ZHS Ecom Scaling

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We'll build you a custom email & SMS engine so you can grow your brand, recover more sales, and increase customer LTV without cookie-cutter strategies, boring emails, or overpriced agencies

12/28/2024

How we helped a brand save $24,566/mo with one tiny email software setting

Let me tell you about a brand that was hemorrhaging money without realizing it (no, it wasn't because of the founders embezzling money or poor inventory management)...

It was a tiny change we made in their email marketing software.... which was costing them thousands every month.

I saw this issue while consulting for a well-established men's jewelry ecommerce brand.

They were doing everything they could to grow their email revenue, but their flows just never seem to do as well as they should be doing (especially since they were constantly updating and replacing the old flows with better ones).

What was the issue? A critical flaw in how they swapped out their old flows with new flows.

Here's how most swap-out flows:
> They have an old flow that's live
> They create a new flow for updates
> They switch the old flow to "draft"
> They switch the new flow to "live"

Sounds logical, right?

But this simple action can crush your bottom line.

When you abruptly turn off your old flow, you're cutting off subscribers mid-sequence (people on the verge of purchasing). They stop receiving crucial follow-ups and aren't entered into the new flow.

For the brand I worked with, it was costing over $24k per month - and they had no idea.

The solution?

This is the smarter way to swap out your old flows with new ones:
> Keep the old flow live
> Set up and activate the new flow
> Add a conditional split to the old flow, filtering out new entrants
> Gradually transition subscribers to the new flow
> Only set the old flow to draft once it's empty

This method ensures a smooth transition without losing potential sales.

Is your current team or agency aware of this issue? If not, implement these changes asap.

Email marketing is a game of a thousand tiny changes that lead to massive end results. Making tiny, 30-second mistakes like this is catastrophic in the long run.

If I were starting from scratch running a brand, I would create email segments in this exact order...Email Engaged Segme...
12/28/2024

If I were starting from scratch running a brand, I would create email segments in this exact order...

Email Engaged Segments
The gold standard of email marketing. Create segments for 30, 60, 90, 120, and 180-day engaged subscribers. These are people who've opened or clicked your emails within that timeframe. Aim for about 40% open rates. It's the sweet spot between reaching more people and maintaining solid engagement.

Site Engaged Segments
Similar to email engagement, but for website activity. Track who's viewed products, added to cart, or made purchases in the last 30 to 180 days.

Engagement Tracks
Set up tracks to send more emails to highly engaged folks and fewer to the less engaged.

Email Frequency Preferences
Let subscribers choose how often they want to hear from you. It's a bit of work to set up, but it pays off in engagement.

Campaign Exclusions
Exclude people who haven't engaged in 180 days, have bounced emails, or marked you as spam.

Cross-Sell Opportunities
Identify customers who've bought product A but not B, then show them why they need both in their lives.

Purchase History Segments
0, 1, 2, 3-time purchasers, Almost-VIP, and VIPs

Win-Back Opportunities
Target those who've purchased before but haven't in 90-180 days. They're ready for a special offer to bring them back.

Suppression List
Suppress subscribers who've received 10+ emails but haven't opened or clicked in a year.

Behavioral Segments
Clicked but didn't buy, or who's interested in specific product categories. Use this info for targeted follow-ups.

Pop-up form responses
Aka people who are interested in a certain category, pain point, etc

Subscription vs. non-subscription customers

Geography

Gender (if relevant to your products)

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At this point, you might have a lot of questions. I just released a full YouTube video covering everything in way more depth

Just search up "Zach Schieffer" on YouTube.

After conducting over 100 Klaviyo audits, these are the main metrics I look at:-------------Klaviyo Attributed Revenue P...
12/28/2024

After conducting over 100 Klaviyo audits, these are the main metrics I look at:

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Klaviyo Attributed Revenue Percentage

This is that sexy number that email marketers love to boast about. It tells you how much revenue email marketing is bringing in compared to your overall revenue.

0-20%: There are major gaps in your email marketing, or your product might need improvement.
20-30%: Solid, but there's definitely room for improvement.
30-40%: This is the sweet spot. Emails are doing really well, with about a third of your revenue coming from email marketing.
40%+: Emails are crushing it. However, this might indicate a need to ramp up acquisition and get more new people into the system.

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Campaign vs. Flow Percentage

This is the split between campaigns and flows. I've seen massive fluctuations, so I don't focus too much on this unless one is severely underperforming (less than 20%).

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SMS Revenue Compared to Overall Klaviyo Revenue

We aim for 10-15% of overall Klaviyo revenue to come from SMS. If you're under 10% or don't have any SMS revenue, it's definitely an opportunity to add revenue by implementing SMS into your strategy.

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Revenue per Recipient

I don't focus much on this metric. Not every email is designed to sell, and there are many factors that can affect this number without necessarily indicating success or failure.

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Deliverability

This is crucial because it affects everything else in the account. The deliverability score combines open rate, click rate, bounce rate, unsubscribe rate, and spam complaint rates.

0-40%: Major deliverability issues
40-60%: Average, but improvements can be made
60%+: You're in a good spot

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Flow Performance

I sort flows by revenue and look at which ones are bringing in the most, a medium amount, and the least revenue. Generally, when everything is optimized, the order looks like this:

Welcome flows and abandonment flows are typically the top performers
Post-purchase flows (upsells, cross-sells, customer thank yous) are usually in the lower third
VIP flows and win-back flows are often in the middle
Quiz flows can be strong performers for certain brands
Subscription reminder flows often do well
Back-in-stock and birthday flows usually don't drive massive revenue

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Pop-ups

We look at conversion rates for pop-ups:
0-2%: Underperforming
2-3%: Solid, but room for improvement
4%+: Great
7%+: Exceptional

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Campaigns

Open Rates:
Less than 28%: Needs improvement 28-35%: Average 35-45%: Great 45%+: Awesome, but consider expanding your audience

Click Rates:
Less than 0.5%: Needs improvement 0.5-1.2%: Average 1.2%+: Great 2%+: Exceptional

Placed Order Revenue
I prefer to look at overall revenue for the month rather than focusing on individual campaign performance. Some campaigns are for nurturing, while others drive direct sales.

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24823 West 95th Terrace
Lenexa, KS
66227

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