How to setup and successfully execute a permission based email marketing program

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How to setup and successfully execute a
permission based email marketing program

• Michael Leander Nielsen
• CEO, Fokus Integrated
• mln_at_fokusintegrated.com

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Testing Testing
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Michael Leander

• 10 years on the business side - CEO, midsize
  companies, IT software - VP sales/marketing, 2
  public companies - VP sales/marketing, 1
  midsize 10 years on the agency/consulting
  side - Advertising agency, consultant - CEO,
  marketing consulting ESP

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25 discount for conference attendees.

• 5 modules
• 1 handbook
• Access to 1 live webinar
• Send an
• email to
• mln_at_fokusintegrated.com
• Order by December 5th.
• and save 25.
• You pay only 225.-

Delegate documentation
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The agenda

• Why permission based email marketing?
• The email marketing evolution
• unCase studies
• How to get started with an email marketing
  program
• Deciding on a program that brings value to you
  and your audience
• Acquiring email permissions
• Calculating Return on Marketing Investment and
  more.
• Tips to improve your email marketing efforts (get
  all tips at free web-seminar in January 2009)
• What the future of email marketing might bring
• Email marketing trends, articles insights.
  Free newsletterhttp//www.fokusintegrated.com/me
  emoo2/

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1. Why permission based email marketing?

• What is it and why is it important?Permission
  and why permission based email marketingVarious
  stages of permission marketingMastering
  permission marketing as one step towards engaging
  integrated marketing
• Legislation you must not ignore

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What is permission based email marketing?

• Email newsletters

Transactional emails
Customer, product surveys
E-mail marketing can be used for any purpose,
targeted at anybody, anytime
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Why e-mail marketing?
Why not?
Demand vs EVP?(Email Value Proposition)
Critical mass?
Alternatives?
Resources?
Systems?
Commitment?
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E-mail seems the logical choice
Sources Forrester, DMA, Gartner Group
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Media channel effectiveness, simplified
DIRECT OUTBOUND Cost per contact Cost per thousand Convert to action Actions(sale) Cost per action
Canvas call by sales rep. 1.400,- 1.400.000,- 20 200 8.325,-
Telemarketing 100,- 100.000,- 5 50 2.000,-
Direct mail 50,- 50.000,- 2 20 2.500,-
E-mail 10,- 10.000,- 0,75 7,5 1.333,-
SMS/MMS 7,- 7.000,- 0,15 1,5 4.667,-

• Test to find your optimal mix
• Decide sender control or recipient control
• Combinations are often most effective in terms
  of ROMI

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2. The email marketing evolution
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e-mail marketing Generations

• 3rd. generation
• Precision Marketing
• Highly relevant
• Customized
• Mail Worth Opening
• Mail Worth Acting On
• Develop relationship
• Loads of referrals
• Great ROMI
• Trigger based initiated
• Integrated with surveys
• Life cycle automation
• Interactive

• 2nd.generation
• Permission Marketing
• Responsible communication.
• Poor segmentation
• Minimal personalization
• Not yet fully committed
• Referrals start coming
• ROMI improving

• 1st. generation
• Broadcast, SPAM
• high volume, low cost
• Send and forget
• Often irrelevant to receiver

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Time/Commitment
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3 Generations. From email marketing to customer
lifecycle marketing automation
AttractEngage, Convert,Retain Grow
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The goal for any marketer in 1997, 2009?
Relevant offer
Target
Effective channel
Right timing
Nov26
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3rd. Generation prospect/customer
WheelDifferentiated approach addresses different
needs
SMS/Email
ExcursionsCar rental
Recommend to friends
ExampleTravel
Transactional Behavioral Targeted
InsuranceCar rental
Profiling and knowledge of where the customer is
in the wheel opens up for a coordinated and
relevant dialogue before sale, during and after
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2. Uncase studies

• Learn from the mistakes of others
• 95 of all email marketing programs are
  unsuccessful - 98 of them are managed without
  any clear objective- Very few email marketers
  care about the needs of the individual customers
• The successful ones does

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An abundance of ignorance
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Attention-Deficit Hyperactivity Disorder (ADHD)
Someone please help Bob Poole from FastPitch
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Offline instrumentation no exception

• unCase study
• Unaddressed letter with 8 different items at min.
  cost of 10
• They have my permission to email
• I am a customer already
• Complex sale lots of prerequisites
• Sender name not personal
• Not a word on their website

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3. How to get started with an email marketing
program

• Rules that apply to everyone

Ask five economists and you'll get five different
answers - six if one went to Harvard. Edgar R.
Fiedler
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• ROMI
• Return on Marketing Investment
• Also known as MROI Marketing ROI.PS Feel
  free to call it commonsense

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Your strategic objectives for email permission
marketing
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Why what is it all for?
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What is your value proposition? What are you
offering that might interest me?

• Outside in
• Subscribe to our newsletter isnt a very strong
  USP (Unique Selling Proposition)
• Be the first to learn more about new Pîrâgi
  recipes where milk is substituted by Kimmel beer

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3. Acquiring (email) permissions

• Legislation
• When people sign-up to receive news from
  you,they buy into the promise youve made.Your
  obligation is to keep your promise.

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The text applying to Latvian legislation

• Conditions for direct marketing by e-mail to
  individual subscribers
• Sending commercial notices to an individual
  contact by e-mail is prohibited under Latvian law
  if the recipient of a service has not given a
  prior, free and clear consent to the receipt
  thereof. In accordance with the LISS, a
  commercial notice means any notice in electronic
  form that is intended for direct or indirect
  advertising of goods and services. However, a
  notice providing direct access to the general
  information on a service supplier and its
  activities, for example, a domain name or e-mail
  address, is not deemed to be a commercial notice.
• Conditions for direct marketing by e-mail to
  corporate subscribers
• The same conditions apply as for direct
  marketing by e-mail to individual subscribers.
• Information about national legislation concerning
  permission marketing www.ltma.lv International
  legislation in the area of permission marketing
  http//www.fedma.org

Delegate documentation
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The EU permission legislation

• Opt-in legislation
• You must receive permission to send
  e-mails/SMS/MMS containing sales/marketing
  related content
• You must respect the opt-out/no thank you
• The penalty for not being in compliance is severe
• Large fines imposed on any company in breach
• Largest fine in Denmark so far was in excess of
  USD 800.000
• Lots of grey areas
• Remember that consumers/business buyers define
  spammers many marketers are perceived as
  spammers even if they are in legal compliance
• It is outrageously easy for consumers to
  blacklist a marketer (ask your email marketing
  service provider about this)

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Prioritize Whom are your Most WantedPermissions
Word of advice Start practicing permission
marketing with your existing customers Remember
that your customers arent necessarily interested
in the same content as your prospects may be
interested in
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Acquiring permission across all points of
interaction

• Integrated permission acquisition in all channels
• Website
• Campaign websites
• Emails (signature)
• Point of sale
• Direct mail
• Telemarketing
• Customer service (inbound)
• TV/Radio etc
• Print advertising
• Which channel is most effective for you?
• Which channel deliver the most dedicated
  subscribers?
• Be careful what you ask for !

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The promise1-2 times each month Free
report Automatic reminders
But something is missing?Opt-out any timeWill
not share your datamore?
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Acquisition mind setsGeneration 1
Advantages- More sign-ups - Better
conversionrate

• Disadvantages- More work
• Irrelevant /not personal messages

One major mistake here what is it?
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Acquistion mindsets Generation 2 - 3
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Example Denmarks largest furniture retailer
chain

• First implemented in 2005
• Outperforms all other signup forms
• 99 of all profiles are complete- The
  textWin 1.000 each monthTell us about yourself
  and get a chance to win the prize.You
  participate for as long as you are a subscriber.

Sex Birth year Children at home Type of housing
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4. Tips to improve your email marketing efforts

• Lets see how many we can do
• More tips at free web-seminar in January 2009

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Let me explain. or not?
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The motor people approach

• Relentless focus on the target group and the
  need of the individual
• Focus on content relevant content
• Sales process aligned with the buying process
• Experimental mind test, test, test
• Return on Marketing Investment
• Flowcharts to document activities
• Combine on/offline activity for maximum effect

• Offer/message first, then creativity
• Differentiated communication
• Creative to support the end-result, not creative
  for the sake of creativity
• The Managing Director is not an influencer
• To make the motor runsmoooth and with great
  effect, nothing is left to chance

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Retaining and benefiting

• Deliver what you promise
• Content
• Frequency
• Deliver value to your recipients
• When you can, differentiate content and frequency
  and format
• Test and improve
• Successful e-mail marketers constantly test,
  adjust and improve results
• HTML or text?
• HTML has long been the most effective delivery
  method
• Text may prove valuable for some businesses or
  for certain types of communication
• Beware that more and more people read emails via
  their mobile device
• All companies experience opt-out
• Dont worry its all part of the process
• Opt-out percentage less than 0,5 is GOOD
• Above 2 is very, very bad

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Tip Your MWRs Most Wanted Responses
What are you trying to accomplish?
What is your most important MWR, 2nd. most
important, 3rd. most important?And no more.
Basta
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Tip 3 Getting the attention you deserve
From never change the sender address/name
Subject oh, very important
Preview pane Be sure thatyour compelling reason
to open is at the very top
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Tip Test test test

• Test and measure
• Measure and test
• How you are doing
• and how can you
• improve results

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Tip 4 Differentiate your messages (content)
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Tangible increase in your results
What is profiling?A process of meeting customers
needs by collecting information about them. This
information can be obtained with
volunteered/declared information from the
customer or collected passively (observing the
customers behavior patterns).

• Marketers actively applying profiling get better
  results
• Open rate by 10 30
• Click-through rate by 20-40
• Conversion to buy ratio by as much as 80-90
• Lifetime of a subscriber
• Decrease of opt-out rate

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Retaining and benefiting
Delegate documentation

• Deliver what you promise
• Content
• Frequency
• Deliver value to your recipients
• When you can, differentiate content and frequency
  and format
• Test and improve
• Successful e-mail marketers constantly test,
  adjust and improve results
• HTML or text?
• HTML has long been the most effective delivery
  method
• Text may prove valuable for some businesses or
  for certain types of communication
• Beware that more and more people read emails via
  their mobile device
• All companies experience opt-out
• Dont worry its all part of the process
• Opt-out percentage less than 0,5 is GOOD
• Above 2 is very, very bad

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Profiling your audience is essential
Delegate documentation

• Attitudinal data
• Opinions
• Preferences
• Needs
• Desires

• Interaction data
• - Offer/order
• Click behaviour online
• Response behaviour
• Referral behaviour

• Historic data
• Orders
• Transactions
• Usage history
• Payment history Orders

• Personal data
• Attributes
• Characteristics
• Misc. info
• (Geo)demographics

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My B2B profile
My B2C profile
Position?Influence?
Male39-45 yrs. OldMarried (wife)Kids (, sex,
age)
Size of company Budget for X Annual use of Y
Income (no?)AssetsProperty
Bying process When, how CFOs
Lifestyle Preferences Status of X
Soft data Preferentialinformation
Basic DemographicsAffluent neighbourhood?
Basic demographics
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People are different hence you should treat us
as such

• A typical permissionmarketing database?
• If you profile 25 pieces
• of information?
• 5, 10, 35 ?

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Targeted content example B2B
Decision maker Influencer Technicaldude Other parties
Finance offer X X
New competitor benchmark X X
Company news and stuff X X X X
Executive White Paper If clicked X If clicked X or Y No If clicked Y
Product news with a techie angle X
Do not underestimate the power of good content,
nor the work involved in creating good content
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Tip 18

• Behavioral targeting
• Do not send content, which has already been
  responded to
• Or use behavioral tracking to identify whom have
  shown interest, and then send a follow-up message

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Tip 17 Do not ignore copy writing

• Copy, copy, copy
• Single biggest challenge in permission based
  email marketing is YOUR COPY
• Think direct marketing copy
• Think repetition is good
• Think call to actions is important
• Think compelling reasons to ask is vital
• Think You need great copy-writers whom
  understand the email marketing medium

Delegate documentation
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These 10 tips will get you off to a good start

1. Start with the development of your permission
   marketing strategy
2. Ensure that you are offering a compelling reason
   for people to opt-in
3. Create a certain amount of relevant and unique
   content
4. Calculate your expected ROMI
5. Build your permission database by utilizing all
   possible channels
6. Ensure that you have systems in place to handle
   opt-in, opt-out, measurement, individualizing and
   preferably integrated with your CRM/ERP system
7. Combine media-channels for optimal effect and
   performance
8. Work with your content, timing and creative
9. Expect quick results quick - and improved
   results over time
10. Consult an expert if in doubt

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No more miracles?
Advice Successful permission marketing doesnt
happen over night. Planning and a long term
perspective is required
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Thank you for being the perfect listener

• Good luck with permission based e-mail marketing
  in the future
• Questions or comments drop me a line at
  mln_at_fokusintegrated.com
• Sign-up to the Meemoo2 Marketingboss Newsletter
  here http//tinyurl.com/63gjd7