email marketing

Overview Basic Calculations Building your list Choosing a mailing company Designing an email Mailing frequency List selection and segmentation Specialty emails

Basic Calculations It’s important to know what your customers are worth

Customer Life Time Value “CLTV” – see last page for links to calculations Simple Calculation - Say the average customer buys for 2 years.  

Therefore, we define the LifeTime of a customer as 2 years. Over 2 years, the average customer makes 10 purchases. 10 x $2.50 Profit per Unit = $25.00 LTV of the average customer

Once you know what your customers are worth you can start to work on the value of new members If 10% of your members become customers than the value of a member is

10% of $25 or $2.50 (don’t forget to reduce out the cost of getting them to buy)

Using analytics determine what % of your business is New vs Existing Customers

Existing business varies based on the industry and the products understand your industries retention rate and assess your companies rate vs the industry

Example – Appliances 15% vs Cosmetics 50% You can spend more to acquire new customers as you increase your

CLTV

Building Your List Buyers – everyone who buys should be added to your email list Members – membership sign up should be prominent and

aggressive 2 Step Process email ONLY in step one More data in step 2 but only collect what you really need

Partnership and Business Development – find win / win partnerships where you don’t pay for members – use your products as prizes for another company’s contest and share the data

3rd Party Data Once you know the CLTV of a member you can test out 3rd party list

rental an co-reg programs - it is important to ALWAYS analyze new members by source – outside sources can be worth 10% of the value of a member on your site

Buying Lists - Not an acceptable practice - some lists can be shared but be careful and mindful of the CAN SPAM Laws

Registration Process

Choosing a Mailing Company If Your List Size is under 5,000 use Constant

Contact – it’s self service and easy to use If Your List Size is over 5,000 decide If you

want a full service or a self service company Self service approx $2 per 1,000 emails sent Full Service approx $6 per 1,000 emails sent Rates decrease significantly with monthly volume

– mailing volume of 100 million per year can be as cheap as $1.00 per 1,000

Designing an email Create a Template Determine what you want to promote and make sure the message is

clear Make sure there is a clear Call to Action Make sure the design is consistent with your brand and entertaining Cover the basics – navigation, unsubscribe link and address, footer

with company information and all disclaimers HTML – Pre Header so if viewed on a mobile device with images off

the message is still there Types of emails

Welcome Promotion Newsletter Notification (Final Notice) Site abandon Cart Abandon

Terms Basic I

Before You Send Come Up With More than One Version of the

Promotion – 25 % OFF vs Buy One Get One 50% OFF

Test Multiple Subject Lines The Difference between a 12% Open Rate and

a 15% Open Rate is NOT 3% - it’s 20% Test in multiple browser settings using the ESP

tool for testing Send yourself a test email

Reading Test Results

Segmentation and Mailing Frequency Create and Follow a Promotional Schedule Monitor Open and Click Rates Open Rates Should Average Above 10% Click Rates Should Average Above 15% of

Opens Segment Your List and Market to Responders

More Frequently Vary Your email Type if You Mail More than 2x

a Week

Terms Basic Industry Terms

ISP - Internet Service Provider AOL, MSN, Yahoo ESP – email service provider deliver the email to the ISP SPAM – unwanted email Opt In Registration – must check a box to Opt IN Double Opt In – must check a box and confirm usually via email Opt Out – automatically signed up must Opt Out to get off of the list Unsubscribe – ask to be removed from list Black List – complainer –NEVER Mail even if re-subscribe CLTV – Customer Life Time Value Open Rate - % of people who receive an email that open Click to Open Rate - % of People that Open an email that Click Click to Sent Rate - % of People that are sent an email that Click Click through Rate- ask for a definition it can be one of the 2 above Conversion Rate - % of people that click that make a purchase Unsubscribe Rate - % of people that are sent an email that unsusbscribe

Helpful Links CLTV Calculation   http://hbsp.harvard.edu/multimedia/flashtools/cltv/index.html   http://www.jimnovo.com/LTV.htm   http://en.wikipedia.org/wiki/Customer_lifetime_value     Spam Law   http://www.spamlaws.com/federal/can-spam.shtml   http://en.wikipedia.org/wiki/CAN-SPAM_Act_of_2003         SellUp Blog   http://www.etailsales.blogspot.com/  

Questions & Answers

For More Information visit:

http://www.etailsales.blogspot.com/ connect:

http://www.linkedin.com/in/allanlevy1 follow: https://twitter.com/#!/allanlevy1

Allan Levy CEOwww.sellup.netallan@sellup.net