This video clip and those following are taken from CLVboost Founder Dan Faggella’s startup marketing presentation for #BostonGrowthHackers at the Microsoft New England Research & Development Center. The strategies are break-down techniques that Dan models from billion-dollar companies, like L.L. Bean and HubSpot, that can be applied to your own business models.
Email List Sub-Segmentation to Encourage Engagement, Purchases, AppointmentsThe “Red Button” analogy. I’ve spoken about this topic on guest podcasts before, and for good reason. This phenomenon happens every month with new startups who are still experiencing those moments of fear and uncertainty. As they survey and line up their gathered prospects and customers, getting ready to send out a weekly or monthly newsletter, they react and slam the red button that pushes out an email to everyone, all at once. This approach doesn’t make someone a “bad” person, but it certainly doesn’t have a whole lot of thought behind its impetus -no real explicit ROI-yielding strategy and no segmentation, more of a “we’re still alive” effort. I’ve used different sized and colored boxes to represent various customer segments. Step away from the red button and avoid the broad sweep. Target your emails based on customer segment. A quick review on two main ways to parse through customer leads:
- Selection Parsing (What they pick)
- Contextual Parsing (Where they enter)
Collecting Extra Data for More Targeted Marketing MessagesGet more data, sell more stuff. I call it the “Second Helpings” approach. The best time to get more data is right after you’ve gotten a first batch of data. After you’re given purchase information and a customer email address, think about what else you want to know about a particular customer subset. A good way to get this extra bit of information is to give the customer ‘just a little more’. For example, take a sports company that specializes in working with players on mental confidence by selling information products. That company might want to know what it is that makes a player nervous. Is it trying new techniques? Playing outside of a hometown? If you can offer an additional product or service (thank you pages are also a model option) with a clear bonus, then you’re in a good place to increase conversion and get that hearty second helping of customer data. Check out HubSpot as a good example of a company that does this routinely. [video_player type=”youtube” youtube_force_hd=”hd720″ width=”640″ height=”360″ align=”center” margin_top=”10″ margin_bottom=”20″ border_size=”4″ border_color=”#DDDDDD”]aHR0cHM6Ly93d3cueW91dHViZS5jb20vd2F0Y2g/dj1BZjlUM0tTcF90dw==[/video_player]
Segmenting “Newsletter” Emails for Higher ROIOpen rates can go way up when you send newsletter emails to segmented customer lists. Simple segmentation can double your results. We call this the “Fork and Multiply” strategy. Envision a company selling skills-based services that has a client base primarily composed of media agencies, content creators, and entrepreneurs. If that company sends ‘best crowdfunding practices’ as a mass email subject line, they might get an 8% open rate on a 3,000 open list, resulting in 240 opens and 12 buyers at a 20% conversion rate. This is a decent scenario. But if that company takes four extra minutes to parse lists on the front-end by looking at easily-collected data (surveys, front end, etc. – still anxious about this step? Inc. published a good, quick read on how to collect data and keep customers), and then makes targeted broadcasts, the total amount of buyers doubles (assuming the same open and buy rates). Using the same email content (give or take a few minor alterations), entrepreneurs get a specific subject line and call-to-action that appeals to entrepreneurs, and the same goes for the media agencies, and the content creators – same email, but targeted approach. A company that gets a ‘little bump’ in each sub-segment can witness drastically higher open rates. Maybe this still seems relatively small based on one campaign, but using the same list and same routine each month, a company is almost guaranteed more revenue by end of year, which is the better bottom line. I hope the ideas in this presentation were helpful and that you’re able to take the strategies discussed and apply them right away with great results!
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