Summary
Here is an executive summary of the Email 2.0 pitch.
The Problem
- 90% of marketing budgets are being used up for new customer acquisition, leaving only 10% for existing customers
- Marketers are increasingly worried about rising CAC and limited customer data
- AdWaste is the unstated problem – reacquisition and wrong acquisition. Half of the marketing budgets are being wasted.
- The rising CAC is forcing marketers down a doom loop of ad spending
- The adtech spends are being further impacted by changes in privacy rules and the limits being put on the use of cookies
- Marketers need a way out because their department has become a cost centre and loss leader
- Every CEO needs to be concerned about AdWaste because it has a direct bearing on profitability
The Real Problem
- To solve the problem there needs to be a better understanding of the problem
- The real issue is Attention Recession – the lack of a hotline to existing customers
- Customers are ignoring push messages, and thus brands lack an effective way to bring them back to the website or app
- Attention Recession causes Retention Recession leading to Customer Churn
- This forces brands down the spending path of new customer acquisition
- The path to cutting AdWaste and increasing profitability therefore lies in solving the problem of Attention Recession
The Solution
- What brands need and have failed to do is to build a hotline to their existing customers
- Push messaging is the only way to do this; email remains the most effective push channel
- But email has not evolved and is not seen as cool, leading to 90% ignore rates in messages
- This is where Email 2.0 comes in, with its five innovations of Hooked Score, AMP, Ems, Atomic Rewards and Progency
- Hooked Score offers a new metric to measure stickiness, streaks and engagement intensity
- AMP makes emails interactive and infinitely more engaging; it also enables easier collection of zero-party data
- Ems increases mental availability of the brand by making emails a utility and daily habit for customers
- Atomic Rewards gamifies emails, offering micro-incentives and nudges for the behaviour marketers want
- Progency is the next-gen agency that can make it all happen with a pay-for-performance model
- Together, they have the ability to drive attention, engagement and habit creation
- Email 2.0 creates the pipe; a hotline to existing customers
- This is what ensures that the brand’s messages get through to their existing customers
- This in turn drives higher revenues from the existing base and enables reduction of spending on new acquisition
- A 20% increase in revenues combined with a 50% decrease in ad spends can drive a doubling profits for brands (or convert losses into profits)
- Email 2.0 thus needs to become a CEO priority; it is the only path to profitable growth
- Email 2.0 can make CMOs the heroes their company needs: profit creators not profit killers!
