Sacred Yoga has had a hard time keeping down the costs when they generate new customers. The market is highly competitive and Sacred Yoga is in the segment for consumers who are conscious about their purchasing decisions. Their customers demand high credibility from the brand and strong incentives to make a purchase. The key to success will be to quickly build new relationships with as many customers as possible, to a very low cost.
Using saturated, traditional digital marketing was excluded, as such strategies would require more money and capital. Research says that a customer needs to see a brand at least 8 times before they make a purchase decision. This research was done before the digital revolution, and today we can at least estimate the necessary exposure to twice as many.
With increased costs on Facebook and Instagram (not to mention Adwords) and a more and more saturated audience on these channels, innovation was needed.
I talked to Erica via Zoom and asked the question:
“Erica, what open rate do you have on email today?”
“30% I think …” she replied.
“Are you absolutely sure of that?” (I didn’t want to question her answer, but these numbers would be among the highest in the world)
Erica double checked and returned to me.
“It averages 8% on average … pending between 5–12%.”
The average in all industries is 23%
So I asked the question:
“Erica, what difference would it make for Sacred if you had an open rate of 90%?”
“Well, I had sold 11 times more” (8 * 11 = 90)
– “If you sold 11 times more than you are doing today, every day for the next year … How would your life look like in a year?”
– “Erica looked at me with a tense expression and said: It would be a dream … everything would have changed”
This is exactly what I’m passionate about. Helping my clients build their business. Help them change lives. Both their own life, but also the customers they help.
To succeed with my vulgar claim of a 90% open rate, solutions that were not used before would be required. The key to keep the cost low in marketing has always been innovation. It’s all about using channels that are not yet saturated. If we look back in the history of marketing, we see that every time a new channel pops up, it is the early adopters who always are most successful.
The first national (US) television commercial was broadcasted in 1941 and cost $9. With total cumulative inflation of 1642%, this represents a cost in 2019 of $157. Considering the presumed focus the TV viewer had in 1941 compared to 2019, the company was most likely getting A LOT of value for the money.
What do you think? Was the TV viewers’ focus stronger in the beginning and when there were only a few players who used this medium, or when, in principle, every company worldwide who has the capital to advertise through the television does so?
It is always important to go your own way. It takes courage to stop checking what everyone else is doing and just be a follower. In particular, it is important to understand the history of marketing in order to make smart decisions for the future. Waiting for everyone else to take the first steps before you are doing it means that you are already too late.
We can see the same thing happen with email, Adwords, Facebook, Instagram, etc … The companies that used these platforms early were also the big winners. Check out Amazon, MWMT-Watches, Daniel Wellington, Wish, Fashion Nova, Kylie Jenner, and many others… the results they achieved with a combination of courage, innovation, and smart decisions are pure success stories.
It is usually said that marketers “destroy” everything that can be “destroyed”. Messenger is the next big platform that marketers will “destroy”. You will see more and more advertising, and there will be more and more companies that communicate with their customers through this channel.
When Instagram introduced InstaStories, what do you think was best? Give it an honest chance at as early a stage as possible when users had a hundred percent focus when they consumed the content via the channel, or enter this channel today when the speed of the users’ scrolling / swiping causes the brain not even to take in a twentieth of all information?
With Messenger, you get a room for yourself. We can compare it with a nightclub: Either you can try to talk to your customers on the dance floor… or you bring them to the VIP area. At the VIP area, it is easier to hold a conversation and get to know each other compared to the dance floor.
Inside Messenger, you have your customers’ full attention. You can guide them to engage with your messages and use psychological principles to best explain the benefits of your service or product.