Advanced e-Mail Marketing Strategies eMarketing Association Conference Redondo Beach, California September 5, 2002 Gabriela Linares 2002 L-Soft.
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Advanced e-Mail Marketing Strategies eMarketing Association Conference Redondo Beach, California September 5, 2002 Gabriela Linares 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 2002 L-Soft Defining e-Mail Marketing Objectives 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 2002 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% 2002 L-Soft 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 2002 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 2002 L-Soft Determining Effective Strategies 2002 L-Soft 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 2002 L-Soft Average CTR for B2C and B2B e-mail newsletters B2C B2B 2002 2001 2000 0.30% 1.90% 0.50% 2.80% 0.90% 0% Source: Opt-in News, May 2002 2% 3.40% 4% 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 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 2002 L-Soft 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 2002 L-Soft How US internet users learn about new web sites Search engines 80% Link from other site 59% Viral Marketing 56% Television 48% Guess URL 22% Radio 19% 0% 20% 40% 60% 80% 100% 2002 L-Soft Source: IMT Strategies, Sept. 2001 Reaching your Target Audience 2002 L-Soft E-mail overload: Number of e-mail marketing e-mail sent in the US 2001 289 2002 430 2003 549 2004 674 2005 796 2006 939 0 Source: Forrester Research, August 2001 500 1000 2002 L-Soft US Internet User Attitude towards e-Mail Volume, 2001 Cannot handle 15% 34% Too many Somewhat more 3% Just right 0% 49% 20% Source: IMT Strategies, September 2001 40% 60% 2002 L-Soft Response to permission e-mail versus unknown senders Eager to read 1% Curious to read 13% 12% Indifferent Open but annoyed Delete 49% 15% 6% 29% 21% 3% 0% Unknown senders 52% 20% 40% Permission e-mail 60% 2002 L-Soft Opt-in, opt-out, double opt-in, spam: Preferred e-mail marketing methods 1% 4% 31% 64% Double Opt-In Opt-in Opt-out Spam Source: Opt-In News, May 2002 2002 L-Soft Permission e-mail marketing vs. direct mail retention costs E-mail to in-house list Cost per thousand (CPM) ClickThrough Rates (CTR) Conversion Rate Cost per sale $5 15% 3.7% $1 N/A 3.9% $20 Direct Mail $761 to inhouse list Source: Forrester Research, August 2001 2002 L-Soft CTR and Conversion rate of US e-mail marketing campaigns – for permission based lists Clickthrough 17.80% Net conversion 7.00% 7.80% Bounce Unsubscribe 2.10% 0% Source: IMT Strategies, Sept. 2001 5% 10% 15% 20% 2002 L-Soft US Internet Users’ Level of Concern Regarding Online Privacy 8.80% 2000 29.50% 61.70% 5.50% 2001 23.10% Not concerned Somewhat concerned Extremely concerned 71.30% Source: UCLA Center for Communication Policy, November 2001 2002 L-Soft US Consumers’ Privacy concerns Sharing info with third parties 75% Transactions not secure 70% Hackers will steal info 66% 69% 68% 70% 72% 74% 76% Source: Harris Interactive, February 2002 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 2002 L-Soft Most Important e-Mail Marketing trustbuilding factors among US users Secure sign-up form Trustworthy reputation Loyal customer Well-known brand Friend recommendation Trusted site referral Relevant offers 2002 L-Soft 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 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 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… 2002 L-Soft E-mail appending 24% Ethical Not ethical 76% Source: Opt-In News, May 2002 2002 L-Soft Evaluating results 2002 L-Soft How to measure the effectiveness of email 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 2002 L-Soft 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 2002 L-Soft Creating the Content 2002 L-Soft 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 2002 L-Soft Email users’ preferred e-mail marketing personalization models Communication Control Self-select content Name recognition Personal events & reminders Geography Account History Lifestyle Purchasing Behavior 2002 L-Soft Preferred e-mail advertisement formats worldwide, Q1 2002 3% 35% HTML Text Rich Media 62% Source: Opt-IN News, May 2002 2002 L-Soft Response rates per format ClickThrough 15.60% 18.50% 5.30% 9.00% Conversion 7.70% 7.40% Bounce Unsubscribe HTML Text 3.20% 1.20% 0.00 % 5.00 % Source: IMT Strategies, Sept. 2001 10.00 15.00 20.00 % % % 2002 L-Soft To Outsource or not to Outsource 2002 L-Soft 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 2002 L-Soft Outsourced e-Mail Marketing Campaigns Strategy Creative 8% 2% 0% 10% Delivery Analysis 0% 68% 28% 8% 2001 2003 22% 20% 40% 60% 80% Source: Forrester Research, August 2001 2002 L-Soft 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 2002 L-Soft Questions? Gabriela Linares L-Soft international, Inc. www.lsoft.com [email protected] 301-731-0440 800-399-5449 2002 L-Soft