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Email Marketing Week 5 • Seeuthere.com IDM works!!!!! “Spam” • ‘Spam’ is Unsolicited Commercial E-mail(UCE) • No existing relationship of permission from recipient. – If they visit the booth • Customer point of view • Sender point of view • • • • Not sent directly to your email address Mailed in Bulk Commercial in nature Hard (or impossible) to unsubscribe What is Permission Marketing • A “courting ritual” with your customers and prospects • Recognizes the most valuable commodity is attention • An ideal application of email • Complete knowledge and communication with your customer Why We Hate Spam • Spam erodes our value to ALL of our customers (mail blocking by mail administrators) • Spam hurts our clients’ reputation Newsgroup chatter: “I hate this company” • Spam can seriously damage our business • Spam clutters the inbox and reduces the effectiveness for legitimate email messages Opt Out • Practice: A marketer obtains email addresses from customer and mails without prior permission • Theory – – – – We have an existing relationship It is very simple to unsubscribe This is just like traditional direct mail They can always just hit “delete” Opt-Out • Reality – Complaints will be sharp, frequent and may result in blocking actions by ISP’s – Does not scale • Imagine if every business you ever patronized sent you an email marketing message. – Encourage distrust • 60% of customers have given false information when filling out forms ( BCG privacy white paper) Opt-Out Permission • Pre-checked box • Confirming email ( auto responder) may or may not be sent XDo you wish to receive our free monthly newsletter XCheck here to receive additional valuable offers from selected sponsors & partners Opt-In Permission • Customer must select box • Confirming email may or may not be sent Do you wish to receive our free monthly newsletter Check here to receive additional valuable offers from selected sponsors & partners Confirmed Opt-In Permission • Customer must select choice • Confirming email will be sent • Customer must verify their addition to list Do you wish to receive our free monthly newsletter Check here to receive additional valuable offers from selected sponsors & partners Double opt-in adds a confirmation step into the subscription process. When an email address is entered into our subscription form, we will respond with a message to that email address. The potential subscriber must reply to that email in order to actually start receiving our newsletter. Problems No disclosure of Use on signup page Future promotions not addresses Problems: Privacy policy Disclosure Future Promotions not addressed Disclosure The right way Not must fill fields True Opt-In Full Disclosure of use Please enter your e-mail address if you would like to receive special offers and product information via electronic mail. You may unsubscribe from any e-mail communications you receive from us at any time. By filling out and submitting this form you are being added to the Dell mailing list. The Dell mailing list is private and not sold to other merchants. The Right Way HTML defined, And asked The Email Marketing Spectrum SPAM OPT-OUT OPT-IN CONFIRMED OPT-IN Addresses gathered from anywhere Existing customers.They haven’t given you permission, A check box gave you permission to send mail A checkbox gave you the permission and you have confirmed the address •Many complaints •Doesn’t scale •Not bullet proof •None. •Distrustful visitors use •100% clean and loyal wrong addresses audience PITFALLS •Doesn’t work •Creates complaints •ISPs shut you down Acceptability A Grass Roots Call To Action Forward all spam e-mail: Abuse@domain And spamrecycle.com Tell them: E-mail is great marketing medium, but you are not playing by the rules. You are inviting government oversight Practice permission marketing Netizen Psychology 101 • Advice – Don’t surprise – Show respect • Time • Intelligence • Privacy – Test small Why Email is a Powerful Marketing Medium E-mail Most Effective Online Promotional Tool • Email users click on email 3x-10x vs. banners ( Ernst&Young 1/00) • Survey of online consumers 12/10 – 12/22 – 63% purchased via email promotion – 38% purchased via banner ad – 29% purchased via offline advertising » Buyersguide.com 1/00 The Email Revolution Faster Cheaper Response Time 45 40 35 30 25 20 15 10 5 0 Cost Per Unit $1.40 $1.25 8% $0.80 6% $0.60 $0.40 $0.25 4% 1-2% 2% $0.20 Email 5-15% 10% $1.00 3 Days Response Rate 12% $1.20 3-6 Weeks Direct Mail Better $0.00 0% Direct Mail Email Direct Mail Email Sources : Forrester, DMA, Gartner Group May 25 2000 Email Marketing Spending will Triple by 2004 “How much do you spend on email?” % of Online marketing budget Annual Spending 1999 Annual Spending 2004 % of email budget for acquisition %of Email budget for retention All Companies 5% $ 240.000 $ 720.000 36% 64% Traditional Companies 5% $ 144.000 $ 950.000 12% 88% Internet Pure Plays 7% $ 290.000 $ 600.000 55% 48% Source: Forrester research (Jan 2000) Based on interviews With email marketing managers from 22 traditional and 28 internet pure plays. $1+billion E-mail Marketing by 2001 • Marketers will shift Sales&Marketing resources to permission email marketing • Marketers will spend at least $5 per name per year maintaining permission • Email service and solution providers are proliferating • Scale agencies, bureaus and solution suites will emerge to support this market E-mails Role in the Relationship Marketing Spectrum How is e-mail marketing used? Other Market Research 4% 8% Prospects 24% Alerts/reminders 28% Advertising/Marketing 34% Product releases 48% Newsletter House List 66% Promotions&Discounts 0% 10% 20% 30% 40% 50% 60% 70% Forrester Research Email Communication Strategy Daily Newsletter Automated Greetings Specific channel/Service Interest Adhoc Promo Reminders Welcome back Customer feedback Targeted Content Subscriber Advantage Local content Newsletter Target AIM 1.0 users Segmented Flash Emails Contest Follow-up Bulk Welcome Registration Surveys Knowledge of customer behavior and preference Crafting E-Mail Campaign Crafting an E-Mail Campaign • Beginning with the basics – – – – – – – Define your target Establish objectives Develop a strategy Determine the offer Build the plan Test assumptions Measure results Crafting E-Mail Campaign • Strategy Development Keys to response List Offer Format Copy Postal 50% 25% 15% 10% Email 30% 25% 15% 5% Crafting E-Mail Campaign • Strategy development Focus on offer first – Don’t mail unless you have something to say – Use email for direct response capabilities rather than brand awareness. – Audience more rush than any other medium Determine Offer • • • • • • • • Free Information Free Service Free give away Sweepstakes Discount offers Rewards Programs Partner promotion No offer House File Creation • The pitfalls to avoid – Problem: Details within Privacy – Essential: Disclosure at Time of collection House File Creation • Ask for email address via every channel – – – – Printed order forms Call centers Customer Service calls Give customers a reason to register at your web site • Tell them what you will do with their name House File Creation • Audit trail – Protect yourself – Proof of permission • Date • Time • IP address – Proof of confirmation House File Creation • HTML, TEXT and AOL – Three different environments… House File Creation • Domain Segmentation – Yahoo, Hotmail, Excite, Mail.com, USA.net ( these represent about 75 % of all HTML enabled email accounts) – “Sniffer” Technology • Identify HTML enabled Email Clients while mail is being sent. • 90 % accurate • The other 10% is a problem House File Creation • AOL Segmentation – AOL is not TEXT or HTML • Without Tag in AOL • With HREF tag in AOL • AOL can be up to 30% of some consumer mailings. Components of the Message • • • • • • • From Line Subject Line Header/Footer Remove/Unsubscribe Prospect Header issues Personalization Body copy Components of the Message • From Line – CNET Digital Dispatch – [[email protected]] • As short as possible • As clear as possible • It is the envelope, misperceive that you are spam. – You don’t want to be deleted Components of the Message • The Don'ts – – – – – – – Important Message SUPER SAVER Re: how are you Free Software Unlimited access “Guaranteed” Hi • The Do’s – Identify your company – 35 Character or less – Personalization in subject works – Put your company name Subject Headings We Can Live Without • • • • • • • • • Important Message PLS support us Very important Announcement Protect your health SUPER software sale “Work smarter not harder” “$4370 a month for life Great mortgage Leads We’ll pay your debts!!! • Start earning money while you are sleeping • RE: How are you doing • LOSE 30 POUNDS IN 30 DAYS, GUARANTEED • Unlimited Long Distance Calling for Only $25/month • Free web site analysis • The Internet Spy! Find out anything about anyone • FRAMELESS BUILDING CONSTRUCTION The Components of the Message • Header/Footer • Header – This special offer is only sent to fake email list.com registrants who have opted-in to receive information and special offers. This message is delivered to you via Emailtransmitter.com The to email address • Footer – [email protected] – If you would like to be omitted from future offers from the fake emaillist.com please reply to offer@fakeemaillist .com with remove in subject line. Where did the message come from and why? Which name is the customer To: [email protected] Likely to recognize From: Our company and or Brand You are receiving this message because you opted in at your web site to receive new product information. If you do not wish to receive these messages in the future, please click here or follow the instructions below. Recipients are more likely to Read your message if you are specific about the relationship Easy Unsubscribe To: [email protected] From: Our company and or Brand We only want to send e-mail to those wish to receive it. If you wold not like to receive email from us please go to [email protected] or reply to this message with the word “unsubscribe” in the subject line The Components of the Message • Body Copy – Newsletter Mailings • 500-1500 words – Prospect mailings • 200-500 words – Repeat Links • Put your URL everywhere – Lots of people read mail from preview. – Good for testing » Htm1 » Htm2 » Htm3 Some quick tips • • • • Include more than one link within mailing Keep it short-no longer than 1 printed page Sign the email from real person…not just a company How often can you mail? Watch your unsubscribe rate carefully…that will tell you – More than once a week is dangerous! • When to mail – B2B 10:00 Tuesday thru Thursday works best (before lunch) – Consumer anytime?? – Within 24 hours you will know the 70% response rate – 48 hours 70-80% Some quick tips • Subject Lines – Make sure your subject line is killer – Be very careful of the use of FREE – Keep your subject line to 35 characters • Personalized mail is guaranteed to out pull • First line extremely important – May be displayed within recipients email client – 50% decide whether to keep reading after 1st two sentences. Rules of Thumb with Email • Make it very clear where the message is coming from and why • Make it very easy to unsubscribe • If the customer did not explicitly opt-in, DO NOT assume they will accept opt-out. • Don’t rent your list! Transferring permission is difficult and should be done cautiously • Avoid spammish copy Writing Effective Email • Before you begin, tell them how to unsubscribe • Begin&End with a hyperlink • Tailor message to your audience – Keep it short & Sweet • Raise excitement, include call to action – Web site, not email, closes the transaction Crafting an Email Campaign • Targeting – Personalization • In-house list,established relationship-YES • Prospect list, no relationship – Tread carefully – Could trigger privacy fears – Risk may exceed reward Measuring Success Maximize ROI Test Measure Refine Before you mail • Segment out HTML, TEXT.. • Important: Segment AOL users Steps in Measuring the Campaign -Emails delivered • Bounce rate • Retry programs • Soft Bounce – [email protected] – A soft bounce occurs most often because of an error in a subscriber's email address. A misspelled name or something as simple as a missing space or dash can cause a soft bounce. • Hard bounce – [email protected] – A hard bounce occurs most often because of an error in a subscriber's email address (wrong host). You should unsubscribe hard bounces from your list. Steps in Measuring the Campaign -Emails delivered • Actual were delivered – Hard/soft bounce – Hotmail and Yahoo issues – Retry programs- How often do you try to remail bounces • Some of your bounces can be fixed. Measurement What you should be measuring • • • • • • • Lists, Newsletters all email Emails delivered CTR TEXT vs. HTML vs. AOL Inquiries, Sales or depth of site Transactions Pass alongs Testing • Yes, Yes, Yes – Huge benefit of email • High response rate, requires smaller test cells – 500 HTML message 1000 text message • 75% of responses within 48 hours • Costs to change copy, graphics, inexpensive • http://www.clickz.com/article/cz.2369.html# • http://www.clickz.com/article/cz.3137.html Outside Email Lists • Discussion list sponsorships • Newsletter sponsorships • Standalone permission lists Email Discussion Lists • • • • • • Similar to newsgroups Moderated, open Topically driven Earn revenue driven through sponsorships Generally small….but targeted Not widely known about by marketers so may be a hidden gem Newsletter Sponsorships • Niche oriented • Content driven – Provide free Free Value-Added benefits to those who want to be informed, educated or entertained • Loyal readership • Revenue driven by sponsorships,text ads Newsletter Sponsorship Newsletter Sponsorship Universe • Response is likely to be 25% or less than response from an email list • But costs are lower too. • Greater targeting available – Especially BtoB Newsletter Sponsorship Universe • Where to find them…. – www.e-zines.com – Sites that sell banner ad space • List brokers • Time sensitive availability – Holiday Seasons Newsletter Sponsorship Universe • Size can be deceiving • Must make sure all names are unique – Newspaper sites generally – 300 000 may mean 100,000 sent x 3 • This is a space medium!!!! – Must buy 2 months in andvance – Nearing any holiday buy 3 months in advance List Exchange • Fastest growing part of Email Marketing Standalone Permission Lists • People who have said “Yes I am interested: – In the market for something,have a need or interest in a type of product or service – Relevant to lifestyle,household, family need, hobby, passion etc. • Subscribers have control • Marketers get results – Because customers want to receive their information Standalone Permission Lists Only use true permission lists • User selection tremendously better than default opt-in program • Be afraid-be very afraid • Ask for case studies or references • Find out how people opted in • Verify it. Never use a list like this • 77 million fresh email addresses for only $69 That is right 77 million with no duplications.That is less than $1 per million names. Can you make 1 cent from each of these names? Standalone Permission Lists • Typical price range: $150 to $500+ CPM – – – – Cost driven by demand Consumer lists at lower end of pricing range B2B lists at upper end of pricing range. Some lists are standalone…although the source of the list is usually mentioned. Standalone Permission Lists • Consumer Lists – Few response files on the market…most are lists where people have indicated an interest in a particular subject. – Selects include recency, geographic location, interest area, gender. • B2B Lists – Very selectable: SIC codes, title, number of people in company etc. Standalone Permission Lists • Targeting – Lists do’s and don’ts – Do not mail unless you are 100% permission sure – Do ask the source-many companies selling the same lists – Do not be cheap-the risks are great – Do scrub list for duplicates – Do provide clear “remove” access Permission List Networks Problems with Permission Lists • You can’t merge/purge – List owners are very concerned about the security of their list. They usually designate one trusted company to deliver all email to their names • Some will allow you to send them your house file for suppression – But marketers may need to send their file to multiple service bureaus and that is a concern for marketers own list security Prospects List Universe • List Brokers Role – – – – – Media Tracking First Usage Cut costs Advice