E marketingwerx Email Series 2

Current State of
Email Marketing
in the US
Educational Series #2

It’s called
Fashion…you
wouldn’t
understand.

Agenda
• Feedback from last week
• Interactive
• Weekly Takeaway
• Future Topics:
• Demystifying Email Metrics and Analytics
• Anatomy of a Great Email
• Engagement: Why It’s Vital to Your Email Health
• How Mobile-Local-Social Has Transformed Email
• How to get your Email Delivered
• SPAM and the CASL (Canadian Anti-Spam Law- effective July 1,
2014)
• Grow your Email List Like Wildfire
• Lifecycle Marketing for Email
• Better Email Through Automation
• Building a Cross Channel Marketing Program

Your Email Yogi
- 30 years experience in helping corporations grow sales, retain clients, and
improve profitability.
- Operates an eight year old email consultancy called
eMARKETINGWERX, INC. that specializes in creating compelling
strategies and tactics for successful email implementation.
- Expert user of multiple email platforms including Blue Hornet and
ExactTarget Platform - certified reseller partner as well.
- Past clients include Robbins Brothers, Juicy Couture, Kate Spade,
Tourism Fiji,TripIT, PGE, Singapore Airlines,Vail Resorts, Toyota,
Pharmca, Four Seasons ,Hilton and multiple interactive agencies.
- Former Director of Business Development for ExactTarget Email Solutions
.Former Agency Strategist for Blue Hornet.
- Co-founded successful ten year old Los Angeles interactive marketing
agency Comchoice – now called Zoo Entertainment.
- Graduate of the University of Minnesota.
- Speaker at multiple trade shows and business schools by invitation on the
subject of Interactive Marketing and Permission Email Strategies.
- Past President Direct Marketing Association of Southern California
- Past Vice President Association of Professional Consultants
Christopher Barnes
eMarketingwerx, Inc.
Ph: 310-686-2314
Email:
cbarnes@emarketin
gwerx.com
Twitter: @larainmkr

Quick Take aways –From Series 1
Email can be a critical connection point
with your customers and prospects.
Respect your subscribers.
People want relevant messages from
you.
Seek to understand your customer’s
journey.
Be obsessed with the quality of your
customer data and use it wisely.

What Role Should Email Play?
The retail customer’s lifecycle:
Acquire, Onboard, Engage, Retain, & Winback

What else can email do?
• Update
• Remind
• Nurture
• Retain
• Simplify
• Listen
Oh that’s right – SELL too.

Brighton Educational Series #2
- Current State of Email Marketing in the US

Today’s Digital Buyer:
Current State of Email
Marketing in the US
 Tech savvy
• Brand sophisticated
• Expects a lot - inform and entertain me
• Fickle

Buyers are more empowered
Know how to opt out
Have higher expectations

12
Customers are now always addressable

Quick Stats
Email – it’s alive! The number one way for marketers to
communicate directly with customers.

Quick Stats
According to new research:
• Email is the still the customer preference.
77% of consumers reported that they prefer to receive
permission-based marketing communications through email –
and email was the number one source for all age groups
including 15-24!
(Source: Waldow Social)

Our Challenges
• The Economics of Attention: Information abundance and
attention scarcity = tough to get buyer attention
• Opt-Out, Screen Out, Tune Out: Consumers don’t want to
feel they are being marketed to, and will find ways to tune out
unwanted communications
• The Cross-Channel Marketing Revolution: email can no
longer be a standalone channel
• Imprecise Metrics: Imprecise metrics that don’t show true
impact

Misses
• Customer data hygiene: 80% of retail brands collect email
via (POS) system entered by a sales associate, - high
potential for error.
• Personalization: The majority of marketers ask customers
for data, but then don’t use it to personalize their emails.
70% of brands are not personalizing emails sent to
subscribers.
• Customer preferences: 60% of marketers do not give
customers the option to select the types of emails they
want to receive, only 30 % of marketers let their customers
decide how often they want to be mailed.
Experian Marketing Services 12-2013

Growing Trends
• Popup windows: 45% of marketers use pop-up windows
on their Website to collect email addresses. This number
more than doubled from lastyear (a 107%^).
• Responsive design: Optimal experience to mobile
customers - use of responsive design more than doubled
from the previous year.
• Social influence and brand advocacy is UP! Promoting with
Pinterest has the biggest increase, followed by Instagram,
which is now being promoted by 39 percent of brands
surveyed.

Tactics to implement
• Activity segmentation: 83% segment their email campaign
audiences by past activity data, such as open and click
activity.
• E-receipts: Those with up-sell and cross-sell features have
the highest click and transaction rates.
• Real-time triggering: Second abandon cart reminders
garner an average 54 percent lift compared to just sending
one abandon cart message, while browse emails that are
based on products or categories a customer has surfed
achieve a 3.4x increase in revenue compared to other
promotional mailings.

Tactics to implement
• Reactivation: Confirmed opt-in mailings have 3.3 times
higher click rates than other reactivation emails.
• Customer loyalty: Brand loyalist click significantly more on
surveys, review requests and “follow us” links for social
websites, than non brand-loyalists..

Forty million photos are uploaded to Instagram every day.
The State of Social Sharing in 2013, WebHostingBuzz

Email is one of the most-used tactics
Which of the following tactics does your company use?
Base: 395 US, UK, and Canada-based enterprise
firms
Source: Forrester’s Digital Marketing Maturity
Model Survey, Q3 2013
© 2013 Forrester Research, Inc. Reproduction Prohibited 36

1%
7%
21%
16%
15%
10% 10%
5%
3% 2%
3%
5%
25%
20%
15%
10%
5%
0%
None Less than
1%
1% to 5% 5.1% to
10%
10.1% to
15%
15.1 to
20%
20.1% to
25%
25.1% to
30%
30.1% to
35%
35.1% to
40%
40% or
greater
Not sure
Percentage of Overall Revenue Attributed to Email
Marketing - 2014
Question Asked: What percentage of your overall revenue is attributed to your email
marketing initiatives?
Source: The Relevancy Group, LLC/Executive Marketer Survey n=374 11/13, US Only, Mid-Market & Enterprise Respondents
Copyright © 2014 The Relevancy Group, LLC. All Rights Reserved.

38
Users engage with promotional email

73%
81%
Mobile Email Adoption by Age - 2014
90% 93%
84%
73% 69%
59%
42%
21%
27%
19%
10% 7%
16%
27% 31%
41%
58%
79%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
13 to 18 19 to 26 27 to 32 33 to 38 39 to 45 46 to 53 54 to 60 61 to 70 71 to 80 81 or older
Yes No
Question Asked: Do you currently access one or more of your personal email accounts on
a mobile device such as a cell phone, smart phone? (select one) Source: The Relevancy Group, LLC
2014 Consumer Survey n=1,011 3/14, US Only
39

Inhibitors to Email Marketing on Mobile Phones
18%
9%
9%
21%
26%
32%
37%
44%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Sent too often, I get too many of them
They are not relevant to me
Too small to read and interact with
When I click through it is too hard to see their full web-site on my
Message is jumbled and not well formatted on my mobile phone
I have their App, they should message me this way
It is redundant to what the brand has already pushed me through
the application that I have on my phone
None of the above
mobile phone
Question Asked: What don’t you like about getting email marketing messages on your
mobile phone? (select all)
Source: The Relevancy Group, LLC 2014 Consumer Survey n=1011 3/14, US Only
40

Marketers are Missing Segmentation Opportunities
Data Attributes Used For Segmentation
22%
22%
22%
28%
26%
33%
29%
44%
32%
31%
51%
Demographic data
Geographic data
Customer satisfaction survey data
Click-throughs on previous email marketing offers
Customer spending
Frequency of customer service contacts
Transaction activity/Purchase behavior
Frequency of purchase regardless of channel, conversion rate
Open rate on previous email marketing offers
Question Asked: Which of the following customer data attributes has your company used
to segment audiences for email marketing campaigns within the last six months?
28%
39%
43%
26%
31%
36%
40%
45%
51%
0% 10% 20% 30% 40% 50% 60%
Customer profitability
Enterprise Mid Market

Majority of Marketers Are Challenged By Data Centralization
Email Marketer Customer Data Management
5%
17%
16%
20%
20%
23%
29%
28%
27%
30%
38%
36%
0% 5% 10% 15% 20% 25% 30% 35% 40%
We have a centralized data repository for our client data
We use email address as a unique customer identifier
We know the value of our email subscribers/value of an email address
We centralize customer data from across channels to recognize the
customer in a single record
We measure lifetime customer value
We store our client data in the same schema for all marketing channels
We track acquisition costs by channel
We utilize predictive customer analytics
We use multiple channel specific databases to store our customer data
We practice data house holding to understand multiple
customer/accounts within a single household
We have robust data hygiene and de-duplication processes for data
None of the above
management
Question Asked: Please select the statement or statements that best describe how you
manage your customer data?

Application Challenges Prevent Marketers From Embracing Proven
Tactics
Email Marketing Tactics
11%
10%
11%
18%
18%
17%
21%
21%
25%
23%
23%
18%
21%
29%
27%
8%
22%
20%
19%
25%
31%
33%
28%
32%
36%
31%
35%
38%
We place offers or ad content in transactional email marketing messages
We target our customers based on web-site behavior
We use video in email campaigns
We utilize dynamic content
We have begun utilizing QR (Quick Response) codes
We conduct A/B testing for email marketing
We target our customers utilizing life-stage marketing tactics
We have launched a mobile application for our clients (e.g. iPhone, iPad,…
We use paid search to grow our marketing database
We conduct multi-variant testing
We utilize triggered, multi-wave, lifecycle marketing across multiple…
0% 10% 20% 30% 40% 50%
We measure lift vs. control
We utilize an SMS short code for mobile opt-in
None of the above
Question Asked: Please select the statement or statements that best describe the email
marketing tactics that you regularly utilize?
Selected Response = Currently Utilize

Increased Use of Automation Will Drive Revenue
Email Marketer Trigger Campaign Utilization
16%
16%
16%
15%
31%
28%
25%
21%
32%
32%
29%
49%
23%
23%
32%
30%
31%
30%
37%
33%
46%
56%
Welcome message (triggered after subscriber opts-in)
Welcome campaign (a series of triggered messages after…
Customer changes or updates preference center
Messages triggered based off criteria of web-site behaviors
Messages based on rules related to customer value
Customer offers based on coupon redemption and or non-…
Customer contact at offline locations, store, call center, etc.
Post purchase survey
Post purchase offer
Subscriber is dormant, shows no behavior after a certain…
0% 10% 20% 30% 40% 50% 60%
Shopping cart abandon or other type of abandon message
Question Asked: From the following list please select which types of automated trigger
campaigns that you currently utilize.
Source: The Relevancy Group, LLC/Executive Marketer Survey n=374, 11/13, US Only, Mid-Market & Enterprise Respondents

Bright Ideas
Email united with other marketing channels – like video
and social media = highly interactive and memorable
campaign.
By pulling in the latest photos that used the
#DreamingInBlue hashtag, 7 For All Mankind made their
fans part of the email experience.
320% INCREASE IN FOLLOWERS
http://view.os-email.
com/?j=fec61571716c0278&m=fe9912727561017e74&ls=fe551373706d0c7e7412
&l=ff951678&s=fe5b157675610d797d17&jb=ff61167770&ju=fe9216787665067b72&&s
mtrctid=16059483&utm_source=promo&utm_medium=email&utm_campaign
=03052014_Dreaming_in_Blue&CID=em_03052014_Dreaming_in_Blue&&&&r=0&r=0

Bright Ideas
Lilly Pulitzer created an email that adapted
to each recipient’s current time and device
at the moment of open.
The ‘click-to-call’ functionality for mobile
device users was an effective way to
maximize cross-channel sales.

Current State of Email Marketing in the US?
- Educational Series #2-
Christopher Barnes
eMarketingwerx, Inc.
Ph: 310-686-2314
Email: cbarnes@emarketingwerx.com
Twitter: @larainmkr
Let’s reveal and close the gaps in our current email marketing efforts. ---
Authentic journeys that exemplify your customer’s Experience--

E marketingwerx Email Series 2

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