The hidden $13,000 expense you're paying

And how you can cut it

Author

Milan Raviji
May 30, 2024

Hey it's Milan again.

i was talking the founder of a popular Australian E-Com brand last week, and they dropped an insane stat to me.

87% of their online customers use a 10% off code at checkout.

Let me repeat.

87%

That’s almost 9% of their total online revenue each month being lost at checkout.

Which is insane.

Now look, the brand offers 10% off to customers that opt into their email list.

And because they have a well executed email strategy, it more than makes up for the cost of acquiring those emails.

However, they make $150,000 of revenue each month so this is costing them $13,000. PER. MONTH.

If you're paying $13,000 per month for anything, you better make damn sure there's not a cheaper option.

Here's the simple solution to this brand

Test other angles on your popup that cost less. For example, 

  • Any variation that saves money - $9 / $5 / 5%

  • Test $10 instead of 10% if AOV is over $100

  • Free Gift with purchase -> if AOV is under $100

The most important thing is to test.

For example, If they test a 5% discount instead of 10%:

Worst case, email signups drop off a cliff, and they can revert back to 10% within a few days.

Best case they save $6500 per month going forward without lowering email signups. 

That's money that can be spent on ads or inventory. Better yet, the founder can take that money out as pay for themselves.

Now, I was able to help this brand with this tip, because they paid $795 for us to do an extensive audit of their email setup.

And just from this one tip they will mostly likely make back 7x the fee of the audit.

We also gave them a 50 page document outlining:

  • Specific improvements to their email flows including improvements in triggers, subject lines, copy and CTAs to increase revenue

  • Missing post-purchase automations to cross-sell existing products based on customer behaviour

  • 20 specific email ideas for specific segments which are likely to yield strong conversions based on a survey of their customers and review of their previous sends.

  • Actionable step by step plan to grow their email list by 16,000 profiles before Black Friday

  • Deliverability tests for all major email servers

As a result of this report, they will yield a 30x ROI. At The Minimum.

If you know your emails aren’t quite what they need to be, but aren’t ready to outsource emails to an external agency, you can book a call directly with me to learn more.

We're not a big agency, so we only have capacity to do this for a couple of brands, Act fast if you think you’re a fit.

Speak soon

Milan