Industry Analysis q Target Market Market trends

Industry Analysis q Target Market § Market trends & needs § Effective E-Mail Strategies q L-Soft Customers § Industries § Survey & feedback q Competitors § Product comparisons § Classification of e-mail services q U. S. Legislation § Spam and Privacy ã 2002 L-Soft

Weekly Online Activities of US Home Internet User, 2001 Source: Yankee Group, October 2001 ã 2002 L-Soft

Top Five Activities of Americans Online, 2001 Source: US Department of Commerce, February 2001 ã 2002 L-Soft

Defining an e-Mail Marketing Plan 1. 2. 3. 4. 5. 6. 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

1. Defining e-Mail Marketing Objectives ã 2002 L-Soft

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 Objectives among US Marketers Source: Double. Click, June 2002 N=190, multiple responses allowed ã 2002 L-Soft

Primary E-Mail Marketing Goals for US Marketers Source: e-Dialog, April 2002 N=302 ã 2002 L-Soft

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

Effectiveness of 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 N=247 ã 2002 L-Soft

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

2. Determining Effective Strategies ã 2002 L-Soft

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

Types of e-Mail Marketing Campaign Models Used by US Marketers Source: IMT Strategies, September 2001 ã 2002 L-Soft

Types of E-Mail Campaigns used by US Marketers Source: e-Dialog, April 2002 ã 2002 L-Soft

Average CTR for B 2 C and B 2 B e-mail newsletters Source: Opt-in News, May 2002 ã 2002 L-Soft

Top Interest Areas for Permission e. Mail Users in the US q q q Specials/offers from online merchants Specials/offers from local retailers or restaurants Household tips/recipes/crafts Humor Travel Entertainment Weather Local news Tech/business news Finance/stock information Sports ã 2002 L-Soft

Top Interest Areas for Permission e. Mail Users in the US Source: Double. Click/ NFO World. Group, October 2001 ã 2002 L-Soft

How US internet users learn about new web sites Source: Forrester Research, June 2000 ã 2002 L-Soft

Types of messages that are forwarded q q q q q Merchandise deals and promotions Social/political message and petitions Warnings and advisories Relevant Funny Work related Informative Cool New Technology Prize/coupon/reward ã 2002 L-Soft

3. Reaching your Target Audience ã 2002 L-Soft

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

US Internet User Attitude towards e. Mail Volume, 2001 Source: IMT Strategies, September 2001 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 ã 2002 L-Soft

Permission e-mail marketing vs. direct mail retention costs Cost per thousand (CPM) E-mail to in-house list Click. Through Rates (CTR) Conversion Rate Cost per sale $5 15% 3. 7% $1 N/A 3. 9% $20 Direct Mail $761 to inhouse list Source: Forrester Research, August 2001 ã 2002 L-Soft

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

US Internet Users’ Level of Concern Regarding Online Privacy Source: UCLA Center for Communication Policy, November 2001 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 customersupport 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 trust-building 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

Top reasons why US Internet users respond to e-mail offers q q q q Know and trust brand Relevant information Good prices Friend has recommended Price/coupon/reward Timely Compelling subject Entertaining ã 2002 L-Soft

Top Reason Why US Internet Users respond to e-Mail Offers Source: IMT Strategies, September 2001 ã 2002 L-Soft

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 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 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

E-mail appending Source: Opt-In News, May 2002 ã 2002 L-Soft

4. Evaluating results ã 2002 L-Soft

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

Response time and cost per unit, email 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

5. Creating the Content ã 2002 L-Soft

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 content Name recognition Personal events & reminders Geography Account History Lifestyle Purchasing Behavior ã 2002 L-Soft

US e-Mail Users’ Preferred Personalization Models Source: IMT Strategies, September 2001 5 -point scale rating, “ 1” as “strongly dislike” and “ 5” as “strongly like” ã 2002 L-Soft

Preferred e-mail advertisement formats worldwide, Q 1 2002 Source: Opt-IN News, May 2002 ã 2002 L-Soft

Response rates per format Source: IMT Strategies, Sept. 2001 ã 2002 L-Soft

6. Selecting a Solution: To Outsource or not to Outsource ã 2002 L-Soft

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

Outsourced e-Mail Marketing Campaigns Source: Forrester Research, August 2001 ã 2002 L-Soft

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

Questions? Presentation for Sales Team, September 2002 Gabriela Linares L-Soft international, Inc. www. lsoft. com Info@lsoft. com 301 -731 -0440 800 -399 -5449 ã 2002 L-Soft