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2002 L-Soft
Advanced e-Mail Marketing StrategieseMarketing Association Conference
Redondo Beach, CaliforniaSeptember 5, 2002
Gabriela LinaresL-Soft international, Inc.
www.lsoft.comInfo@lsoft.com301-731-0440800-399-5449
2002 L-Soft
Steps for an e-Mail Marketing Plan
Defining e-Mail Marketing Objectives Determining Effective Strategies Reaching your Target Audience Designing e-Mail Content Evaluating Results Selecting a Solution
2002 L-Soft
Common e-Mail 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
Defining e-Mail Marketing Objectives
2002 L-Soft
e-Mail marketing campaign response rates by campaign objective
15.30%
15.20%
17.10%
7.90%
5.60%
6.80%
Leads
Sales
Awareness
ConversionCTR
Source: IMT Strategies, September 2001
2002 L-Soft
Conversion Costs for Retention and Acquisition Goals
Acquisition Retention
E-mail $57.10 $2.50Direct Mail $25.00 $60.00Banner ads $140.00 N/A
Source: IMT Strategies, September 2001
Acquisition versus retention Acquisition Retention
Search engine positioning 94% 6%
Banner ads 91% 9%
Referral/viral programs 85% 15%
Affiliate programs/ sponsorships 75% 25%
Incentive programs 51% 49%
E-Mail Marketing 37% 63%
2002 L-Soft
Popular e-Mail 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 Entertainment (humor, film clips) E-Mail education series Contests for address
Determining Effective Strategies
2002 L-Soft
E-mail overload: Number of e-mail marketing e-mail sent in the US
939
796
674
549
430
289
0 500 1000
2006
2005
2004
2003
2002
2001
Source: Forrester Research, August 2001
Reaching your Target Audience
2002 L-Soft
Response to permission e-mail versus unknown senders
52%
21%
15%
12%
1%
3%
6%
29%
49%
13%
0% 20% 40% 60%
Delete
Open but annoyed
Indifferent
Curious to read
Eager to read
Unknown senders Permission e-mail
2002 L-Soft
Opt-in, opt-out, double opt-in, spam: Preferred e-mail marketing methods
64%
31%
4%1%
Double Opt-I nOpt-inOpt-outSpam
Source: Opt-In News, May 2002
2002 L-Soft
CTR and Conversion rate of US e-mail marketing campaigns – for permission based lists
2.10%
7.80%
7.00%
17.80%
0% 5% 10% 15% 20%
Unsubscribe
Bounce
Netconversion
Click-through
Source: IMT Strategies, Sept. 2001
2002 L-Soft
US Consumers’ Privacy concerns
69%
70%
75%
66% 68% 70% 72% 74% 76%
Hackers willsteal info
Transactionsnot secure
Sharing infowith third
parties
Source: Harris Interactive, February 2002
2002 L-Soft
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
2002 L-Soft
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
2002 L-Soft
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
2002 L-Soft
Building Customer Intelligence
Harness your Customer Database Effective personalization and targeting Common Segmentation Factors:
Purchase history Location/zip code Demographics Lifestyle/hobbies/interests
2002 L-Soft
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…
2002 L-Soft
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
Creating the Content
2002 L-Soft
Email users’ preferred e-mail marketing personalization models Communication Control Self-select content Name recognition Personal events & reminders Geography Account History Lifestyle Purchasing Behavior
2002 L-Soft
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
Evaluating results
2002 L-Soft
Response time and cost per unit, e-mail vs. direct mail Be prepared to handle responses
E-Mail Direct MailResponse Time
3 days 3-6 weeks
Cost per unit $0.25 $1.25
Source: DMA, Forrester Research, Gartner Group, 2002
2002 L-Soft
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 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
To Outsource or not to Outsource
2002 L-Soft
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