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Creating Customer Acquisition and Retention
by means of Permission Based Email Marketing
1) Why Email Marketing?
2) Email Is the Best Medium For...
-Permission Marketing
-Retention Marketing
-Database Marketing
3) Email Marketing Advanced Concepts
-Personalization & Targeting
-Testing & Optimization
-Tracking Results
-SPAM & Email Deliverability
4) Q & A
The Days of “Dumb Email” Are Over!
Email Marketing Is Growing Quickly
Source: Forrester Research, 2002
Consumers Trust Email Newsletters
Email Versus Phone
In you were without e-mail service or phone service
for five days, which would cause the greatest
Email Marketing Works
Compared to traditional media, email is…
-cost effective
-and measurable!
McKinsey – “Harnessing the Power of
Email” reports that email…
-drives responses of 15% vs. 1% for direct mail
-costs 3-10 cents per email vs. $2 for direct mail
-generates 80% of responses within 48 hours
Permission Marketing
“Permission Marketing encourages
clients to participate in a long-term
interactive marketing campaign in which
they are rewarded in some way for paying
attention to increasingly relevant messages.”
Anticipated – people look forward to hearing from you
Personal – message is directly related to the individual
Relevant – content is something they are interested in
Retention Marketing
Email is most effective for retention!
Retention Marketing
Retention vs. Acquisition
Monthly Revenue
New Customer
3rd Year
Retention vs. Acquisition
• 80% of your business comes from 20% of your customers
• It is significantly more difficult and expensive to recruit a
new customer vs. retaining an existing customer
• On average, US small businesses lose 50% or more of
their customers each year
• Every company suffers from defections
• Most of them don’t monetize these losses
• If a valuable piece of physical inventory were missing, we
would turn the place upside-down looking for it
Retention vs. Acquisition
Retention rates go up over time
P e rc e n ta g e
R e ta in e d
fro m
P re vio u s
Y e a rs a s a c us to m e r
Retention vs. Acquisition
Sanders Cleaners South Meridian Store
•In 1998 there were three competitors within 3 miles.
Today there are 11
•New customers down by 40%*
•Loyal % increased from 11% to 39%
•Store revenue has grown 40%
Database Marketing: True One to One
Smarter Marketing
Email enables…
marketers and business owners to deliver on the
promise of true one-to-one marketing.
Personalization & Targeting
How can you break through the
Increasing Inbox Competition?
Personalization & Targeting
Personalize for Increased Response
Email Response Rates by Number of Personalization Elements
Personalization & Targeting – First Stage
Personalization & Targeting – Second Stage
Personalization & Targeting – Third Stage
Indianapolis Colts Example
Home Depot Example
Testing & Optimization
Leverage the Three T’s of Email Marketing
-Test one element at a time
-Each email is a chance to learn
Lower Price Point - Test! Test! Test!
Lower Price Point - Mail Best Offer to Entire List
Testing & Optimization
Leverage the Three T’s of Email Marketing
-Test one element at a time
-Each email is a chance to learn
-When is your audience receptive?
Testing & Optimization – Timing of Delivery
When is your audience most receptive?
Testing & Optimization
Leverage the Three T’s of Email Marketing
-Test one element at a time
-Each email is a chance to learn
-When is your audience receptive?
-How often is appropriate?
Testing & Optimization
Leverage the Three T’s of Email Marketing
-Test one element at a time
-Each email is a chance to learn
-When is your audience receptive?
-How often is appropriate?
-What metrics are most important?
-How do you react to the data?
-Test, fire, adjust!
Tracking Results
Tracking Results - Surveys
Tracking Results - Surveys
Email Metrics – Open Rates
Open Rates:
Average Range is 40 – 60%
To Increase Open Rates:
-Reduce Frequency
-Improve Permission (Evaluate Name Capture)
-Improve Subject Lines
-Evaluate “Preview Window” Look and Feel
-Evaluate Content vs. Expectations
-Modify Content to Reduce Impact of Spam Filtering
Email Metrics – Click-Through Rates
Click-through Rates:
Average Range is 5 – 15%
What if Click-through rates are low?
-Evaluate “Preview Window” Look and Feel
-Evaluate “Call to Action”
-Test Offers
-Provide Incentives
-Relevant Descriptions
SPAM & Email Deliverability
Increase in Spam
SPAM & Email Deliverability
Help Clients Maximize Delivery
Help them Understand:
- Content Filtering
- Volume Filtering
- IP Filtering (Blacklisting & Whitelisting)
- List Quality Filtering
SPAM & Email Deliverability
How To Get Started?
Step 1: Determine your objective
A. Sell Product
–often B to C and B to B lower cost products, low touch.
B. Educate, Generate Leads & Enhance Credibility
–often B to B product and service solutions or B to C
higher margin products or services, high touch.
How To Get Started?
Step 2: Build your list
A. Start with your customer database
-export out of contact database
-call clients to fill in email address
B. Capture email addresses through web site
-offer incentives for sign-up
-use other media to drive people to sign-up page
C. Leverage forward to friend to grow list
-reward your advocates
-send great content: humor, articles, case studies, etc
How To Get Started?
Step 3: Test and adjust
A. Objective: To Sell Product
-how much did you sell, does the ROI work?
B. Objective: Educate, Generate Leads & Enhance
–what business or service offerings are generating most
interest, track individual activity, etc