Jimmy Kim and Speaker A break down the math on retention teams at a $20 million ecommerce brand where email generates $6 million in revenue. A typical retention team costs $600k in salaries and tools, consuming 10% of email revenue. A leaner structure could save $450k, money brands might redirect to acquisition instead.
If you're a brand doing, let's call it $20 million and email's 30% of revenue, that's about $6 million from retention. But if your team costs $600,000 or whatever that number was, you're spending 10% of email revenue on the team that produces it.
Now let's imagine you're doing the same, like $6 million with one person making $120,000 and $30,000 a year in tools. That's still $150K. You'll free up like $450K out of that math that you just kind of shared. And that's enough to drop the bottom line or fund a whole new acquisition channel. And we all know brands love acquisition, right?
And we're not saying that you fire people or that you need to do this. It's just what we're seeing. And, you know, maybe you go higher with the savings people on other teams where maybe you need them and you're lighter. So every CFO right now, unfortunately, is doing this math. Every single one.
