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As e-commerce continues to boom, more and more brands are opting for a direct-to-consumer (D2C) model. Shopify, as a leading e-commerce platform, provides a convenient solution for countless D2C brands.
But let’s be honest—just setting up an online store isn’t enough. In the crowded D2C space, a solid email marketing strategy is crucial if you want to stand out. This guide will help you figure out how to choose the right email marketing platform for your Shopify-based D2C business, along with some best practices and tips, including when it makes sense to bring a CRM system into the mix.
First, Understand the Email Marketing Options in Shopify’s Ecosystem
Before diving into third-party email marketing platforms, let’s start with Shopify’s built-in tool: Shopify Email.
Shopify Email:
- Pros: It’s deeply integrated with Shopify, easy to use, covers the basics, and is relatively cheap.
- Cons: It’s pretty basic and lacks advanced automation and personalization features.
- Best For: Small, new D2C brands or merchants who only need basic email marketing features.
As one Shopify developer put it, "Shopify’s email and SMS marketing feel more like ‘features’ than standalone products." So, while Shopify Email can get the job done for basic needs, it might not cut it if you’re aiming for more sophisticated marketing strategies.
Evaluating the Main Third-Party Email Marketing Platforms
For brands that need more power, here are a few third-party email marketing platforms worth considering:
Klaviyo:
- Pros: Strong data analytics, powerful automation, advanced audience segmentation, and deep integration with Shopify.
- Cons: It’s on the pricier side and can be a bit complex for smaller businesses.
- Best For: Medium to large D2C brands, or growing businesses with complex marketing needs.
Brevo (formerly Sendinblue):
- Pros: Great value for the money, comprehensive features including email, SMS, and basic CRM functionality.
- Cons: Some advanced features may not be as robust as Klaviyo’s.
- Best For: Small to mid-sized D2C brands on a budget that still need a well-rounded platform.
MailerLite:
- Pros: Super user-friendly, affordable, and offers basic automation and reporting.
- Cons: Limited advanced features.
- Best For: Small D2C brands or businesses just starting to take email marketing seriously.
Omnisend:
- Pros: Designed specifically for e-commerce, offers multi-channel marketing, and integrates well with Shopify.
- Cons: Some advanced features might require higher-tier plans.
- Best For: Mid-sized D2C brands looking to do omnichannel marketing.
So, How Do You Pick the Right Platform?
When choosing the right email marketing platform, keep these factors in mind:
- Your Business Size and Growth Stage:
- Feature Needs:
- Cost-Benefit Analysis:
- Integration with Other Tools:
- Tech Requirements and Learning Curve:
- Customer Support and Resources:
When Should You Invest in a CRM System?
Investing in a CRM system is another big decision for D2C businesses. But not every business needs a CRM, especially if you’re still small. Let’s break down when a CRM is actually worth the investment:
When You Probably Don’t Need a CRM: If your business is small, your email list is limited, and you’re only selling through a couple of channels, a CRM might be overkill. For example, if your monthly revenue is around $10,000, you’re likely still in the early stages of your business. At this point, your customer base is manageable, and your sales channels are pretty straightforward. Investing in a CRM system in this scenario might be more cost than benefit.
Key Consideration: Make sure your business is in a growth phase before you consider a CRM. Don’t fall into the trap of thinking a CRM will magically boost sales if you’re struggling. CRMs are powerful tools, but they’re not a fix-all solution. They’re most effective when your business has already grown to the point where you need more complex tools to manage that growth.
Case Study 1: A Brand with <$5,0000 Monthly Revenue: For a D2C brand making around $50,000 a month, investing in a CRM might be too early. At this stage, you can probably manage customer relationships using your email marketing platform and basic Shopify tools. The money you’d spend on a CRM might be better used on growth-driven activities like advertising or product development.
Case Study 2: A Brand with $100,000+ Monthly Revenue: If your D2C brand is bringing in $100,000 a month and you’re starting to struggle with managing customer interactions, tracking sales, or segmenting your audience, it might be time to consider a CRM. For instance, one brand that implemented a CRM saw a 15% increase in conversion rates and a 20% improvement in customer retention within six months. However, these results depend on your business already being in a growth phase and needing more advanced tools to manage that growth.
ROI Perspective: The return on investment (ROI) from a CRM system can be significant. According to a study by Nucleus Research, the average ROI on CRM is $8.71 for every dollar spent. If your CRM costs you $1,000 a month, you’ll need to see corresponding sales growth or operational efficiency improvements to make the investment worthwhile.
Best Practices for Integrating Email Marketing and CRM Systems
- Optimize Your Abandoned Cart Emails:
- Personalize and Segment:
- Stay Compliant:
- Continuous Testing and Optimization:
- Integrate with Other Marketing Channels:
Conclusion
Choosing the right email marketing platform is critical to the success of your D2C brand. While Shopify Email is a great starting point for early-stage brands, you may need to consider more powerful third-party solutions as your business grows. And when it comes to CRM systems, they can add significant value—but only if your business is at the right stage to need them.
Remember, the best choice depends on your specific business needs, budget, and long-term goals. As your D2C brand continues to grow on the Shopify platform, your email marketing strategy and tools should evolve as well to support your business expansion.
#MarTech #D2C #Shopify #EmailMarketing #CRM #Ecommerce #DigitalMarketing #GrowthHacking #Klaviyo #Brevo #MailerLite #Omnisend #ShopifyEmail #BusinessGrowth #Entrepreneurship
Allen is an award-winning Global CIO and CTO from China with extensive experience across various industries.
He is skilled in blending IT, R&D, and business.
His belief is: “Contributing makes me feel like I’m being useful to the planet.”