1. Current State ofEmail Marketingin the USEducational Series #2

2. Its calledFashionyouwouldntunderstand. 3. Why you are here 4. Agenda Feedback from last week Interactive Weekly Takeaway Future Topics: Demystifying Email Metrics and Analytics Anatomy of a Great Email Engagement: Why Its Vital to Your Email Health How Mobile-Local-Social Has Transformed Email How to get your Email Delivered SPAM and the CASL (Canadian Anti-Spam Law- effective July 1,2014) Grow your Email List Like Wildfire Lifecycle Marketing for Email Better Email Through Automation Building a Cross Channel Marketing Program 5. Your Email Yogi- 30 years experience in helping corporations grow sales, retain clients, andimprove profitability.- Operates an eight year old email consultancy calledeMARKETINGWERX, INC. that specializes in creating compellingstrategies and tactics for successful email implementation.- Expert user of multiple email platforms including Blue Hornet andExactTarget Platform - certified reseller partner as well.- Past clients include Robbins Brothers, Juicy Couture, Kate Spade,Tourism Fiji,TripIT, PGE, Singapore Airlines,Vail Resorts, Toyota,Pharmca, Four Seasons ,Hilton and multiple interactive agencies.- Former Director of Business Development for ExactTarget Email Solutions.Former Agency Strategist for Blue Hornet.- Co-founded successful ten year old Los Angeles interactive marketingagency Comchoice now called Zoo Entertainment.- Graduate of the University of Minnesota.- Speaker at multiple trade shows and business schools by invitation on thesubject of Interactive Marketing and Permission Email Strategies.- Past President Direct Marketing Association of Southern California- Past Vice President Association of Professional ConsultantsChristopher BarneseMarketingwerx, Inc.Ph: 310-686-2314Email:cbarnes@emarketingwerx.comTwitter: @larainmkr 6. Quick Take aways From Series 1Email can be a critical connection pointwith your customers and prospects.Respect your subscribers.People want relevant messages fromyou.Seek to understand your customersjourney.Be obsessed with the quality of yourcustomer data and use it wisely. 7. What Role Should Email Play?The retail customers lifecycle:Acquire, Onboard, Engage, Retain, & Winback 8. What else can email do? Update Remind Nurture Retain Simplify ListenOh thats right SELL too. 9. Brighton Educational Series #2- Current State of Email Marketing in the US 10. Todays Digital Buyer:Current State of EmailMarketing in the US Tech savvy Brand sophisticated Expects a lot - inform and entertain me Fickle 11. Buyers are more empoweredKnow how to opt outHave higher expectations 12. 12Customers are now always addressable 13. Quick StatsEmail its alive! The number one way for marketers tocommunicate directly with customers. 14. Axciom Research 2013 15. Axciom Research 2013 16. Quick StatsAccording to new research: Email is the still the customer preference.77% of consumers reported that they prefer to receivepermission-based marketing communications through email and email was the number one source for all age groupsincluding 15-24!(Source: Waldow Social) 17. AudienceParticipation 18. Our Challenges The Economics of Attention: Information abundance andattention scarcity = tough to get buyer attention Opt-Out, Screen Out, Tune Out: Consumers dont want tofeel they are being marketed to, and will find ways to tune outunwanted communications The Cross-Channel Marketing Revolution: email can nolonger be a standalone channel Imprecise Metrics: Imprecise metrics that dont show trueimpact 19. Misses Customer data hygiene: 80% of retail brands collect emailvia (POS) system entered by a sales associate, - highpotential for error. Personalization: The majority of marketers ask customersfor data, but then dont use it to personalize their emails.70% of brands are not personalizing emails sent tosubscribers. Customer preferences: 60% of marketers do not givecustomers the option to select the types of emails theywant to receive, only 30 % of marketers let their customersdecide how often they want to be mailed.Experian Marketing Services 12-2013 20. Growing Trends Popup windows: 45% of marketers use pop-up windowson their Website to collect email addresses. This numbermore than doubled from lastyear (a 107%^). Responsive design: Optimal experience to mobilecustomers - use of responsive design more than doubledfrom the previous year. Social influence and brand advocacy is UP! Promoting withPinterest has the biggest increase, followed by Instagram,which is now being promoted by 39 percent of brandssurveyed.Experian Marketing Services 12-2013 21. Tactics to implement Activity segmentation: 83% segment their email campaignaudiences by past activity data, such as open and clickactivity. E-receipts: Those with up-sell and cross-sell features havethe highest click and transaction rates. Real-time triggering: Second abandon cart remindersgarner an average 54 percent lift compared to just sendingone abandon cart message, while browse emails that arebased on products or categories a customer has surfedachieve a 3.4x increase in revenue compared to otherpromotional mailings.Experian Marketing Services 12-2013 22. Tactics to implement Reactivation: Confirmed opt-in mailings have 3.3 timeshigher click rates than other reactivation emails. Customer loyalty: Brand loyalist click significantly more onsurveys, review requests and follow us links for socialwebsites, than non brand-loyalists..Experian Marketing Services 12-2013 23. Forty million photos are uploaded to Instagram every day.The State of Social Sharing in 2013, WebHostingBuzz 24. Email is one of the most-used tacticsWhich of the following tactics does your company use?Base: 395 US, UK, and Canada-based enterprisefirmsSource: Forresters Digital Marketing MaturityModel Survey, Q3 2013 2013 Forrester Research, Inc. Reproduction Prohibited 36 25. 1%7%21%16%15%10% 10%5%3% 2%3%5%25%20%15%10%5%0%None Less than1%1% to 5% 5.1% to10%10.1% to15%15.1 to20%20.1% to25%25.1% to30%30.1% to35%35.1% to40%40% orgreaterNot surePercentage of Overall Revenue Attributed to EmailMarketing - 2014Question Asked: What percentage of your overall revenue is attributed to your emailmarketing initiatives?Source: The Relevancy Group, LLC/Executive Marketer Survey n=374 11/13, US Only, Mid-Market & Enterprise RespondentsCopyright 2014 The Relevancy Group, LLC. All Rights Reserved. 26. 38Users engage with promotional email 27. 73%81%Mobile Email Adoption by Age - 201490% 93%84%73% 69%59%42%21%27%19%10% 7%16%27% 31%41%58%79%100%90%80%70%60%50%40%30%20%10%0%13 to 18 19 to 26 27 to 32 33 to 38 39 to 45 46 to 53 54 to 60 61 to 70 71 to 80 81 or olderYes NoQuestion Asked: Do you currently access one or more of your personal email accounts ona mobile device such as a cell phone, smart phone? (select one) Source: The Relevancy Group, LLC2014 Consumer Survey n=1,011 3/14, US Only39Copyright 2014 The Relevancy Group, LLC. All Rights Reserved. 28. Inhibitors to Email Marketing on Mobile Phones18%9%9%21%26%32%37%44%0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%Sent too often, I get too many of themThey are not relevant to meToo small to read and interact withWhen I click through it is too hard to see their full web-site on myMessage is jumbled and not well formatted on my mobile phoneI have their App, they should message me this wayIt is redundant to what the brand has already pushed me throughthe application that I have on my phoneNone of the abovemobile phoneQuestion Asked: What dont you like about getting email marketing messages on yourmobile phone? (select all)Source: The Relevancy Group, LLC 2014 Consumer Survey n=1011 3/14, US Only40Copyright 2014 The Relevancy Group, LLC. All Rights Reserved. 29. Marketers are Missing Segmentation OpportunitiesData Attributes Used For Segmentation22%22%22%28%26%33%29%44%32%31%51%Demographic dataGeographic dataCustomer satisfaction survey dataClick-throughs on previous email marketing offersCustomer spendingFrequency of customer service contactsTransaction activity/Purchase behaviorFrequency of purchase regardless of channel, conversion rateOpen rate on previous email marketing offersQuestion Asked: Which of the following customer data attributes has your company usedto segment audiences for email marketing campaigns within the last six months?Source: The Relevancy Group, LLC/Executive Marketer Survey n=374 11/13, US Only, Mid-Market & Enterprise RespondentsCopyright 2014 The Relevancy Group, LLC. All Rights Reserved.28%39%43%26%31%36%40%45%51%0% 10% 20% 30% 40% 50% 60%Customer profitabilityEnterprise Mid Market 30. Majority of Marketers Are Challenged By Data CentralizationEmail Marketer Customer Data Management5%17%16%20%20%23%29%28%27%30%38%36%0% 5% 10% 15% 20% 25% 30% 35% 40%We have a centralized data repository for our client dataWe use email address as a unique customer identifierWe know the value of our email subscribers/value of an email addressWe centralize customer data from across channels to recognize thecustomer in a single recordWe measure lifetime customer valueWe store our client data in the same schema for all marketing channelsWe track acquisition costs by channelWe utilize predictive customer analyticsWe use multiple channel specific databases to store our customer dataWe practice data house holding to understand multiplecustomer/accounts within a single householdWe have robust data hygiene and de-duplication processes for dataNone of the abovemanagementQuestion Asked: Please select the statement or statements that best describe how youmanage your customer data?Source: The Relevancy Group, LLC/Executive Marketer Survey n=374 11/13, US Only, Mid-Market & Enterprise RespondentsCopyright 2014 The Relevancy Group, LLC. All Rights Reserved. 31. Application Challenges Prevent Marketers From Embracing ProvenTacticsEmail Marketing Tactics11%10%11%18%18%17%21%21%25%23%23%18%21%29%27%8%22%20%19%25%31%33%28%32%36%31%35%38%We place offers or ad content in transactional email marketing messagesWe target our customers based on web-site behaviorWe use video in email campaignsWe utilize dynamic contentWe have begun utilizing QR (Quick Response) codesWe conduct A/B testing for email marketingWe target our customers utilizing life-stage marketing tacticsWe have launched a mobile application for our clients (e.g. iPhone, iPad,We use paid search to grow our marketing databaseWe conduct multi-variant testingWe utilize triggered, multi-wave, lifecycle marketing across multiple0% 10% 20% 30% 40% 50%We measure lift vs. controlWe utilize an SMS short code for mobile opt-inNone of the aboveEnterprise Mid MarketQuestion Asked: Please select the statement or statements that best describe the emailmarketing tactics that you regularly utilize?Selected Response = Currently UtilizeSource: The Relevancy Group, LLC/Executive Marketer Survey n=374 1/13, US Only, Mid-Market & Enterprise RespondentsCopyright 2014 The Relevancy Group, LLC. All Rights Reserved. 32. Increased Use of Automation Will Drive RevenueEmail Marketer Trigger Campaign Utilization16%16%16%15%31%28%25%21%32%32%29%49%23%23%32%30%31%30%37%33%46%56%Welcome message (triggered after subscriber opts-in)Welcome campaign (a series of triggered messages afterCustomer changes or updates preference centerMessages triggered based off criteria of web-site behaviorsMessages based on rules related to customer valueCustomer offers based on coupon redemption and or non-Customer contact at offline locations, store, call center, etc.Post purchase surveyPost purchase offerSubscriber is dormant, shows no behavior after a certain0% 10% 20% 30% 40% 50% 60%Shopping cart abandon or other type of abandon messageEnterprise Mid MarketQuestion Asked: From the following list please select which types of automated triggercampaigns that you currently utilize.Source: The Relevancy Group, LLC/Executive Marketer Survey n=374, 11/13, US Only, Mid-Market & Enterprise RespondentsCopyright 2014 The Relevancy Group, LLC. All Rights Reserved. 33. Bright IdeasEmail united with other marketing channels like videoand social media = highly interactive and memorablecampaign.By pulling in the latest photos that used the#DreamingInBlue hashtag, 7 For All Mankind made theirfans part of the email experience.320% INCREASE IN FOLLOWERShttp://view.os-email.com/?j=fec61571716c0278&m=fe9912727561017e74&ls=fe551373706d0c7e7412&l=ff951678&s=fe5b157675610d797d17&jb=ff61167770&ju=fe9216787665067b72&&smtrctid=16059483&utm_source=promo&utm_medium=email&utm_campaign=03052014_Dreaming_in_Blue&CID=em_03052014_Dreaming_in_Blue&&&&r=0&r=0 34. Bright IdeasLilly Pulitzer created an email that adaptedto each recipients current time and deviceat the moment of open.The click-to-call functionality for mobiledevice users was an effective way tomaximize cross-channel sales. 35. Bright Ideas 36. Questions? 37. Current State of Email Marketing in the US?- Educational Series #2-Christopher BarneseMarketingwerx, Inc.Ph: 310-686-2314Email: cbarnes@emarketingwerx.comTwitter: @larainmkrLets reveal and close the gaps in our current email marketing efforts. ---Authentic journeys that exemplify your customers Experience--