Built Online Podcast Episode 83: From Emails to Sales - Mastering the Customer Journey with Nikita Vakhrushev

Release Date: January 6, 2025
Host: Cody McGuffey
Guest: Nikita Vakhrushev, Founder of Aspect Agency

Introduction

In Episode 83 of the Built Online Podcast, host Cody McGuffey welcomes Nikita Vakhrushev, an expert in email and SMS marketing, to discuss effective strategies for mastering the customer journey. Sponsored by EverBee, the podcast delves into actionable insights that e-commerce entrepreneurs can leverage to enhance their online businesses.

The Underrated Power of Email and SMS Marketing

[00:00 - 04:17]

• Nikita Vakhrushev emphasizes the critical role of email and SMS marketing in driving sales. He shares a practical example of embedding coupon codes within email links to streamline the purchase process:
  “...when you click on the button of like redeem my discount or whatever it is, the link that they click on has the coupon code embedded in the URL, so it streamlines the purchase.” [00:00]

• Cody McGuffey echoes Nikita's sentiments, reflecting on his early skepticism about email marketing's relevance:
  “I remember when I first started my E-commerce journey years and years ago, I was literally typing in, is email marketing dead?” [02:14]

• Despite perceptions, Nikita asserts that email remains a powerful tool, capable of generating 25-35% of a brand's monthly revenue:
  “...our clients on average are getting anywhere between like 25 to 35% of their revenue from email on a monthly basis.” [04:17]

Email Marketing Strategies: Campaigns vs. Automations

[05:02 - 13:13]

• Nikita breaks down the two primary components of email marketing:

  • Campaigns: One-off sends for product launches, sales, or company updates, comparable to publishing a YouTube video.
    “So like if you're doing a product launch or if you're doing a sale or a company wide update, that's when you send out campaigns.” [05:07]

  • Automations: Triggered emails based on user actions, such as subscribing to a list or abandoning a cart. Examples include welcome series, abandoned cart follow-ups, post-purchase nurturing, and win-back flows.
    “Welcome automation is the one that completely like introduces your brand and sort of nurtures any new subscribers...” [05:07]

Structuring an Effective Welcome Email Series

[07:08 - 19:02]

• Pop-Up Incentives: Effective pop-ups can capture 5-10% of website visitors' emails and 70% of their SMS numbers.
  “If you get a really, really good pop up, 5 to 10%, meaning 5 to 10 out of a hundred people that visit your website will opt into your email list.” [08:11]

• Welcome Flow Example:

  1. Email 1: Deliver the promised incentive (e.g., discount code) and introduce the brand.
     “...have that most important information above the fold.” [12:58]
  2. Emails 2-4: Dive deeper into the brand's history, core values, and unique processes.
     “...telling the brand story so that people can see like, oh, these guys are legit.” [14:21]
  3. Email 5-6: Initiate sales-focused emails, targeting subscribers who have not yet made a purchase.
     “Your clients do as well is they actually create that... they're more likely to buy from those two one to two sale emails towards the end.” [07:55]

Best Practices for Effective Email Campaigns

[19:02 - 30:59]

• Above the Fold: Ensure critical information, such as the discount code and call-to-action (CTA), is visible without scrolling.
  “Have all the most important information there... the call to action is within sight for whenever you open up your email.” [28:07]

• Personalization: Use personalized subject lines to increase open rates.
  “One thing you could do is just add personalization. It's like, you know, hey Cody, welcome to dad mug co.” [24:45]

• Image Optimization: Compress images to under 100KB for faster loading and use alt text for better accessibility.
  “Try to keep all of your images under a hundred kilobytes or less.” [32:31]

• Embedded Coupon Codes: Link coupon codes within CTAs to prevent drop-offs during the purchase process.
  “...the link that they click on has the coupon code embedded in the URL, so it streamlines the purchase.” [29:46]

Metrics and Benchmarks in Email Marketing

[30:59 - 33:29]

• Open Rates:

  • Welcome Flow: 60-80%
    “The first email that they get is usually anywhere between 60 to 80% open rate.” [24:02]
  • Subsequent Emails: Average drops to 50%.
    “...it averages out at about 50%.” [24:27]

• Click-Through Rates (CTR):

  • Welcome Flow: 5-7%
    “At least half the people that you send the email out to will open up that email and they'll skim through it... click through is anywhere between like 5 to 7%.” [25:59]
  • Industry Standard: Approximately 2%.
    “Yes, 2% is the industry standard.” [26:04]

• Order Rates:

  • Welcome Series: 5-10%
    “5 to 10% depending on the specific product that you're ordering.” [31:03]

• Nikita's Example: For 1,000 subscribers, an 80% open rate translates to 800 opens, with a 10% order rate resulting in 80 purchases. If the Average Order Value (AOV) is $50, that's an additional $4,000 in revenue.

The Value of Email Marketing for Businesses

[33:29 - 36:02]

• Revenue Potential:

  • Nikita advises that even minimally implemented email strategies can generate at least 10% of current monthly revenue.
    “At least 10% of whatever you're making right now per month could be generated through email.” [33:48]

• Scalability for Startups:

  • For businesses earning $10,000-$20,000 monthly, email marketing can provide crucial additional revenue streams essential for growth and sustainability.
    “Whether it's one welcome email, one abandoned checkout email, one post purchase email, one win back email, whatever that is. Just start slow and then start building up on that...” [34:41]

Discussion on Entrepreneurship

[36:02 - 46:48]

• Favorite Business Book:

  • Nikita cites "48 Laws of Power" by Robert Greene as his favorite business book.
    “48 Laws of Power.” [36:51]

• Key Lessons and Insights:

  • The importance of sales above all in business.
    “Sales is the only thing that's important.” [37:03]

  • Worst advice encountered:

    • Nikita mentions being advised to "go back to school" by his father, preferring conferences for networking instead.
      “I think go back to school... I can just go to a conference and make more connections that way.” [37:11]

  • Hours Worked: Nikita shares he works 50-60 hours per week.
    “Probably like 50 to 60.” [37:26]

  • Character Traits: Described as caring but arrogant, particularly in flaunting successes while maintaining strong personal and client relationships.
    “I think caring, but arrogant... I take care of my relationships.” [37:46]

• Should Everyone Be an Entrepreneur?

  • Nikita's Stance:

    • Not everyone is suited for entrepreneurship due to the required discipline, consistency, and responsibility.
      “It is not for the faint of heart... turning, you have to pay these 10 people every week or every other week...” [38:33]

  • Cody's Perspective:

    • Believes entrepreneurship fosters personal growth and better interpersonal relationships, advocating for at least experiencing it as a side hustle.
      “Everyone should at least try it and touch it.” [43:25]

Rapid Fire Questions with Nikita

[36:51 - 46:48]

1. Favorite Business Book:
   “48 Laws of Power.” [36:51]

2. One Thing He Wishes He Knew Before Starting:
   “Sales is the only thing that's important.” [37:03]

3. Worst Business Advice Received:
   “Go back to school... I can just go to a conference and make more connections that way.” [37:11]

4. Hours Worked Per Week:
   “Probably like 50 to 60.” [37:26]

5. How Friends and Family Would Describe Him:
   “Caring, but arrogant... I take care of my relationships.” [37:46]

6. Should Everyone Be an Entrepreneur?
   “No, it's not for everyone. It requires discipline and responsibility.” [38:33]

Conclusion and How to Connect with Nikita

[46:48 - End]

• Nikita's Resources:

  • YouTube Channel: Offers in-depth tutorials on campaigns, automations, and pop-up strategies.
  • Aspect Agency: Email and SMS marketing services. Visit aspektagency.com for a free email audit by mentioning the podcast.

• Final Remarks:

  • Cody encourages listeners to implement email marketing strategies and connect with Nikita for further assistance. He highlights the value of the shared insights and expresses eagerness for future collaborations.
    “We will link to all of Nikita's links in the show notes or the description below... Thank you bro, I really appreciate you coming on and sharing all this golden nuggets for free.” [48:08]

Key Takeaways

1. Email and SMS Marketing are Vital: Despite being underrated, they can significantly impact revenue, contributing up to 35% monthly sales.
2. Strategic Email Flows: Implementing well-structured campaigns and automations, especially a comprehensive welcome series, can nurture subscribers into loyal customers.
3. Best Practices Matter: Ensuring critical information is above the fold, personalizing emails, optimizing images, and embedding coupon codes can enhance engagement and conversions.
4. Metrics to Monitor: Aim for open rates between 60-80% for welcome emails, maintain healthy click-through rates of 5-7%, and target order rates of 5-10%.
5. Start Small and Scale: For businesses at the startup stage, even minimal email marketing efforts can unlock substantial revenue, with the potential to scale as the business grows.
6. Entrepreneurial Insights: Entrepreneurship requires discipline, consistency, and a willingness to shoulder responsibility. It's not suitable for everyone, but it fosters significant personal and professional growth.

For more detailed strategies and personalized guidance, consider reaching out to Nikita Vakhrushev through his YouTube channel or his agency, Aspect Agency.