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Email Marketing


  • pg 1
									Marketing and Technology

        ORGL 575
• „Spam‟ is Unsolicited Commercial E-mail
• No existing relationship of permission from
    – 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
         Why We Hate Spam
• Spam erodes our value to ALL of our
  customers (mail blocking by mail
• 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
  What is Permission Marketing
• An ideal application of email
                      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”
• Reality
  – Complaints will be 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)
     Key Permission Concepts
• Permission is selfish
  …so add value with every message
• Permission is non-transferable
  …but friends can introduce you to other friends
• Permission is a process not a moment
  …so create a learning relationship
• Permission can be cancelled anytime
  …get used to it or be prepared for grief.
          Opt-Out Permission
• Pre-checked box
• Confirming email ( auto responder) may or
  may not be sent
 XDo you wish to receive our free monthly
 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
  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
           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.
No disclosure
of Use on sign-
up page
promotions not
Privacy policy

    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
The Right Way
HTML defined,
And asked
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                         Better
           Response Time                          Cost Per Unit                Response Rate

45                                  $1.40     $1.25                  12%                        5-15%
40                                  $1.20
      3-6 Weeks                                                      10%
30                                                                   8%
25                                                                   6%
20                                  $0.60
                                    $0.40                            4%
15                                                           $0.25            1-2%
10                                  $0.20                            2%
 5                         3 Days
                                    $0.00                            0%
                                            Direct Mail      Email         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   Annual        Annual        % of email    %of Email
                 marketing     Spending      Spending      budget for    budget for
                 budget        1999          2004          acquisition   retention

All                   5%        $ 240.000     $ 720.000       36%           64%

Traditional           5%        $ 144.000     $ 950.000       12%           88%

Internet Pure         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
• Marketers will shift Sales&Marketing
  resources to permission email marketing
• Marketers will spend at least $5 per name
  per year maintaining permission
• Number of e-mail service and solution
  providers are increasing
• Scale agencies, bureaus and solution suites
  will emerge to support this market
             How is e-mail marketing used?
                             Other     4%

                  Market Research           8%
                   Alerts/reminders                    24%

              Advertising/Marketing                      28%

                  Product releases                             34%

                        Newsletter                                    48%
House List
              Promotions&Discounts                                                66%

                                  0%    10%      20%    30%     40%   50%   60%   70%

                                                                Forrester Research
           Email Communication Strategy
                                                                         Daily Newsletter
Targeted                                                                 Automated Greetings
Content                                                                  Specific channel/Service
                                                                         Adhoc Promo
                                                                         Welcome back
                                                                         Customer feedback
                                              Subscriber Advantage
                                              Local content Newsletter
Segmented                                     Target AIM 1.0 users

                              Flash Emails
                              Contest Follow-up


              Knowledge of customer behavior and preference
Crafting E-Mail Campaign
           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
• Tell them what you will do with their name
         House File Creation
  – 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
         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
• 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 selction treendously 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

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
  – 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
     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
  – [CNET_Digital_Dispatch6.31@1.digital.cnet.com]
    • 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              • The Do‟s
  –   Important Message     – Identify your company
  –   SUPER SAVER           – 35 Character or less
  –   Re: how are you       – Personalization in
  –   Free Software           subject works
  –   Unlimited access      – Put your company
  –   “Guaranteed”            name
  –   Hi
    Subject Headings We Can Live Without

•    Important Message             • Start earning money while you
•    PLS support us                  are sleeping
•    Very important Announcement   • RE: How are you doing
•    Protect your health           • LOSE 30 POUNDS IN 30
•    SUPER software sale             DAYS, GUARANTEED
•    “Work smarter not harder”     • Unlimited Long Distance
                                     Calling for Only $25/month
•    “$4370 a month for life
                                   • Free web site analysis
•    Great mortgage Leads
                                   • The Internet Spy! Find out
•    We‟ll pay your debts!!!         anything about anyone
                                   • FRAMELESS BUILDING
    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
                                           The to email address
•   Footer
     – Steve@aol.com
     – 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: subscriber@address.com           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
              Easy Unsubscribe
To: subscriber@address.com
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
  leave-online-ads-514079Q@o-a.com 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 carefull of the use of FREE
   – Keep your subject line to 35 characters
• Personalized mail is guaranteed to outpull
• First line extremely important
   – May be displayed within recipients email client
   – 50% decide whether to keep reading after 1st two
    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
• 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

          Before you mail
• Segment out HTML, TEXT..
• Important: Segment AOL users
Steps in Measuring the Campaign
           -Emails delivered
• Bounce rate
• Retry programs
• Soft Bounce – JayS@worldata.com
  – 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 – Jay@worldataS.com
  – 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 re-
    mail bounces
     • Some of your bounces can be fixed.
    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
• 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
Banner Ads
                      Banner Ads

• Online advertising has had several years now to impart
  some lessons about ad buys. First, it's become clear
  that the ability of plain banners to pull consumers in a
  new direction at the click of a mouse is a two-edged
  sword. The company placing the ad gets the desired
  effect of the clickthrough, but the site where the banner
  appears can only hope that the Web surfer pushes the
  Back button. Rich-media banners offer a way around
  this: Viewers can interact with ads without leaving the
  site on which they appear.
• And the purpose is not solely to retain a site's traffic.
  According to Scott Kliger, CTO at Enliven, an
  Excite@Home company, there is an "enormous drop-off'
  in effectiveness when viewers are driven away from the
  context they were in when they saw an ad.
• In an effort to simplify the production of
  multimedia banner ads, Enliven has developed
  a set of preassembled ads it calls "Enliven
  Effect" that offer opportunities ranging from
  driving traffic to conducting transactions
  within the banner.
• IAB.net
       Next-Generation Banners Rich Media
          Interactive/Animated Banners

 In-the-banner interactivity
 Deliver live content such as news, daily messages
 Increases (CTR) click-through-ratio
 Improves brand recognition
             Next-Generation Advertisements
         Downloadable and interactive advertisement

Forwarding Advertisements
 Effective and free advertisement that is guaranteed
  to reach the targeted audience
 Word of mouth or email to email promotion
  reaches a larger number of consumers
 Brand name is re-enforced by interacting with the
                  Banner ad presentation methods
•   A. Pay per Click - Pay a web site every time someone clicks on your banner.
•   B. Pay per Lead - Pay a web site every time someone signs up for a service or
    free subscription (Sales leads)
•   C. Pay per Sale - Pay a web site every time someone actually buys the product
    or service.
•   D. Pay to View - Pay a web site to show your ad by category or randomly.
•   E. Banner Exchange - Display banner/button on your site in exchange for
    displays on others
  Where should you place your banner ads?
• In traditional advertising you use media
  –   Study demographics
  –   Figures out which media they pay attention to.
  –   Places ads based on careful targeting and cost.
  –   Media targeting has been a science for 30 years
• Should we (modern marketers) use the same
  techniques for the web?
• If we are going to sell sport outfits
  – “We should pay a premium to advertise on a
    web site devoted to sports”
• Is this the right way?
          Web Advertising Networks
• Offer single point of access to advertisers that
  want to reach millions of consumers quickly and
• They acquire impressions given to them by their
  web site “affiliates” and sell the aggravated
• This process simplifies the acts of buying and
  selling for both the advertiser and the web
       Objectives in Web Advertising
• There are two objectives in web advertising
  – Image advertisers are trying to create an image
    in the mind of the viewer.
  – Response advertisers are trying to get the
    viewer to respond.
          Year        Image&Awareness   Response
          1           80%               20%
          2           60%               40%
          3           40%               60%

       Creative should always mirror the program
             How web advertising differs
• Traditional media must use surrogate
   – Awareness, focus groups, coupons, Nielsen Ratings
        • None of them measures actual consumer activity
• The web permits you to know
   –   Who are looking at the page
   –   How long they are there
   –   Where they came from
   –   Where they go afterward
          How web advertising differs
• On the web you can change your message every
  hour every day
• Expose one customer to many different
• Rich media ads utilizing high involvement and
  interactive formats, hold the promise of increasing
  the impact and overall effectiveness of web
• You get immediate feedback on what is working
  and what is not.
          4 Steps in making a purchase
• Impression: The customer clicks on a web site that
  has banners displayed.
   – 5$ to $40 per thousand impressions
• Response:The person clicks on a banner in the
  web site, which transports the clicker to your web
• Lead: The prospect views your offering and fills
  out a form
• Sale: The clicker buys the product
            Zero Based Media Buying
• Testing using RON (Run of Networks)
• Do, no targeting at all.
• Just throw ads out there and see where you get
• Within a few days you can figure out where your
  responses are coming from.
• Group your responses by category (sport,
  business, entertainment or people who respond to
  ads about my product.
   – You can not do that with any other media
           Run Of Networks
• Begin with advertising on all Flycast sites
  (close to a thousand) for a week and
  compare the response rates.
             Games       0.4%
             Sports      0.4%
            Women          0.5%
         Technology               0.8%
              Health              0.8%
               News               0.8%
         Automative               0.8%
            Average                0.9%
           Business                    1.1%
           Shopping                       1.1%
       Entertainment                      1.1%
              Travel                                           2.4%

                  0.0%   0.5%      1.0%          1.5%   2.0%   2.5%   3.0%
                                     Percentage Responses

It ran a banner ad for a digital camera.
The best category for Casio digital camera ads is travel.
This test can be conducted in a week
sites aimed women, games and sports are definitely not winners for the
Would anyone guessed this without the test? In a week?
• Response rates is only a part of the story.
• You have to factor in the cost of the space
• Would concentration on travel sites be a
  good idea for Casio?
Thank you

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