Why is engagement marketing critical to your success? Your best source of new business are your existing customers
Engagement Marketing is using technology to make this happen. Email marketing is a critical component of an Engagement Marketing strategy.
Repeat business is more profitable because it costs 6-7 times more to acquire a new customer. Why? It takes so many communications to get a sale from a new customer, and communication costs money . Repeat customers already know all about your business so you don’t have to educate and differentiate as much. Sources: Flowtown, 2010: http://www.flowtown.com/blog/the-value-of-an-existing-customer Bain and Company, 2002
Email marketing allows you to build trusting relationships and nurture early relationships, while acquiring some new customers from your passionate customers Social media marketing uses your raving fans to acquire new customers, connect with prospects and begin nurturing deeper relationships Email marketing should encourage broader relationships through social media marketing Social media marketing should encourage deeper relationships through email marketing
There are 5 stages in a relationship, or 5 types of people: (Click) Raving Fans : Customers with a high level of loyalty, trust, & engagement. They willingly refer others to you and your business. (Click) Customers : Those buying from you already. These are people who have engaged as a customer at some point in the past. May be willing to try alternatives if encountered. (Click) Prospects – those that have a connection to you via a person, product, or service, but may not know of you yet. A connection exists for you either directly or indirectly through a Raving Fan or a Prospect. Is likely to need the services you provide in the future. (Click) Suspects – These folks are inclined to do business with you someday, but no connection exists. No direct or indirect connections exist. Is likely to want or need the services you provide in the future. (Click) Disinterested – those that have no interest and who will never buy a product or service from you. It’s better to build credibility here and direct them to what they’re interested in It makes sense to use your marketing resources wisely… with the people who count! Now you can resourcefully apply new tools to acquire, connect, engage, and grow new customer relationships. (Click) Social media marketing uses your Raving Fans to acquire and engage new customers, [Click] connect with prospects, and begin fostering deeper relationships
Can take anywhere from 5-10 communications to generate a sale from a prospective new customer . Here’s why: New product or service -- challenge is EDUCATION. What is it? Why is it useful? Why is it worth paying for? Product or service everyone knows about--challenge is DIFFERENTIATION . Why are you better, faster, cheaper, more convenient, and so on? Even after you have educated your audience or differentiated your business, a single promotional message isn’t likely to get a profitable response because most people aren’t ready to buy immediately when they receive your message and some people need more time to research and try or they don’t trust you. Therefore, marketing your business isn’t an event, it’s a series of related events. It’s a process. It’s relationship-building.
Technology has made it easier for smaller businesses to derive this kind of value from customer relationships. Email is one of the best technologies for connecting with your current customers in order to build a steady stream of repeat and referral business. 94% of Internet users between the ages of 18 and 64 send or read email 61% Use a social networking site 147 million people across the country use email, most use it every day Source: Pew Internet an American Life Project; May, 2010: http://www.pewinternet.org/Trend-Data/Online-Activites-Total.aspx AOL study (in 2007) indicates that people are checking email at work; at home; in bed while in their pajamas; in the bathroom; in the middle of the night; while they drive (don’t do that!); and even in church (12% of respondents said that!).
Cost-effective. But you shouldn’t rely on any marketing medium just because it’s cheap. Remember that being in business means getting more than a dollar back for every dollar you spend. If a marketing medium is cheap but it doesn’t work, you’re still wasting your money. Email does work . In fact, for every dollar spent on email marketing in 2009, marketers received an estimated $43.62 Return On Investment – ( Direct Marketing Association 2009). As such, it outperforms all the other direct marketing channels examined, such as print catalogs. Compared to $21.85 ROI for web marketing (PPC, web advertising) Compared to $7 ROI for direct mail Direct Marketing Association, 2009: http://directmag.com/magilla/1020-e-mail-roi-still-slipping/
Build a quality permission-based email list. An email list is an asset and it’s worth spending the time to build it right. Building it right means building your email list wherever you connect… this includes all your active social networks. Every time someone calls your business, ask them if they are on the email list related to the reason for their call. Ask people to join your email list at events and meetings. If you have a physical store, place a guest book on your counter and ask people to sign it. Add your signup link in your email signature. Put a signup link on your website, on your social networking pages, and on your blog. It helps to give people an incentive to add their name to your email list. Try a discount, contest, or VIP program.
In summary, your list building success depends on Your ability to collect contact information and permission everywhere you connect Your ability to maintain permission and current contact information As you build your list, make sure you Collect information at every touch point, including social media Ask for permission Describe your frequency and content Send a welcome or confirmation email Keep your list current (if you are going on to another section say the following) Now that you have a plan for building and maintaining a quality email list, let’s move on to the next section (topic name here). (if this is the end of the presentation, insert closing here. Begin with: If you would like to learn more…)
Figure out what motivates your audience and then trade value for attention : If your audience is more interested in Savings & Knowledge—Promotional emails – include content that pertains to a valuable offer If your audience is more interested in Knowledge & Quality—Informative emails – include content that is inherently valuable If your audience is more interested in Savings & Quality—Relational emails – include content that makes them feel special
Over communication can cause your audience to ignore your emails or unsubscribe from your list. How often to send: Create a master schedule – use your judgment to estimate your audience’s reaction to your plan. Include frequency in online sign-up “Monthly Newsletter” – set expectations early so your audience isn’t surprised. Keep content concise and relevant to planned frequency – less content buys more frequency tolerance and vice versa. Your content also relates to frequency. For example, weather is a daily event and can be delivered daily. If your customers make a purchase every 30 days you can send more frequently than if your customers average 2 years between purchases. When you repurpose email content on social channels, be sure to also plan time for engaging and responding in real-time. When to send When is your audience most likely to read it? – these days and times are better on the average because people usually prioritize their inbox on Mondays and first thing in the morning. However this is just the bell curve. It’s better to test it. Test for timing Divide your list into equal parts – for example, 5 parts Send at different times and compare – for example, send part 1 Monday, part 2 Tuesday, part 3 Wednesday, and so on Re-stimulate social conversations: repost and/or retweet information in order to get your message heard, and encourage your customers, friends, and family to engage.
In summary, the success of your email content depends on Your ability to include value and immediate benefits in your communications Your ability to call your audience to action and deliver your message at the right time As you create your content, make sure you use a theme that your audience is interested in, brand your email visually, and include concise content with a strong call to action. Also make sure your content is a good match for the frequency and timing of your overall message strategy. You will also want to make sure you plan time to engage and respond on the social networks where you post your valuable content. (if this is the end of the presentation, insert closing here. Begin with: If you would like to learn more…) (if you are going on to another section say the following) Now that you understand how to create valuable email content, let’s move on to the next section (topic name here).
When you send an email, it starts out on a server. If you use an Email Service Provider, they send your email to Internet Service Providers such as AOL, or Yahoo!, and they try to sort the email and send only the good email to their customers. Email delivery can be interrupted or re-routed at any point in the process, even when the email reaches an individual’s computer. You can’t control all the delivery issues you’ll encounter, but here are some of the things you can control.
It’s much more difficult to come up with good Subject lines than good From lines. When you write a subject line, focus on getting the email opened. For example, try highlighting the main theme of your email or an important article in your email instead of using generic titles such as “July Newsletter.” Additional facts: Worlddata, 2011: http://www.worldata.com/wdnet10/listacquisition.htm B2C emails that have some form of date in the Subject Line will generate a 29% higher open rate B2B emails that have some form of date in the Subject Line will generate a 24% higher open rate Having an “exclusive” offer in the subject line generates an additional 24% open rate in email campaigns. For example: “Private event”, or “For select customers, only.” Email messages that mention Facebook in the subject line have a 32% higher open rate than those that don’t.
Here are some examples of poor subject line tactics. These tactics are often present in spam emails, so take a look at the subject lines in your spam or junk folder once in a while to see what the spammers are up to. Any tactics used by spammers should be omitted from your emails.
In summary, your email delivery success depends on Your ability to keep your reputation clean and keep up with new technology Your ability to attract attention to your email content without looking like spam Before you send your email, make sure you Use images and text and avoid spam-like content Use an Email Service Provider with a solid reputation Use a familiar From line Describe the immediate benefits of opening your email in the Subject line Extend the reach of your email by making it shareable. (if this is the end of the presentation, insert closing here. Begin with: If you would like to learn more…) (if you are going on to another section say the following) Now that you have a basic understanding of email delivery, let’s move on to the next section (topic name here).
Keep Customers Coming Back <ul><li>The value of a customer </li></ul><ul><ul><li>You’ve already paid for them </li></ul></ul><ul><ul><ul><li>It’s 6-7 times more expensive to gain a customer than to retain a customer 1 </li></ul></ul></ul><ul><ul><li>They spend more </li></ul></ul><ul><ul><ul><li>Repeat customers spend 67 percent more 2 </li></ul></ul></ul><ul><ul><li>They are your referral engine </li></ul></ul><ul><ul><ul><li>After 10 purchases, a customer has already referred up to 7 people 2 </li></ul></ul></ul>Sources: 1. Flowtown, 2010 2. Bain and Company