Last week in talking about the importance of email I said that you could make $28.60 per subscriber year after year! See the blog post here to review.
I was talking to a massage therapist who generous enough to share some information with me. We worked through the numbers together and that’s how much we calculated he made from each person on the email list – $28.60! At least, that’s the direct benefit. The actual value may be much higher. Let’s look at where those numbers comes from…
This therapist has a clinic with multiple therapists. Collecting emails is an important function of the clinic website. On the top of each page is a request for their email. There is a line that simply says, “For online discounts, join our mailing list.” Then there is a little box where people can place their email address.
There are now about 1500 people on the email list. Each week they get a coupon.
I signed up and the coupon that I got yesterday offered $10 off a massage of one hour or longer on certain days and times – these are the slow times in the clinic when therapists would otherwise be waiting around for clients.
Amazingly, 15 to 20 coupons are redeemed each week. Now if I’m conservative and assume that only 15 are redeemed and then do some calculations based on current fees, I estimate that the revenue from people that redeem coupons adds about $42,900 to yearly sales. Given that there are about 1500 subscribers to the list, that means $28.60 in sales per subscriber.
Yes, it’s true that the clinic loses $10 for each of these treatments, but they more than make up for that in pure volume. (Think McDonald’s “would you like fries with that” Value Meals: The package of items is cheaper than if they were sold individually, but the increased volume of sales for McDonald’s increases dramatically.)
But that’s not all…
That’s the direct benefit, but there’s more to the story…
This particular approach moves people from the busy times of the week to the slower times. This helps ensure that the sales aren’t lost simply because the favorite treatment times are all filled up and ensures a steady client flow throughout the entire day, including what are typically slow times.
These people may not have otherwise come in and they are likely to book additional appointments at full fee, buy gift certificates or refer people they know. All of this means more sales.
And the benefit doesn’t stop there. The email is a reminder to the other 1480 on the list who don’t use the coupon. Many of these people may come in at other times of the week as a result of the reminder, even if they never open the email. Simply looking at the subject header jogs their memory and reminds them that it’s time to come in. Seeing your name may even prompt them to refer others.
Are you starting to see the value?
What does this all mean for you?
Let’s translate these results to a more modest practice so that you can see the possible benefit for yourself. We’ll assume that you have a humble list of only 100 subscribers. At $28.60 per subscriber, that means an additional $2,860 in sales for you each year. You could probably take a nice little vacation with that money, couldn’t you?
However, the average full time massage therapist typically has about 200 to 300 active client files. Get those people on your email list and you could be looking at $5,000 to $7,500 in additional sales over the year.
“An average therapists working full time could expect to increase sales by over $5,000 per year by using email effectively.”
Let’s also look at this marketing tool from a Return On Investment (ROI) perspective for a small list of 100 subscribers. (If you’ve taken any BodyworkBiz course, you know by now that ROI is always the key criteria in determining any marketing we do. You are measuring your ROI for your various marketing efforts, aren’t you?)
At a maximum cost of $25 per month for an email service (and with a small list like this, it can really be done at no cost) you’re making $9.53 for every dollar you spend on email marketing. That’s a ROI of almost 1,000%. Try to get that kind of return on the stock market!
My message to you: Don’t underestimate the power of the humble little email.
I’ll be back next week to continue this series and to give you some specific how to’s and recommendations for creating an email list and getting subscribers. And I’ll point you to some great email services that are absolutely free! Stay tuned and keep your eye on your inbox for an email from “Eric Brown, BodyworkBiz”
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