The One Solution
In my previous two essays (ProfitXL to Profipoly: Solving the Four Funnel Frictions and Solving eCommerce’s Fifth Funnel Friction: Identifying Unknown Shoppers), I discussed the five funnel frictions faced by eCommerce companies and how they can be solved.
As I wrote: “The pervasive issue crippling many eCommerce businesses is their meagre profitability. This predicament arises chiefly from an over-reliance on acquiring new customers and an inability to fully capitalise on the lifetime value of existing ones. The consequence is a staggering $200 billion in AdWaste—half of the $400 billion spent globally on adtech each year—siphoned from the P&Ls of eCommerce companies. Therefore, the most urgent task for eCommerce firms and martech vendors is to drastically curtail this wastage, a move that would significantly augment profits and enhance business valuations…. ‘Funnel frictions’ in customer journeys are the silent assassin of profits. From unidentified customers slipping through the cracks to inefficient ad spending, these frictions create hurdles in establishing profitable relationships with consumers. They lead to disjointed customer experiences, increased costs, lower conversion rates, and ultimately, eroded profits. The ability to identify and address these frictions, therefore, is not just about improving customer experiences but also about securing a brand’s bottom line… By resolving these funnel frictions, brands can navigate the course towards building a profipoly and an enduring, great ecommerce business.”
Here is a summary of the frictions and the solutions:
The funnel frictions in question necessitate a central “pivot” or a “fulcrum” to enable effective resolution. In the same way that cloud computing has evolved to become the essential bedrock for modern business applications, or the smartphone has consolidated its position as the hub for personal computing and productivity enhancement, a pivotal solution is equally crucial in dealing with the friction points present in the customer journey and profitability realm.
This game-changing solution is embodied in the concept of Email 2.0. Far from being just another incremental update, Email 2.0 is a fundamental shift, a reimagining of one of the oldest and most reliable forms of digital communication. This redefined approach to email leverages advancements in interactivity, personalisation, and data analytics, crafting an engaging and highly efficient communication channel.
Email 2.0 is a powerful technological advancement with the potential to transform the landscape of eCommerce and serve as the pivotal point for all the proposed solutions. Its novelty is riveting, yet its absence has been a significant factor inhibiting marketers from effectively addressing the frictions plaguing customer journeys. Consequently, this has led to a growing dependency on acquiring new customers to fuel business growth, an approach that is increasingly proving to be inefficient and costly.
Email 2.0 not only enhances the interaction between brands and their customers but also shapes a richer understanding of each customer, fostering stronger, more meaningful relationships. By seamlessly integrating elements like AMP, Atomic Rewards, and Microns, Email 2.0 emerges as an omnichannel solution that tackles the barriers and navigates the journey from initial contact to purchase completion. Together, these elements make Email 2.0 the bedrock of a revolutionary approach to mitigate funnel frictions, improve customer experience, and pave the way for sustainable growth.