leveraging the value of email marketing during a recession
DESCRIPTION
These slides are from the 6/26/2008 Aquent/AMA Webcast with Simms Jenkins titled "Leveraging the Value of Email Marketing During a Recession."TRANSCRIPT
These slides are from the 6/26/08 webcast:
Leveraging the Value of Email Marketing During a Recession
This AMA webcast was sponsored by Aquent
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Leveraging the Value of Email Marketing During a Recession
Simms JenkinsFounder & CEOBrightWave Marketingsjenkins@brightwavemarketing.com404.888.0133www.BrightWaveMarketing.comwww.EmailStatCenter.com
Agenda
1. Redefine your program
2. Build the Business Case
3. Position Email As Service Bureau
4. Arm Yourself With Data
5. Optimize
6. Cut Costs with Email
7. Deliver Exceptional Value to Subscribers
8. Get Creative
Award-Winning Email Marketing Services Firm –Founded in 2002Specialize in creating, managing and optimizing email marketing programs that
Acquire & Retain CustomersBuild RelationshipsCut CostsDrive Revenue
“One of the top 21 email marketing information sources” & “Best Blogs” - Email Marketing Reports.comRecognized as one of the leading email service firms in the industryBrightWave & Client work featured in dozens of industry publications and media including The Atlanta Journal Constitution, Bloomberg TV, Marketing Sherpa, BtoB, ClickZ, DM News & MediaPostAwarded Atlanta Marketer of the Year (AMY) Award by the American Marketing Association and the South Star Award by the Direct Marketing AssociationCreated EmailStatCenter.com, in partnership with The Email Experience Council, the leading email research and metric portal for email marketing practitioners Contributor to iMediaConnection, over 40 email industry related articles publishedForthcoming book “The Truth About Email Marketing”to be published by Pearson on Aug. 1Leadership developed email programs at Cox Interactive Media, Southern Progress & WebMD
Background
BrightWave Marketing’s appearance on Bloomberg TV
BrightWave Marketing – Clients
What Does a Recession Mean?
“In the middle of difficulty lies opportunity”
Albert Einstein
Interactive Marketers Are Bullish In A RecessionSurvey of 333 interactive marketers revealed strong support for maintaining or increasing budgets in categories including social networking, email, blogging, and search optimization.
Professional services, financial services, and media marketers are most likely to plan increases in interactive marketing.
In a recession like this, marketers should focus on the measurability of their online and social applications and think in terms of building long-term assets, not one-off campaigns to boost quarterly sales.
Josh Bernoff – Forrester Research
Email Marketers Wish List
Strategy & Measurement are the top 2 areas for near term focus for email
marketers-- EmailStatCenter.com First Annual State of Email Metrics
Survey, Nov. 2008
List Development & Time Constraints are the biggest
challenges for email marketers-- EmailStatCenter.com First Annual State of Email Metrics
Survey, Nov. 2008
Redefine Your Email Program
Redefine Your Email Program
Purpose/MissionGoals BenchmarkDefine Your AssetsMake Sure Your Team (Internal & Partners) Are On the Same Page & Invested
Recommended Metrics for Success Overall Goal Success Metric Industry
Average COMPANY current state
COMPANY desired state
a) Drive Revenue Revenue NA $10,000,000 $22,500,000
a) Drive Revenue ROI $57.25 $20.00 $40.00
a) Drive Revenue Conversion Rates .13% 0.50% 1%
a) Drive Revenue Value of Email Subscribers (# of subs/revenue)
NA $2.00 $3.00
b) Customer Loyalty Total Email Subscribers NA 5,000,000 7,500,000
b) Customer Loyalty Unsubscribe Rate .29% 0.15% < 0.10%
b) Customer Loyalty Customer Frequency (average monthly visits/average monthly unique visitors)
NA 1.2 2
b) Customer Loyalty Customer Retention (% of site visitors returning to client..com)
NA NA Begin to track, initial goal should be 25%
c) Brand, Product, Feature Awareness
Open Rate 20.77% 26% 30%
c) Brand, Product, Feature Awareness
Click Through Rate 5.32 8% 12%
c) Brand, Product, Feature Awareness
Deliverability 96.9 94% 97%
Build the Business Case
Email is Too Valuable & Powerful Email has reached almost universal penetration, with 97% of consumers & 94% of marketers using the channel -Forrester, 2007
87% of Consumers online time is spent reading their emails - David Daniels, Vice President JupiterResearch, Dec. 2007
82% of marketers choose email marketing as the most important advertising media they planned to use in 2008 -Datran Media, 2008
81% of marketers planned to increase spending on email marketing in 2007 - Alterian, 2007
US spending on email advertising will grow to $2.1 billion by 2012 from $1.2 billion in 2007 – JupiterResearch, 2007
Email Marketing Delivers ROI
For every dollar spent on Email marketing in 2007, marketers can expect an estimated $48.29 ROI.
-- DMA, 2007
Email Marketing Delivers ROI
Email delivers one of the lowest costs per order
Email's ROI index is 70 percent higher than any other direct-response marketing vehicle - DMA, 2006
83% of marketers surveyed said that they thought 2007 ROI for email will increase over last year. - Datran Media Research, "The 2007 Email Marketing Survey: Looking Forward"
45% say best performing online advertising tactic is emailing your in-house list - CMO Council, 2006
B2C marketers will spend 11% of total marketing budget on email marketing in 2007 - DMA, Nov 2006
B2B marketers will allocate 6.5% of their marketing budget to email marketing in 2007 - DMA, Nov 2006
Email Marketing Outperforms Other Media
Source: Direct Marketing Association (DMA) as cited by Promo Magazine, October 18,2007
Email Marketing is Big Business Now
Position Email as a Service Bureau
Internal Email Service BureauEmail is the……Workhorse of Interactive/Direct Marketing…Bridge to Sales & Marketing
Use Best Practices to Monitor & ControlCreate Business rules, policies and guidelinesTestMetrics as a LeashConsider Centralization
Only 38 percent of executives said their email messaging endeavors are
centralized in one location, with 24 percent citing that six or more
departments manage it separately.-- Jupiter Research, 2007
Arm Yourself With Data
Lack of Analysis
70% of respondents said they apply basic or no analysis to any
of their email campaigns.-- Alterian, 2007
95% of email marketers measure results56% measure immediately after campaigns while 48% and 44% measure weekly and monthly, respectively – only 18% measure annuallySurvey respondents said it was very important to measure email campaigns in order to improve resultsRespondents ranked email metrics by importance :
1. Click Through Rate2. Deliverability3. Conversions4. ROI5. Open Rate6. Revenue7. Total Subscribers8. Forwards
Only ½ of email marketers are using email metrics for budgeting/forecasting purposesBiggest Metrics Challenge = Lack of standardization
State of Email Marketing MetricsEmailStatCenter.com’s First Annual State of Email Metrics Survey conducted August - October 2007
RemarketRedesigned creative lifted response rate between 100-350%Email Marketing efforts generated $119,567 in revenue ROI was $39 for every $1 spent for a 3,886% returnOverall event registration was 11% higher than plannedAwarded Atlanta Marketer of the Year (AMY) Award by the AMA and South Star award by the DMA for best email marketing campaign
Optimize
Operational InefficienciesMost marketers are keeping up with campaign schedules, rather than enhancing them
76.5% of retailers had no plans to add to their email marketing staffs in the next 12 months (Internet Retailer, 2006)
Sixty two of sixty three commercial email efforts scored failinggrades (Forrester Research, 2006)
Existing Creative ChallengesFewer than 50 percent of marketers create emails that render appropriately - Email Experience Council, 2007
59% of online customers routinely block images -MarketingSherpa, 2007
One in five emails are invisible and ineffective due to blocked images - Email Experience Council, 2007
34% of marketers surveyed said that creative optimization had the most impact on email campaigns - Datran Media Research, 2007
Optimizing to ensure effective messaging even when images are off delivered an 87 percent increase in clicks. – SubscriberMail, 2008
Optimize Creative
Optimize Creative
Email Design/Layout Optimization
August 2007- Does not rely on images to provide key marketing message & CTAs- Call to action links in preview pane area- Added navigation to target customers in multiple spots in buying cycle- Added additional content areas for increased promotional real estate
*Response Increased 700%
(Clicks/Open)
Images Blocked But Not Content/Messaging/Links
The Power of Inbox OptimizationWhat Changed
New template with multiple links and content offerings Used Metrics for follow up effortsDeployed via BrightWave platformMetrics Measurement & Benchmarking
The Results152% increase in Click Through Rate over previous TMG email campaigns215% increase in Unique Clicks/Open Rate640% increase in tracked viral activity (forwards)13.1% increase in deliverability rate41% decrease in unsubscribesHired as Email Marketing Agency Of Record
Cut Costs with Email
Cutting CostsEliminate Traditional Hard Costs
NewslettersDirect MailCatalogsCall Center
Call Center Volume decreased more than 80% following Weekly Remittance email deployments
Deliver Exceptional Value to Subscribers
Value in the InboxPeople who buy products advertised in emails spend 138% more than those who don't - Forrester Research, 2007
90% of consumers use email to engage in and determine the value of a relationship with a company - JupiterResearch, 2006
50% of the shoppers surveyed said they used emails to make purchases; 50% said email had some influence on their shopping habits - Return Path, 2006
50% of consumers who open and read email marketing messages are also likely to purchase other items on impulse - Forrester Research, 2007
47% of consumers who think email is a great way to find out about new products or promotions are willing to pay a premium for products that save them time and hassles - Forrester Research, 2007
Value in the Inbox
Offer Exclusivity Reward BehaviorPersonalizeAim for Viral TakeoffMake Life Easier
Get Creative
Get Creative
Get Creative
Get Creative
Get Creative
Don’t Panic
Questions, Comments & Discussion
Simms JenkinsFounder & CEOBrightWave Marketingsjenkins@brightwavemarketing.com404.888.0133www.BrightWaveMarketing.comwww.EmailStatCenter.com
