The effectiveness of email marketing directly depends on the quality of the database that the company uses to send emails. Using Solo Ads you can develop your internet marketing business and make money. For example, Udimi is on of the best Solo Ads platforms where you can get a quality email list.
The more engaged and active the audience receives your emails, the higher the conversion rate and better the return on email marketing are. Email lists are a useful online advertising tool that allows you to achieve various commercial goals, such as increasing brand awareness and the number of conversions.
If you are a novice Solo Ads buyer and think that using Solo Ads and buying cheap clicks will convert these leads into sales, this is not the case. It is better to get started with finding list owners who are directly involved in the sale of their own products. You need to select a email list where email subscribers will be interested in what you offer. A landing page also plays an important role in the process of attracting of subscribers. A successful landing page can increase the effectiveness of any advertising campaign and increase sales several times.
It is suggested to use RFM analysis as the basis of the mailing strategy. It will prevent you from making a mistake in choosing what the subscriber wants to see in your email. According to the Pareto principle, only 20% of the customers are 80% valuable to the company.
RFM analysis is the analysis of the customer database based on the purchase history. It includes three indicators:
If you sell a product that costs, for example, $500, it is more reasonable to buy Solo Ads from list owners whose subscribers spend $500 to buy the product than those who spend only $10. The smaller the difference between the price of the product you offer and the amount of money that the buyers on the list are used to spending, the more it fits you and the more likely you are to make money.
As a result of RFM analysis, groups of the most loyal and profitable customers and the most inactive ones are found. Based on RFM analysis you can build communications in such a way as to encourage customers to move from one group to another, retain them, and motivate them to repeat purchases.
The RFM approach can be used in any business, regardless of the direction of activity, and it has the greatest visibility if the email lists contain more than 10,000 email addresses. The main advantage of this approach is the simplicity and visibility of segmentation.
For this type of customer analysis, you need to get started with data collection. The period of taking data depends on the specifics of the business. As a rule, they collect information for the previous year. The following indicators are used as customer data:
RFM analysis can be done using pivot tables in Excel, or even in Google Tables.
The essence of RFM analysis is that you divide all customers into groups depending on how long ago they made the last purchase, how often they bought, how large the amount of their orders was. For each of these attributes, you distinguish three equal groups. Then you assign each group a numeric designation from 1 to 3.
By order prescription:
By frequency of purchases:
By amount of purchases:
However, it is easier and faster to implement automatic data collection and analytics tools. Instead of 3 groups , it divides customers into 5 groups, which allows you to more accurately divide customers.
RFM analysis is great for various types of business: online, retail, direct marketing, and so on. This tool can be used by marketers, commercial directors, and company managers. RFM works well with other customer analysis tools.
No matter how accessible the RFM method may seem, it is not a universal tool for working with the customer base, and you can see this in the above.
The data about each client is saved in the site's order history. There you can see what, when, and at what price the purchase was. To perform segmentation all the customers need to be divided into 5 categories, where the most recent ones will be in category number five, and the oldest ones will be in category number one. It is important to choose the right period for the calculation. For example, you can take an annual period and divide it into quarters.
In each business sector the concept of "purchase" has its own time limits. Segmentation is carried out according to the above-described principle of dividing into 5 groups. In group number 5 clients buy most often, and representatives of group number 1 buy less often than all the others. But here you need to understand that there is a category of buyers who have a short history of cooperation. For example, they made a purchase yesterday. According to the statute of limitations such a buyer falls into the category 5, and according to the frequency criterion - in the category 1. Hence, it is clear that the category of buyers who made a purchase only once, regardless of the statute of limitations, will be the largest. The frequency range is set by the optimizer based on its available statistics. The number of groups is usually from 5 to 10. If a group turns out to be very small, there is no point in considering it separately. It is more logical to add it to a larger segment. Therefore, it is obvious that the highest level of response will be in the fifth group.
The amount of customers' purchases is the most important criterion in their segmentation. Customers whose purchases will be minimal will fall into the first group. The customers from the first group can buy more often, but their receipt is smaller. Their financial capabilities or needs allow them to make purchases more often, but for a small amount. This data is a great way to determine which product to offer and to whom.
Having up to-date customer information is an important component of business development when you use Solo Ads. The better a company represents its real and potential audience, the more effectively you can use various tools to promote products and services. To understand how much you can increase sales, perform a customer analysis. Evaluate the volume of your company's purchases and your competitors' one.
If the information in the customer database is not relevant, it leads to negative consequences for the business. If the information about the phone number is incorrect, the company will lose contact with the customer and won't be able to offer the services that might be of interest to him. Inaccurate data about the client's place of residence allows you to take into account the geographical principle of offering services based on location. The information about customer preferences, their requests, and services that interest them is equally important. It helps you report promotions on time and offer the services and products that are most likely to interest them.
After the segmentation of the company's customers, you can consider a strategy of interaction with each of the target segment. For example, you can provide new active customers with the support at initial stage. If a new customer buys again he falls into the segment of "active perspective" client. They are already offered membership and loyalty programs. A well-thought-out strategy of interaction with each client increases the probability of a purchase.
Thus, working with clients can go in only two directions: attracting new customers and retaining regular ones. Segmenting the market and identifying the more promising groups allows you to act purposefully, focusing email marketing efforts on those people who are most likely to become reliable partners of the company.
It is necessary to increase the effectiveness of advertising campaigns to attract new customers. Different clients are interested in different benefits. It is inefficient to attract all potential customers with the same offers and discounts. Find out the detailed needs and characteristics of your audience and adjust your ads based on it.
Also, it is encouraged to work with the clients. In B2B and B2C companies with a high average receipt, where individual and personalized work with the client is vital, it does not make sense to "torment" all customers in a row and offer them the same thing. There is no point to offer the loyal customers discounts and reduce margins. For the customers who are about to leave, you need to make the best offers and provide increased attention. Your goal is to develop and rapidly improve their customer experience. Lost customers should be recovered. You should study their purchase history, and offer only what they might truly like.
It is better to start remarketing. You can launch a remarketing ad campaign for specific groups of customers to "catch up" with them on other sites and social networks. For example, you can upload data about those who bought a certain group of products and have not been active for a long time to the advertising system and set up impressions of suitable ads. This is a great way to increase your conversion rate and earn money by making more relevant offers to those who have previously purchased specific products or services from you.
You should develop and launch email campaigns. The main advantage of email marketing is that with the help of newsletters, you can make an individual offer to a specific client at the right time. By selecting a group of customers who, for example, were "lost", you can dig deeper and segment them by sales history, location, and other parameters. As a result, you will be able to send only those offers that are most likely to be of interest to the company.
Thus, don't hesitate to use Solo Ads. If you want to be successful in internet marketing business and make money using Solo Ads, you need to track actions that occur inside and outside of email newsletters. How many clicks on your page led to a real purchase? What is the total amount of money received from a single email? These are the types of questions that will serve as indicators of the correctness of your choice regarding the email list and your strategy.