Email Marketing

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Email Marketing, the marketing
tool you can't afford to ignore.

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Email Marketing
Get Ready to hit Inboxes

Are you making it to

the Inbox?

Industry standards:
Open Rate – 30%
Click Rate – 3%

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Email Marketing 3
“Email Marketing is the wave of the
future. Fast and cost-effective, e-mail
must become an important part of
your integrated marketing and media
plan.”
Peppers & Rogers Group

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Email Marketing
 Why Email Marketing?
• Cost Savings
• Quick Response Cycles
• Generates Revenues
• Popular Medium
• Effective Medium
• Results are Measurable
• Builds Customer Relations
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Email Marketing
Effectiveness of Marketing Techniques used
by US Marketers to drive web-site traffic
eMail to Customers 4.1
Affiliate Programs 3.8
Direct Mail 3.4
Television 3.2
Public Relations 3.1
Banners 2.8
Magazines 2.7
Sponsorships 2.7
Radio 2.6
Newspapers 2.6
eMail to opt-in lists 2.5
0 1 2 3 4 5
Source: Forrester Research

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Email Marketing
 Steps for an Email Marketing Plan

• Defining e-Mail Marketing Objectives

• Determining Effective Strategies
• Reaching your Target Audience
• Designing e-Mail Content
• Evaluating Results
• Selecting a Solution

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Email Marketing
Defining Email Marketing Objectives

Common Email Marketing Objectives

• Build brand awareness
• Acquire new leads/ registrants/ customers/ clients
• Drive immediate sales
• Enhance customer retention
• 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
• As part of an integrated marketing strategy

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Email Marketing
Email marketing campaign response rates by
campaign objective
Conversion
CTR

6.80%
Awareness
17.10%

5.60%
Sales
15.20%

7.90%
Leads
15.30%

Source: IMT Strategies

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Email Marketing
 Online Marketing Methods used for
effective acquisition versus retention
Acquisition Retention
Search engine positioning 94% 6%

Banner ads 91% 9%

Referral/viral programs 85% 15%
Affiliate programs/ 75% 25%
sponsorships
Incentive programs 51% 49%
E-Mail Marketing 37% 63%
Source: DMA

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Email Marketing
Average Cost per Marketing Email
sent in the US (2001-2006)

2001 0.45

2002 0.47

2003 0.62

2004 0.68

2005 0.77

2006 0.72

0 0.5 1
Source: Forrester Research

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Email Marketing
Conversion Costs for Retention and Acquisition Goals

Acquisition Retention

E-mail $57.10 $2.50

Direct Mail $25.00 $60.00

Banner ads $140.00 N/A

Source: IMT Strategies

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Email Marketing
 Determining Effective Strategies

Popular Email models

• Sales Promotions
• Transaction confirmations
• Account status e-mails
• Recommendations from
friends (viral marketing)
• Scheduled corporate
newsletters
• Customizable information
updates
• Time-based reminders
• Rewards program
• E-mail discussion
groups
• Product updates of
interest
• Independent media
newsletters

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Email Marketing
Effective Email Marketing Strategies

• Common Email Marketing Objectives

• Acquisition vs. Retention
• Popular Email Models
• Recipient response

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Email Marketing
Top Interest Areas for Permission
Email 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
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Email Marketing
Reaching your Target Audience
E-mail overload: Number of Email
marketing email sent in the US
2001 289

2002 430

2003 549

2004 674

2005 796

2006 939

0 500 1000
Source: Forrester Research

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Email Marketing
 Top 5 Activities of Americans Online
eMail 84.0%

Product/Services
Info Search
67.3%

News, Weathers,
Sports 61.8%

Playing Games 42.1%

Product/Services
Purchase
39.1%
As a percentage
of respondents
0 0.2 0.4 0.6 0.8 1

Source: US Dept. of Commerce

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Email Marketing
Response to permission e-mail versus
unknown senders
Eager to read 13%
1%

Curious to read 49%

12%

Indifferent 29%
15%

Open but annoyed 6%

21%

Delete 3%
52%

0% 20% 40% 60%

Unknown senders Permission e-mail

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Email Marketing
Top reasons why US Internet users
respond to Email offers
• Know and trust brand
• Relevant information
• Good prices
• Friend has recommended
• Price/coupon/reward
• Timely
• Compelling subject
• Entertaining
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Email Marketing
Opt-in, opt-out, double opt-in, spam:
Preferred e-mail marketing methods

1%
4%

31% Double Opt-In

Opt-in
Opt-out
Spam
64%

Source: Opt-In News, May 2002

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Email Marketing
CTR and Conversion rate of US e-mail marketing
campaigns – for permission based lists

Click-
17.80%
through

Net
7.00%
conversion

Bounce 7.80%

Unsubscribe 2.10%

0% 5% 10% 15% 20%

Source: IMT Strategies

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Email Marketing
 US Consumers’ Privacy concerns

Sharing info
with third 75%
parties

Transactions
70%
not secure

Hackers will
69%
steal info

66% 68% 70% 72% 74% 76%

Source: Harris Interactive

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Email Marketing
 US Email 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
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Email Marketing
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

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Email Marketing
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 on products they are
interested in
• Access to more or better content or information
• Affinity points
• Receive targeted ads they’re likely to be
interested in

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Email Marketing
 Building Customer Intelligence
• Harness your Customer Database
• Effective personalization and targeting
• Common Segmentation Factors:
– Purchase history
– Location/zip code
– Demographics
– Lifestyle/hobbies/interests

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Email Marketing
 Building your 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…

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Email Marketing
 It All Starts with the List

Set objectives, goals and

expectations:

What do I want out of this

campaign?

Ie: 30% open rate, 5%

click rate, 75% attendance

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Email Marketing
It All Starts with the List

Define your targets – Segment

your list appropriately

Know who you’re sending to

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Email Marketing
It All Starts with the List

Take the time to clean your list:

Old email addresses

Invalid email addresses
Incomplete email addresses

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Email Marketing
 Creating the Content
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
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Email Marketing
A Message with Meaning

Is your content relevant?

Do your recipients want to

receive what you’re sending
them?

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A Message with Meaning

Personalize each message:

From Address
Branding in subject line
Contact Info in Body
Merge Custom Fields (Hi Dan,)

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Killer Creative | Unmistakable Action

Use Stock imagery:

Istockphoto.com
Photos.com
Gettyimages.com

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Email Marketing
Killer Creative | Unmistakable Action

Make A Bold Statement

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Email Marketing
 Killer Creative | Unmistakable Action

Call to Action Above and Below

the Fold – but test:

Placement
Text Link
Button Link
Color Scheme

Be forward and shameless

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Email Marketing
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Email Marketing
Killer Creative | Unmistakable Action

Landing page should carry the

same theme:

Imagery
Colors
Language
Tone - Familiarity

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Email Marketing
 Email users’ preferred e-mail marketing
personalization models
• Communication Control
• Self-select content
• Name recognition
• Personal events & reminders
• Geography
• Account History
• Lifestyle
• Purchasing Behavior
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Email Marketing
Evaluating results

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
• Unanimous tracking to respect privacy
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Email Marketing
Now what? Metrics that Matter

What you should look for:

Open Rate (Delivered/opens)

Click Rate (Opens/Clicks)
Delivered Vs. Sent
Bounced
Opted Out

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Email Marketing 41
Now what? Metrics that Matter

Small changes can make

improvements:

Subject lines
CTA placement
Content Relevancy
Email Length

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Email Marketing
 Response time and cost per unit,
e-mail vs. direct mail
• Be prepared to handle responses

E-Mail Direct Mail

Response 3 days 3-6 weeks
Time
Cost per $0.25 $1.25
unit
Source: DMA, Forrester Research, Gartner Group

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Email Marketing
 To Outsource or not to Outsource
Maintain your server Outsource your list hosting
• Hardware/computer • Reliability and experience
network • Redundant servers and
• Dedicated Internet delivery capacity
Connection • Flexibility to maintain
• Software for e-mail company Internet presence
management and • Ability to move from hosting
delivery to in-house when ready
• Best for large loads and • More expensive
those with experience
• Rely on company’s
• More cost-effective schedule
• Flexibility to create
campaigns on the fly 6-44
Email Marketing
 Evaluate 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

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Email Marketing
 Cost Savings due to Email Usage
among US companies
76% 75%

60%

37%
As a percentage
of respondents
16%

Postal Costs Marketing Time Costs Call Center Other

Costs Costs
Source: AIM, n=110 companies

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Email Marketing
 Revenue Generated through Email
Usage among US companies
Transactions generated from
email
64%

Sponsored e-newsletters 22%

Self-banner ads 18%

Opt-in List Rental 9%

Other 30%
As a percentage
of respondents
0% 20% 40% 60% 80%

Source: AIM, n=110 companies

6-47
Email Marketing
“Email Marketing is the wave of the
future. Fast and cost-effective, e-mail
must become an important part of
your integrated marketing and media
plan.”
Peppers & Rogers Group

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Email Marketing