Where is the money? In the list or sales.

Have they said that the money is in the list?

The phrase “the money is in the list” is a common statement in marketing that refers to the idea that the most valuable asset a business can have is a quality email list. Please note the word ‘quality’. An email list is a collection of email addresses from individuals who have opted in to receive marketing communications from a business. These individuals are typically interested in the business’s products or services and have given permission for the business to contact them via email. The idea behind the phrase is that a quality email list can provide a direct line of communication with potential customers, allowing businesses to promote their products or services, increase brand awareness, and ultimately drive sales. Especially when you consider that this is an owned asset.

The debate over whether the money is in the list or in the sale is a longstanding one in the world of marketing. On one hand, proponents of list building argue that having a quality email list is essential for businesses to connect with their audience, build brand awareness, and ultimately drive sales. They argue that by focusing on list building and nurturing relationships with potential customers, businesses can create a loyal customer base that will generate revenue over the long-term. On the other hand, some marketers argue that the real money is in making sales directly. They argue that businesses should focus on creating high-quality products or services and promoting them directly to potential customers, rather than relying on email marketing to drive sales.

My thoughts here will be to explore the relationship between list building and sales and to understand whether list building is still relevant in today’s digital landscape. While the debate over whether the money is in the list or in the sale has raged on for years, my experience is that both list building and direct sales have their place in modern marketing. By exploring the ways in which these two strategies can work together to drive revenue and growth, we can gain a better understanding of how businesses can succeed in today’s competitive marketplace. Ultimately, my goal is to provide insight into the role that list building plays in modern marketing and to help businesses determine the best approach for their unique needs and goals.

Let’s start by exploring why list building is important.

Having a quality email list is essential for businesses looking to connect with potential customers and drive revenue. An email list is a direct line of communication between a business and its audience, allowing for personalized and targeted marketing efforts that can lead to increased engagement and sales, especially when you consider that it cuts through the noise at a relatively low cost. Email marketing has been shown to have a higher return on investment than other marketing channels, making it an effective tool for businesses of all sizes.

By building an email list, businesses can create a loyal customer base that is engaged with their brand and products. This not only drives sales in the short term but can also lead to long-term growth and success. By providing value to subscribers through informative and engaging content, businesses can foster a relationship of trust with their audience, creating a loyal following that will generate revenue over time.

One outstanding benefit of having a quality email list is the ability to segment subscribers based on their interests and behaviors. This allows businesses to create targeted campaigns that are tailored to each subscriber’s needs and preferences, increasing the chances of engagement and conversion. Email lists also provide a direct channel for customer feedback and communication, allowing businesses to gather valuable insights and respond to customer needs in real-time.

Another benefit of email lists is that they provide a measurable way to track marketing success. By analyzing open and click-through rates, businesses can determine the effectiveness of their campaigns and make data-driven decisions to improve engagement and conversion rates. Email marketing also allows businesses to retarget potential customers who have not yet made a purchase, this increases the chances of conversion and reducing the cost of acquisition.

In case you want to build an email list right away.

There are several ways to build an email list, including through website opt-ins, lead magnets, social media campaigns, and events. Website opt-ins involve offering website visitors the opportunity to subscribe to a business’s email list in exchange for exclusive content or offers. Lead magnets, such as e-books or whitepapers, are valuable resources that businesses can offer in exchange for email addresses. A free product is on such lead magnets that can be irresistible- when you can afford it. Social media campaigns can be used to promote email list sign-ups and drive traffic to landing pages, while events can provide opportunities for businesses to collect email addresses in person.

Though building an email list is important, it’s also important to ensure that subscribers have opted in to receive marketing communications. We should also provide valuable and engaging content to subscribers to maintain their interest and engagement. By focusing on building a quality email list, businesses can create a loyal customer base that is engaged with their brand and products, ultimately driving revenue and growth- I know I have said that before, it is just that important.

‘So, what happens with the direct selling and all the sales process?’ I am glad you asked.

Let me try to capture this by explaining the sales process. The sales process refers to the steps a business takes to turn a potential customer into a paying customer. This process typically involves several stages, including prospecting, qualifying, presenting, handling objections, closing, and follow-up. This is a typical process for B2B, some of these steps may be missing in DTC though. The goal of the sales process is to build a relationship of trust with the customer, understand their needs and preferences, and offer them a product or service that meets those needs. Did you notice I am also pointing out building relationships with customers?

The sales process can vary depending on the type of product or service being sold and the customer’s preferences. Some customers may prefer a more hands-on approach, while others may prefer a more self-service model. Understanding the customer’s preferences and adapting the sales process to meet those preferences can lead to increased engagement and conversion rates.

Understanding the customer’s needs is critical to the sales process. By listening to the customer and asking questions to understand their pain points and preferences, businesses can tailor their offering to meet those needs. This not only increases the chances of a successful sale but also leads to a more positive customer experience.

Failing to understand customer needs can lead to a mismatch between the product or service being offered and the customer’s expectations. This can lead to decreased engagement and conversion rates, as well as negative reviews and feedback. By taking the time to understand customer needs and preferences, businesses can build a relationship of trust with their audience and ultimately drive revenue and growth.

There are several strategies businesses can use to sell effectively, including building rapport with the customer, using effective communication skills, and offering value-added services. Building rapport involves creating a connection with the customer, listening to their needs and preferences, and demonstrating empathy and understanding. Effective communication skills, such as active listening and clear and concise language, are also critical to the sales process. By effectively communicating the benefits of a product or service and addressing any objections or concerns the customer may have, businesses can increase the chances of a successful sale. Finally, offering value-added services can set businesses apart from their competitors and increase the perceived value of the product or service being offered. This can include offering free trials or samples, providing educational resources, or offering personalized support and guidance.

Understanding the sales process and customer needs and implementing effective selling strategies are critical to driving revenue and growth for businesses. By focusing on building relationships of trust with customers and offering products or services that meet their needs and preferences, businesses can sell effectively and ultimately succeed in the marketplace.

If both processes here places emphasis on building quality relationships with customers to understand their needs, then it seems it is a matter of two sides to one coin. Well, maybe a little more than that.

So, what’s the third side of the coin?

Having a quality email list can significantly improve sales for businesses. By building a list of engaged and interested subscribers, businesses have a targeted audience to market their products or services to. These subscribers have already shown interest in the business, and with the right messaging, can be more easily persuaded to make a purchase. In addition, email marketing has been shown to have a high return on investment (ROI). According to a study by Campaign Monitor, for every dollar spent on email marketing, the average ROI is $44. This is because email marketing allows businesses to reach their audience directly and with personalized, relevant, and timely messaging, leading to increased engagement and conversions.

With an open mind, there are several ways you can leverage your email list for sales, including sending targeted campaigns, offering exclusive promotions, and using email automation- This is another topic entirely, in the ChatGPT age. Targeted campaigns involve segmenting the email list based on factors such as past purchases, engagement, and interests, and sending tailored messaging to each segment and considering what part of the whole buyer’s funnel is a segment therefore, sending relevant information based on the customer journey next steps.

Offering exclusive promotions to email subscribers can also be an effective way to drive sales. By providing a discount or other incentive, businesses can encourage subscribers to make a purchase while also building a sense of exclusivity and loyalty among their email lists. Again, email automation allows businesses to set up a series of automated emails to be sent to subscribers based on certain triggers or actions. This can include welcome emails, abandoned cart emails, and post-purchase follow-ups, all of which can help increase engagement and conversions.

Let me try and share a few examples here, it may be relevant and helpful. Clothing brand ASOS offers exclusive promotions and early access to sales to its email subscribers. Another example is Amazon, which uses targeted email campaigns and personalized recommendations to drive sales among its vast customer base. In the food industry, meal kit delivery service Blue Apron uses email automation to send recipe ideas and tips to its subscribers, encouraging them to purchase additional meal kits. And beauty brand Glossier has built a loyal following by offering exclusive product launches and promotions to its email list, creating a sense of community and exclusivity among its subscribers.

What is your brand? And why do you think building and using a quality list will not impact your business? The connection between list building and selling is a powerful one, and businesses that leverage their email list for sales can significantly improve their revenue and growth. By focusing on building a quality email list of engaged subscribers and using targeted campaigns, exclusive promotions, and email automation, you can create a direct line of communication with their audience and increase engagement and conversions- increase everything your business stands for, impact and income.

Where will you stand in between this. A balance or a shift or confused?

Finding the right balance between list building and selling directly is crucial for the success of any business. While building a quality email list is important for reaching and engaging with a targeted audience, ultimately, the end goal is to drive sales and revenue. However, businesses that focus solely on selling without building a relationship with their audience risk coming off as spammy and turning potential customers away. This is apart from the heavy cost of acquisition that most businesses are talking about just because they don’t know that they pushed up the cost by making their funnel do a heavy duty lifting- most time they have unintended funnel- if you know what that means.

Anyway, if you focus solely on list building without trying to convert subscribers into customers you may have a large audience but will not see a return on investment. Therefore, finding the right balance between list building and selling is important for building a sustainable and profitable business. Both systems focused on the bottom line, and from my experience, sales without a proper customer relation are tough and costlier, while list building without a proper funnel is time consuming without returns.

To balance list building and selling effectively, businesses should focus on building a relationship with their subscribers while also providing value and promoting their products or services. This can involve sending targeted campaigns that provide useful information or insights to subscribers, in addition to promotional messaging.

Besides, the two is to focus on quality over quantity. While having a large email list may seem impressive, it’s more important to have engaged and interested subscribers who are more likely to convert into customers. This involves regularly cleaning up the email list and removing inactive subscribers or those who have never engaged with the business. Selling also for a one-off sale leaves a lot of money on the table as we have discovered that AOV and CLTV is built on relevance and proper customer understanding.

How do I know if I succeed with this amalgamation?

Measuring success when it comes to balancing list building and selling can involve tracking metrics such as open rates, click-through rates, and conversion rates. Open rates and click-through rates can provide insights into the effectiveness of email campaigns, while conversion rates can help businesses understand how well they are converting subscribers into customers.

Another strategy for measuring success is to track customer retention rates, as this can provide insights into the long-term success of the business. A high customer retention rate indicates that the business is not only effectively balancing list building and selling, but also providing a positive customer experience that keeps customers coming back.

If these data provide better CLTV, higher AOV, and reduced CAC then profit is inevitable.

Let’s round this off in this note.

We explored the importance of having a quality email list and ways to build one, as well as the sales process and strategies for effective selling. We also looked at how a quality email list can improve sales, ways to leverage the email list for sales, and successful businesses that have used this strategy.

It’s important to note that businesses need to find the right balance between list building and selling directly to achieve success. While building a quality email list is important for reaching and engaging with a targeted audience, ultimately, the end goal is to drive sales and revenue. By focusing on building a relationship with subscribers, providing value, and promoting products or services in a targeted and strategic way, businesses can effectively balance list building and selling.

Obviously, both list building and selling directly are important for the success of any business. By finding the right balance between the two, businesses can drive revenue and growth. Therefore, you should focus on building a quality email list while also trying to convert subscribers into customers. In doing so, you can effectively leverage the power of list building and selling to achieve success in today’s competitive market.