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Leveraging the Value of Email Marketing During a Recession


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These slides are from the 6/26/2008 Aquent/AMA Webcast with Simms Jenkins titled "Leveraging the Value of Email Marketing During a Recession."

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Leveraging the Value of Email Marketing During a Recession

  1. 1. T e esi e a efo t e h s l s r rm h d 6 2 / 8 we c s : / 6 0 bat L v rgn te e ea ig h V leo E i au f mal Mak t gD r g rei ui n n a e es n R c sio
  2. 2. This AMA webcast was sponsored by Aquent Aquent is the only global staffing company dedicated to marketing and creative services organizations Our customers are industry leaders 90 of the Fortune 100 2/3 of the Fortune 500 Other Services Consulting Training Outsourcing Translation IT Solutions Offices to help you across the globe Nearly 70 offices in 17 countries 40 offices in major metros across North America Contact us 877 227 8368
  3. 3. Leveraging the Value of Email Marketing During a Recession Simms Jenkins Founder & CEO BrightWave Marketing 404.888.0133
  4. 4. Agenda 1. Redefine your program 2. Build the Business Case 3. Position Email As Service Bureau 4. Arm Yourself With Data 5. Optimize 6. Cut Costs with Email 7. Deliver Exceptional Value to Subscribers 8. Get Creative
  5. 5. Background Award-Winning Email Marketing Services Firm – Founded in 2002 Specialize in creating, managing and optimizing email marketing programs that Acquire & Retain Customers Build Relationships Cut Costs BrightWave Marketing’s Drive Revenue appearance on Bloomberg TV “One of the top 21 email marketing information sources” & “Best Blogs” - Email Marketing Recognized as one of the leading email service firms in the industry BrightWave & Client work featured in dozens of industry publications and media including The Atlanta Journal Constitution, Bloomberg TV, Marketing Sherpa, BtoB, ClickZ, DM News & MediaPost Awarded Atlanta Marketer of the Year (AMY) Award by the American Marketing Association and the South Star Award by the Direct Marketing Association Created, in partnership with The Email Experience Council, the leading email research and metric portal for email marketing practitioners Contributor to iMediaConnection, over 40 email industry related articles published Forthcoming book “The Truth About Email Marketing” to be published by Pearson on Aug. 1 Leadership developed email programs at Cox Interactive Media, Southern Progress & WebMD
  6. 6. BrightWave Marketing – Clients
  7. 7. What Does a Recession Mean?
  8. 8. “In the middle of difficulty lies opportunity” Albert Einstein
  9. 9. Interactive Marketers Are Bullish In A Recession Survey of 333 interactive marketers revealed strong support for maintaining or increasing budgets in categories including social networking, email, blogging, and search optimization. Professional services, financial services, and media marketers are most likely to plan increases in interactive marketing. In a recession like this, marketers should focus on the measurability of their online and social applications and think in terms of building long-term assets, not one-off campaigns to boost quarterly sales. Josh Bernoff – Forrester Research
  10. 10. Email Marketers Wish List Strategy & Measurement are the top 2 areas for near term focus for email marketers -- First Annual State of Email Metrics Survey, Nov. 2008 List Development & Time Constraints are the biggest challenges for email marketers -- First Annual State of Email Metrics Survey, Nov. 2008
  11. 11. Redefine Your Email Program
  12. 12. Redefine Your Email Program Purpose/Mission Recommended Metrics for Success Goals Overall Goal a) Drive Revenue Success Metric Revenue Industry Average NA COMPANY current state $10,000,000 COMPANY desired state $22,500,000 a) Drive Revenue ROI $57.25 $20.00 $40.00 Benchmark a) Drive Revenue Conversion Rates .13% 0.50% 1% a) Drive Revenue Value of Email Subscribers NA $2.00 $3.00 (# of subs/revenue) Define Your Assets b) Customer Loyalty b) Customer Loyalty Total Email Subscribers Unsubscribe Rate NA .29% 5,000,000 0.15% 7,500,000 < 0.10% b) Customer Loyalty Customer Frequency NA 1.2 2 Make Sure Your Team (average monthly visits/average monthly unique visitors) (Internal & Partners) Are b) Customer Loyalty Customer Retention (% of site visitors returning to NA NA Begin to track, initial goal should be 25% On the Same Page & c) Brand, Product, Feature Awareness c) Brand, Product, Open Rate Click Through Rate 20.77% 5.32 26% 8% 30% 12% Invested Feature Awareness c) Brand, Product, Feature Awareness Deliverability 96.9 94% 97%
  13. 13. Build the Business Case
  14. 14. Email is Too Valuable & Powerful Email has reached almost universal penetration, with 97% of consumers & 94% of marketers using the channel - Forrester, 2007 87% of Consumers online time is spent reading their emails - David Daniels, Vice President JupiterResearch, Dec. 2007 82% of marketers choose email marketing as the most important advertising media they planned to use in 2008 - Datran Media, 2008 81% of marketers planned to increase spending on email marketing in 2007 - Alterian, 2007 US spending on email advertising will grow to $2.1 billion by 2012 from $1.2 billion in 2007 – JupiterResearch, 2007
  15. 15. Email Marketing Delivers ROI For every dollar spent on Email marketing in 2007, marketers can expect an estimated $48.29 ROI. -- DMA, 2007
  16. 16. Email Marketing Delivers ROI Email Marketing Outperforms Other Media Email delivers one of the lowest costs per order Email's ROI index is 70 percent higher than any other direct-response marketing vehicle - DMA, 2006 83% of marketers surveyed said that they thought 2007 ROI for email will increase over last year. - Datran Media Research, quot;The 2007 Email Marketing Survey: Looking Forwardquot; 45% say best performing online advertising tactic is emailing your in- house list - CMO Council, 2006 B2C marketers will spend 11% of total marketing budget on email marketing in 2007 - DMA, Nov 2006 B2B marketers will allocate 6.5% of their Source: Direct Marketing Association marketing budget to email marketing in (DMA) as cited by Promo Magazine, 2007 - DMA, Nov 2006 October 18,2007
  17. 17. Email Marketing is Big Business Now
  18. 18. Position Email as a Service Bureau
  19. 19. Internal Email Service Bureau Email is the… …Workhorse of Interactive/Direct Marketing …Bridge to Sales & Marketing Use Best Practices to Monitor & Control Create Business rules, policies and guidelines Test Metrics as a Leash Consider Centralization Only 38 percent of executives said their email messaging endeavors are centralized in one location, with 24 percent citing that six or more departments manage it separately. -- Jupiter Research, 2007
  20. 20. Arm Yourself With Data
  21. 21. Lack of Analysis 70% of respondents said they apply basic or no analysis to any of their email campaigns. -- Alterian, 2007
  22. 22. State of Email Marketing Metrics’s First Annual State of Email Metrics Survey conducted August - October 2007 95% of email marketers measure results 56% measure immediately after campaigns while 48% and 44% measure weekly and monthly, respectively – only 18% measure annually Survey respondents said it was very important to measure email campaigns in order to improve results Respondents ranked email metrics by importance : 1. Click Through Rate 2. Deliverability 3. Conversions 4. ROI 5. Open Rate 6. Revenue 7. Total Subscribers 8. Forwards Only ½ of email marketers are using email metrics for budgeting/forecasting purposes Biggest Metrics Challenge = Lack of standardization
  23. 23. Remarket Redesigned creative lifted response rate between 100-350% Email Marketing efforts generated $119,567 in revenue ROI was $39 for every $1 spent for a 3,886% return Overall event registration was 11% higher than planned Awarded Atlanta Marketer of the Year (AMY) Award by the AMA and South Star award by the DMA for best email marketing campaign
  24. 24. Optimize
  25. 25. Operational Inefficiencies Most marketers are keeping up with campaign schedules, rather than enhancing them 76.5% of retailers had no plans to add to their email marketing staffs in the next 12 months (Internet Retailer, 2006) Sixty two of sixty three commercial email efforts scored failing grades (Forrester Research, 2006)
  26. 26. Existing Creative Challenges Fewer than 50 percent of marketers create emails that render appropriately - Email Experience Council, 2007 59% of online customers routinely block images - MarketingSherpa, 2007 One in five emails are invisible and ineffective due to blocked images - Email Experience Council, 2007 34% of marketers surveyed said that creative optimization had the most impact on email campaigns - Datran Media Research, 2007 Optimizing to ensure effective messaging even when images are off delivered an 87 percent increase in clicks. – SubscriberMail, 2008
  27. 27. Optimize Creative
  28. 28. Optimize Creative
  29. 29. Email Design/Layout Optimization August 2007 - Does not rely on images to provide key marketing message & CTAs - Call to action links in preview pane area - Added navigation to target customers in multiple spots in buying cycle - Added additional content areas for increased promotional real estate *Response Increased 700% (Clicks/Open)
  30. 30. Images Blocked But Not Content/Messaging/Links
  31. 31. The Power of Inbox Optimization What Changed New template with multiple links and content offerings Used Metrics for follow up efforts Deployed via BrightWave platform Metrics Measurement & Benchmarking The Results 152% increase in Click Through Rate over previous TMG email campaigns 215% increase in Unique Clicks/Open Rate 640% increase in tracked viral activity (forwards) 13.1% increase in deliverability rate 41% decrease in unsubscribes Hired as Email Marketing Agency Of Record
  32. 32. Cut Costs with Email
  33. 33. Cutting Costs Eliminate Traditional Hard Costs Newsletters Direct Mail Catalogs Call Center Call Center Volume decreased more than 80% following Weekly Remittance email deployments
  34. 34. Deliver Exceptional Value to Subscribers
  35. 35. Value in the Inbox People who buy products advertised in emails spend 138% more than those who don't - Forrester Research, 2007 90% of consumers use email to engage in and determine the value of a relationship with a company - JupiterResearch, 2006 50% of the shoppers surveyed said they used emails to make purchases; 50% said email had some influence on their shopping habits - Return Path, 2006 50% of consumers who open and read email marketing messages are also likely to purchase other items on impulse - Forrester Research, 2007 47% of consumers who think email is a great way to find out about new products or promotions are willing to pay a premium for products that save them time and hassles - Forrester Research, 2007
  36. 36. Value in the Inbox Offer Exclusivity Reward Behavior Personalize Aim for Viral Takeoff Make Life Easier
  37. 37. Get Creative
  38. 38. Get Creative
  39. 39. Get Creative
  40. 40. Get Creative
  41. 41. Get Creative
  42. 42. Don’t Panic
  43. 43. Questions, Comments & Discussion Simms Jenkins Founder & CEO BrightWave Marketing 404.888.0133
  44. 44. Thank You! Contact us Aquent 877 227 8368 American Marketing Association