I want to share some updates on what I’ve been seeing from managing my clients’ Klaviyo and Meta ads accounts, so hopefully, this will provide some actionable advice that you can test for your own brands or clients.

More emails = more revenue?

Many email marketers promote the idea that more emails generate more revenue.

Your email revenue isn’t as high as you’d like? The simple solution is to send more campaigns and set up longer flows, right?

This is an idea I’ve wholeheartedly supported for quite some time, but it comes with certain caveats.

It only applies if you’re already not sending enough emails. At a certain threshold, sending emails has diminishing returns.

Here’s how to figure out if you’re sending enough emails:

1. Create a segment of a random sample of your list

2. Divide the segment in half

3. Increase the sending volume of campaigns for one half of the segment while keeping the sending volume the same for the other half

4. Continue this holdout test for the next 30 to 60 days

If more revenue is generated from the half with the increased sending volume, in most cases, it indicates that you’re not sending enough emails.

Otherwise, it will demonstrate that more emails does not necessarily mean more revenue.

I had something similar happen with a client recently with an email list of over 1.5 million subscribers. I increased sending volume to daily emails for engaged segments, which drove significantly higher revenue.

However, when I expanded the campaigns to broader segments, the cost of sending the emails increased, but the revenue generated did not increase enough to justify the increase in cost.

So make sure you find the sweet spot for your sending volume before making conclusions on the ideal campaign frequency.

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Updates on Meta ads campaigns

In short, many of the higher spending accounts I have access to are not performing well.

Most of my smaller clients with less than $5,000 in daily ad spend have been unaffected.

For many of the accounts that are struggling, Advantage+ Shopping campaigns have been the worst performing campaigns.

On the other hand, Advantage+ audiences are working well across the board for my clients.

Great financial management = Good media buying

I recently onboarded a client that did not have a 13-week cash flow statement (to be honest, an alarming number of the brands I speak to regardless of whether they’re doing seven or multiple 8 figures in sales don’t have one).

While an income statement and cash flow statement are the bare minimum, many brands generating multiple seven figures in revenue don’t manage their financials properly.

And this actually leads to poor media buying decisions.

The client I onboarded had been working with a media buyer that was making arbitrary decisions based on a target ROAS that was not justified by the cost structure of the brand.

Once I had the brand put together a cash flow statement and a supplementary 13-week cash flow, the picture became much clearer.

We immediately understood how much the brand could spend on Meta ads and remain unprofitable on the first purchase while maintaining positive cash flow in the first 60 days.

Decisions about ROAS targets, the CAC payback period, and the daily ad spend became evident immediately.

This only became possible after putting together the 13-week cash flow statement. I encourage you to do the same regardless of the size of your business!

Email marketing video of the week

I need to do a better job of putting out more content on YouTube, but many of you on this list probably didn’t know I have a channel (mostly because I haven’t really promoted it that much).

While I work on putting together more content, check out this video on what I view as one of the most important ways to turn one-time buyers into repeat customers.

That’s all I’ve got today. I’ll be back with some more content on YouTube, the email marketing playbook, and another newsletter on upsells and how brands can effectively move into retail.

Talk soon,

Sharad

@pmktg00

Next Steps

If you own or operate an e-commerce brand generating at least $1,000,000 in annual revenue, feel free to book a call with me to discuss how we can improve your ad creatives, landing pages, and email/SMS marketing strategy.

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