Email 2009: Trends and Solutions in a Tough EconomyAMA Reno-Tahoe Chapter Luncheon

Loren McDonaldVP, Industry RelationsSilverpop

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Obama Inauguration Speech

The question we ask today is not whether our government is too big or too small, but whether it works - whether it helps families find jobs at a decent wage, care they can afford, a retirement that is dignified.Where the answer is yes, we intend to move forward.  Where the answer is no, programs will end. 

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Email Change Begins Today!

The question we ask today is not whether our list is too big or too small, but whether it delivers - whether it helps your company increase revenue at a decent cost and retain customers.Where the answer is yes, we intend to increase our spend.  Where the answer is no, marketing programs will end. 

There are many challenges, but YOU can build a better email marketing program!

Trends Shaping Email in 2009

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7 Key Trends Affecting Email Marketing in 2009

1. Beyond Customer Control – to Customer Expectations

2. Channel Explosion and Consumer Preferences

3. The Email Volume Overload

4. Customer Churn and Inactivity

5. Most Prospects Are Long Term

6. Consumer Adoption of Multiple Email “Devices”

7. Growth of Social Networks and Social Media

1. Beyond Customer Control to Customer Expectation – The Amazon Effect

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Choose if They Want to Opt-in …

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Determine If, When,/Where, What, How They Read …

If

What

When/Where

How

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Determine If/When to Change Their Preferences

• Email Address• Format• Frequency• Which Emails

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When to Report as Spam …

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When They’d Prefer Another Channel …

C

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And When They Want the Relationship to End …

…and now – SUPER EXPECTATIONS

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Your Competitors Are Creating Great Expectations

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“Spray-N-Pray”, “Batch-N-Blast” – Low Relevancy = Goodbye

NO

Frequency is out…

Behavior is in…- Lifecycle- Trigger

- Click Stream

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Move to Behavior-Based Programs

Cataloger shifted to behavior-based

series after key purchase:

- Warranty- Accessories

- Related products

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Control & Expectations = Potential for More Engagement

• Embrace subscriber power

• Enable users to design and controlthe communications

• “My Email” is powerful concept

2. Channel Explosion and Consumer Preferences

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Communications/Marketing Channel Explosion = Choices and Preferences

To 1990

NewspapersDirect MailTelephone

RadioTVFax

Mobile Phones

1990-2000

InternetEmail

Instant MessagingSearch

2000-2008

Webinars/WebcastsRSS feeds

BlogsPodcasts

Social NetworksSMS

Video Sharing (YouTube)Mobile Applications

Twitter

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When was the last timeany of you rode your skateboard to work?

Monthly Text Messages- Daughter 700+

- Dad 20-

Changing Demographics

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Facebook generation (18-24) = 10% of U.S.

Text Generation is About to Hit the Workforce…

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72% of U.S. population

will be 20+ in 2010

…But Newspaper Generation Still Rules

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And Email Still Rocks for Business Communications

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Shifts - Not The End of Email

Demographics and channel preferences will cause some shifts in email

Flight alerts• Phone > Email• Email > Text

Again, preference centers are KEY!

3. The Email Volume Overload

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What’s the Total Impact of Frequency

5 times per month

12 times per

month

Revenue – Churn – Reputation….

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Retailer Case Study – Increased Frequency

Unsubscribes and spam complaints went through the roof

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Financial Impact of Increased Mailings

4. Your List Is Shrinking & Going Inactive

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List Churn and Inactives – The Good and Bad News

The bad news…

A typical list will lose 1/3 of its members each year

Bounces + spam complaints + unsubscribes = 2-4% / month

25% to 80% of your list is inactive

Subscriber has not opened or clicked in specific time frame (e.g., 6, 12 months+)

The good news…• Churn can be reduced• Some inactives can be

reengaged• You control most of your

destiny

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Engage and Delight…Every Step of the Way

Dating Build trust with transparency Preferences on opt-in

Engagement Welcome programs Bring the flowers

Marriage Deliver on expectations Preference updates Move to lifecycle, trigger and behavioral-based programs

Divorce Provide alternatives to unsubscribing

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Enable Preferences…Manage Expectations

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Get Them Started Right Away

Welcome Email

• Reiterates value proposition• Communicates when first email should be expected• Offers opportunity to start getting engaged with the brand

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Win Inactive Subscribers Back

Update their preferences

Survey subscribers their interests

Try a new approach to your subject lines

Best of content/offers

Behavior-based emails

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Why Recipients Unsubscribe

-Too Frequent- Irrelevant

Content/Offers

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Make Unsubscribing & Staying Easy

Missing:- Frequency Option

- RSS or catalogue option- Contact info.

5. Most of Your Prospects Are Long Term – The Unconverted Majority

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B2B: 70% of Leads are Long-Term Opportunities

82.5% are ready to buy or will buy

70% are long-term opportunities – Marketing Territory

An estimated 70-90% of leads generated by marketing are never followed-up with by sales

Source: MarketingSherpa

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B2B Email Drip Programs Nurtures Prospects

Email 1

Telesales

Email 2

Direct Mail

Email 3

Telesales

Day 1

Day 8

Day 12

Day 14

Day 2

Drips:CTRs of

3X

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PPC: 95%+ Don’t Convert Immediately

If avg. PPC conversion rate

is 2%-5% - what

happens to the other 95%+?

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Most Common Mistake: No Easy and Obvious Sign Up

6. Your Emails Are Being Viewed in a Growing Number of Environments

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Web Browser

PC client

Mobile Client

Same Email… May Be Read In Multiple Environments

Social Network RSS Feed

Web Version

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An Email in Every Pocket

Global mobile market subscriber base reached 3.25 billion in July 07

Current world population is 6.7 billion

Sources: The Mobile World, June 07; The Yankee Group; IDC, Gartner, Canalys 2006

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BlackBerry Email & Browser Experience

Browser Version

BlackBerry Browser

Email Version

BlackBerry IS installed email client

Original Email

7. Email Becomes “Social” – The New Forward to a Friend

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Evolution of Viral Email …

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Recipient Taken to Social Site

Email Subject line becomes “Title” and

“Mailing Notes” become the Meta teaser-text to

be displayed.

Email recipient can add their own comments or

endorsements

Users can select a thumbnail from some of the images in email, or

opt to not include a picture

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Friends Are Notified in Their “News Feed”

Whit Lanier posted a link:Downtown Atlanta Restaurant Week “This Looks Like a lot of fun”No tickets and no coupons! During Downtown Atlanta Restaurant Week, simply make a reservation, show up, and ask your server for the Restaurant Week 3-course prix-fixe menuhttp://www.opentable.com/blahblahblha_linkypoo%tracking%

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11% of the message clicks were on the social share buttons

Generated an additional 1,250 “new” opens.

Assuming that each sharer had 100 friends, we estimate the summary was viewed an additional 61,000 times.

Share to Social in Action

Do Your Emails Need Ketchup?

Ketchup can make almost any food edible, or even pretty tasty!

DISCOUNTS…!

are Ketchup!!!!!!!!!!

1. Messages tailored to individual recipients based on their demographics or behavior

Are your emails personalized?

2. A welcome program that sets expectations and creates value for new subscribers out of the gate and confirms that their decision to opt in to your email program was a good one.

3. Creative subject lines that motivate people to take the action they (and you) want, not just open the email

VSL // See a fantastic sixties rock movie you've never heard of

VSL // The best classroom drama since 'The Breakfast Club'

Best Buys on Ready to Assemble Furniture (Crate & Barrel)

Announcing the January White Sale(Kirkwood Mountain Resort)

Intriguing

OK, and so ….

Cross-Platform Design Tips

4. Emails designed to render well on multiple environments and platforms—PC, Web and mobile

5. Creative and compelling copy that motivates people to want to know more and act

6. A competitively positioned email program, which serves a clear need to recipients relative to your competitors’ offerings.

7. Emails with genuine personality that provide a reason for subscribers to anticipate your next message

8. Emails designed from a user perspective, making it easy for subscribers to find the information and links they need to take the action they want, anything from changing their preferences to buying your latest widget.

• Email navigation is not the same as Web site navigation

• But should not be inconsistent with Web site

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Key Takeaways

Embrace Customer Power Deploy preference centers - Enable them to shape their own experience

Focus on Converting Long-Term Prospects Optimize Landing Pages; Deploy Drip, Trigger, Behavior-Based Campaigns

Focus on Relevance, Not Frequency

Minimize List Churn and Inactives Use welcome programs Create unsubscribe/preference centers Implement reengagement programs

Design for Multiple Devices

Dive into the Social World

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Q & A

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Contact: lmcdonald@silverpop.com Facebook – Loren Todd McDonald Twitter – @LorenMcDonald www.silverpop.com