“ Electronic Mail Marketing –
E-mail and Online Tactics That Work”
PRSA e-workshop
October 28, 2003
Gabriela Linares, Vice President Marketing
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Advantages of E-Mail
E-Mail
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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%
As a percentage
of respondents
16%
Postal Costs Marketing Time Costs Call Center Other
Costs Costs
Source: AIM, April 2002, n=110 companies 2003 L-Soft
Top 5 Activities of Americans Online
E-Mail 84.0%
Product/Services
Info Search
67.3%
News, Weathers,
Sports
61.8%
Playing Games 42.1%
As a percentage
Product/Services
Purchase
39.1% of respondents
0 0.2 0.4 0.6 0.8 1
Source: US Dept. of Commerce, February 2002
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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 Canada
www.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 Objectives
2. Reaching Target Audiences
3. Developing Message Program
4. Evaluating Results
5. 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%
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Source: DMA- April, 2002
Effectiveness of Techniques Used by U.S.
Marketers to Drive Web Site Traffic
eMail to Customers 4.1
Affiliate Programs 3.8
Direct Mail 3.4
Television 3.2
Public Relations 3.1
Banners 2.8
Magazines 2.7
Sponsorships 2.7
Radio 2.6
Newspapers 2.6
eMail to opt-in lists 2.5
0 1 2 3 4 5
Source: Forrester Research, March 2001 2003 L-Soft
Response Rates by Campaign Objective
Conversion
CTR
6.80%
Awareness
17.10%
5.60%
Sales
15.20%
7.90%
Leads
15.30%
Source: IMT Strategies, September 2001 2003 L-Soft
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
2003 L-Soft
Opt-in, opt-out, double opt-in, spam:
Preferred e-mail marketing methods
1%
4%
31% Double Opt-In
Opt-in
Opt-out
Spam
64%
Source: Opt-In News, May 2002
2003 L-Soft
Rates for U.S. e-mail
permission-based campaigns
Click-
17.80%
through
Net
7.00%
conversion
Bounce 7.80%
Unsubscribe 2.10%
0% 5% 10% 15% 20%
Source: IMT Strategies, Sept. 2001 2003 L-Soft
U.S. Internet Users’ Level of Concern
Regarding Online Privacy
8.80%
2000 29.50%
Not
61.70% concerned
Somewhat
concerned
5.50% Extremely
concerned
2001 23.10%
71.30%
Source: UCLA Center for Communication Policy, November 2001 2003 L-Soft
U.S. Consumers’ Privacy Concerns
Sharing info
with third 75%
parties
Transactions
70%
not secure
Hackers will
69%
steal info
66% 68% 70% 72% 74% 76%
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.
2001 289
2002 430
2003 549
2004 674
2005 796
2006 939
0 500 1000
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Source: Forrester Research, August 2001
Preferred e-mail formats
3%
35%
HTML
Text
Rich Media
62%
Source: Opt-IN News, May 2002
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Source: Survey of E-Mail Format Preferences and Programs,
Dr. Ralph F. Wilson, April 2003 - N=954 2003 L-Soft
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
2003 L-Soft
Maintain your server Outsource your list hosting
• Hardware/computer • Reliability and experience
network • Redundant servers and
• Dedicated Internet delivery capacity
Connection • Flexibility to maintain
• Software for e-mail company Internet presence
management and delivery • Ability to move from
• Best for large workloads hosting to in-house when
and those with experience ready
• More cost-effective/ • More expensive
economies of scale • Rely on company’s
• Flexibility to create schedule
campaigns on the fly
2003 L-Soft
Outsourced E-Mail Marketing Services
8%
Strategy 2%
10%
Creative 0%
2001
68% 2003
Delivery 28%
22%
Analysis 8%
0% 20% 40% 60% 80%
Source: Forrester Research, August 2001
2003 L-Soft
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 Linares
L-Soft international, Inc.
www.lsoft.com
Info@lsoft.com
301-731-0440
800-399-5449
2003 L-Soft