we both say email because that's kind of like the channel right sms is still growing it's still new it's still a little bit you know kind of in your face but i think email has been around for how long's email been around it's been around for about 30 almost 40 years we said 50. i found on linkedin a couple of months ago that email the first email was sent in 1971. email turned 50 this year i got that was a really great link did post i got a lot of traction on that one but i found that out it was it was a good it's a good share what did they say in that email like who were they sending it to i i don't even know but he said i forget the i forget the exact words but it was basically he was saying i'm sending nothing important with this message okay but we know that the message is critical right now we know that that the message itself is is extremely important what you're saying and who you're saying it to so yeah well there must be some on the other end because you know uh he must be communicated somehow so uh here's why email sms and crm is kind of is is critical now and i'll start with reason one and we can go into and talk about a little bit more in depth um the reason is a second here there you go 44 dollars for every one dollar invested right so think of it this way if i put in the stock market one dollar and i was able to extract forty four dollars guaranteed i won't say guaranteed but but in the range of um estimated roi for every one dollar invested that is a fantastic investment wouldn't you sell i think so right i think so i think it's good let's compare it to you yeah right you definitely retire yeah yeah let's compare social media right it's like first off at a baseline it's about 40 times more more effective at acquiring customers than social media right um you you also um you know if you i know you do you're the expert in paid ads and paid media you know that field a lot better than i do specifically but paid media i think if i'm not mistaken it's about even if you get a 2x return on your paid ads you're dancing you're dancing from the hilltop right yeah two three around there you're happy you know you put in one dollar you get two back okay do it again now put in one now figure out how to get three back four back but you know 44 back forward 40 back yeah that's that that's dreamland the highest right the highest roi and and it's it's just everyone's using email right um it's it's funny because everyone's just kind of like you know you know people say like they don't use email right oh the emails did yeah how many times a day do you check your email how many times i mean you check email what 20 times a day 100 you check your email 100 times a day 100 times a day wow that that is a fanta that's a stat right that's kind of like what you i didn't i didn't make that up no that's a stack wow a hundred times a day and and that's that that makes sense because you have your personal email work email um you know maybe uh maybe a second personal email maybe for email for the you know for your kids for the school or whatever it is and you're constantly checking it and it's some people through like a chat right they truly like email like like a way to communicate like a slack or whatsapp but everyone's checking it yet no one uses uses enough to kind of draw from the roi it's meant to draw so i think that's one of the biggest one of the biggest stats already just 44 roi for every one dollar invested um so that's a fantastic number to have does it cost anything it doesn't you know you already have it oh well that's that's reason number two there you go this is uh email is the most profitable channel there's no ad spent there's nothing spent right what are the costs with building up a let's say a basic email program like what are the costs associated really your your esp that's kind of it yeah right um you can acquire whoever's coming to your site right now assuming you have traffic coming to your site already you're going to acquire whatever whichever data points whichever people are coming to your site now you're just going to acquire them so that's kind of that's kind of free um unless you're paying for ads but you pay for ads that's your separate thing but requiring an email is free right sending sending them an email is free um uh and we're not i'm not even talking about lead generation we're not talking about lead acquisition talking about strictly the emails that you either have or coming to you for free yeah that's why it's the most profitable channel sms does cost a little bit slightly more than email it's a little more expensive to do but then you also have higher engagement with sms from from what we've seen it's still new but um email in general is the most profitable channel so that's really a major a major reason why it's critical i think if you're a brand right if you let's say you were running and you were very close with one of the other e-commerce brands we work with um how important is profit to a business right i i think it's revenue is critical if you're not making any money you're not in business you're just doing stuff so yeah yeah exactly um the third reason actually is something that's a little more kind of and i got a story for this one there's a little more um bigger and a little bit more of a kind of a deeper kind of philosophical reason it's that email is an own channel while pretty much every other channel like like social media paid search search that's a borrower channel right you're borrowing data from people didn't we just run into that a couple of months ago when uh certain social networks went down right yeah exactly facebook just facebook went down i'm sorry metaverse went down meta yeah very meta of them actually the stories around meta but but facebook went down for what even it was like eight hours ten hours everything lost my mind right right facebook instagram whatsapp all that went down all that went down all your ads that were running you know you're looking for credits now i doubt you're gonna get a money back i don't know i'm not on that luckily but the channel i was running was what email right and um but it also goes deeper because email the emails you acquire are owned by you you know you have them they're not like you're not borrowing you're not borrowing data you're not you're not you know you're not running ads to data points which are profiles you know you have them and um i don't know if you heard this funny story recently fascinating story fascinated me at least um this person right facebook changed their name to meta right and apparently there was someone who had a handle on instagram called metaverse so everyone's saying oh man you're going to get rich i want to buy your handle i want to buy it you know i'll give you a million 2 million 10 million whatever it is facebook's going to buy you out you're going to make a ton of money lucky you oh my gosh i want to be you and what happened was instagram because she thought she owned her handle instagram ended up taking it they just took it didn't ask just set us ours now yeah this profile shut down you know you cannot access your profile you're masquerading as someone else aka them so i think that was just that isn't that creepy that's that's nice it took uh i believe i believe she may have gotten in reinstated um but but that was only at the behest of a new york times article and it just sheds light on the fact that you know do you really own your social media profile do you really own your your google rankings on ads do you really own your placement on seo when if google changes their algorithm do you know you're at the you're at the mercy of the social networks you're at the mercy of the search engines yeah the only way that you the only thing you own is is the data that you have stored somewhere yeah you can always do that and that's it's first party it's first party data if i'm not mistaken it's first party data right the customer elects to give you their information we're not talking about buying email lists we're talking about email real subscribers
yeah real real subscribers not not renting email lists or borrowing them from someone else right exactly you want to if someone submits their email or your phone number right that's it's a data point yeah um what's also fascinating um well i guess that's the next reason we can talk about um next reason is just it's a it's the one customer-centric channel right um i mean let's say let's say someone needs to reach you yaakov like what would be the channel you prefer to be communicated on is it through your facebook messenger definitely not no i never said it like you it's written sentiments for me right now it's what's not an email and i you need that i i need to have that if i don't have it in my email i'm not going to do it it's just it's like a to-do list for me yeah i hope you have inbox zero i'm i'm close you're close okay
it's got two zeros in there okay yeah nobody said anything about how many zeros you just said zero right there you go yeah i'm definitely not in box zero but but it's definitely it's a good way to communicate um obviously we're we're getting everyone's getting more into slack and and actual chats but but overall i mean think of it like when you place an order let's say you place an order on amazon or anywhere what do you expect to get you expect to get an email confirmation email confirmation text messages confirmation email those two are right i'm not not expecting to get a confirmation whatsapp message or a confirmation dm on instagram or facebook it's confirmation email and it's a cut because it's a customer-centric channel it's the one channel that you know you're going to connect directly to your to your customer to your part to a person right so that's what makes it fascinating um it's not a fake profile it's not someone that's not a bot it's not anything maybe a bot but but hardly it's it's it's just though it's a way to connect directly to the customer now text also right i i'm not i'm not a huge fan of receiving texts um but you know they're just starting to starting to creep back into it you're starting to yeah much more much more popular exactly growing growing channel but uh but the point is it's a customer intimate channel customer centric you know you're reaching a human and for someone that's interested on that channel that's why it's so important
the the next reason which it's so funny because you know this again is one of the deeper reasons right i think we all can agree um just because it's a customer center channel it's actually a customer identifier you need customer identifier you know what i mean um like if if i put your email into like facebook or google they'll find you they'll find you right they're gonna you know they know about you and they it unlocks multiple data points like probably hundreds and thousands of new data points just by getting that email right you build facebook look like audiences right how do you like in your it starts with an email list yeah the best way to start is with an email list because it unlocks all this data um you know for every other channel you you go to a store you go let's say a brick and mortar store you go to a store um you got how would you sign up for the loyalty program what do you put in email open your email right oh yeah sign up for a loyalty program put your email and your phone away they how do you want to get your receipt either print or email you get it right email too print email i go i went to walgreens right they changed their their format i think they used to be an email but you put in your phone number every time you have a loyalty program you go to the grocery you put in your phone number or your email and and many people don't know why that is they think like oh just to kind of like get your email address and market to you and yeah that's true you want to get that but it also pairs that in-store data with your online data thereby making this kind of omni-channel approach that they can now surround you everywhere in every store in every location it's fantastically creepy yeah big brother there's a fine line oh who knows who that learning from i learned from uh i think the an nyu professor i forgot his name i i wish i gave him credit there's a fine line between creepy and relevant yes so right you know what i mean like people can trade off a little creepy if it's super relevant but that's what it is that's that's what they're doing it they pair your data in store with online and all of a sudden now they have a better kind of marketing approach to to you as a customer yeah that's fascinating you know
i think that was the last for that so why why is email and crm and sms critical right now q4 2021 starting q1 2022 and in a couple of weeks why now
yeah that's i mean that's that's the key part right why why is it like okay it's been around for a while everyone knows email everyone has you probably if you're if you're you know listening to this podcast and you're on our email list you probably already have upwards of 10 000 emails you know more so you kind of know that the channel exists but why is it critical now is probably the most important part and i think for e-commerce i think the transit to trend is like e-commerce has been blowing up ever since coven right so so that that already is reason number one why it's critical now kovit literally disrupted every possible buying pattern that we all thought right when covet happened where were you where'd you shop nobody knows anything anymore yeah we were shopping on amazon amazon got disrupted with their shipping and everything changed right no one was going out to the store anymore no one was doing anything in person everything was online everything went right online and uh the way that the way that we thought of business and shopping just completely changed even grocery took off so not something you would think but uh picking up your groceries no longer became as easy as going to the store anymore you couldn't go out so that's exactly it yeah our family was shopping at one supermarket and they loved the market and they used it we used to go in all the time you know once a week or so covert hit we can't go in he literally can't go in you know and then there was restricted hours and then yada yada and where did we pivot to we pivoted to the supermarket that had online ordering you know they had an online website and you can order pretty easily and it disrupted our traditional buying pattern i mean and then this this affected every every possible industry so so the the fact that it got disrupted means that there were kind of like um i consider like a snow globe right um like there's a snow globe shake it up here's my snowboard by the way i got my i'm gonna my office my dunder mifflin snow globe world's world's best boss according to my son which i gotta live up to not sure if i can dunder mifflin right so the world got shook up everything's shaking up it's a it's a snow globe and and pieces are still kind of falling down and you have the opportunity to grab as many of these pieces as you can by pieces i mean customers right you can grab as many as you can so what one thing we mentioned before i mentioned that you know everything everything went online and even amazon was was was affected there but from an e-commerce side what's amazon doing to your business i mean talk about that because we know that's always a challenge yeah amazon is i mean amazon obviously had positioned themselves to capture as many customers as possible they spent years if not decades right building up this kind of like we said the flywheel that allows them to capture as many customers as possible right as soon as as soon as covert hit where'd everyone go everyone ran to amazon because they number one they knew that they had a large selection they knew that was super convenient and they could get it within a day or two i'm shipping yeah and prime shipping and then they have probably the lowest prices if not even lower right they you know the lowest prices for the most part so all these things captured every single customer and then every other small business kind of just couldn't compete and even though customers expected them to compete i guess a funny story like back back at when i was working at the top one percent of one of them one of the brands there um i mean what was this how long has prime been around for seven years it's been a while yeah probably seven eight years seven years yeah i don't remember life before prime minister yeah there was no life before it exactly like what what was that life like the wait for packages prime was there and like let's say one prime came on and it was like like uh you know two day shipping it freaked every e-commerce brand out they realized oh my gosh i have to re shape my entire infrastructure to compete with two-day shipping i gotta get it out and to into my customer's hands in two days because amazon's doing it yeah um so the top brands were shaking in their boots right cost of shipping change the cost of everything changed because amazon was doing it right and customer expectations just shot through the roof and they're like well amazon gets in two days so kind of expect you to get in two days otherwise i'm not buying from you yeah i if i don't if i don't see something as being able to be delivered into two days at the most i'll go i'll go to amazon even the brand that i know and that uh you know brings up the next point of you know what are we what are these brands even doing
yeah i mean i mean a lot of the because of amazon a lot of the brands kind of like uh you know amazon is already kind of like we say we know it's a world garden and they kind of keep all their data and they keep all their customers they keep all their entire ecosystem kind of on lockdown so a lot of direct technology a lot of brands went direct to consumer they said you know we're not going to sell on amazon we're going to go straight to the consumer go from the manufacturer to the customer save them save them money fulfill faster build a better you know brand loyalty and they decide to go straight to the customer what that means for most most established businesses though is that there's a lot more competition now um if you take on top of that remember we said on the um and before which is email is a customer center channel um that these apps and a lot of directed consumer brands are literally inserting themselves between you and the customer i'll give an example right um what what's your favorite restaurant what was uh what was one of your favorite restaurants in israel or here or america
um i really liked i really liked that well i don't know yeah the teenage dog house was one of my favorite places to go when i did the doghouse yeah right there you go it's tina doghouse you probably used to order from them directly and be like you know i'll just call them up you know order you know order i guess hot dog yeah the chicken tenders in their wings really your stein chicken tenders yeah i'll get that i'll get that together
what happened there why don't we still call the dog house because that door dash inserted themselves right now
i have my options and i can just go right into the app and do it there they insert themselves in the tiny dog house lost the data they lost that relationship and now they're at the mercy of the apps and that is why it's so critical critical to own your customer and own that relationship yeah we had that with another one of our restaurant clients we we couldn't do the promotions we wanted to do because everything was on doordash and in order to make the margins right i just had to change there in order to make it up so man yeah i haven't even mentioned margins yeah oh yeah i forgot about that by the way they're taking they taking they're taking a cut right yeah so it's a nice little cut it's more than a cut it's like a slice it's a slice yeah and it's not just doordash it's then there's uber eats and then there's the grubhub and then there's this one and then this one and it's kind of death by a thousand cuts so
slices don't find a thousand slices yeah they're all for blood i mean they're great don't get me wrong i love their apps and they're very convenient but i feel bad for the small business you know they're they're really struggling to kind of compete with that oh and then they're competing against amazon too right so
what about paid how do people work with paid media well paid media i'm sure you know you're definitely the expert on the paid media side um paid media is similar to you know i'm not i'm not an economics major um but i kind of know how supply and demand works paid media the more people that i want to advertise on facebook and google the higher the prices get so your keywords and your audiences are getting pricier and pricier it's more expensive to reach them and the more money you spend on paid media just erodes your margins you know you talked about profit last time right so it just erodes how much it costs you to acquire a customer your customer acquisition costs skyrockets yeah and now now before when you were maybe maybe breaking even with trying to acquire a new customer now you may be losing money so right so any focus on that any focus on just acquiring new people all the time instead of focusing on growing the ones you have um that's just that's just not going to help you be successful now those days are over that's 80 20 right that's 80 20 yeah 80 20. there you go 80 20 rule 20 of your customers will make you 80 percent of your revenue well it's almost a fact across all e-commerce brands from what from what i've said so don't spend the money trying to get new ones focus on the ones that you have already yeah yeah i mean we still used to acquire new customers but then um focus should be on your your existing customers that's oh yeah we see i agree 100 100 all right but yeah do you want to talk about the number one reason we said we said there were six reasons isaac what's number six what's number one if you will what is the number one reason
the number one reason email sns and crm is so critical now is kind of what we said before right it actually costs 600 to 700 more to acquire customer oh then yeah quite a customer then keep a customer right so like we said it just it's it's it's much more expensive right it's just it doesn't it just becomes a lot more cost effective to just retain your existing customers there's a thirty percent chance of converting a new prospect while there's a 65 percent chance of converting an existing one 50 52 difference i'll take that yeah any time yeah yeah exactly you know it's funny because a lot of brands also just you know kind of i mean you've seen this all the time right there what are they doing they're paying google and facebook to drive leads tuesday right right and then and then what they do they say oh well a customer leaves your website just pay us more to retarget them okay both google and facebook are getting very rich
every year they're beating profit projections and they're doing it because they're getting you to buy into the fact that get leads here retarget them there and then you've got the customer which is fine that work i'm not saying it doesn't work right we use that look we use that to help customers and clients get new needs and new customers but you know ideally we want them to focus on on their existing customers why is that exactly you know existing customers trust more they convert better they grow faster much more profitable predictable it's all about trust trust is huge because you know when you're talking about personalizing you're talking about being the person on the other end you have to build that trust you have to they trust you because they bought from you already so they're going to trust you to bring a good product good service come back for more and keep coming back for more yeah and even if they don't even if you messed up on their order or they broke some trust you still have the means to to kind of still develop a good relationship with them right if you even if there's a bad breakup what are you gonna do you're still gonna text someone send them an email say hey miss you you know what are you gonna what's the alternative you gotta run a facebook ad to them come on you know you have the tools to build a relationship right when's the last time you broke up with someone right now you've been how long it's been 17 years 17 years right 15 for me so we know like it's just it's you know you just can have that relationship with someone on the one-to-one level it's better than kind of having some someone else be the messenger for you and hey can you pass this over to to my uh you know the relationship i used to have and give them this message for me right now just tell them yourself so it's about the relationship um yeah and the way you keep them is well we both know that's what we do email sms and crm email sms and crm crm builder customer relationship right awesome yeah that nailed it well done great job so that was informative i hope this helps a lot of people just really think to themselves why is it critical right now like now don't wait stop what you're doing look at your customer and say here's another fast fact that's not on the on the on this um on this list here is that 75 of e-commerce brands have 75 of e-commerce customers are one-time buyers haven't even talked about that one-time buyers they bought once they tried you out once we'll do another episode on that but we better upstart that but you got me started now so like it's there's there's so much potential like if i were you to dive into it now get that solved and then you'll be a lot better off amazing great job so that was episode one of our ecom 80 20 podcast isaac really went deep into why email and crm is critical right now don't wait get started thanks for listening i'll see you next time
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