Successful e-Mail Marketing Practices e Marketing Association May

Successful e-Mail Marketing Practices e. Marketing Association May 20 -21, 2003 Gabriela Linares ã 2003 L-Soft

Managing e-Mail Marketing • • Defining e-Mail Marketing Objectives Determining Communication Strategies Reaching your Target Audience Designing e-Mail Creative Evaluating Results Selecting a Solution Final Recommendations ã 2003 L-Soft

Defining e-Mail Marketing Objectives ã 2003 L-Soft

Common Objectives • • • Acquire new leads/ registrants/ customers/ clients Drive immediate sales Enhance customer retention programs 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 Build brand awareness As part of an integrated marketing strategy Increase web site traffic ã 2003 L-Soft

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

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

Sales Conversion Costs 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 2003 L-Soft

Determining Communication Strategies ã 2003 L-Soft

Popular e-Mail models • • • • Discount sales promotions Sales transaction confirmations Account statements Scheduled corporate newsletters Press release list News alerts from Media outlets Time-based reminders E-mail discussion groups/ communities Product announcements Entertainment (humor, film clips) Online education courses Product user/support groups Auto-responders ã 2003 L-Soft

Average CTR for B 2 C and B 2 B -mail newsletters Source: Opt-in News, May 2002 e ã 2003 L-Soft

Top Interests for Permission e-Mail Users in the US • • • 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 2003 L-Soft

Top reasons why US Internet users respond to e-mail offers • • Know and trust brand Relevant information Friend has recommended Price/coupon/reward Timely Compelling subject Entertaining ã 2003 L-Soft

Viral Marketing: Types of messages that are forwarded • • • Merchandise deals and promotions Prize/coupon/reward Social/political messages and petitions Warnings and advisories High level of relevance Funny Work related Informative Cool New Technology ã 2003 L-Soft

How US internet users learn about new web sites ã 2003 L-Soft Source: IMT Strategies, Sept. 2001

Reaching your Target Audience ã 2003 L-Soft

US Internet User Attitude towards e-Mail Volume, 2001 Source: IMT Strategies, September 2001 ã 2003 L-Soft

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

Response to permission e-mail versus unknown senders 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 US e-mail permissionbased marketing campaigns Source: IMT Strategies, Sept. 2001 ã 2003 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 2003 L-Soft

Building your permission-based lists • • • Subscriber form on web site Sponsor lists of sites with a similar demographic Send to a friend button – viral marketing Ask for permission to customer base Maintain list hygiene E-mail appending… ã 2003 L-Soft

Building Customer Intelligence • • Harness your Customer Database Evaluate Customer Behavior Effective personalization and targeting Common Segmentation Factors: o Purchase history o Location/zip code o Demographics o Lifestyle/hobbies/interests o Psychographics ã 2003 L-Soft

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

US Consumers’ Privacy concerns Source: Harris Interactive, February 2002 ã 2003 L-Soft

US E-Mail users’ preferred e-mail marketing privacy and customersupport practices • • • 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 2003 L-Soft

Most Important e-Mail Marketing trustbuilding factors among US users • • Secure sign-up form Trustworthy reputation Loyal customer Well-known brand Friend recommendation Trusted site referral Relevant offers ã 2003 L-Soft

Why customers would give personal info • • • Guarantee that the information will not be misused Eligibility to win a prize in a sweepstakes Regular e-mail updates for products of their interest Access to more or better content or information Affinity points Receive targeted ads they’re likely to be interested in ã 2003 L-Soft

E-mail Appending Source: Opt-In News, May 2002 ã 2003 L-Soft

Privacy & Regulations • • HIPPA covers 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 13 US states, including California, Colorado, etc. More information about spam regulations visit: www. spamlaws. com ã 2003 L-Soft

Creating the Content ã 2003 L-Soft

E-Mail Message Content • • Subject Line – getting recipients to open mail is half the battle Creativity Personality and dynamic content Keep it short and use links to draw reader to your web site Keep it fresh – don’t re-use the same content Relevance – the more you understand your customers, the more targeted and relevant messages will be Frequency Test messages ã 2003 L-Soft

Email users’ preferred e-mail marketing personalization models • • Communication Control: Digests, Frequency Self-select content Name recognition Personal events & reminders Geographic relevance Account History Recognizing Lifestyle Preferences Purchasing Behavior ã 2003 L-Soft

Preferred e-mail advertisement formats worldwide, Q 1 2002 Source: Opt-IN News, May 2002 ã 2003 L-Soft

Response rates per format Source: IMT Strategies, Sept. 2001 ã 2003 L-Soft

Evaluating results ã 2003 L-Soft

How to measure the effectiveness of e-mail marketing campaigns • • • Click-through rates o unique and sum of events & comparisons Unsubscribe rates Open rates Conversion rates (website tracking) Click-stream analyses E-mail pass along rates –viral marketing Coupon codes Anonymous tracking to respect privacy Campaign Comparison Reporting ã 2003 L-Soft

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

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 loads 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

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

Questions? 5: 45 pm Consulting Session - Today Gabriela Linares L-Soft international, Inc. www. lsoft. com Info@lsoft. com 301 -731 -0440 800 -399 -5449 ã 2003 L-Soft