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Successful e-Mail Marketing Practices

Successful e-Mail Marketing Practices. eMarketing Association May 20-21, 2003 Gabriela Linares. Managing e-Mail Marketing . Defining e-Mail Marketing Objectives Determining Communication Strategies Reaching your Target Audience Designing e-Mail Creative Evaluating Results

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Successful e-Mail Marketing Practices

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  1. Successful e-Mail Marketing Practices eMarketing Association May 20-21, 2003 Gabriela Linares ã2003 L-Soft

  2. Managing e-Mail Marketing • Defining e-Mail Marketing Objectives • Determining Communication Strategies • Reaching your Target Audience • Designing e-Mail Creative • Evaluating Results • Selecting a Solution • Final Recommendations ã2003 L-Soft

  3. Defining e-Mail Marketing Objectives ã2003 L-Soft

  4. Common Objectives • Acquire new leads/ registrants/ customers/ clients • Drive immediate sales • Enhance customer retention programs • Build stronger relationships with existing customers/clients • Provide company or product information • Increase revenues by up-selling to existing customers/clients • Post-order targeted e-mails • Build brand awareness • As part of an integrated marketing strategy • Increase web site traffic ã2003 L-Soft

  5. Response Rates by Campaign Objective ã2003 L-Soft Source: IMT Strategies, September 2001

  6. Acquisition versus retention ã2003 L-Soft Source: DMA- April, 2002

  7. Sales Conversion Costs Source: IMT Strategies, September 2001 ã2003 L-Soft

  8. Determining Communication Strategies ã2003 L-Soft

  9. Popular e-Mail models • Discount sales promotions • Sales transaction confirmations • Account statements • Scheduled corporate newsletters • Press release list • News alerts from Media outlets • Time-based reminders • E-mail discussion groups/ communities • Product announcements • Entertainment (humor, film clips) • Online education courses • Product user/support groups • Auto-responders ã2003 L-Soft

  10. Average CTR for B2C and B2B e-mail newsletters ã2003 L-Soft Source: Opt-in News, May 2002

  11. Top Interests for Permission e-Mail Users in the US • Specials/offers from online merchants • Specials/offers from local retailers or restaurants • Household tips/recipes/crafts • Humor • Travel • Entertainment • Weather • Local news • Tech/business news • Finance/stock information • Sports ã2003 L-Soft

  12. Top reasons why US Internet users respond to e-mail offers • Know and trust brand • Relevant information • Friend has recommended • Price/coupon/reward • Timely • Compelling subject • Entertaining ã2003 L-Soft

  13. Viral Marketing: Types of messages that are forwarded • Merchandise deals and promotions • Prize/coupon/reward • Social/political messages and petitions • Warnings and advisories • High level of relevance • Funny • Work related • Informative • Cool • New Technology ã2003 L-Soft

  14. How US internet users learn about new web sites ã2003 L-Soft Source: IMT Strategies, Sept. 2001

  15. Reaching your Target Audience ã2003 L-Soft

  16. US Internet User Attitude towards e-Mail Volume, 2001 ã2003 L-Soft Source: IMT Strategies, September 2001

  17. E-mail overload: Number of e-mail marketing e-mail sent in the US ã2003 L-Soft Source: Forrester Research, August 2001

  18. Response to permission e-mail versus unknown senders ã2003 L-Soft

  19. Opt-in, opt-out, double opt-in, spam: Preferred e-mail marketing methods Source: Opt-In News, May 2002 ã2003 L-Soft

  20. Rates for US e-mail permission-based marketing campaigns Source: IMT Strategies, Sept. 2001 ã2003 L-Soft

  21. Permission e-mail marketing vs. direct mail retention costs Source: Forrester Research, August 2001 ã2003 L-Soft

  22. Building your permission-based lists • Subscriber form on web site • Sponsor lists of sites with a similar demographic • Send to a friend button – viral marketing • Ask for permission to customer base • Maintain list hygiene • E-mail appending… ã2003 L-Soft

  23. Building Customer Intelligence • Harness your Customer Database • Evaluate Customer Behavior • Effective personalization and targeting • Common Segmentation Factors: • Purchase history • Location/zip code • Demographics • Lifestyle/hobbies/interests • Psychographics ã2003 L-Soft

  24. US Internet Users’ Level of Concern Regarding Online Privacy Source: UCLA Center for Communication Policy, November 2001 ã2003 L-Soft

  25. US Consumers’ Privacy concerns Source: Harris Interactive, February 2002 ã2003 L-Soft

  26. US E-Mail users’ preferred e-mail marketing privacy and customer-support practices • Unsubscribe option in all e-mails • Explicit no-share-address policy • 48-hour e-mail support answers • Editable personal preferences page • Provide phone numbers in e-mail • Explicit privacy policy • Double opt-in confirmation • Unchecked default opt-in box • Third-party privacy seal in e-mail ã2003 L-Soft

  27. Most Important e-Mail Marketing trust-building factors among US users • Secure sign-up form • Trustworthy reputation • Loyal customer • Well-known brand • Friend recommendation • Trusted site referral • Relevant offers ã2003 L-Soft

  28. Why customers would give personal info • Guarantee that the information will not be misused • Eligibility to win a prize in a sweepstakes • Regular e-mail updates for products of their interest • Access to more or better content or information • Affinity points • Receive targeted ads they’re likely to be interested in ã2003 L-Soft

  29. E-mail Appending ã2003 L-Soft Source: Opt-In News, May 2002

  30. Privacy & Regulations • HIPPA covers health personal information • COPPA protects children • Gramm-Leach Bliley Act concerns financial information • FTC supports Corporate Privacy Policies • Federal spam regulation does not exist • State laws exists in 13 US states, including California, Colorado, etc. • More information about spam regulations visit: www.spamlaws.com ã2003 L-Soft

  31. Creating the Content ã2003 L-Soft

  32. E-Mail Message Content • Subject Line – getting recipients to open mail is half the battle • Creativity • Personality and dynamic content • Keep it short and use links to draw reader to your web site • Keep it fresh – don’t re-use the same content • Relevance – the more you understand your customers, the more targeted and relevant messages will be • Frequency • Test messages ã2003 L-Soft

  33. Email users’ preferred e-mail marketing personalization models • Communication Control: Digests, Frequency • Self-select content • Name recognition • Personal events & reminders • Geographic relevance • Account History • Recognizing Lifestyle Preferences • Purchasing Behavior ã2003 L-Soft

  34. Preferred e-mail advertisement formats worldwide, Q1 2002 Source: Opt-IN News, May 2002 ã2003 L-Soft

  35. Response rates per format ã2003 L-Soft Source: IMT Strategies, Sept. 2001

  36. Evaluating results ã2003 L-Soft

  37. How to measure the effectiveness of e-mail marketing campaigns • Click-through rates • unique and sum of events & comparisons • Unsubscribe rates • Open rates • Conversion rates (website tracking) • Click-stream analyses • E-mail pass along rates –viral marketing • Coupon codes • Anonymous tracking to respect privacy • Campaign Comparison Reporting ã2003 L-Soft

  38. Response time and cost per unit, e-mail vs. direct mail • Be prepared to handle responses Source: DMA, Forrester Research, Gartner Group, 2002 ã2003 L-Soft

  39. To Outsource or not to Outsource ã2003 L-Soft

  40. Maintain your server Hardware/computer network Dedicated Internet Connection Software for e-mail management and delivery Best for large loads and those with experience More cost-effective/ economies of scale Flexibility to create campaigns on the fly Outsource your list hosting Reliability and experience Redundant servers and delivery capacity Flexibility to maintain company Internet presence Ability to move from hosting to in-house when ready More expensive Rely on company’s schedule VS. ã2003 L-Soft

  41. Outsourced e-Mail Marketing Services Source: Forrester Research, August 2001 ã2003 L-Soft

  42. Evaluating Options • Evaluate software product or hosting service before purchasing • Determine if solution provides appropriate features • Decide what reporting features you need • online real-time reporting, compatibility with other software you employ • Differentiating levels of privacy tracking • Campaign manager to organize jobs • Integration with your database and other applications • Handle bounces ã2003 L-Soft

  43. Main Recommendations • Integrate e-mail into your integrated marketing communication plan • E-Mail marketing is best used for retention and other customer permission-based communications • Offering sales promotions is the most successful strategy • Consider double opt-in and build your permission-based lists • Respect recipients’ privacy to earn their trust • Personalize messages to provide relevant information which will increase response rates • Evaluate options and opt for time-tested solutions ã2003 L-Soft

  44. Questions?5:45pm Consulting Session - Today Gabriela Linares L-Soft international, Inc. www.lsoft.com Info@lsoft.com 301-731-0440 800-399-5449 ã2003 L-Soft

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