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Email Marketing Trends 2009

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Email Marketing Trends 2009 - This is a presentation given to the Reno Tahoe Chapter of the AMA on January 21, 2009. Trends discussed include:

Beyond Customer Control – to Customer Expectations
Channel Explosion and Consumer Preferences
The Email Volume Overload
Customer Churn and Inactivity
Most Prospects Are Long Term
Consumer Adoption of Multiple Email “Devices”
Growth of Social Networks and Social Media

Published in: Business
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Email Marketing Trends 2009

  1. 1. Email 2009: Trends and Solutions in a Tough Economy AMA Reno-Tahoe Chapter Luncheon Loren McDonald VP, Industry Relations Silverpop
  2. 2. Obama Inauguration Speech <ul><li>The question we ask today is not whether our government is too big or too small, but whether it works - whether it helps families find jobs at a decent wage, care they can afford, a retirement that is dignified. </li></ul><ul><li>Where the answer is yes, we intend to move forward.  Where the answer is no, programs will end.  </li></ul>
  3. 3. Email Change Begins Today! <ul><li>The question we ask today is not whether our list is too big or too small, but whether it delivers - whether it helps your company increase revenue at a decent cost and retain customers . </li></ul><ul><li>Where the answer is yes, we intend to increase our spend .  Where the answer is no, marketing programs will end.  </li></ul>
  4. 4. <ul><li>There are many challenges, </li></ul><ul><li>but YOU can build a better </li></ul><ul><li>email marketing program! </li></ul>
  5. 5. Trends Shaping Email in 2009
  6. 6. 7 Key Trends Affecting Email Marketing in 2009 <ul><li>Beyond Customer Control – to Customer Expectations </li></ul><ul><li>Channel Explosion and Consumer Preferences </li></ul><ul><li>The Email Volume Overload </li></ul><ul><li>Customer Churn and Inactivity </li></ul><ul><li>Most Prospects Are Long Term </li></ul><ul><li>Consumer Adoption of Multiple Email “Devices” </li></ul><ul><li>Growth of Social Networks and Social Media </li></ul>
  7. 7. 1. Beyond Customer Control to Customer Expectation – The Amazon Effect
  8. 8. Choose if They Want to Opt-in …
  9. 9. Determine If, When,/Where, What, How They Read … If What When/Where How
  10. 10. Determine If/When to Change Their Preferences <ul><li>Email Address </li></ul><ul><li>Format </li></ul><ul><li>Frequency </li></ul><ul><li>Which Emails </li></ul>
  11. 11. When to Report as Spam …
  12. 12. When They’d Prefer Another Channel … C
  13. 13. And When They Want the Relationship to End …
  14. 14. … and now – SUPER EXPECTATIONS
  15. 15. Your Competitors Are Creating Great Expectations
  16. 16. “ Spray-N-Pray”, “Batch-N-Blast” – Low Relevancy = Goodbye NO
  17. 17. <ul><li>Frequency is out… </li></ul><ul><li>Behavior is in… </li></ul><ul><li>Lifecycle </li></ul><ul><li>Trigger </li></ul><ul><li>Click Stream </li></ul>
  18. 18. Move to Behavior-Based Programs <ul><li>Cataloger shifted to </li></ul><ul><li>behavior-based </li></ul><ul><li>series after </li></ul><ul><li>key purchase: </li></ul><ul><li>Warranty </li></ul><ul><li>Accessories </li></ul><ul><li>Related products </li></ul>
  19. 19. Control & Expectations = Potential for More Engagement <ul><li>Embrace subscriber </li></ul><ul><li>power </li></ul><ul><li>Enable users to </li></ul><ul><li>design and control </li></ul><ul><li>the communications </li></ul><ul><li>“ My Email” is powerful </li></ul><ul><li>concept </li></ul>
  20. 20. 2. Channel Explosion and Consumer Preferences
  21. 21. Communications/Marketing Channel Explosion = Choices and Preferences To 1990 Newspapers Direct Mail Telephone Radio TV Fax Mobile Phones 1990-2000 Internet Email Instant Messaging Search 2000-2008 Webinars/Webcasts RSS feeds Blogs Podcasts Social Networks SMS Video Sharing (YouTube) Mobile Applications Twitter
  22. 22. Changing Demographics When was the last time any of you rode your skateboard to work? <ul><li>Monthly Text Messages </li></ul><ul><li>Daughter 700+ </li></ul><ul><li>Dad 20- </li></ul>
  23. 23. Text Generation is About to Hit the Workforce… <ul><ul><ul><li>Facebook generation (18-24) = 10% of U.S. </li></ul></ul></ul>
  24. 24. … But Newspaper Generation Still Rules 72% of U.S. population will be 20+ in 2010
  25. 25. And Email Still Rocks for Business Communications
  26. 26. Shifts - Not The End of Email <ul><li>Demographics and channel preferences will cause some shifts in email </li></ul><ul><ul><li>Flight alerts </li></ul></ul><ul><ul><ul><li>Phone > Email </li></ul></ul></ul><ul><ul><ul><li>Email > Text </li></ul></ul></ul><ul><li>Again, preference centers are KEY! </li></ul>
  27. 27. 3. The Email Volume Overload
  28. 30. What’s the Total Impact of Frequency 5 times per month 12 times per month Revenue – Churn – Reputation….
  29. 31. Retailer Case Study – Increased Frequency Unsubscribes and spam complaints went through the roof
  30. 32. Financial Impact of Increased Mailings
  31. 33. 4. Your List Is Shrinking & Going Inactive
  32. 34. List Churn and Inactives – The Good and Bad News <ul><li>The bad news… </li></ul><ul><li>A typical list will lose 1/3 of its members each year </li></ul><ul><ul><li>Bounces + spam complaints + unsubscribes = 2-4% / month </li></ul></ul><ul><li>25% to 80% of your list is inactive </li></ul><ul><ul><li>Subscriber has not opened or clicked in specific time frame (e.g., 6, 12 months+) </li></ul></ul><ul><li>The good news… </li></ul><ul><li>Churn can be reduced </li></ul><ul><li>Some inactives can be reengaged </li></ul><ul><li>You control most of your destiny </li></ul>
  33. 35. Engage and Delight…Every Step of the Way <ul><li>Dating </li></ul><ul><ul><li>Build trust with transparency </li></ul></ul><ul><ul><li>Preferences on opt-in </li></ul></ul><ul><li>Engagement </li></ul><ul><ul><li>Welcome programs </li></ul></ul><ul><ul><li>Bring the flowers </li></ul></ul><ul><li>Marriage </li></ul><ul><ul><li>Deliver on expectations </li></ul></ul><ul><ul><li>Preference updates </li></ul></ul><ul><ul><li>Move to lifecycle, trigger and behavioral-based programs </li></ul></ul><ul><li>Divorce </li></ul><ul><ul><li>Provide alternatives to unsubscribing </li></ul></ul>
  34. 36. Enable Preferences…Manage Expectations
  35. 37. Get Them Started Right Away <ul><li>Welcome Email </li></ul><ul><li>Reiterates value proposition </li></ul><ul><li>Communicates when first email should be expected </li></ul><ul><li>Offers opportunity to start getting engaged with the brand </li></ul>
  36. 38. Win Inactive Subscribers Back <ul><li>Update their preferences </li></ul><ul><li>Survey subscribers their interests </li></ul><ul><li>Try a new approach to your subject lines </li></ul><ul><li>Best of content/offers </li></ul><ul><li>Behavior-based emails </li></ul>
  37. 39. Why Recipients Unsubscribe <ul><li>Too Frequent </li></ul><ul><li>Irrelevant Content/Offers </li></ul>
  38. 40. Make Unsubscribing & Staying Easy <ul><li>Missing: </li></ul><ul><li>Frequency Option </li></ul><ul><li>RSS or catalogue option </li></ul><ul><li>Contact info. </li></ul>
  39. 41. 5. Most of Your Prospects Are Long Term – The Unconverted Majority
  40. 42. B2B: 70% of Leads are Long-Term Opportunities <ul><li>82.5% are ready to buy or will buy </li></ul><ul><li>70% are long-term opportunities – Marketing Territory </li></ul>An estimated 70-90% of leads generated by marketing are never followed-up with by sales Source: MarketingSherpa
  41. 43. B2B Email Drip Programs Nurtures Prospects Email 1 Telesales Email 2 Direct Mail Email 3 Telesales Day 1 Day 8 Day 12 Day 14 Day 2 Drips: CTRs of 3X
  42. 44. PPC: 95%+ Don’t Convert Immediately If avg. PPC conversion rate is 2%-5% - what happens to the other 95%+?
  43. 45. Most Common Mistake: No Easy and Obvious Sign Up
  44. 46. 6. Your Emails Are Being Viewed in a Growing Number of Environments
  45. 47. Same Email… May Be Read In Multiple Environments Web Browser PC client Mobile Client Social Network RSS Feed Web Version
  46. 48. An Email in Every Pocket <ul><li>Global mobile market subscriber base reached 3.25 billion in July 07 </li></ul><ul><li>Current world population is 6.7 billion </li></ul>Sources: The Mobile World, June 07; The Yankee Group; IDC, Gartner, Canalys 2006
  47. 49. BlackBerry Email & Browser Experience Browser Version BlackBerry Browser Email Version BlackBerry IS installed email client Original Email
  48. 51. 7. Email Becomes “Social” – The New Forward to a Friend
  49. 52. Evolution of Viral Email …
  50. 53. Recipient Taken to Social Site Email Subject line becomes “Title” and “Mailing Notes” become the Meta teaser-text to be displayed. Email recipient can add their own comments or endorsements Users can select a thumbnail from some of the images in email, or opt to not include a picture
  51. 54. Friends Are Notified in Their “News Feed” Whit Lanier posted a link: Downtown Atlanta Restaurant Week “ This Looks Like a lot of fun” No tickets and no coupons! During Downtown Atlanta Restaurant Week, simply make a reservation, show up, and ask your server for the Restaurant Week 3-course prix-fixe menu http://www.opentable.com/blahblahblha_linkypoo%tracking%
  52. 55. <ul><li>11% of the message clicks were on the social share buttons </li></ul><ul><li>Generated an additional 1,250 “new” opens. </li></ul><ul><li>Assuming that each sharer had 100 friends, we estimate the summary was viewed an additional 61,000 times. </li></ul>Share to Social in Action
  53. 56. Do Your Emails Need Ketchup?
  54. 57. Ketchup can make almost any food edible, or even pretty tasty!
  55. 58. DISCOUNTS…! are Ketchup!!!!!!!!!!
  56. 60. <ul><li>Messages tailored to individual recipients based on their demographics or behavior </li></ul>Are your emails personalized?
  57. 61. 2. A welcome program that sets expectations and creates value for new subscribers out of the gate and confirms that their decision to opt in to your email program was a good one.
  58. 62. 3. Creative subject lines that motivate people to take the action they (and you) want, not just open the email VSL // See a fantastic sixties rock movie you've never heard of VSL // The best classroom drama since 'The Breakfast Club' Best Buys on Ready to Assemble Furniture (Crate & Barrel) Announcing the January White Sale (Kirkwood Mountain Resort) Intriguing OK, and so ….
  59. 63. Cross-Platform Design Tips 4. Emails designed to render well on multiple environments and platforms—PC, Web and mobile
  60. 64. 5. Creative and compelling copy that motivates people to want to know more and act
  61. 65. 6. A competitively positioned email program, which serves a clear need to recipients relative to your competitors’ offerings.
  62. 66. 7. Emails with genuine personality that provide a reason for subscribers to anticipate your next message
  63. 67. 8. Emails designed from a user perspective, making it easy for subscribers to find the information and links they need to take the action they want, anything from changing their preferences to buying your latest widget. <ul><li>Email navigation is not the same as Web site navigation </li></ul><ul><li>But should not be inconsistent with Web site </li></ul>
  64. 69. Key Takeaways <ul><li>Embrace Customer Power </li></ul><ul><ul><li>Deploy preference centers - Enable them to shape their own experience </li></ul></ul><ul><li>Focus on Converting Long-Term Prospects </li></ul><ul><ul><li>Optimize Landing Pages; Deploy Drip, Trigger, Behavior-Based Campaigns </li></ul></ul><ul><li>Focus on Relevance, Not Frequency </li></ul><ul><li>Minimize List Churn and Inactives </li></ul><ul><ul><li>Use welcome programs </li></ul></ul><ul><ul><li>Create unsubscribe/preference centers </li></ul></ul><ul><ul><li>Implement reengagement programs </li></ul></ul><ul><li>Design for Multiple Devices </li></ul><ul><li>Dive into the Social World </li></ul>
  65. 70. Q & A <ul><li>Follow Me </li></ul><ul><ul><li>Columnist </li></ul></ul><ul><ul><ul><li>Media Post - Email Insider </li></ul></ul></ul><ul><ul><ul><li>MarketingProfs GetToThePoint </li></ul></ul></ul><ul><ul><li>Blogs </li></ul></ul><ul><ul><ul><li>Silverpop - Tales </li></ul></ul></ul><ul><ul><li>Newsletters </li></ul></ul><ul><ul><ul><li>Digital Marketer </li></ul></ul></ul><ul><li>Contact: </li></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li>Facebook – Loren Todd McDonald </li></ul></ul><ul><ul><li>Twitter – @LorenMcDonald </li></ul></ul><ul><ul><li>www.silverpop.com </li></ul></ul>

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