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Jupiter2000e Mailmkg



Email Marketing - Closing the Loop from Acquisition to Retention - Jupiter, June 2000

Email Marketing - Closing the Loop from Acquisition to Retention - Jupiter, June 2000



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Jupiter2000e Mailmkg Jupiter2000e Mailmkg Presentation Transcript

  • E-Mail Marketing Closing the Loop from Acquisition to Retention Michele Slack Senior Analyst Online Advertising Strategies
  • E-mail Marketing – What are We Talking About
    • E-mails from Commerce or Content Ventures Focused on:
    • Acquiring New Customers
    • Driving Repeat Visits
    • Cross-Selling; Up-Selling
    • In the Following Formats:
    • Retention – messages out to house lists
    • Acquisition – messages out to purchased lists
    • Sponsored – placing ads in existing content driven messages
    • Driving Loyalty
    • Promoting Products
    • Reinforcing the Brand
  • Key Questions
    • How Effective is E-mail Marketing?
    • How Are Consumers Reacting to E-mail Marketing?
    • How Are Companies Using E-mail Marketing?
    • What Is the Expected Growth for E-mail Marketing?
    • How Will Marketers Maintain a Valuable Dialog with Consumers Through E-mail Over the Long Term?
  • Key Finding
    • The number of marketing e-mails the average consumer will receive per year will increase over 40-fold in the next 5 years.
    • In order to maintain high e-mail response rates and low unsubscribe rates in this new competitive environment, companies must perform end-to-end integration across:
      • Media
      • Channel
      • Data
    • And they must do so today.
  • For Marketers Focused on Direct Response: E-mail is the Killer App Retention Acquisition Pub. 4/00 48 Hours 48 Hours 3 Weeks 48 Hours 3 Weeks 48 Hours Response Time 3 Weeks 3 Weeks 3 Months 3 Weeks 3 Month 3 Weeks Execution Time Up-front Creative Costs Cost/ Conversion Conversion CTR Deliver CPM Media CPM Variable Prod. Metrics $3K $1K $20K $1K $20K $1K $128 $67 $66 $114 $18 $6 2.5% 2.5% 1% 2.5% 3% 5% 0.5% 1.5% N/A 7% N/A 10% $1 $0 $500 $0 $500 $30 $15 $25 $110 $200 $0 $0 $0 $0 $50 $0 $50 $0 Banner Sponsor-ships Direct Mail E-mail Direct Mail E-mail
  • Marketers Are Not Blind to the Power of E-mail Source: Jupiter Executive Survey (3/00); n=32 Percentage of Marketing Budget Spent on E-mail Marketing
  • Acquisition Is Difficult Because Consumers Focus on the Known Companies with Previous Contact Companies with No Previous Contact Reasons Consumers Find E-mail Marketing Messages Useful Source: Jupiter/NFO Survey (1/00); n=1,287
  • Focus on Deepening Customer Relationships and Acquiring New Customers Source: Jupiter Executive Survey (3/00); n=28 What is the Goal of Your E-mail Marketing Efforts?
  • E-mail Is Rarely Incremental… Comparisons Hint at Growth How are You Funding Your E-mail Marketing? Source: Jupiter Executive Survey (3/00); n=28
  • E-mail Is Growing in Leaps in Volume 3 billion 268 billion Retention-based Acquisition-based E-mail (in billions) Source: Jupiter Internet Direct Marketing Model, 3/00 Sponsored
  • Spending on E-mail Grows Concurrently $7.3 billion $164 million ($ in billions) Spending on E-mail Retention-based Acquisition-based Sponsored Source: Jupiter Internet Direct Marketing Model, 3/00
  • Direct Mail to be Cannibalized by 13 Percent by 2005 ($ in billions) Source: Direct Marketing Association, Jupiter Internet Direct Marketing Model 3/00 Direct Mail Spending Percentage of Direct Mail Cannibalized Cannibalization Cannibalized Direct Mail Spending Percentage of Revenue Displaced
  • The Fight Is on for Consumers’ Attention in Their Inbox E-mail Received per User per Year Non-work Related, Personal Marketing 40-fold Increase Pub. 4/00 2005 2004 2003 2002 2001 2000 1999 1,612 1,133 761 482 276 131 40 3,990 3,511 3,094 2,758 2,420 2,059 1,746
  • Marketers Must Perform End-to-End Integration to Maximize Value of E-mail Acquisition Retention Media: Increase Acquisition Effectiveness Channel: Shift Communication to High Efficiency Media Data: Increase Marketing Intelligence/Value Value to Consumer Pub. 4/00
  • Integrate Messaging to Maximize Response Rates Degree of Response Change due to Additional Advertising Exposure Much More Likely: 10% More Likely: 39% Indifferent: 44% Less Likely: 2% Much Less Likely: 3% Almost 50% Positively Influenced Source: Jupiter/NFO (1/00), n=1,287
  • Aggressively Growing House Lists Requires Channel Integration Pub. 4/00 Retail Web Phone HOUSE LIST Acquired List Viral Sponsors’ E-mail Online Channels Off-line Channels
  • Initial Sign-up Data Provide Valuable Targeting Information How Often: Daily, Weekly When: Morning, Evening What: Subject/Offer Interests Who: Gender, Age Profile Database Pub. 4/00
  • Begin Data Loop by Using All Available Targeting Information Name: Location: Interests: Purchase Information: Pub. 4/00 Explicit User Provided Data
    • Interests
    • Demographics
    Observable User Data
    • Purchase Info
    • Surfing Info
    Difficulty in Obtaining Information
  • Test to Optimize Results Offer/Subject $5.00 Off, Free Shipping, 10% Off Text, HTML Past Purchasers, Men, Teens, etc. Creative Formats Segment Timing Time of Day, Time of Week Pub. 4/00
  • Close Loop by Tracking Results and Growing Targeting Data
    • Open Rate*
    • Unsubscribes
    • Click-through Rate
    • Clicked Links
    • Conversion Rate
    • Pass Along Rate*
    E-Mail Outputs * Available only for html messages
    • Level of Interest
    • Fatigue
    • Effectiveness of Targeting
    • Subject/Promo Interests
    • Purchase Info
    Pub. 4/00
  • Summary
    • Do Not Let Current High Results Lure You into a False Sense of Complacency
    • Competitive Heat Is Turning Up
    • Nail the Basics
    • Integrate Message, Channel, and Data
    • Do it TODAY
    • Or Risk Having Your Dialog Drowned Out by the Rising Din
  • Thank You