The Importance of Email and How Best to Communicate

1. The Importance of Email and How Best to Communicate Presented By: Lizabeth Seskind Vice President, Email Marketing Services Chilcutt Direct Marketing- September 28, 2010

2. Email Just Makes Sense Just Released Q2 2010 Email Trends and Benchmarks • Open rates remain steady at 22.1%, increasing 18.0% from Q2 2008. • Six of the thirteen industries had an increase in open rates over Q2 2009. • The average click rate is 5.3%, down from the same time last year. • The average volume per client increased 10.5% from Q2 2009. • 60.9% of emails delivered, were categorized as “Marketing” messages. • “Service” messages had the highest open (42.5%) and click (7.7%) rates.

3. Email Marketing Performance While both email marketing and direct mail deserve a place in a campaign’s media mix, there are several benefits that an email campaign offers that a direct mail campaign doesn’t.  • Compared to direct mail, email has been reported to generate an ROI that is 40 times higher than direct mail • 80% of the responses from an email campaign are within the first three days of launch • Reported to drive traffic to the advertiser’s web site at a rate that is five times higher than with direct mail • Better yet, 50 times higher than from banner ads  

4. Benefits to a Successful Email Campaign Like Direct Mail, the same best practices can be applied effectively to email campaigns– using a low cost, affordable, preferred channel. • Ability to build and expand current house file roster • Immediately gain action-- buy, subscribe, join, establish affinity • Allows you to cultivate the relationship through subsequent email messaging • Similar response expectations; similar performance to prior DM efforts • Suggestive subject lines demand urgency and explains reward • Opportunity to micro-target and personalize campaign messages • Use trigger and transactional messaging- abandoned cart, prior purchase • Specific segmentation of data as important as with Direct Mail • Identify best launch times, react to when a recipient responds

5. Email Design for Non-Designers A checklist to ensure your emails are attractive and understood • Don’t give up on graphics, but understand many recipients won’t see them • “Alt Tag” copy is an art; alternative text for when graphics can’t be displayed • Use graphics to reinforce messaging, not for messaging itself • Maximize your reading pane with your call to action– limited space • Use subject lines, sender name and “from” address to their best advantage • Understand “pre-header” and “snippet” text • Navigation bars should appear below your primary call to action • Understand “cascading style sheets”- style HTML messages • Test your email to different domains for rendering differences • Search out the best in resources for design and implementation

6. Stellar Subject Lines The 50 most characters you’ll ever chain together. • Read the newspaper; understand how grabbing headlines are used • Focus on the objective or end goal- determine one action • Leverage the “From” line; continue brand recognition • Mention key information first; one opportunity for first impressions • Personalize your messaging; engage using first names, be relevant • Urgency messaging drives action; give a reason to respond soon • Lead, but don’t mislead; maintain your integrity, no grand claims • “Free” is not evil; people still respond to “free” • Plan for deliverability; fine line between “catchy” and “spammy” • Measure, test, analyze; measure anything that moves

7. Attractive Email Messaging If they can’t see what you’re saying, you’re not being heard • Write a good subject line; use psychological triggers • Use proper formatting; safer to use plain text • Limit lines to 60-65 characters including spaces with a hard line return at the end of each line • Use bullet points to get the attention of your reader • Wrap your own text to avoid choppy sentences • Proportional or fixed-pitch font; fixed-pitch uses characters with the same width • Use exclamation points to emphasize your main communication • Check for spelling and grammatical mistakes • Stick with simple designs that will render properly in any font • Focus on just one product or service

8. Common Email Mistakes Even the most veteran of marketers can make mistakes. Here are some common mistakes “beginners’ and ‘rookies” alike. • Not having permission; permission means customers and subscribers have requested to receive information from you • Confusing “transactional” with “email marketing”– transactional information, confirmation and shipping details are transactional while newsletters, coupons, and promotions are marketing messages – with both requiring permission • Being in a Rush; pay attention to proper coding, design and content. Keep data clean, opt in requirements in place– otherwise recipients click “junk” • Assuming people actually want to hear from you; don’t send to prospects, stay away from commercial opt in lists– only mail to recipients that have agreed to hear from you

9. More Common Mistakes • Assuming people remember who you are; send a “remember me?” email, send often to keep brand recognition and awareness, practice opt-in steps every 6-12 months • Let the provider send your purchased email lists– they’ll remember them over you • Thinking “blast” and not “relationship”– use content that’s relevant and reminds the recipient of a favorable experience with you; frequent “blasting” can offend a recipient • Avoid used Car Salesman Copy– avoid pushy sales phrases like “Buy Now!” and ‘Limited Time Offer!” • Ignoring campaign metrics– try to evaluate email campaign reports; they aren’t always 100% accurate, but still tremendously useful

10. 10 Point Checklist for CAN-SPAM Good starting points to ensure your email program is in compliance. • Don’t use fraudulent transmission data; such as false headers • Don’t use misleading sender or subject lines • Add your postal address to all email communication • If your email is not opt-in or double opt-in (prior affirmative consent) you must include a clear notice that states the email is an advertisement or solicitation • Include a “clear and conspicuous” unsubscribe mechanism in every email • Have a process to handle unsubscribes within the 10 day • Don’t share the address of a person who unsubscribed with any other entity • Remove any sexual oriented material from your messages • Offer recipients a way to some types of email from you, while blocking others along with a global option to stop all future email • Don’t harvest email addresses; if you want to protect email addresses from being harvested on your website- add a notice that you don’t “give, sell or otherwise transfer to any other party for the purpose of initiating or enabling others to initiate”

11. Easy Ways to Socialize Email Focus on how best to leverage social media with email to increase audience reach, customer engagement and retention, and of course, revenue • Include hot topics and catchy quotes from your social media outlets in your emails; marketers using more customer ratings and reviews in their promotional emails • Offer email subscribers coupons and discounts in exchange for following you on Facebook and other social media • Consider running contests on an ongoing basis; i.e. “twitter Tuesday’s” as an example driving followers to want to see what’s new and different • Conduct polls on social media sites; using that data for email segmentation • Place links to your social media at the top of your email rather than bury it at the bottom • Reposition unsubscribes; post links to your social media outlets on your email unsubscribe pages; they may be unhappy with the medium and not your brand offer the option to follow you rather than receive emails from you

12. Why Email Append? The process of appending an email address to a postal name and address is not a new one, but as mentioned, has gained in popularity and legitimacy in recent years. • Compliant with industry standards, meeting all CAN-SPAM requirements • Increases current reach by up to 25% • Uses owned House File data for current customers– you own the data • Jump starts the growth of your current Email Address data • Quick turnaround; can customize launch and length of live campaign • Uses existing advertiser logo and creative messaging • Opt-out mechanism allows for maximum number of corrected and completed email addresses • Launch handled by Email Provider from start to finish • Report provided showing matches, bounces and total number of appended records

13. Why Reverse Postal Append? Email inquiries or mechanics that generate email addresses can be appended with current postal address to allow for subsequent mailings to reinforce brand recognition. • Postal Addresses allow for inclusion in offline existing planned mailings • Exact opposite of Email Append with faster turnaround time • Potential for email marketers to test into Direct Mail, possible List Rental potential • Gain the ability to merge records and transaction histories of your email and postal files • More effectively target advertising and/or offers to customers and prospects via geography or zip codes • Higher industry match rates– adding between 50-80% additional postal records

14. What Do You Have to Do? The best news is, you already have everything you need! Just send a clean file of your customer postal records! From there… • Match your data to a robust database of over 90,000,000 email addresses • Determine how best to match your data; household match or individual match • Develop a strong, effective Welcome Letter detailing the benefits of continuing to hear from you with email messages • Launch your Welcome Letter, equipped with a compliant opt-out mechanism • Monitor the live campaign for 7-10 days after launch • Reports provided explaining the number of records matched, deployed and appended • Both old records and new records are returned back to you • All appended records can be used as often as your email contact strategies dictate

15. Using Current Data Typically Responds Best Only append active or lapsed file using incentives to stay in communication. Don’t treat all data the same way. • Appended data can not be treated the same as current subscriber data • Isolate or key and segment appended data from core data • Appended data can deliver value, but is riskier than active data • Separating data eliminates negative impact to current data • Develop separate copy and incentive or “repurpose” their need for you • Be sure opt out options are easily read and seen • Continually remind customers how they ended up on your list

16. Use Specific Specialized Messages Build an append-specific communication strategy.  • Appended data can not be treated the same as current subscriber data • Isolate or key and segment appended data from core data • Appended data can deliver value, but is riskier than active data • Separating data eliminates negative impact to current data • Develop separate copy and incentive or “repurpose” their need for you • Be sure opt out options are easily read and seen • Continually remind customers how they ended up on your list

17. Always Integrate Appended Addresses Build rules to migrate append addresses to your house file over time.  • Proactively migrate appended addresses into your house file • Migration should be based on specific recipient activity • Specific recipient activity includes clicks, purchases, etc. • Companies build these rules to apply to their unique business models

18. Sample Welcome Letter Dear USGA Member, As a Member of the United States Golf Association, you have demonstrated your interest in preserving the game we all love. It is for this reason that I invite you to receive the Members-only e-communications that are part of your USGA benefits. The USGA’s E-Newsletter contains the most up-to-date information on topics such as USGA championships and ticket information, Rules and equipment standard updates, volunteer opportunities and advanced notice of Handicap Index and Rules seminars. You do not need to take any action to receive our e-communications. If you prefer not to receive our e-mails, please click on the link at the bottom of this message by May 15, 2008 to remove your name from our e-mail list. Privacy is important to us; therefore, we will not sell or rent your e-mail address to anyone. If you wish to stop receiving our e-mails at any time in the future, an unsubscribe link will be included at the bottom of each e-mail message. Thank you for your support of the game of golf, its values and traditions. Sincerely, Fiona DolanUSGADirector, Members ProgramTo make sure you receive your Member e-mails, please add members@usga.ionmx.com to your address book. If you do not wish to receive any future e-mail messages from the USGA, please click here. United States Golf Association, 77 Liberty Corner Road, Far Hills, NJ  07931

19. Sample Welcome Letter Dear WWF Member, World Wildlife Fund would like to thank you for your support of our programs to help protect endangered species and wild spaces around the world. We would like to offer you a chance to know about the results your support helps generate by adding you to our free WWF E-newsletter mailing list. Each month, in your WWF E-newsletter you will receive: • Updates on WWF's latest Conservation Victories • Fun games and quizzes • Features on amazing species from around the world • Ideas and actions that can help you protect the environment • New and exciting ways that you can help support WWF with a click of your mouse With your support, we have been able to protect large areas of the Amazon Rainforest and the Great Barrier Reef. We have seen increases in the numbers of pandas, tigers and rhinos in the wild. And we have fought to restrict several programs that would have accelerated climate change, increased deforestation, and depleted our world's oceans. To help us add to this list of success stories, we want to add you to the list of WWF E-newsletter subscribers! By receiving the WWF E-newsletter, you will see first-hand the benefits of your support. If you would like to receive this newsletter, you do not need to take any further action, and we thank you again for your continued support of WWF. Sincerely,World Wildlife Fundwww.worldwildlife.org1250 24th St. NWWashington, DC 20037 To unsubscribe click here, or reply to this e-mail with REMOVE in the subject.

20. Sample Welcome Letter You are receiving this e-mail as a subscriber to Quilter's World. If you do not wish to receive e-mail communications from us, please follow the instructions above.Along with the magazine issues you receive in the mail, you now have the opportunity to discover all the extra patterns, techniques and other bonus content we have for you, all FREE on the Internet! How? We'll begin sending you occasional e-mail notices delivered right to your in-box!You'll be one of the first to know about news, events, special offers and savings. Please rest assured that with all e-mail messages we send you, we will always provide you with the opportunity to choose not to receive future e-mail messages from us. Because we value our customers' privacy, we're letting you know about our plans to serve you via e-mail. If you do not wish to receive further e-mails from us, please click the link at the top of this e-mail. I just know you'll be thrilled with what's to come! Sincerely,Sandra Hatcheditor, Quilter's World

21. Results from Match Process

22. Results Post Broadcast

23. Append Cost Structure Many processes in the industry have unnecessary charges, not append. Append brings access to large numbers of current customer records at pennies per appended record. • Typical Append is based on a tier structure; more quantity, less cost per appended record • Rates are based on input quantities • No input or pass charges against database • Results are based on number of deliverables; the number of appended addresses • You only pay on the actual appended records

24. Is Email Append Appropriate?Do You Need To? • Increase content relevance? Trigger Email Messaging speaks to the recipient, offers relevant benefits in exchange for response • Respond faster to sales opportunities? Email’s response window couldn’t be shorter– speak your message effectively and immediately • Automate messages to save time and resources? Let Email messaging speak to specific behavior responses from data pockets • Increase loyalty with special occasion greetings! Remind your customer how much their attention means to you. Speak personally.

25. You Want to React to Their Behavior; They Want to Respond • Abandoned shopping carts and order forms – find out why and offer to help! • Inactive Buyers and Subscribers – communicate and re-engage! If no response, drop them. • Birthdays, anniversaries, holidays – all opportunities to increase consumer loyalty! • Customer service surveys – ask how you’re doing whenever a customer needs help. • Good Customer Rewards – send a thank you message and discount coupon when a customer reaches a sales or loyalty milestone.

26. Email Consumption By Social Media Segment

27. Pre-Transaction Communication Incorporating data from Web analytics and ecommerce software can help you identify customers who break off browse or purchase sessions. Note: These are customers or prospects already enrolled in your email programs. • Browse abandonment: Personalized with images and details of a Web site category, page or product the shopper viewed but didn't result in a purchase. • Cart abandonment: Multi-stage recovery email program, with the first email sent within minutes after shopper places items in a cart but doesn't complete the process.

28. Purchase Process Communication These support the purchase process itself and are intended to increase customer confidence in the ordering process. • Order confirmation: Confirms the order was received and provides details of the order, shipping method, expected arrival date and customer-support contact information. • Order status: Essential when some or all of the items in an order are out of stock (OOS) or when OOS items become available. • Shipping notice: Lists package pick-up date, shipment tracking number, range of expected arrival dates and customer-service contact information for you and shipper. • Post-shipment confirmation: Asks if items were received on time and in proper condition. Restates order details and customer-support/troubleshooting contact information. • Trip/Stay preparation: Confirms trip details (flight/check-in times, destinations, special requests/advisories, contact information) and includes helpful information including weather forecasts, maps, attractions with booking information and links, etc.

29. Post-Purchase Communication These post-purchase/post subscribing emails are focused on the customer experience and additional purchase opportunities once the product has been received, delivered, etc. • Subscription/Content Satisfaction Survey: Email requesting the customer complete a survey measuring satisfaction with the magazine, renewal, delivery, plus customer-support or troubleshooting contact information. • Review/recommend: Invites buyer to review sample issues and/or share the subscription with their social network connections. • Publication recommendations: Up-sell/cross-sell messages - "Since you enjoy this, you might like this," or "People that subscribe to this, also subscribe to this." • Renewal deadline: Invites renewal of publications about to expire or discontinue. • Replenishment: Invites re-purchase of back issues, special products endorsed etc. • New version/Upgrades: Invites customer to upgrade or extend current subscription or bundle several subscriptions at a discounted rate.

30. Relationship and Loyalty Account Status Communication While not focused on a specific purchase, these messages are sent to people who have purchased, created accounts, downloaded or requested information, joined loyalty programs or otherwise engaged with you. • Account reminder: Email notice sent a week or so ahead of a deadline (payment, renewal, etc.). • Invitation to join loyalty/preferred customer programs: Benefit-focused message sent to customers who didn't join loyalty/preferred-customer programs or register for an account. • Member-status statement: Reports membership status and progress toward achieving higher status or qualification for rewards/discounts; should link to subscriber's account log-in and show points, purchases, miles, etc., at a glance. • Bounceback: Offers incentive to bring recent buyer back to resubscribe; can feature up-sell/cross-sell items. • Subscription anniversary: Notes anniversary of first subscription and invites to renew, with or without incentive. • Additional channels: Invites customer to sign up to receive communications via SMS or Twitter, become Facebook fans or shop in nearby retail outlets.

31. Benefits and Take Aways from Email Append Services What Email Append means to your bottom line. • Increase your email reach by up to 25% • Data belongs to you, treat it as you would house file data • Ability to build and expand current house file roster • Immediately gain action-- buy, subscribe, join, establish affinity • Build a stronger relationship with customer’s individual interests emailing as often as current strategy allows • Opportunity to micro-target and personalize campaign messages • Similar expectations; acquire, reactivate, retention; no different from Direct Mail • Keep customers interested; links to current events and breaking news • Trigger messaging to specific pockets of data, dependent on subscriber status • Identify best launch times, react to when recipient responds • Maintain stronger relationships; make subscriber dependent on you

32. Thank you very much! Questions and Answers