3 Reasons You Should Be Collecting E-mail Addresses

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Jeremy Schoemaker, founder and CEO of the ShoeMoney Blog, relates that several years ago, when somebody told him that he needed an e-mail list, he thought he was too good for it. Now looking back, he thinks his notion of being too good for an e-mail list was the dumbest thing ever.

In an episode of Landing Page Optimization, Jeremy discusses with SiteTuners CEO Tim Ash why collecting e-mail addresses is vital in growing your business.

1. E-mail addresses let you match the user intent

It’s important that you promote what your users are interested in, and for you to know that, you need to send out a survey asking your users what you can help them with. Often you think you know your audience, but their responses just might stun you.

Tim stresses that involving the voice of the customer is crucial and made easy by survey tools. If you have an e-mail list, you can send out a survey that will only take your users two minutes to complete.

Jeremy shares that when he writes about a product or a service, and he e-mails his list that great story about the benefits, he will get sign-ups and in effect earn commission. However, if he first asks his audience what they’re interested in, then write about and walk them through that, he gets ten times more people to sign up for whatever he promotes.

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2. E-mail addresses let you profile and target your visitors

When you have a user’s e-mail address, you can gather data points attributed to that address from third-party services. For example, you can obtain the person’s age, location, and interests from Facebook, and the fields they’re an expert in from LinkedIn.

Tim notes that when you do data append and match it against your e-mail list, you can build a predictive model based on the people who have responded to your past offers and identify the clusters of high value people.

Jeremy adds that you can set up these bins in a fully automated sequence based on historical results. If someone has visited a page, and you know they’re interested in something, that has statistical relevance that they’re likely to buy, so you put them in a sequence and give them more information about that product until they act.

3. E-mail addresses let you build a relationship with customers and increase your ROI

When people come to your site through an ad of a product you’re promoting, your conversion rate is bound to be low. However, if you capture the e-mail on an exit intent or pop-up by offering them something of value, you can start building a relationship with the user. This means that you entice them to go back and when they come back, they will be more likely to buy.

According to Jeremy, with email sequencing, data gathering, and product promotion, the worse your web site conversion is, the higher your ROI is going to be.

He cites a case study where they got 65 percent of paid advertising traffic (from Google PPC and Facebook PPC) to give up their e-mail address through exit intent pop-up. Of that 65 percent, they managed to convert 35 percent through e-mail. In effect, they made money where they were actually just losing money on PPC.

This is why capturing e-mail as someone is about to leave your site is important. If you don’t want to annoy your customers, test exit pop-ups with 5 percent of your traffic to see what happens.

Jeremy points out that these people are leaving anyway. If you let them leave without trying to get them signed up, you’re losing what you paid to get the customer to your site from PPC. However, if you eventually convert them through follow-up, you’ll be able to increase your PPC budget.

Tim agrees that this has a multiplicative effect because when you lower your cost-per-acquisition (CPA) number, you raise the break even amount you can pay for traffic which gets you into higher, more visible positions where disproportionally more traffic is to be had.

webmaster-radio-1.jpgListen online or download the “Creating Offers That Convert with Jeremy Schoemaker” podcast from WebmasterRadio.fm.

First Air Date: July 14, 2014