Successful e-Mail
Marketing Practices


          eMarketing Association
               May 20-21, 2003

                G...
Managing e-Mail Marketing

•   Defining e-Mail Marketing Objectives
•   Determining Communication Strategies
•   Reaching ...
Defining e-Mail Marketing
       Objectives




                        © 2003 L-Soft
Common Objectives
•   Acquire new leads/ registrants/ customers/ clients
•   Drive immediate sales
•   Enhance customer re...
Response Rates by Campaign Objective
                                                              North
                 ...
Acquisition versus retention
                                   Acquisition   Retention

Search engine positioning        ...
Sales Conversion Costs


                                         Acquisition   Retention


E-mail                        ...
Determining Communication
        Strategies




                       © 2003 L-Soft
Popular e-Mail models
•   Discount sales promotions
•   Sales transaction confirmations
•   Account statements
•   Schedul...
Average CTR for B2C and B2B
          e-mail newsletters
                                                                 ...
Top Interests for Permission
          e-Mail Users in the US
•   Specials/offers from online merchants
•   Specials/offer...
Top reasons why US Internet users
     respond to e-mail offers

 •   Know and trust brand
 •   Relevant information
 •   ...
Viral Marketing: Types of
messages that are forwarded
•   Merchandise deals and promotions
•   Prize/coupon/reward
•   Soc...
How US internet users learn about
         new web sites

                                                                ...
Reaching your Target
     Audience




                       © 2003 L-Soft
US Internet User Attitude towards
      e-Mail Volume, 2001



                 Cannot handle
                            ...
E-mail overload: Number of e-mail
 marketing e-mail sent in the US


                                          289
       ...
Response to permission e-mail
  versus unknown senders
                                     13%
                Eager to r...
Opt-in, opt-out, double opt-in,
spam: Preferred e-mail marketing


              11% 3%


                                ...
Rates for US e-mail permission-



                     Click-through
                                                    ...
Permission e-mail marketing vs.
     direct mail retention costs
                    Cost per              Click-    Conve...
Building your
           permission-based lists

•   Subscriber form on web site
•   Sponsor lists of sites with a similar...
Building Customer Intelligence

•   Harness your Customer Database
•   Evaluate Customer Behavior
•   Effective personaliz...
US Internet Users’ Level of
Concern Regarding Online Privacy

                     8.80%
    2000                        2...
US Consumers’ Privacy concerns



                                                                  75%
                  ...
US E-Mail users’ preferred e-mail
    marketing privacy and customer-
           support practices

•    Unsubscribe optio...
Most Important e-Mail Marketing trust-
   building factors among US users

•   Secure sign-up form
•   Trustworthy reputat...
Why customers would give
             personal info

•   Guarantee that the information will not be misused
•   Eligibilit...
E-mail Appending




                                24%
                                      Ethical
                   ...
Privacy & Regulations
•   HIPPA covers health personal information
•   COPPA protects children
•   Gramm-Leach Bliley Act ...
Creating the Content




                       © 2003 L-Soft
E-Mail Message Content
•   Subject Line – getting recipients to open mail is half the
    battle
•   Creativity
•   Person...
Email users’ preferred e-mail
    marketing personalization models

•    Communication Control: Digests, Frequency
•    Se...
Preferred e-mail advertisement
 formats worldwide, Q1 2002


                           3%


                             ...
Response rates per format


               Click-Through                        15.60%
                                   ...
Evaluating results




                     © 2003 L-Soft
How to measure the effectiveness
     of e-mail marketing campaigns
•    Click-through rates
      o unique and sum of eve...
Response time and cost per unit,
         e-mail vs. direct mail
•    Be prepared to handle responses


                  ...
To Outsource or not to
     Outsource




                         © 2003 L-Soft
© 2003 L-Soft
Maintain your server
• Hardware/computer
   network
• Dedicated Internet
   Connection
• Software for e-mail
   management...
Maintain your server
• Hardware/computer
   network
                      VS.    Outsource your list hosting
             ...
Outsourced e-Mail
            Marketing Services

       Strategy           8%
                        2%

       Creative...
Evaluating Options
•   Evaluate software product or hosting service before
    purchasing
•   Determine if solution provid...
Main Recommendations
•   Integrate e-mail into your integrated marketing
    communication plan
•   E-Mail marketing is be...
Questions?

5:45pm Consulting Session - Today
          Gabriela Linares
      L-Soft international, Inc.
            www....
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Successful e mail_strategies_0503

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  • hard to motivate people to forward message
    92-93
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    Search engines 80%
    Link from another site 59%
    Viral marketing 56%
    Television 48%
    Guess the URL 22%
    Radio 19%

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  • Successful e mail_strategies_0503

    1. 1. Successful e-Mail Marketing Practices eMarketing Association May 20-21, 2003 Gabriela Linares © 2003 L-Soft
    2. 2. Managing e-Mail Marketing • Defining e-Mail Marketing Objectives • Determining Communication Strategies • Reaching your Target Audience • Designing e-Mail Creative • Evaluating Results • Selecting a Solution • Final Recommendations © 2003 L-Soft
    3. 3. Defining e-Mail Marketing Objectives © 2003 L-Soft
    4. 4. Common Objectives • Acquire new leads/ registrants/ customers/ clients • Drive immediate sales • Enhance customer retention programs • Build stronger relationships with existing customers/ clients • Provide company or product information • Increase revenues by up-selling to existing customers/ clients • Post-order targeted e-mails • Build brand awareness • As part of an integrated marketing strategy • Increase web site traffic © 2003 L-Soft
    5. 5. Response Rates by Campaign Objective North Conversion CTR Awareness 6.80% 17.10% Sales 5.60% 15.20% Leads 7.90% 15.30% Source: IMT Strategies, September 2001 © 2003 L-Soft
    6. 6. Acquisition versus retention Acquisition Retention Search engine positioning 94% 6% Banner ads 91% 9% Referral/viral programs 85% 15% Affiliate programs/ sponsorships 75% 25% Incentive programs 51% 49% E-Mail Marketing 37% 63% © 2003 L-Soft Source: DMA- April, 2002
    7. 7. Sales Conversion Costs Acquisition Retention E-mail $57.10 $2.50 Direct Mail $25.00 $60.00 Banner ads $140.00 N/A Source: IMT Strategies, September 2001 © 2003 L-Soft
    8. 8. Determining Communication Strategies © 2003 L-Soft
    9. 9. Popular e-Mail models • Discount sales promotions • Sales transaction confirmations • Account statements • Scheduled corporate newsletters • Press release list • News alerts from Media outlets • Time-based reminders • E-mail discussion groups/ communities • Product announcements • Entertainment (humor, film clips) • Online education courses • Product user/support groups • Auto-responders © 2003 L-Soft
    10. 10. Average CTR for B2C and B2B e-mail newsletters North B2C B2B 2002 0.30% 1.90% 2001 0.50% 2.80% 2000 0.90% 3.40% 0% 1% 2% 3% 4% © 2003 L-Soft Source: Opt-in News, May 2002
    11. 11. Top Interests for Permission e-Mail Users in the US • Specials/offers from online merchants • Specials/offers from local retailers or restaurants • Household tips/recipes/crafts • Humor • Travel • Entertainment • Weather • Local news • Tech/business news • Finance/stock information • Sports © 2003 L-Soft
    12. 12. Top reasons why US Internet users respond to e-mail offers • Know and trust brand • Relevant information • Friend has recommended • Price/coupon/reward • Timely • Compelling subject • Entertaining © 2003 L-Soft
    13. 13. Viral Marketing: Types of messages that are forwarded • Merchandise deals and promotions • Prize/coupon/reward • Social/political messages and petitions • Warnings and advisories • High level of relevance • Funny • Work related • Informative • Cool • New Technology © 2003 L-Soft
    14. 14. How US internet users learn about new web sites 80% Search engines 59% Link from other site 56% Viral Marketing 48% Television 22% Guess URL 0% 20% 40% 60% 80% © 2003 L-Soft Source: IMT Strategies, Sept. 2001
    15. 15. Reaching your Target Audience © 2003 L-Soft
    16. 16. US Internet User Attitude towards e-Mail Volume, 2001 Cannot handle 15% Too many 34% Somewhat more 3% 0% 10% 20% 30% 40% © 2003 L-Soft Source: IMT Strategies, September 2001
    17. 17. E-mail overload: Number of e-mail marketing e-mail sent in the US 289 2001 430 2002 549 2003 674 2004 796 2005 0 200 400 600 800 © 2003 L-Soft Source: Forrester Research, August 2001
    18. 18. Response to permission e-mail versus unknown senders 13% Eager to read 1% 49% Curious to read 12% 29% Indifferent 15% 6% Open but annoyed 21% 3% Delete 52% 0% 30% 60% 15% 45% Permission e-mail West Unknown senders L-Soft © 2003
    19. 19. Opt-in, opt-out, double opt-in, spam: Preferred e-mail marketing 11% 3% Opt-in Opt-out Spam 86% Source: Opt-In News, May 2002 © 2003 L-Soft
    20. 20. Rates for US e-mail permission- Click-through 17.80% Net conversion 7.00% Bounce 7.80% 0% 5% 10% 15% 20% Source: IMT Strategies, Sept. 2001 © 2003 L-Soft
    21. 21. Permission e-mail marketing vs. direct mail retention costs Cost per Click- Conversion Cost per thousand Through Rate sale (CPM) Rates (CTR) E-mail to $5 15% 3.7% $1 in-house list Direct Mail $761 N/A 3.9% $20 to in- house list Source: Forrester Research, August 2001 © 2003 L-Soft
    22. 22. Building your permission-based lists • Subscriber form on web site • Sponsor lists of sites with a similar demographic • Send to a friend button – viral marketing • Ask for permission to customer base • Maintain list hygiene • E-mail appending… © 2003 L-Soft
    23. 23. Building Customer Intelligence • Harness your Customer Database • Evaluate Customer Behavior • Effective personalization and targeting • Common Segmentation Factors: o Purchase history o Location/zip code o Demographics o Lifestyle/hobbies/interests o Psychographics © 2003 L-Soft
    24. 24. US Internet Users’ Level of Concern Regarding Online Privacy 8.80% 2000 29.50% Not concerned 61.70% Somewhat concern Extremely concern 5.50% 2001 23.10% 71.30% Source: UCLA Center for Communication Policy, November 2001 © 2003 L-Soft
    25. 25. US Consumers’ Privacy concerns 75% Sharing info with third parties 70% Transactions not secure 69% 72% 75% Source: Harris Interactive, February 2002 © 2003 L-Soft
    26. 26. US E-Mail users’ preferred e-mail marketing privacy and customer- support practices • Unsubscribe option in all e-mails • Explicit no-share-address policy • 48-hour e-mail support answers • Editable personal preferences page • Provide phone numbers in e-mail • Explicit privacy policy • Double opt-in confirmation • Unchecked default opt-in box • Third-party privacy seal in e-mail © 2003 L-Soft
    27. 27. Most Important e-Mail Marketing trust- building factors among US users • Secure sign-up form • Trustworthy reputation • Loyal customer • Well-known brand • Friend recommendation • Trusted site referral • Relevant offers © 2003 L-Soft
    28. 28. Why customers would give personal info • Guarantee that the information will not be misused • Eligibility to win a prize in a sweepstakes • Regular e-mail updates for products of their interest • Access to more or better content or information • Affinity points • Receive targeted ads they’re likely to be interested in © 2003 L-Soft
    29. 29. E-mail Appending 24% Ethical Not ethical 76% Source: Opt-In News, May 2002 © 2003 L-Soft
    30. 30. Privacy & Regulations • HIPPA covers health personal information • COPPA protects children • Gramm-Leach Bliley Act concerns financial information • FTC supports Corporate Privacy Policies • Federal spam regulation does not exist • State laws exists in 13 US states, including California, Colorado, etc. • More information about spam regulations visit: www.spamlaws.com © 2003 L-Soft
    31. 31. Creating the Content © 2003 L-Soft
    32. 32. E-Mail Message Content • Subject Line – getting recipients to open mail is half the battle • Creativity • Personality and dynamic content • Keep it short and use links to draw reader to your web site • Keep it fresh – don’t re-use the same content • Relevance – the more you understand your customers, the more targeted and relevant messages will be • Frequency • Test messages © 2003 L-Soft
    33. 33. Email users’ preferred e-mail marketing personalization models • Communication Control: Digests, Frequency • Self-select content • Name recognition • Personal events & reminders • Geographic relevance • Account History • Recognizing Lifestyle Preferences • Purchasing Behavior © 2003 L-Soft
    34. 34. Preferred e-mail advertisement formats worldwide, Q1 2002 3% 35% HTML Text 62% Rich Media Source: Opt-IN News, May 2002 © 2003 L-Soft
    35. 35. Response rates per format Click-Through 15.60% 18.50% Conversion 5.30% 9.00% North HTML Bounce 7.70% 7.40% Text Unsubscribe 3.20% 1.20% 0%5.00% 15.00% 10.00% 20.00% © 2003 L-Soft Source: IMT Strategies, Sept. 2001
    36. 36. Evaluating results © 2003 L-Soft
    37. 37. How to measure the effectiveness of e-mail marketing campaigns • Click-through rates o unique and sum of events & comparisons • Unsubscribe rates • Open rates • Conversion rates (website tracking) • Click-stream analyses • E-mail pass along rates –viral marketing • Coupon codes • Anonymous tracking to respect privacy • Campaign Comparison Reporting © 2003 L-Soft
    38. 38. Response time and cost per unit, e-mail vs. direct mail • Be prepared to handle responses E-Mail Direct Mail Response Time 3 days 3-6 weeks Cost per unit $0.25 $1.25 Source: DMA, Forrester Research, Gartner Group, 2002 © 2003 L-Soft
    39. 39. To Outsource or not to Outsource © 2003 L-Soft
    40. 40. © 2003 L-Soft
    41. 41. Maintain your server • Hardware/computer network • Dedicated Internet Connection • Software for e-mail management and delivery • Best for large loads and those with experience • More cost-effective/ economies of scale • Flexibility to create campaigns on the fly © 2003 L-Soft
    42. 42. Maintain your server • Hardware/computer network VS. Outsource your list hosting • Reliability and experience • Redundant servers and • Dedicated Internet delivery capacity Connection • Flexibility to maintain • Software for e-mail company Internet presence management and delivery • Ability to move from • Best for large loads and hosting to in-house when those with experience ready • More cost-effective/ • More expensive economies of scale • Rely on company’s • Flexibility to create schedule campaigns on the fly © 2003 L-Soft
    43. 43. Outsourced e-Mail Marketing Services Strategy 8% 2% Creative 10% 0% Bar 4 North Delivery 68% 28% 2001 2003 Analysis 22% 8% 0% 18% 35% 53% 70% Source: Forrester Research, August 2001 © 2003 L-Soft
    44. 44. Evaluating Options • Evaluate software product or hosting service before purchasing • Determine if solution provides appropriate features • Decide what reporting features you need o online real-time reporting, compatibility with other software you employ • Differentiating levels of privacy tracking • Campaign manager to organize jobs • Integration with your database and other applications • Handle bounces © 2003 L-Soft
    45. 45. Main Recommendations • Integrate e-mail into your integrated marketing communication plan • E-Mail marketing is best used for retention and other customer permission-based communications • Offering sales promotions is the most successful strategy • Consider double opt-in and build your permission-based lists • Respect recipients’ privacy to earn their trust • Personalize messages to provide relevant information which will increase response rates • Evaluate options and opt for time-tested solutions © 2003 L-Soft
    46. 46. Questions? 5:45pm Consulting Session - Today Gabriela Linares L-Soft international, Inc. www.lsoft.com Info@lsoft.com 301-731-0440 800-399-5449 © 2003 L-Soft

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