Why is email marketing vital for you as a webshop owner?

Because an email has an average return on investment (ROI) of 44. This means every time you invest 1 Danish krone in email marketing, it returns to you 44 times.

That ROI is considerably higher with email compared to SEO and social media.

They know all about that at Heyloyalty–a place that helps businesses like Bog&Idé and Sport24 optimise their email marketing efforts. For some of their customers, 50% of earnings come from email marketing.

We talked to Heyloyalty’s marketing manager Ole Dalgas and he told us the 5 places in your email marketing where you risk losing hot leads – and how to fix them, so you get happy customers instead:


1. You don’t have enough data on your subscribers.

If you have a sign-up box for your newsletter on your website, it probably looks like this box on Bertoni.com (in Danish):Bertoni asks for only your email address to get your permission to send emails. And that’s fine, though Ole pointed out an important ‘but’:

‘Research shows that when you ask for more than name and email in the signup process, many people will choose not to sign up at all. The conversion rate drops 50% for every new piece of information the new subscriber has to enter. But you ought to get more subscriber data than name and email in order to segment your newsletters. The fact is that readers don’t mind more newsletters as long as they are relevant; for example, a beauty webshop like Matas should segment on gender so they know whether to send you an offer on Elizabeth Arden perfume or Hugo Boss deodorant.’

That’s all very well, but if you ought not to ask for more data in the signup process, how do you collect more data on your subscribers?

‘Create an automated welcome email series and ask for more data in email two or three,’ Ole recommends. ‘Use this data to segment your subscribers in groups so you can send them even more relevant information. It’s the relevance of the content that decides whether you hold the attention of your subscribers or not.’


2. Your automated welcome email series is not quite good enough.

When you get a new subscriber, make them feel welcome.

‘A welcome email is the first email you send to your new subscriber – typically, the open rate is very high – about 80–90% –so be sure to repeat your offer, e.g. a promotion code, free shipping or free returns,’ Ole recommends. ‘Your subscriber might not have remembered all the benefits you have to offer; for instance, a fun park like Djurs Sommerland has lots of benefits their season ticket customers probably don’t use because they forgot about them.’

Support your new subscriber in the choice they just made to join your email list: Give advice or special offers in the later emails in the series to entice your customers to buy from you. The amazing thing about a welcome email series is that you only have to create it once – after that, it’s all automatic and it creates customers for you while you make your coffee.


3. You forget to use Google Analytics.

Too many webshop owners don’t prioritise logging frequently into Google Analytics. According to Ole, that’s a big mistake:

‘When you’ve activated the Google Analytics code on your site, the tool collects a lot of useful information for you. It tells you what people click on and what they ignore. It also tells you how many sales are generated by the newsletter, which helps you decide how to use your marketing resources. I always tell people to use Google Analytics because you need better data on your visitors in order to set yourself realistic goals. The same is true for the statistics in your email marketing system.’

So, make it a habit to check Google Analytics regularly. If you lose yourself in the details, Ole recommends trying Google’s free Google Analytics Academy– or simply asking, ‘How do you do this?’ in your network.


4. You send too few newsletters.

Heyloyalty recently did a survey among 60 webshops and found that all of them sent relatively few newsletters. Almost half sent only one email per month. If you don’t send more emails than this – and you don’t segment either – it’s hard to create engagement and loyalty among your customers.

‘Many people are afraid of unsubscriptions,’ Ole says. ‘But people in the business say that as long as your unsubscription rate is below 5–8%, then don’t hesitate to send more emails. Don’t spam your readers with careless content. But a lot of people can handle more emails if they find them relevant – e.g. with a promotion on a product they’ve been waiting to buy.’

Send more emails than you do now. Most webshops get the best results with one email per week, or more during campaigns. Supplement with triggers that activate according to behaviour and sales.

But how do you find time to write all those newsletters?

This leads us to the fifth and final point:


5. You haven’t allocated the proper resources to email marketing.

As mentioned at the beginning of this post, email marketing (in Denmark at least) is still a relatively secret source of income considering the invested time and money.

Heyloyalty finds its customers are surprised by how much of their income is generated by email marketing – when they work strategically with their data, statistics, automation and regular newsletters.

But, you can’t do it properly if the resources aren’t there.

‘Facebook and Instagram marketing is not nearly as efficient as emails because you don’t have people’s permission to contact them,’ Ole says. ‘Emails just work – and you’re not utterly lost the moment an algorithm changes. Having subscribers on your own email list is power, so you shouldn’t scrimp money on your email marketing.’

If you don’t have the resources in-house, Ole recommends buying the service. It doesn’t have to be a big project, but the investment will make sense for most people.

‘If you have a customer who has abandoned his basket and you have permission to email him, you can send an automated email saying, ‘We’ve saved your items in the basket’. One out of 10 who receive this email end up buying. You get extra earnings and it’s not expensive to get someone to write and style this email – and it needs to be written only once – after that, it all happens automatically.’


So, if you want to convert even more leads to customers with your emails, remember:

  •      Collect data on your subscribers (in addition to name and email).
  •      Create a good welcome series and spend a lot of care on the welcome email.
  •      Keep an eye on Google Analytics.
  •      Send more newsletters than you probably do at this moment.
  •      Allocate sufficient resources to your email marketing – or buy the help you need.

Last but not least, make sure you have your subscribers’ content and know your GDPR. It can be expensive not to.