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David Hallerman Principal Analyst J U L Y 1 4, 2 0 1 1 Best Practices for Email Marketing Sponsored by:

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What we’ll look at today… <ul><li>Email is not dead: key factors that support continued growth </li></ul><ul><li>Getting and keeping customers: essentials of acquisition and retention </li></ul><ul><li>Build and maintain effective lists: more data than ever increases complexity </li></ul><ul><li>Creating relevant emails: best techniques for segmentation and targeting </li></ul><ul><li>Automation’s benefits: pros/cons of ESPs vs. in-house </li></ul><ul><li>Test and measure: ways to improve this ongoing and essential process </li></ul><ul><li>Beyond the email silo: integrating email marketing with social and mobile </li></ul>Twitter – #eMwebinar

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Email’s Not Dead (far from it)

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Email volume and revenue both showed greater increases over the course of last year

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Email is the big-time favorite channel for hearing about sales or other promotions

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More people join email lists than become social network fans

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However, most people are overwhelmed by the piles of email they get daily

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Many marketers want a piece of “your” customer’s time and attention

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What do people want ? Two things… <ul><li>Value </li></ul><ul><li>Money </li></ul><ul><li>Meaning </li></ul><ul><li>Relevance </li></ul><ul><li>Control </li></ul><ul><li>Opt-in or opt-out </li></ul><ul><li>Frequency, content… </li></ul><ul><li>Channel </li></ul>Twitter – #eMwebinar

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Your customer is rarely your friend—they want from you just as certainly as you want from them

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Getting and Keeping Customers (acquisition and retention)

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Customer retention and acquisition are leading marketing priorities

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Customer acquisition Proven ways to get new subscribers <ul><li>Ask, ask, ask: make it easy to opt-in, reduce barriers </li></ul><ul><li>Don't ask too much: get customer data over time </li></ul><ul><li>Offer control from day one: such as frequency, content, format </li></ul><ul><li>Target prospects: through other channels, like search or store </li></ul><ul><li>Tailor landing pages: different depending on source, other info </li></ul><ul><li>Launch new, targeted products: an acquisition strategy </li></ul><ul><li>Promotions: free trials, discounts, events, content, bundles </li></ul><ul><li>Keep pitch focused: handful of benefits and one call-to-action </li></ul><ul><li>Incentives after first touch: make part of welcome message </li></ul><ul><li>View acquisition as a process: it’s not a single event </li></ul>Twitter – #eMwebinar

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Welcome is the customer “behavior” most used by marketers—and it can color much that follows

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Customers rarely fall in love with the company (anyway, one kiss ain’t enough)

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Customer retention Proven ways to keep people around <ul><li>Customize email content: personalization builds relationship </li></ul><ul><li>Customize landing pages: one size does not fit all </li></ul><ul><li>Leverage customer data: to modify and target offerings </li></ul><ul><li>Ask, ask, ask: request more info, with clear reason why </li></ul><ul><li>Dialogue: make it easy to reach a real person </li></ul><ul><li>Opinions: ask people what they think, surveys w/incentives </li></ul><ul><li>Unhappy: respond quickly to any customer dissatisfaction </li></ul><ul><li>Be personal: unique and uniform tone—people not corporations </li></ul><ul><li>Incentives: some kind of value-add, not just for newbies </li></ul><ul><li>Triggered incentives: such as coupons after $XX spent </li></ul><ul><li>Question: ask why established customer leaves, incentives too </li></ul>Twitter – #eMwebinar

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Email marketing’s central theme: improving long-term customer relationships

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Customer relationships are more than a cliché—nurture them over time

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Trust and loyalty go together in all relationships, even commercial ones—and especially with email

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Marketing that people trust : Email always on top (and bottom)

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Build and Maintain Effective Lists (more data, more complex)

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Tips to grow and sustain a strong email marketing list <ul><li>Submission does not equal subscription: confirm it with double opt-in and secure code </li></ul><ul><li>Check back in periodically: with your inactive subscribers </li></ul><ul><li>Make it easy: include link to subscription administration center that’s more than just unsubscribe </li></ul><ul><li>Be consistent: always send from the same address </li></ul><ul><li>Provide a real email address: for feedback or general uses </li></ul><ul><li>Provide a real-world address: to encourage confidence </li></ul><ul><li>Quality over quantity: to increase deliverability </li></ul><ul><li>Respect data: that shows your emails are not of interest </li></ul><ul><li>Two-way street: Acknowledge all subscription changes </li></ul>Twitter – #eMwebinar

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Top metrics marketers use to gauge their interactive performance 55% in study cited building opt-in email lists as a top interactive marketing goal in 2011

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Email list data quality reaches peak with full-scale opt-in (a committed audience) Single Opt-In Affiliate Network or Forward to Friend Purchased List or List Rentals Double or Confirmed Opt-In

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Email marketing tactics that best build opt-in lists

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Pre-populating sign-up check boxes undercuts opt-in’s vitality

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Pre-checking opt-in boxes may sacrifice quality for quantity

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Slow and steady—don’t ask for too much info at once. Get it over time instead

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Multistep registration helps attract new subscribers

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Maintaining good lists typically requires regular check-ups with customers

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Main reasons internet users delete emails without ever opening them

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Well-maintained email lists drive greater deliverability

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Create Relevant Emails (segmentation and targeting)

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How do you get people’s attention when so many are sick and tired of marketing messages?

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Some key ways to segment and target email audiences <ul><li>Customers vs. prospects: helps determine offer needed </li></ul><ul><li>Purchases: provides details based on demonstrated interests </li></ul><ul><li>Engagement: requires robust data to analyze earlier email click-throughs to gauge interest or customer intentions </li></ul><ul><li>Time on list: indicates what to offer, especially when combined with three methods above </li></ul><ul><li>Location: create messages relevant to communities or regions </li></ul><ul><li>Dynamic content: variable sections within email templates, instead of distinct mailings for segments </li></ul><ul><li>Customer value: furthers relationships by frequency and spending </li></ul><ul><li>Sophisticated segmentation: to avoid targeting based on purchases for others (like a clothing gift to my wife) </li></ul>Twitter – #eMwebinar

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Personalized email is still at a rudimentary stage for many—and so that’s a way to get a leg up on the competition

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Effective targeting means less is more

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Effective segmenting means more is more

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Accurately segmented lists tend to increase relevance , which also encourages recipients to open the emails

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However, targeting individuals with relevant content is the single most significant challenge to effective email marketing

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Irrelevant messages are a main reason why people unsubscribe to permission email

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Benefits of Automation (ESPs or in-house systems)

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Automating email is required to make many moving parts fit together

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Key automation concepts <ul><li>Delivering the right message to the right person at the right time… </li></ul><ul><li>Right message: Inserting dynamic content into emails is an aspect of targeting. Using data on consumer actions, you can insert specific content into individual emails on a mass scale. </li></ul><ul><li>Right person: For relevant communication, you need accurate and somewhat extensive information about each individual. By integrating customer and marketing databases, you can segment more effectively. </li></ul><ul><li>Right time: Triggered emails get sent automatically following a customer’s action. That could be an immediate message to thank a new customer, or a series of emails spaced over many months designed to keep the brand top-of-mind for a prospect. </li></ul>Twitter – #eMwebinar

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But it’s not just press and send to implement robust automation

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Marketers use ESPs for gauging email’s effects and increasing relevance–as well as for automation

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Benefits of ESPs <ul><li>Deliverability: good ones automatically check outgoing emails for spam problems </li></ul><ul><li>Relationships: with ISPs, to help you stay on good terms </li></ul><ul><li>Compliant: techniques like staggering large mailings into short bursts </li></ul><ul><li>Flexibility: tends to put control back into the marketer’s hands </li></ul><ul><li>Easier: tools that allow marketers with little coding knowledge to create HTML emails </li></ul><ul><li>Extras: such as pre-formatted email surveys, embedded web forms, built-in analytics </li></ul><ul><li>Changes: more marketing-automation services means greater database integration (making ESPs more competitive with large in-house email systems) </li></ul>Twitter – #eMwebinar

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Benefits of in-house software <ul><li>More cost-effective: no extra spend associated with any sends </li></ul><ul><li>Simpler bottom line: no worry about the ROI for each individual send </li></ul><ul><li>Better integration: with multiple in-house databases </li></ul><ul><li>More internal customization: such as getting CRM tools to work with email software and other data </li></ul><ul><li>Effective segmentation: easier to segment email when the data that defines the groups are all in one place </li></ul><ul><li>Security: your own system behind your own firewall gives greater defense against potential problems </li></ul><ul><li>Tight control: if you have the in-house resources to handle extensive details of email campaign </li></ul>Twitter – #eMwebinar

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With an ESP or without, technology is crucial for sending relevant (lifecycle) emails

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Marketers who fully understand their needs will be more likely to engage an ESP that has product features they need

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Test and Measure (rinse and repeat)

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Infinite loop : Test and measure and test and measure and test and measure

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Testing practices: A few ways to improve your email marketing <ul><li>Name: add brand name to subject line </li></ul><ul><li>Size: alter length of subject line </li></ul><ul><li>Targeted: try first or last name personalization on subject line </li></ul><ul><li>Others: show the number of existing subscribers on sign-up pages </li></ul><ul><li>Links: change email link from text to button, or vice versa </li></ul><ul><li>Images: add small, relevant image near the call-to-action </li></ul><ul><li>Ease: add second unsubscribe link at email’s top (like Groupon) </li></ul><ul><li>Money: try offer as percent-off or dollars-off </li></ul><ul><li>One: test one variable by segment (males/females or geography) </li></ul><ul><li>Test everything: frequency, call-to-action, design, when sent, which segments sent to, repeating offer, landing pages, from line, etc. </li></ul>Twitter – #eMwebinar

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Test types of welcomes , then layer offer/no-offer variables on top of that

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The main reasons marketers do not test emails are solvable <ul><li>Don’t know how </li></ul><ul><li>Campaign timeline is too short </li></ul>Twitter – #eMwebinar

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Measuring test results is also an excellent way to segment customer lists

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Metrics tracked varies, based on email marketer’s level of experience

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Beyond the Email Silo (integrating social and mobile)

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The best don’t do email marketing, but rather they include email as part of overall marketing campaigns

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Making email more social than ever before—and more effective, too <ul><li>Acquisition resource: try email-only promotions to encourage consumers to opt-in </li></ul><ul><li>Retention resource: use email to encourage subscribers to follow you on social media (and get further benefits) </li></ul><ul><li>Socialize email: personalize email offers with product review content and comments from current subscribers </li></ul><ul><li>Special offers: consider extras to give to people who are both subscribers and fans </li></ul><ul><li>Track it: not only configure content for passalongs and other sharing, make sure that’s part of your reporting too </li></ul><ul><li>Recognize difference: followers and subscribers are not alike </li></ul><ul><li>Listen: find out what your target audience is talking about, to help create more targeted, relevant email campaigns </li></ul>Twitter – #eMwebinar

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Brand relationships: A mix of email opt in and social network fandom

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However, more people get opt-in email than follow brands on Facebook

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The passalong —email’s original social element—still sways purchase decisions

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Positive word of mouth is often email’s goal, amplified by social venues

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Marketers who listen increase the odds that people will talk about them

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Brand advocates and regular internet users talk about products primarily through three platforms

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Email-generated word-of-mouth often occurs outside of the digital space

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Email is a core channel that people use to discuss products and services

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What is prime content for sharing —at least in the commercial space?

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More pieces to mobile email marketing than just correct formatting

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Reaching people everywhere with a smart mobile strategy <ul><li>Design it: develop mobile versions of emails to accommodate your audience and their needs </li></ul><ul><li>Play well together: mobile web landing pages need to match any call-to-action in mobile email </li></ul><ul><li>Make it quick: if subscribers can’t readily respond from mobile, they’ll move on to something else </li></ul><ul><li>Email isn’t SMS: ask again if list subscribers want to opt-in to text messages; don’t conflate the two </li></ul><ul><li>Always ask: Use email preference center to ask subscribers what device they use for email </li></ul><ul><li>Limited channel: because mobile devices limit range of communication, email best vehicle for transactional messages </li></ul><ul><li>Personal space: tailor brief messages for the feel of mobile </li></ul>Twitter – #eMwebinar

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Mobile’s personal side leads to closer relationships and increased retention

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Mobile email more likely to drive purchases than any other mobile channel, but social contributes strongly too

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Mobile users by far prefer email for hearing from their favorite companies (text messages far less so)

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Mobile and email together—a doubly personal environment for marketing

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Conditions under which college students would accept smartphone ads

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Conclusions

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<ul><li>The right message to the right person at the right time. </li></ul><ul><li>Email marketing best practices in one sentence: Get accurate and detailed data from people who want to hear from you, and then automate the steps for sending them relevant messages. </li></ul><ul><li>Effective email marketing takes more asking and listening than many companies are comfortable with. </li></ul><ul><li>Even with email’s central place for both marketers and their customers, an email is merely one link in a chain of events that stretches from initial contact to purchase. </li></ul><ul><li>Trust nurtures email’s long-term relationships. </li></ul>Conclusions: Email Best Practices

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LYRIS OVERVIEW July 2011

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Case Study: Joy the Store

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Global Customers RETAIL MEDIA & ENTERTAINMENT FINANCIAL SERVICES TECHNOLOGY HOSPITALITY PUBLISHING NON-PROFIT AGENCIES EDUCATION

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Best Practices for Email Marketing Questions & Answers Registrants will receive an email tomorrow that includes a link to view the deck and webinar recording. For more discussion, please join us after the webinar on LinkedIn. Search for the eMarketer Group and click on Discussions. To learn about eMarketer Total Access please visit www.emarketer.com/products or contact us: (800) 405-0844 or [email_address] Twitter Hashtag: #eMwebinar Sponsored by : Presented by: David Hallerman Principal Analyst, eMarketer, Inc.