electronic mail marketing - e-mail and online tactics that work
TRANSCRIPT
2003 L-Soft
“ Electronic Mail Marketing – E-mail and Online Tactics That Work”
PRSA e-workshopOctober 28, 2003
Gabriela Linares, Vice President Marketing
2003 L-Soft
Advantages of E-Mail
E-MailGlobal
Cost-Effective
Flexible
Reliable
Fast
Interactive
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Benefits of E-Mail
• Inexpensive communications medium• Generates additional revenue opportunities • Builds relationships• Results are measurable• Quick response cycles • Drives web-site traffic• Popular Medium - 45% US population – 119 million• Complements other communication channels
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Cost Savings due to E-Mail Usage among U.S. Companies
76% 75%
60%
37%
16%
Postal Costs MarketingCosts
Time Costs Call CenterCosts
Other
As a percentage of respondents
Source: AIM, April 2002, n=110 companies
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Top 5 Activities of Americans Online
39.1%
42.1%
61.8%
67.3%
84.0%
0 0.2 0.4 0.6 0.8 1
Product/ ServicesPurchase
Playing Games
News, Weathers,Sports
Product/ ServicesInfo Search
Source: US Dept. of Commerce, February 2002
As a percentage of respondents
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“E-Mail Marketing is the wave of the future. Fast and cost-effective, e-mail must
become an important part of your integrated marketing and media plan.”
Peppers & Rogers Group
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United Way of America
Use e-mail to improve communication with staff, donors, and volunteers:
“With LISTSERV® Maestro and the other L-Soft products,” Casey Cichowicz, United Way Online Manager, said, “we will be able to better tailor our message to meet the interests not only of donors but of people who, through our network of Web sites, express an interest about knowing more.”
“ Already, we've used L-Soft products to reach out to more than 700,000 September 11th Fund donors who asked to hear from us about how their money was being used and what needs were being addressed."
Use LISTSERV®, LISTSERV® Maestro & LSMTP® software
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Bell Canadawww.bell.ca
Using E-Mail to shift to Online Billing Provide its 12 million customers with personalized e-mail messaging services Sending online billing monthly reminders; promoting new services and products; and announcing special promotions
"One of the greatest things about LISTSERV® and LSMTP® is the configuration process," said Bill Attia, Senior Consultant at CGI, a consulting firm hired by Bell Canada to implement its billing solutions. "The language is so straightforward it's hard to go wrong. L-Soft's solution is the natural choice for us."
Using LISTSERV® HPO and LSMTP® unlimited software
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Lifetime Television for Women• Newsletters inform about TV programming, prompt recipients to tune in to TV or go to
web site• SELFEXAM newsletter designed to raise public awareness of breast cancer and the
importance of early detection• Health newsletters tie in with Speaking of Women’s Health and Denise Austin shows• Golden Girls and Weekly Movie Countdown newsletters increase show viewership
LISTSERV® allows Lifetime to:• Integrate its e-mail operation with its database• Manage over 1 million subscriptions• Implement top security measures to protect the personal information that viewers have
entrusted Lifetime with • Have announcement-only lists to prevent non-Lifetime messages from reaching the list
“…a product that had gone through the burn test before we used it and LISTSERV definitely fit the bill.”
-- Shobhit Kapoor, Director of Internet Technology
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What it takes to get started…
1. Establishing Objectives2. Reaching Target Audiences3. Developing Message Program4. Evaluating Results5. To Outsource or not to Outsource
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1. Establish Objectives
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Common E-Mail Communication Objectives
• Enhance relationships & loyalty• Maintain contact with web site visitors• Promote internal communication• Acquisition versus retention programs• Build brand awareness• Establish image of expertise• Drive immediate sales: Increase revenue by up-selling
to existing customers/clients and prospects• Support sales cycle: Post-order targeted e-mails
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Online Methods used for 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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Effectiveness of Techniques Used by U.S. Marketers to Drive Web Site Traffic
2.52.62.62.72.72.8
3.13.2
3.43.8
4.1
0 1 2 3 4 5
eMail to opt-in lists
Newspapers
Radio
Sponsorships
Magazines
Banners
Public Relations
Television
Direct Mail
Affiliate Programs
eMail to Customers
Source: Forrester Research, March 2001
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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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2. Reaching Target Audiences
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Building Contact Lists
• Build in–house opt-in list• Capture web site visitors• Ask already made contacts for authorization • Use database to collect demographic & behavioral
information• Establish a privacy policy • Re-confirm subscription requests• Offer easy unsubscribe option• Survey recipients to enhance relevancy of messages
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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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Rates for U.S. e-mail permission-based campaigns
2.10%
7.80%
7.00%
17.80%
0% 5% 10% 15% 20%
Unsubscribe
Bounce
Netconversion
Click-through
Source: IMT Strategies, Sept. 2001
2003 L-Soft
U.S. 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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U.S. 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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Privacy & Regulations• HIPPA influences 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 28 U.S. states• More information about spam regulations visit:
www.spamlaws.com• DMA, AIM, AMA have published e-mail guidelines
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3. Developing a Message Program
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E-Mail Programs to Implement
• Disseminate announcements & press releases• Conduct surveys• Corporate newsletters & archiving• Product updates & announcements• Discussion groups for committee members• Internal workgroups• Event & service reminders• Sales promotional offers• Order transaction confirmations• Account status e-mails
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E-Mail Message Content
• Subject line is crucial for attaining attention• Recipients identify with brand, e.g. FROM name• Format message so it’s easy to skim• Provide hyperlinks to web site for complete message• Formats: HTML versus Text; & Multi-Part Mime
messages• Test HTML message in different e-mail applications• Relevancy of the messages is one of the key
components for success
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E-mail overload: Number of e-mail marketing messages sent in the U.S.
939
796
674
549
430
289
0 500 1000
2006
2005
2004
2003
2002
2001
Source: Forrester Research, August 2001
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Preferred e-mail formats
35%
62%
3%
HTMLTextRich Media
Source: Opt-IN News, May 2002
2003 L-SoftSource: Survey of E-Mail Format Preferences and Programs,
Dr. Ralph F. Wilson, April 2003 - N=954
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4. Evaluating Results
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E-Mail Metrics
• Open-up rates • Bounces versus real deliveries• Click-through rates • Track web site click-stream after clicking from e-mail• View tracking results online in real time • Analyze results in statistical programs • Evaluate results and adjust communication efforts
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Response time and cost per unit, e-mail vs. direct mail
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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4. 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 workloads
and those with experience• More cost-effective/
economies of scale• 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
2003 L-Soft
Outsourced E-Mail Marketing Services
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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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
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Concluding Recommendations• Integrate e-mail into your integrated communication
plan• E-Mail is best used for retention and other customer
permission-based communications• Consider double opt-in and build your permission-based
lists • Respect recipients’ privacy to earn their trust• Personalize messages to provide relevant information
and increase response rates• Evaluate options and opt for time-tested solutions
2003 L-Soft
Questions?
Gabriela LinaresL-Soft international, Inc.