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Advanced e-Mail Marketing Strategies e. Marketing Association Conference Redondo Beach, California September 5, 2002 Advanced e-Mail Marketing Strategies e. Marketing Association Conference Redondo Beach, California September 5, 2002 Gabriela Linares L-Soft international, Inc. www. lsoft. com [email protected] com 301 -731 -0440 800 -399 -5449 ã 2002 L-Soft

Steps for an e-Mail Marketing Plan q q q Defining e-Mail Marketing Objectives Determining Steps for an e-Mail Marketing Plan q q q Defining e-Mail Marketing Objectives Determining Effective Strategies Reaching your Target Audience Designing e-Mail Content Evaluating Results Selecting a Solution ã 2002 L-Soft

Defining e-Mail Marketing Objectives Common e-Mail Marketing Objectives q q q q q Build Defining e-Mail Marketing Objectives Common e-Mail Marketing Objectives q q q q q Build brand awareness Acquire new leads/ registrants/ customers/ clients Drive immediate sales Enhance customer retention Build stronger relationships with existing customers/clients Provide company or product information Increase revenues by up-selling to existing customers/clients Post-order targeted e-mails As part of an integrated marketing strategy ã 2002 L-Soft

e-Mail marketing campaign response rates by campaign objective Source: IMT Strategies, September 2001 ã e-Mail marketing campaign response rates by campaign objective Source: IMT Strategies, September 2001 ã 2002 L-Soft

Acquisition versus retention Acquisition Retention Search engine positioning 94% 6% Banner ads 91% 9% Acquisition versus retention Acquisition Retention Search engine positioning 94% 6% Banner ads 91% 9% Referral/viral programs 85% 15% Affiliate programs/ sponsorships 75% 25% Incentive programs 51% 49% E-Mail Marketing 37% 63% Conversion Costs for Retention and Acquisition Goals Acquisition Retention E-mail $57. 10 $2. 50 Direct Mail $25. 00 $60. 00 Banner ads $140. 00 N/A Source: IMT Strategies, September 2001 ã 2002 L-Soft

Determining Effective Strategies Popular e-Mail models q Sales Promotions q Transaction confirmations q Account Determining Effective Strategies Popular e-Mail models q Sales Promotions q Transaction confirmations q Account status e-mails q Recommendations from friends (viral marketing) q Scheduled corporate newsletters q Customizable information updates q Time-based reminders q Rewards program q E-mail discussion groups q Product updates of interest q Independent media newsletters q Entertainment (humor, film clips) q E-Mail education series q Contests for address ã 2002 L-Soft

Reaching your Target Audience E-mail overload: Number of e-mail marketing e-mail sent in the Reaching your Target Audience E-mail overload: Number of e-mail marketing e-mail sent in the US Source: Forrester Research, August 2001 ã 2002 L-Soft

Response to permission e-mail versus unknown senders ã 2002 L-Soft Response to permission e-mail versus unknown senders ã 2002 L-Soft

Opt-in, opt-out, double opt-in, spam: Preferred e-mail marketing methods Source: Opt-In News, May 2002 Opt-in, opt-out, double opt-in, spam: Preferred e-mail marketing methods Source: Opt-In News, May 2002 ã 2002 L-Soft

CTR and Conversion rate of US e-mail marketing campaigns – for permission based lists CTR and Conversion rate of US e-mail marketing campaigns – for permission based lists Source: IMT Strategies, Sept. 2001 ã 2002 L-Soft

US Consumers’ Privacy concerns Source: Harris Interactive, February 2002 ã 2002 L-Soft US Consumers’ Privacy concerns Source: Harris Interactive, February 2002 ã 2002 L-Soft

US E-Mail users’ preferred e-mail marketing privacy and customer-support practices q q q q US E-Mail users’ preferred e-mail marketing privacy and customer-support practices q q q q q Unsubscribe option in all e-mails Explicit no-share-address policy 48 -hour e-mail support answers Editable personal preferences page Provide phone numbers in e-mail Explicit privacy policy Double opt-in confirmation Unchecked default opt-in box Third-party privacy seal in e-mail ã 2002 L-Soft

Most Important e-Mail Marketing trustbuilding factors among US users q q q q Secure Most Important e-Mail Marketing trustbuilding factors among US users q q q q Secure sign-up form Trustworthy reputation Loyal customer Well-known brand Friend recommendation Trusted site referral Relevant offers ã 2002 L-Soft

Why customers would give personal info q Guarantee that the information will not be Why customers would give personal info q Guarantee that the information will not be misused q Eligibility to win a prize in a sweepstakes q Regular e-mail updates on products they are interested in q Access to more or better content or information q Affinity points q Receive targeted ads they’re likely to be interested in ã 2002 L-Soft

Building Customer Intelligence q Harness your Customer Database q Effective personalization and targeting q Building Customer Intelligence q Harness your Customer Database q Effective personalization and targeting q Common Segmentation Factors: § § Purchase history Location/zip code Demographics Lifestyle/hobbies/interests ã 2002 L-Soft

Building your lists q Subscriber form on web site q Sponsor lists of sites Building your lists q Subscriber form on web site q Sponsor lists of sites with a similar demographic q Send to a friend button – viral marketing q Ask for permission to customer base q Maintain list hygiene q E-mail appending… ã 2002 L-Soft

Creating the Content E-Mail Message Content q Subject Line – getting recipients to open Creating the Content E-Mail Message Content q Subject Line – getting recipients to open mail is half the battle q Creativity q Personality and dynamic content q Keep it short and use links to draw reader to your web site q Keep it fresh – don’t re-use the same content q Relevance – the more you understand your customers, the more targeted and relevant messages will be q Frequency q Test messages ã 2002 L-Soft

Email users’ preferred e-mail marketing personalization models q q q q Communication Control Self-select Email users’ preferred e-mail marketing personalization models q q q q Communication Control Self-select content Name recognition Personal events & reminders Geography Account History Lifestyle Purchasing Behavior ã 2002 L-Soft

Evaluating results How to measure the effectiveness of email marketing campaigns q Click-through rates Evaluating results How to measure the effectiveness of email marketing campaigns q Click-through rates § unique and sum of events & comparisons q Unsubscribe rates q Open rates q Conversion rates (website tracking) q Click-stream analyses q E-mail pass along rates –viral marketing q Coupon codes q Unanimous tracking to respect privacy ã 2002 L-Soft

Response time and cost per unit, e-mail vs. direct mail q Be prepared to Response time and cost per unit, e-mail vs. direct mail q Be prepared to handle responses E-Mail Direct Mail Response Time 3 days 3 -6 weeks Cost per unit $0. 25 $1. 25 Source: DMA, Forrester Research, Gartner Group, 2002 ã 2002 L-Soft

To Outsource or not to Outsource Maintain your server q Hardware/computer network q Dedicated To Outsource or not to Outsource Maintain your server q Hardware/computer network q Dedicated Internet Connection q Software for e-mail management and delivery q Best for large loads and those with experience q More cost-effective q Flexibility to create campaigns on the fly Outsource your list hosting q Reliability and experience q Redundant servers and delivery capacity q Flexibility to maintain company Internet presence q Ability to move from hosting to in-house when ready q More expensive q Rely on company’s schedule ã 2002 L-Soft

Evaluate Options q Evaluate software product or hosting service before purchasing q Determine if Evaluate Options q Evaluate software product or hosting service before purchasing q Determine if solution provides appropriate features q Decide what reporting features you need § online real-time reporting, compatibility with other software you employ q Differentiating levels of privacy tracking q Campaign manager to organize jobs q Integration with your database and other applications q Handle bounces ã 2002 L-Soft