This Email Strategy Made over $2,400,000 [STEAL IT]

Summary

In this business case study, Alex Rossi, the owner of Acquisition, details a successful email campaign that generated $2.4 million in profit within 5 days for one of his portfolio companies, Genera. Rossi explains the context, strategy, and execution of the campaign, emphasizing the importance of leveraging a large email list and the power of challenges as lead magnets. He shares insights on the value equation, the role of smart people in generating ideas, and the effectiveness of re-engaging leads through a 'quarterly cleanup' approach. The summary provides actionable takeaways for businesses to enhance their email marketing strategies.

Takeaways

• 💰 **Email Campaign Success**: A single email campaign generated $2.4 million in additional profit in 5 days for the company Genera.
• 📈 **Business Growth Strategy**: The speaker, Alex Rossi, shares step-by-step strategies to help businesses grow and potentially attract investment.
• 🔒 **Email List Utilization**: The company had a large email list but was not effectively utilizing it beyond the initial transaction, leading to a missed opportunity.
• 🚀 **Revenue Goal Achievement**: When ad performance declined, an email campaign was used as a strategy to meet quarterly revenue goals.
• 💼 **Cost-Effective Customer Acquisition**: The cost to acquire a customer via email is $0 once the lead is acquired, making it a profitable channel for repeat sales.
• 📊 **Email List Size and Engagement**: A list of 3.3 million emails was engaged with an 18% open rate and 5% click-through rate for a 7-Day Challenge promotion.
• 📈 **High Conversion Rate**: The campaign converted 8% of participants into buyers, highlighting the effectiveness of the email strategy.
• 💡 **Lead Magnets and Challenges**: A 7-Day Challenge was used as a lead magnet, which is a strong method for engaging potential customers and building trust.
• 🔑 **Value Equation**: The success of the challenge is attributed to its alignment with the value equation of outcome, risk, time, and effort.
• 📆 **Quarterly Cleanup Strategy**: It's recommended to run a conversion mechanism like the challenge every quarter to re-engage the email list and drive sales.
• 🔄 **Replicating Success**: The company plans to replicate the successful campaign, adjusting and optimizing based on the learnings from the initial tests.

Q & A

What was the additional profit generated by the email campaign in one of Alex Rossi's portfolio companies?

The email campaign generated an additional profit of $2.4 million in 5 days.

What is the primary focus of Alex Rossi's business strategy?

Alex Rossi focuses on growing businesses through various strategies, including email campaigns, with the hope of eventually investing in and further growing those businesses.

What was the main issue with the email list before the campaign in the case study?

The main issue was that the large email list was not being utilized effectively, with most of the communication limited to the initial transaction and no further engagement.

What was the size of the email list used in the Genera email campaign?

The email list size was 3.3 million emails, collected over a few years.

What was the average cost to acquire a customer for the Genera business?

The average cost to acquire a customer was $1,200.

How does Alex Rossi view the role of email in business growth?

Alex Rossi views email as a long-term investment account, where you build a list and over time it starts to compound, providing a direct and profitable relationship with customers.

What was the strategy behind the 7-Day Challenge email campaign?

The 7-Day Challenge was designed as a lead magnet to re-engage the email list and provide a clear outcome that people want, with a high likelihood of achievement in a short time frame, making it an attractive offer.

What was the open rate of the email campaign?

The open rate of the email campaign was 18%, meaning about one out of five people opened the email.

How many people registered for the 7-Day Challenge from the email campaign?

10,000 people registered for the 7-Day Challenge from the email campaign.

What was the conversion rate of the people who registered for the challenge to actual buyers?

The conversion rate from registered participants to actual buyers was about 8%.

What additional revenue came from the upsell product after the initial sale?

An additional $800,000 in revenue came from the upsell product, contributing to the total campaign revenue of $2.4 million.

What is the 'quarterly cleanup' strategy that Alex Rossi recommends for businesses?

The 'quarterly cleanup' strategy involves running a conversion mechanism, such as a challenge or lead magnet, once every quarter to re-engage the email list and generate sales, with the aim of continuously improving the campaign based on previous results.

Why is it important to test elements of the email campaign before a full rollout?

Testing elements of the email campaign before a full rollout allows businesses to identify and correct any issues, optimize the campaign for better results, and avoid overwhelming or potentially annoying the entire email list.

What is the significance of changing the 'wrapper' or presentation of the offer in subsequent campaigns?

Changing the 'wrapper' or presentation of the offer in subsequent campaigns helps to prevent offer fatigue and maintain interest, even if the core components of the offer remain the same. This can include changing the name, subject line, or theme of the campaign.

How can businesses ensure they are depositing enough goodwill to earn the right to ask for a sale?

Businesses can ensure they are depositing enough goodwill by providing value to their audience through content, helpful information, and positive interactions, in addition to making offers. The goal is to strike a balance between giving and asking.