Electronic Mail Marketing E-mail and Online

“ Electronic Mail Marketing – E-mail and Online Tactics That Work” PRSA e-workshop October 28, 2003 Gabriela Linares, Vice President Marketing ã 2003 L-Soft

Advantages of E-Mail Co st- Ef fe cti al b ve E-Mail Fast ive t nt I ac er lo G Flexible Re lia ble ã 2003 L-Soft

Benefits of E-Mail • • Inexpensive communications medium Generates additional revenue opportunities Builds relationships Results are measurable Quick response cycles Drives web-site traffic Popular Medium - 45% US population – 119 million Complements other communication channels ã 2003 L-Soft

Cost Savings due to E-Mail Usage among U. S. Companies As a percentage of respondents Source: AIM, April 2002, n=110 companies ã 2003 L-Soft

Top 5 Activities of Americans Online As a percentage of respondents Source: US Dept. of Commerce, February 2002 ã 2003 L-Soft

“E-Mail Marketing is the wave of the future. Fast and cost-effective, e-mail must become an important part of your integrated marketing and media plan. ” Peppers & Rogers Group ã 2003 L-Soft

United Way of America Use e-mail to improve communication with staff, donors, and volunteers: “With LISTSERV® Maestro and the other L-Soft products, ” Casey Cichowicz, United Way Online Manager, said, “we will be able to better tailor our message to meet the interests not only of donors but of people who, through our network of Web sites, express an interest about knowing more. ” “ Already, we've used L-Soft products to reach out to more than 700, 000 September 11 th Fund donors who asked to hear from us about how their money was being used and what needs were being addressed. " Use LISTSERV®, LISTSERV® Maestro & LSMTP® software ã 2003 L-Soft

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Bell Canada www. bell. ca Using E-Mail to shift to Online Billing q Provide its 12 million customers with personalized e-mail messaging services q Sending online billing monthly reminders; promoting new services and products; and announcing special promotions "One of the greatest things about LISTSERV® and LSMTP® is the configuration process, " said Bill Attia, Senior Consultant at CGI, a consulting firm hired by Bell Canada to implement its billing solutions. "The language is so straightforward it's hard to go wrong. L-Soft's solution is the natural choice for us. " Using LISTSERV® HPO and LSMTP® unlimited software ã 2003 L-Soft

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Lifetime Television for Women • • Newsletters inform about TV programming, prompt recipients to tune in to TV or go to web site SELFEXAM newsletter designed to raise public awareness of breast cancer and the importance of early detection Health newsletters tie in with Speaking of Women’s Health and Denise Austin shows Golden Girls and Weekly Movie Countdown newsletters increase show viewership LISTSERV® allows Lifetime to: • Integrate its e-mail operation with its database • Manage over 1 million subscriptions • Implement top security measures to protect the personal information that viewers have entrusted Lifetime with • Have announcement-only lists to prevent non-Lifetime messages from reaching the list “…a product that had gone through the burn test before we used it and LISTSERV definitely fit the bill. ” -- Shobhit Kapoor, Director of Internet Technology ã 2003 L-Soft

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What it takes to get started… 1. Establishing Objectives 2. Reaching Target Audiences 3. Developing Message Program 4. Evaluating Results 5. To Outsource or not to Outsource ã 2003 L-Soft

1. Establish Objectives ã 2003 L-Soft

Common E-Mail Communication Objectives • • Enhance relationships & loyalty Maintain contact with web site visitors Promote internal communication Acquisition versus retention programs Build brand awareness Establish image of expertise Drive immediate sales: Increase revenue by up-selling to existing customers/clients and prospects Support sales cycle: Post-order targeted e-mails ã 2003 L-Soft

Online Methods used for 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% Source: DMA- April, 2002 ã 2003 L-Soft

Effectiveness of Techniques Used by U. S. Marketers to Drive Web Site Traffic Source: Forrester Research, March 2001 ã 2003 L-Soft

Response Rates by Campaign Objective Source: IMT Strategies, September 2001 ã 2003 L-Soft

2. Reaching Target Audiences ã 2003 L-Soft

Building Contact Lists • • Build in–house opt-in list Capture web site visitors Ask already made contacts for authorization Use database to collect demographic & behavioral information Establish a privacy policy Re-confirm subscription requests Offer easy unsubscribe option Survey recipients to enhance relevancy of messages ã 2003 L-Soft

Opt-in, opt-out, double opt-in, spam: Preferred e-mail marketing methods Source: Opt-In News, May 2002 ã 2003 L-Soft

Rates for U. S. e-mail permission-based campaigns Source: IMT Strategies, Sept. 2001 ã 2003 L-Soft

U. S. Internet Users’ Level of Concern Regarding Online Privacy Source: UCLA Center for Communication Policy, November 2001 ã 2003 L-Soft

U. S. Consumers’ Privacy Concerns Source: Harris Interactive, February 2002 ã 2003 L-Soft

Privacy & Regulations • • HIPPA influences health & personal information COPPA protects children Gramm-Leach-Bliley Act concerns financial information FTC supports corporate privacy policies Federal spam regulation does not exist State laws exists in 28 U. S. states More information about spam regulations visit: www. spamlaws. com DMA, AIM, AMA have published e-mail guidelines ã 2003 L-Soft

3. Developing a Message Program ã 2003 L-Soft

E-Mail Programs to Implement • • • Disseminate announcements & press releases Conduct surveys Corporate newsletters & archiving Product updates & announcements Discussion groups for committee members Internal workgroups Event & service reminders Sales promotional offers Order transaction confirmations Account status e-mails ã 2003 L-Soft

E-Mail Message Content • • Subject line is crucial for attaining attention Recipients identify with brand, e. g. FROM name Format message so it’s easy to skim Provide hyperlinks to web site for complete message Formats: HTML versus Text; & Multi-Part Mime messages Test HTML message in different e-mail applications Relevancy of the messages is one of the key components for success ã 2003 L-Soft

E-mail overload: Number of e-mail marketing messages sent in the U. S. Source: Forrester Research, August 2001 ã 2003 L-Soft

Preferred e-mail formats Source: Opt-IN News, May 2002 ã 2003 L-Soft

Source: Survey of E-Mail Format Preferences and Programs, Dr. Ralph F. Wilson, April 2003 - N=954 ã 2003 L-Soft

4. Evaluating Results ã 2003 L-Soft

E-Mail Metrics • • Open-up rates Bounces versus real deliveries Click-through rates Track web site click-stream after clicking from e-mail View tracking results online in real time Analyze results in statistical programs Evaluate results and adjust communication efforts ã 2003 L-Soft

Response time and cost per unit, email vs. direct mail 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 2003 L-Soft

4. To Outsource or not to Outsource ã 2003 L-Soft

Maintain your server • Hardware/computer network • Dedicated Internet Connection • Software for e-mail management and delivery • Best for large workloads and those with experience • More cost-effective/ economies of scale • Flexibility to create campaigns on the fly Outsource your list hosting • Reliability and experience • Redundant servers and delivery capacity • Flexibility to maintain company Internet presence • Ability to move from hosting to in-house when ready • More expensive • Rely on company’s schedule ã 2003 L-Soft

Outsourced E-Mail Marketing Services Source: Forrester Research, August 2001 ã 2003 L-Soft

Evaluating Options • • Evaluate software product or hosting service before purchasing Determine if solution provides appropriate features Decide what reporting features you need o online real-time reporting, compatibility with other software you employ Differentiating levels of privacy tracking Campaign manager to organize jobs Integration with your database and other applications Handle bounces ã 2003 L-Soft

Concluding Recommendations • • • Integrate e-mail into your integrated communication plan E-Mail is best used for retention and other customer permission-based communications Consider double opt-in and build your permission-based lists Respect recipients’ privacy to earn their trust Personalize messages to provide relevant information and increase response rates Evaluate options and opt for time-tested solutions ã 2003 L-Soft

Questions? Gabriela Linares L-Soft international, Inc. www. lsoft. com Info@lsoft. com 301 -731 -0440 800 -399 -5449 ã 2003 L-Soft