Transcript Document

eMail Marketing, the marketing
tool you can't afford to ignore.
Gabriela Linares
eMarketing Association
January 2003
 2003 L-Soft
“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
 2003 L-Soft
Why eMail Marketing?
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Cost Savings
Quick Response Cycles
Generates Revenues
Popular Medium
Effective Medium
Results are Measurable
Builds Customer Relations
 2003 L-Soft
Average Cost per Marketing e-Mail sent in
the US (2001-2006)
0.45
2001
0.47
2002
0.62
2003
0.68
2004
0.77
2005
0.72
2006
0
0.5
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Source: Forrester Research, August 2001, extrapolated by eMarketer, June 2002
 2003 L-Soft
Cost Savings due to eMail Usage among US
companies, 2002
76%
75%
60%
37%
As a percentage
of respondents
16%
Postal Costs
Marketing
Costs
Time Costs
Source: AIM, April 2002, n=110 companies
Call Center
Costs
Other
 2003 L-Soft
Revenue Generated through eMail Usage
among US companies, 2002
Transactions generated from
email
64%
22%
Sponsored e-newsletters
Self-banner ads
Opt-in List Rental
18%
9%
30%
Other
0%
Source: AIM, April 2002, n=110 companies
As a percentage
of respondents
20%
40%
60%
80%
 2003 L-Soft
Top 5 Activities of Americans Online, 2001
84.0%
eMail
Product/Services
Info Search
67.3%
News, Weathers,
Sports
61.8%
42.1%
Playing Games
Product/Services
Purchase
As a percentage
of respondents
39.1%
0
0.2
0.4
0.6
0.8
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Source: US Dept. of Commerce, February 2002
 2003 L-Soft
Effectiveness of Marketing Techniques used
by US Marketers to drive web-site traffic
4.1
3.8
3.4
3.2
3.1
2.8
2.7
2.7
2.6
2.6
2.5
eMail to Customers
Affiliate Programs
Direct Mail
Television
Public Relations
Banners
Magazines
Sponsorships
Radio
Newspapers
eMail to opt-in lists
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Source: Forrester Research, March 2001
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 2003 L-Soft
Effective eMail Marketing
Strategies
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Common eMail Marketing Objectives
Acquisition vs. Retention
Popular eMail Models
Recipient response
 2003 L-Soft
Common e-Mail Marketing Objectives
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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
 2003 L-Soft
e-Mail marketing campaign response rates
by campaign objective
Conversion
CTR
Awareness
Sales
6.80%
5.60%
Leads
Source: IMT Strategies, September 2001
7.90%
17.10%
15.20%
15.30%
 2003 L-Soft
Online Marketing Methods used for
effective 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
 2003 L-Soft
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
 2003 L-Soft
Popular e-Mail models
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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
 2003 L-Soft
Top Interest Areas for Permission e-Mail
Users in the US
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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
Top reasons why US Internet users respond
to e-mail offers
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Know and trust brand
Relevant information
Good prices
Friend has recommended
Price/coupon/reward
Timely
Compelling subject
Entertaining
 2003 L-Soft
“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
 2003 L-Soft
Questions?
Gabriela Linares
L-Soft international
301-731-0440
800-399-5449
[email protected]
www.lsoft.com
 2003 L-Soft