advanced e-mail marketing strategies
DESCRIPTION
Advanced e-Mail Marketing Strategies. eMarketing Association Conference Redondo Beach, California September 5, 2002 Gabriela Linares. Steps for an e-Mail Marketing Plan. Defining e-Mail Marketing Objectives Determining Effective Strategies Reaching your Target Audience - PowerPoint PPT PresentationTRANSCRIPT
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2002 L-Soft
Advanced e-Mail Marketing Strategies
eMarketing Association ConferenceRedondo Beach, California
September 5, 2002
Gabriela Linares
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2002 L-Soft
Steps for an e-Mail Marketing Plan
Defining e-Mail Marketing Objectives Determining Effective Strategies Reaching your Target Audience Designing e-Mail Content Evaluating Results Selecting a Solution
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2002 L-Soft
Defining e-Mail Marketing Objectives
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2002 L-Soft
Common e-Mail Marketing Objectives
Build brand awareness Acquire new leads/ registrants/ customers/ clients Drive immediate sales Enhance customer retention 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 As part of an integrated marketing strategy
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2002 L-Soft
e-Mail marketing campaign response rates by campaign objective
15.30%
15.20%
17.10%
7.90%
5.60%
6.80%
Leads
Sales
Awareness
ConversionCTR
Source: IMT Strategies, September 2001
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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%
Source: DMA- April, 2002
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Conversion Costs for Retention and Acquisition Goals
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
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Determining Effective Strategies
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Popular e-Mail models Sales Promotions Transaction confirmations Account status e-mails Recommendations from friends (viral marketing) Scheduled corporate newsletters Customizable information updates Time-based reminders Rewards program E-mail discussion groups Product updates of interest Independent media newsletters Entertainment (humor, film clips) E-Mail education series Contests for address
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2002 L-Soft
Average CTR for B2C and B2B e-mail newsletters
3.40%
2.80%
1.90%
0.90%
0.50%
0.30%
0% 2% 4%
2000
2001
2002
B2CB2B
Source: Opt-in News, May 2002
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2002 L-Soft
Top Interest Areas 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
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2002 L-Soft
Top reasons why US Internet users respond to e-mail offers
Know and trust brand Relevant information Good prices Friend has recommended Price/coupon/reward Timely Compelling subject Entertaining
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Types of messages that are forwarded
Merchandise deals and promotions Social/political message and petitions Warnings and advisories Relevant Funny Work related Informative Cool New Technology Prize/coupon/reward
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2002 L-Soft
How US internet users learn about new web sites
Source: IMT Strategies, Sept. 2001
19%
22%
48%
56%
59%
80%
0% 20% 40% 60% 80% 100%
Radio
Guess URL
Television
Viral Marketing
Link from other site
Search engines
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Reaching your Target Audience
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2002 L-Soft
E-mail overload: Number of e-mail marketing e-mail sent in the US
939
796
674
549
430
289
0 500 1000
2006
2005
2004
2003
2002
2001
Source: Forrester Research, August 2001
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2002 L-Soft
US Internet User Attitude towards e-Mail Volume, 2001
49%
3%
34%
15%
0% 20% 40% 60%
Just right
Somewhatmore
Too many
Cannothandle
Source: IMT Strategies, September 2001
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Response to permission e-mail versus unknown senders
52%
21%
15%
12%
1%
3%
6%
29%
49%
13%
0% 20% 40% 60%
Delete
Open but annoyed
Indifferent
Curious to read
Eager to read
Unknown senders Permission e-mail
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Opt-in, opt-out, double opt-in, spam: Preferred e-mail marketing methods
64%
31%
4%
1%
Double Opt-I nOpt-inOpt-outSpam
Source: Opt-In News, May 2002
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Permission e-mail marketing vs. direct mail retention costs
Cost per thousand (CPM)
Click-Through Rates(CTR)
Conversion Rate
Cost per sale
E-mail to in-house list
$5 15% 3.7% $1
Direct Mail to in-house list
$761 N/A 3.9% $20
Source: Forrester Research, August 2001
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2002 L-Soft
CTR and Conversion rate of US e-mail marketing campaigns – for permission based lists
2.10%
7.80%
7.00%
17.80%
0% 5% 10% 15% 20%
Unsubscribe
Bounce
Netconversion
Click-through
Source: IMT Strategies, Sept. 2001
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US Internet Users’ Level of Concern Regarding Online Privacy
71.30%
61.70%
23.10%
29.50%
5.50%
8.80%
2001
2000NotconcernedSomewhatconcernedExtremelyconcerned
Source: UCLA Center for Communication Policy, November 2001
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US Consumers’ Privacy concerns
69%
70%
75%
66% 68% 70% 72% 74% 76%
Hackers willsteal info
Transactionsnot secure
Sharing infowith third
parties
Source: Harris Interactive, February 2002
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2002 L-Soft
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
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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
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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 on products they are
interested in Access to more or better content or
information Affinity points Receive targeted ads they’re likely to be
interested in
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2002 L-Soft
Building Customer Intelligence
Harness your Customer Database Effective personalization and targeting Common Segmentation Factors:
Purchase history Location/zip code Demographics Lifestyle/hobbies/interests
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2002 L-Soft
Building your 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…
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E-mail appending
24%
76%
EthicalNot ethical
Source: Opt-In News, May 2002
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Evaluating results
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2002 L-Soft
How to measure the effectiveness of e-mail marketing campaigns
Click-through rates 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 Unanimous tracking to respect privacy
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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
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Creating the Content
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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
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Email users’ preferred e-mail marketing personalization models
Communication Control Self-select content Name recognition Personal events & reminders Geography Account History Lifestyle Purchasing Behavior
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Preferred e-mail advertisement formats worldwide, Q1 2002
35%
62%
3%
HTMLTextRich Media
Source: Opt-IN News, May 2002
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Response rates per format
1.20%
7.40%
9.00%
18.50%
3.20%
7.70%
5.30%
15.60%
0.00%
5.00%
10.00%
15.00%
20.00%
Unsubscribe
Bounce
Conversion
Click-Through
HTMLText
Source: IMT Strategies, Sept. 2001
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To Outsource or not to Outsource
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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 Flexibility to create
campaigns on the fly
Outsource your list hosting Reliability and experience Redundant servers and
delivery capacity Flexibility to maintain
company Internet presence Ability to move from
hosting to in-house when ready
More expensive Rely on company’s
schedule
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Outsourced e-Mail Marketing Campaigns
8%
28%
0%
2%
22%
68%
10%
8%
0% 20% 40% 60% 80%
Analysis
Delivery
Creative
Strategy
20012003
Source: Forrester Research, August 2001
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Evaluate Options
Evaluate software product or hosting service before purchasing
Determine if solution provides appropriate features Decide what reporting features you need
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
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2002 L-Soft
Questions?
Gabriela LinaresL-Soft international, Inc.