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Advanced e mail_strategies_0902

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    • 1. Advanced e-Mail Marketing Strategies eMarketing Association Conference Redondo Beach, California September 5, 2002 Gabriela Linares L-Soft international, Inc. www.lsoft.com Info@lsoft.com 301-731-0440 800-399-5449 © 2002 L-Soft
    • 2. Steps for an e-Mail Marketing Plan  Defining e-Mail Marketing Objectives  Determining Effective Strategies  Reaching your Target Audience  Designing e-Mail Content  Evaluating Results  Selecting a Solution © 2002 L-Soft
    • 3. Defining e-Mail Marketing Objectives Common e-Mail Marketing Objectives  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 © 2002 L-Soft
    • 4. e-Mail marketing campaign response rates by campaign objective North Conversion CTR Awareness 6.80% 17.10% Sales 5.60% 15.20% Leads 7.90% 15.30% Source: IMT Strategies, September 2001 © 2002 L-Soft
    • 5. 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 Retention E-mail $57.10 $2.50 Direct Mail $25.00 $60.00 Banner ads $140.00 N/A Source: IMT Strategies, September 2001 © 2002 L-Soft
    • 6. Determining Effective Strategies Popular e-Mail models  Sales Promotions  Rewards program  Transaction  E-mail discussion confirmations groups  Account status e-mails  Product updates of  Recommendations interest from friends (viral  Independent media marketing) newsletters  Scheduled corporate  Entertainment (humor, newsletters film clips)  Customizable  E-Mail education information updates series  Time-based reminders  Contests for address © 2002 L-Soft
    • 7. Reaching your Target Audience E-mail overload: Number of e-mail 289 2001 430 2002 549 2003 674 2004 796 2005 0 200 400 600 800 © 2002 L-Soft Source: Forrester Research, August 2001
    • 8. Response to permission e-mail versus unknown senders 13% Eager to read 1% 49% Curious to read 12% 29% Indifferent 15% 6% Open but annoyed 21% 3% Delete 52% 0% 30% 60% 15% 45% Permission e-mail West Unknown senders 2002 L-Soft ©
    • 9. Opt-in, opt-out, double opt-in, spam: Preferred e-mail marketing methods 11% 3% Opt-in Opt-out Spam 86% Source: Opt-In News, May 2002 © 2002 L-Soft
    • 10. CTR and Conversion rate of US e-mail Click-through 17.80% Net conversion 7.00% Bounce 7.80% 0% 5% 10% 15% 20% Source: IMT Strategies, Sept. 2001 © 2002 L-Soft
    • 11. US Consumers’ Privacy concerns 75% Sharing info with third parties 70% Transactions not secure 69% 72% 75% Source: Harris Interactive, February 2002 © 2002 L-Soft
    • 12. US E-Mail users’ preferred e-mail marketing privacy and customer-support 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 © 2002 L-Soft
    • 13. Most Important e-Mail Marketing trust- building factors among US users  Secure sign-up form  Trustworthy reputation  Loyal customer  Well-known brand  Friend recommendation  Trusted site referral  Relevant offers © 2002 L-Soft
    • 14. 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 on products they are interested in  Access to more or better content or information  Affinity points  Receive targeted ads they’re likely to be interested in © 2002 L-Soft
    • 15. Building Customer Intelligence  Harness your Customer Database  Effective personalization and targeting  Common Segmentation Factors:  Purchase history  Location/zip code  Demographics  Lifestyle/hobbies/interests © 2002 L-Soft
    • 16. Building your 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… © 2002 L-Soft
    • 17. Creating the Content 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 © 2002 L-Soft
    • 18. Email users’ preferred e-mail marketing personalization models  Communication Control  Self-select content  Name recognition  Personal events & reminders  Geography  Account History  Lifestyle  Purchasing Behavior © 2002 L-Soft
    • 19. Evaluating results How to measure the effectiveness of e- mail marketing campaigns  Click-through rates  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  Unanimous tracking to respect privacy © 2002 L-Soft
    • 20. Response time and cost per unit, e-mail vs. direct mail  Be prepared to handle responses E-Mail Direct Mail Response 3 days 3-6 weeks Time Cost per unit $0.25 $1.25 Source: DMA, Forrester Research, Gartner Group, 2002 © 2002 L-Soft
    • 21. To Outsource or not to Outsource © 2002 L-Soft
    • 22. To Outsource or not to Outsource 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  Flexibility to create campaigns on the fly © 2002 L-Soft
    • 23. To Outsource or not to Outsource Maintain your server Outsource your list hosting VS.  Hardware/computer  Reliability and experience network  Redundant servers and  Dedicated Internet delivery capacity Connection  Flexibility to maintain  Software for e-mail company Internet presence management and delivery  Ability to move from  Best for large loads and hosting to in-house when those with experience ready  More cost-effective  More expensive  Flexibility to create  Rely on company’s campaigns on the fly schedule © 2002 L-Soft
    • 24. Evaluate Options  Evaluate software product or hosting service before purchasing  Determine if solution provides appropriate features  Decide what reporting features you need  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 © 2002 L-Soft

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