The real money is in your database...not just SEO/SEM

Keep up with the very latest developments in the digital marketing world

By Guy Levine
on 30/3/10

Most of our clients are obsessed with driving new traffic to their website, and rightly so. After working with a cutting edge Digital Marketing Agency like ourselves, they will know the conversion rate of their site, even the conversion rate of brand traffic versus keyword traffic, and know that if the conversion rate is 5%, then every 100 people equals 5 more sales.

However, many will overlook the power of email. At my last check the DMA valued an email address in someone’s database at just over £9. When I share this fact, many of our clients are surprised. This is mainly due to the fact they don’t actively email market.

Let’s take a look at a traditional web based sales funnel.

  1. Start with traffic. This stage is about driving people to the website who could or could not be totally relevant yet.
  2. Turn them into visitors. This is someone who does not bounce straight away and is the first filter in seeing if the traffic is relevant.
  3. Engage them. This is someone who is actively looking around the site, adding shopping to a based or watching a video
  4. The sale. This is someone who is now completely filtered as far as a website can go, they are filling in a contact form, checking out or about to pick up the phone.

In an optimised sales funnel as seen below, there is one more sector. This is the resale sector. This is what happens when you take a customer and keep them engaged by keeping in contact via email.

A great example of this arrived in my inbox this morning from online sporting retailer Wiggle. ‘Come back to Wiggle and I’ll give you £5 off.’

They have spent money both online and offline to get me to buy my first item. I now trust them. So they are capitalising and giving me an incentive to do so. See how they even kindly tell me I can pass it onto a friend! How nice of them. They know as a keen cyclist I will probably be having the sexy kit conversation. Are they hoping a will say to a friend "wait, don't buy it yet...I have a £5 voucher from Wiggle." They should be and probably are, and good for them!

Im going on a rant now, but email does cost, and if certain companies have their wicked little way, it will have true pricing attached, but would you mind paying to send this email out? Not when it will make more than it costs to send it!

Can you see how my email address is now worth £9?