email marketing week 5. seeuthere.com idm works!!!!!

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Email Marketing

Week 5

• Seeuthere.com IDM works!!!!!

“Spam”

• ‘Spam’ is Unsolicited Commercial E-mail(UCE)• No existing relationship of permission from

recipient.– If they visit the booth

• Customer point of view• Sender point of view

• Not sent directly to your email address• Mailed in Bulk• Commercial in nature• Hard (or impossible) to unsubscribe

What is Permission Marketing

• A “courting ritual” with your customers and prospects

• Recognizes the most valuable commodity is attention

• An ideal application of email

• Complete knowledge and communication with your customer

Why We Hate Spam

• Spam erodes our value to ALL of our customers (mail blocking by mail administrators)

• Spam hurts our clients’ reputation Newsgroup chatter: “I hate this company”

• Spam can seriously damage our business• Spam clutters the inbox and reduces the

effectiveness for legitimate email messages

Opt Out

• Practice: A marketer obtains email addresses from customer and mails without prior permission

• Theory– We have an existing relationship– It is very simple to unsubscribe– This is just like traditional direct mail– They can always just hit “delete”

Opt-Out

• Reality– Complaints will be sharp, frequent and may

result in blocking actions by ISP’s– Does not scale

• Imagine if every business you ever patronized sent you an email marketing message.

– Encourage distrust• 60% of customers have given false information

when filling out forms ( BCG privacy white paper)

Opt-Out Permission

• Pre-checked box

• Confirming email ( auto responder) may or may not be sentDo you wish to receive our free monthly

newsletter

Check here to receive additional valuable offers from selected sponsors & partners

X

X

Opt-In Permission

• Customer must select box

• Confirming email may or may not be sent

Do you wish to receive our free monthly newsletter

Check here to receive additional valuable offers from selected sponsors & partners

Confirmed Opt-In Permission

• Customer must select choice

• Confirming email will be sent

• Customer must verify their addition to list

Do you wish to receive our free monthly newsletter

Check here to receive additional valuable offers from selected sponsors & partners

Double opt-in adds a confirmation step into the subscription process. When an email address is entered into our subscription form, we will respond with a message to that email address.

The potential subscriber must reply to that email in order to actually start receiving our newsletter.

ProblemsNo disclosure of Use on sign-up pageFuture promotions not addresses

Problems:Privacy policyDisclosure

Future Promotions notaddressed

Disclosure

The right wayNot must fill fieldsTrue Opt-InFull Disclosure of use

Please enter your e-mail address ifyou would like to receive special offersand product information via electronicmail. You may unsubscribe from anye-mail communications you receivefrom us at any time.

By filling out and submitting this form you are being added to the Dell mailing list. The Dell mailing list is private and not sold to other merchants.

The Right WayHTML defined,And asked

The Email Marketing Spectrum

SPAM OPT-OUT OPT-IN CONFIRMED OPT-IN

Addresses gathered from anywhere

Existing customers.They haven’t given you permission,

A check box gave you permission to send mail

A checkbox gave you the permission and you have confirmed the address

PITFALLS

•Doesn’t work•Creates complaints•ISPs shut you down

•Many complaints

•Doesn’t scale

•Not bullet proof

•Distrustful visitors use wrong addresses

•None.

•100% clean and loyal audience

Acceptability

A Grass Roots Call To Action

Forward all spam e-mail:

Abuse@domain

And spamrecycle.com

Tell them: E-mail is great marketing medium, but you are not playing by the rules.

You are inviting government oversight

Practice permission marketing

Netizen Psychology 101

• Advice– Don’t surprise– Show respect

• Time

• Intelligence

• Privacy

– Test small

Why Email is a Powerful Marketing Medium

E-mail Most Effective OnlinePromotional Tool

• Email users click on email 3x-10x vs. banners ( Ernst&Young 1/00)

• Survey of online consumers 12/10 – 12/22– 63% purchased via email promotion– 38% purchased via banner ad– 29% purchased via offline advertising

» Buyersguide.com 1/00

The Email Revolution

Response Rate

0%

2%

4%

6%

8%

10%

12%

Direct Mail Email

Cost Per Unit

$1.25

$0.25

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

Direct Mail Email

Response Time

05

10

15202530

354045

Direct Mail Email

Faster Cheaper Better

5-15%

1-2%

Sources : Forrester, DMA, Gartner GroupMay 25 2000

3-6 Weeks

3 Days

Email Marketing Spending will Triple by 2004

% of Online marketing budget

Annual Spending 1999

Annual Spending 2004

% of email budget for acquisition

%of Email budget for retention

All Companies

5% $ 240.000 $ 720.000 36% 64%

Traditional Companies

5% $ 144.000 $ 950.000 12% 88%

Internet Pure Plays

7% $ 290.000 $ 600.000 55% 48%

“How much do you spend on email?”

Source: Forrester research (Jan 2000) Based on interviews With email marketing managers from 22 traditional and 28 internet pure plays.

$1+billion E-mail Marketing by 2001

• Marketers will shift Sales&Marketing resources to permission email marketing

• Marketers will spend at least $5 per name per year maintaining permission

• Email service and solution providers are proliferating

• Scale agencies, bureaus and solution suites will emerge to support this market

E-mails Role in the Relationship Marketing Spectrum

How is e-mail marketing used?

66%

48%

34%

28%

24%

8%

4%

0% 10% 20% 30% 40% 50% 60% 70%

Promotions&Discounts

Newsletter

Product releases

Advertising/Marketing

Alerts/reminders

Market Research

Other

Forrester Research

House List

Prospects

Email Communication Strategy

Knowledge of customer behavior and preference

Bulk

Segmented

Targeted Content

Daily NewsletterAutomated GreetingsSpecific channel/Service InterestAdhoc PromoRemindersWelcome backCustomer feedback

WelcomeRegistrationSurveys

Flash EmailsContest Follow-up

Subscriber AdvantageLocal content NewsletterTarget AIM 1.0 users

Crafting E-Mail Campaign

• Beginning with the basics– Define your target– Establish objectives– Develop a strategy – Determine the offer– Build the plan– Test assumptions– Measure results

Crafting an E-Mail Campaign

• Strategy Development

Keys to response Postal Email

List 50% 30%

Offer 25% 25%

Format 15% 15%

Copy 10% 5%

Crafting E-Mail Campaign

• Strategy development

Focus on offer first– Don’t mail unless you have something to say– Use email for direct response capabilities rather

than brand awareness.– Audience more rush than any other medium

Crafting E-Mail Campaign

• Free Information• Free Service• Free give away• Sweepstakes• Discount offers• Rewards Programs• Partner promotion• No offer

Determine Offer

House File Creation

• The pitfalls to avoid– Problem: Details within Privacy– Essential: Disclosure at Time of collection

House File Creation

• Ask for email address via every channel– Printed order forms– Call centers– Customer Service calls– Give customers a reason to register at your web

site

• Tell them what you will do with their name

House File Creation

• Audit trail– Protect yourself– Proof of permission

• Date

• Time

• IP address

– Proof of confirmation

House File Creation

• HTML, TEXT and AOL – Three different environments…

House File Creation

• Domain Segmentation– Yahoo, Hotmail, Excite, Mail.com, USA.net

( these represent about 75 % of all HTML enabled email accounts)

– “Sniffer” Technology • Identify HTML enabled Email Clients while mail is

being sent.• 90 % accurate• The other 10% is a problem

House File Creation

• AOL Segmentation– AOL is not TEXT or HTML

• Without Tag in AOL

• With HREF tag in AOL

• AOL can be up to 30% of some consumer mailings.

Components of the Message

• From Line

• Subject Line

• Header/Footer

• Remove/Unsubscribe

• Prospect Header issues

• Personalization

• Body copy

• From Line– CNET Digital Dispatch– [CNET_Digital_Dispatch6.31@1.digital.cnet.com]

• As short as possible

• As clear as possible

• It is the envelope, misperceive that you are spam.– You don’t want to be deleted

Components of the Message

Components of the Message

• The Don'ts– Important Message

– SUPER SAVER

– Re: how are you

– Free Software

– Unlimited access

– “Guaranteed”

– Hi

• The Do’s– Identify your company

– 35 Character or less

– Personalization in subject works

– Put your company name

Subject Headings We Can Live Without

• Important Message

• PLS support us

• Very important Announcement

• Protect your health

• SUPER software sale

• “Work smarter not harder”

• “$4370 a month for life

• Great mortgage Leads

• We’ll pay your debts!!!

• Start earning money while you are sleeping

• RE: How are you doing

• LOSE 30 POUNDS IN 30 DAYS, GUARANTEED

• Unlimited Long Distance Calling for Only $25/month

• Free web site analysis

• The Internet Spy! Find out anything about anyone

• FRAMELESS BUILDING CONSTRUCTION

The Components of the Message

• Header/Footer• Header

– This special offer is only sent to fake email list.com registrants who have opted-in to receive information and special offers. This message is delivered to you via Emailtransmitter.com

• Footer– Steve@aol.com

– If you would like to be omitted from future offers from the fake emaillist.com please reply to offer@fakeemaillist .com with remove in subject line.

The to email address

Where did the message come from and why?

To: subscriber@address.com

From: Our company and or Brand

You are receiving this message because you opted in at your web site to receive new product information. If you do not wish to receive these messages in the future, please

click here or follow the instructions below.

Which name is the customer Likely to recognize

Recipients are more likely to Read your message if you are specific about the relationship

Easy Unsubscribe

To: subscriber@address.com

From: Our company and or Brand

We only want to send e-mail to those wish to receive it. If you wold not like to receive email from us please go to leave-online-ads-514079Q@o-a.com or reply to this message with the word “unsubscribe” in the subject line

The Components of the Message

• Body Copy– Newsletter Mailings

• 500-1500 words

– Prospect mailings• 200-500 words

– Repeat Links• Put your URL everywhere

– Lots of people read mail from preview. – Good for testing

» Htm1» Htm2» Htm3

Some quick tips

• Include more than one link within mailing

• Keep it short-no longer than 1 printed page

• Sign the email from real person…not just a company

• How often can you mail? Watch your unsubscribe rate carefully…that will tell you

– More than once a week is dangerous!

• When to mail

– B2B 10:00 Tuesday thru Thursday works best (before lunch)

– Consumer anytime??

– Within 24 hours you will know the 70% response rate

– 48 hours 70-80%

Some quick tips

• Subject Lines– Make sure your subject line is killer

– Be very careful of the use of FREE

– Keep your subject line to 35 characters

• Personalized mail is guaranteed to out pull• First line extremely important

– May be displayed within recipients email client

– 50% decide whether to keep reading after 1st two sentences.

Rules of Thumb with Email

• Make it very clear where the message is coming from and why

• Make it very easy to unsubscribe• If the customer did not explicitly opt-in,

DO NOT assume they will accept opt-out.• Don’t rent your list! Transferring permission is

difficult and should be done cautiously• Avoid spammish copy

Writing Effective Email

• Before you begin, tell them how to unsubscribe

• Begin&End with a hyperlink

• Tailor message to your audience– Keep it short & Sweet

• Raise excitement, include call to action– Web site, not email, closes the transaction

Crafting an Email Campaign

• Targeting– Personalization

• In-house list,established relationship-YES

• Prospect list, no relationship – Tread carefully– Could trigger privacy fears

– Risk may exceed reward

Measuring Success

Maximize ROI

Test MeasureRefine

Before you mail

• Segment out HTML, TEXT..

• Important: Segment AOL users

Steps in Measuring the Campaign-Emails delivered

• Bounce rate

• Retry programs

• Soft Bounce – JayS@worldata.com– A soft bounce occurs most often because of an error in a subscriber's email

address. A misspelled name or something as simple as a missing space or dash can cause a soft bounce.

• Hard bounce – Jay@worldataS.com– A hard bounce occurs most often because of an error in a subscriber's email

address (wrong host). You should unsubscribe hard bounces from your list.

Steps in Measuring the Campaign-Emails delivered

• Actual were delivered– Hard/soft bounce– Hotmail and Yahoo issues– Retry programs- How often do you try to re-

mail bounces• Some of your bounces can be fixed.

MeasurementWhat you should be measuring

• Lists, Newsletters all email

• Emails delivered

• CTR

• TEXT vs. HTML vs. AOL

• Inquiries, Sales or depth of site

• Transactions

• Pass alongs

• Yes, Yes, Yes– Huge benefit of email

• High response rate, requires smaller test cells– 500 HTML message 1000 text message

• 75% of responses within 48 hours

• Costs to change copy, graphics, inexpensive

Testing

• http://www.clickz.com/article/cz.2369.html#

• http://www.clickz.com/article/cz.3137.html

Outside Email Lists

• Discussion list sponsorships

• Newsletter sponsorships

• Standalone permission lists

Email Discussion Lists

• Similar to newsgroups

• Moderated, open

• Topically driven

• Earn revenue driven through sponsorships

• Generally small….but targeted

• Not widely known about by marketers so may be a hidden gem

Newsletter Sponsorships

• Niche oriented

• Content driven– Provide free Free Value-Added benefits to

those who want to be informed, educated or entertained

• Loyal readership

• Revenue driven by sponsorships,text ads

Newsletter Sponsorship

Newsletter Sponsorship Universe

• Response is likely to be 25% or less than response from an email list

• But costs are lower too.

• Greater targeting available– Especially BtoB

• Where to find them….– www.e-zines.com

– Sites that sell banner ad space

• List brokers

• Time sensitive availability– Holiday Seasons

Newsletter Sponsorship Universe

• Size can be deceiving• Must make sure all names are unique

– Newspaper sites generally– 300 000 may mean 100,000 sent x 3

• This is a space medium!!!!– Must buy 2 months in andvance– Nearing any holiday buy 3 months in advance

Newsletter Sponsorship Universe

List Exchange

• Fastest growing part of Email Marketing

Standalone Permission Lists

• People who have said “Yes I am interested:– In the market for something,have a need or interest in a

type of product or service

– Relevant to lifestyle,household, family need, hobby, passion etc.

• Subscribers have control• Marketers get results

– Because customers want to receive their information

Standalone Permission Lists

Only use true permission lists

• User selection tremendously better than default opt-in program

• Be afraid-be very afraid

• Ask for case studies or references

• Find out how people opted in

• Verify it.

Never use a list like this

• 77 million fresh email addresses for only $69

That is right 77 million with no duplications.That is less than $1 per million names. Can you make 1 cent from each of these names?

Standalone Permission Lists

• Typical price range: $150 to $500+ CPM– Cost driven by demand– Consumer lists at lower end of pricing range– B2B lists at upper end of pricing range.– Some lists are standalone…although the source

of the list is usually mentioned.

Standalone Permission Lists

• Consumer Lists– Few response files on the market…most are

lists where people have indicated an interest in a particular subject.

– Selects include recency, geographic location, interest area, gender.

• B2B Lists– Very selectable: SIC codes, title, number of

people in company etc.

Standalone Permission Lists

• Targeting– Lists do’s and don’ts

– Do not mail unless you are 100% permission sure

– Do ask the source-many companies selling the same lists

– Do not be cheap-the risks are great

– Do scrub list for duplicates

– Do provide clear “remove” access

Permission List Networks

Problems with Permission Lists

• You can’t merge/purge– List owners are very concerned about the security of

their list. They usually designate one trusted company to deliver all email to their names

• Some will allow you to send them your house file for suppression– But marketers may need to send their file to multiple

service bureaus and that is a concern for marketers own list security

Prospects List Universe

• List Brokers Role– Media – Tracking– First Usage– Cut costs– Advice

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