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Advanced e-Mail Marketing Strategies

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Advanced e-Mail Marketing Strategies eMarketing Association Conference Redondo Beach, California September 5, 2002 Gabriela Linares Steps for an e-Mail Marketing Plan ... – PowerPoint PPT presentation

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Title: Advanced e-Mail Marketing Strategies


1
Advanced e-Mail Marketing Strategies
  • eMarketing Association Conference
  • Redondo Beach, California
  • September 5, 2002
  • Gabriela Linares

2
Steps for an e-Mail Marketing Plan
  • Defining e-Mail Marketing Objectives
  • Determining Effective Strategies
  • Reaching your Target Audience
  • Designing e-Mail Content
  • Evaluating Results
  • Selecting a Solution

3
Defining e-Mail Marketing Objectives
4
Common e-Mail Marketing Objectives
  • Build brand awareness
  • Acquire new leads/ registrants/ customers/
    clients
  • Drive immediate sales
  • Enhance customer retention
  • Build stronger relationships with existing
    customers/clients
  • Provide company or product information
  • Increase revenues by up-selling to existing
    customers/clients
  • Post-order targeted e-mails
  • As part of an integrated marketing strategy

5
e-Mail marketing campaign response rates by
campaign objective
Source IMT Strategies, September 2001
6
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
Source DMA- April, 2002
7
Conversion Costs for Retention and Acquisition
Goals
Acquisition Retention
E-mail 57.10 2.50
Direct Mail 25.00 60.00
Banner ads 140.00 N/A
Source IMT Strategies, September 2001
8
Determining Effective Strategies
9
Popular e-Mail models
  • Sales Promotions
  • Transaction confirmations
  • Account status e-mails
  • Recommendations from friends (viral marketing)
  • Scheduled corporate newsletters
  • Customizable information updates
  • Time-based reminders
  • Rewards program
  • E-mail discussion groups
  • Product updates of interest
  • Independent media newsletters
  • Entertainment (humor, film clips)
  • E-Mail education series
  • Contests for address

10
Average CTR for B2C and B2B e-mail newsletters
Source Opt-in News, May 2002
11
Top Interest Areas for Permission e-Mail Users in
the US
  • Specials/offers from online merchants
  • Specials/offers from local retailers or
    restaurants
  • Household tips/recipes/crafts
  • Humor
  • Travel
  • Entertainment
  • Weather
  • Local news
  • Tech/business news
  • Finance/stock information
  • Sports

12
Top reasons why US Internet users respond to
e-mail offers
  • Know and trust brand
  • Relevant information
  • Good prices
  • Friend has recommended
  • Price/coupon/reward
  • Timely
  • Compelling subject
  • Entertaining

13
Types of messages that are forwarded
  • Merchandise deals and promotions
  • Social/political message and petitions
  • Warnings and advisories
  • Relevant
  • Funny
  • Work related
  • Informative
  • Cool
  • New Technology
  • Prize/coupon/reward

14
How US internet users learn about new web sites
Source IMT Strategies, Sept. 2001
15
Reaching your Target Audience
16
E-mail overload Number of e-mail marketing
e-mail sent in the US
Source Forrester Research, August 2001
17
US Internet User Attitude towards e-Mail Volume,
2001
Source IMT Strategies, September 2001
18
Response to permission e-mail versus unknown
senders
19
Opt-in, opt-out, double opt-in, spam Preferred
e-mail marketing methods
Source Opt-In News, May 2002
20
Permission e-mail marketing vs. direct mail
retention costs
Cost per thousand (CPM) Click-Through Rates (CTR) Conversion Rate Cost per sale
E-mail to in-house list 5 15 3.7 1
Direct Mail to in-house list 761 N/A 3.9 20
Source Forrester Research, August 2001
21
CTR and Conversion rate of US e-mail marketing
campaigns for permission based lists
Source IMT Strategies, Sept. 2001
22
US Internet Users Level of Concern Regarding
Online Privacy
Source UCLA Center for Communication Policy,
November 2001
23
US Consumers Privacy concerns
Source Harris Interactive, February 2002
24
US E-Mail users preferred e-mail marketing
privacy and customer-support practices
  • Unsubscribe option in all e-mails
  • Explicit no-share-address policy
  • 48-hour e-mail support answers
  • Editable personal preferences page
  • Provide phone numbers in e-mail
  • Explicit privacy policy
  • Double opt-in confirmation
  • Unchecked default opt-in box
  • Third-party privacy seal in e-mail

25
Most Important e-Mail Marketing trust-building
factors among US users
  • Secure sign-up form
  • Trustworthy reputation
  • Loyal customer
  • Well-known brand
  • Friend recommendation
  • Trusted site referral
  • Relevant offers

26
Why customers would give personal info
  • Guarantee that the information will not be
    misused
  • Eligibility to win a prize in a sweepstakes
  • Regular e-mail updates on products they are
    interested in
  • Access to more or better content or information
  • Affinity points
  • Receive targeted ads theyre likely to be
    interested in

27
Building Customer Intelligence
  • Harness your Customer Database
  • Effective personalization and targeting
  • Common Segmentation Factors
  • Purchase history
  • Location/zip code
  • Demographics
  • Lifestyle/hobbies/interests

28
Building your lists
  • Subscriber form on web site
  • Sponsor lists of sites with a similar demographic
  • Send to a friend button viral marketing
  • Ask for permission to customer base
  • Maintain list hygiene
  • E-mail appending

29
E-mail appending
Source Opt-In News, May 2002
30
Evaluating results
31
How to measure the effectiveness of e-mail
marketing campaigns
  • Click-through rates
  • unique and sum of events comparisons
  • Unsubscribe rates
  • Open rates
  • Conversion rates (website tracking)
  • Click-stream analyses
  • E-mail pass along rates viral marketing
  • Coupon codes
  • Unanimous tracking to respect privacy

32
Response time and cost per unit, e-mail vs.
direct mail
  • Be prepared to handle responses

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
33
Creating the Content
34
E-Mail Message Content
  • Subject Line getting recipients to open mail is
    half the battle
  • Creativity
  • Personality and dynamic content
  • Keep it short and use links to draw reader to
    your web site
  • Keep it fresh dont re-use the same content
  • Relevance the more you understand your
    customers, the more targeted and relevant
    messages will be
  • Frequency
  • Test messages

35
Email users preferred e-mail marketing
personalization models
  • Communication Control
  • Self-select content
  • Name recognition
  • Personal events reminders
  • Geography
  • Account History
  • Lifestyle
  • Purchasing Behavior

36
Preferred e-mail advertisement formats worldwide,
Q1 2002
Source Opt-IN News, May 2002
37
Response rates per format
Source IMT Strategies, Sept. 2001
38
To Outsource or not to Outsource
39
  • Maintain your server
  • Hardware/computer network
  • Dedicated Internet Connection
  • Software for e-mail management and delivery
  • Best for large loads and those with experience
  • More cost-effective
  • Flexibility to create campaigns on the fly
  • Outsource your list hosting
  • Reliability and experience
  • Redundant servers and delivery capacity
  • Flexibility to maintain company Internet presence
  • Ability to move from hosting to in-house when
    ready
  • More expensive
  • Rely on companys schedule

VS.
40
Outsourced e-Mail Marketing Campaigns
Source Forrester Research, August 2001
41
Evaluate Options
  • Evaluate software product or hosting service
    before purchasing
  • Determine if solution provides appropriate
    features
  • Decide what reporting features you need
  • 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

42
Questions?
  • Gabriela Linares
  • L-Soft international, Inc.
  • www.lsoft.com
  • Info_at_lsoft.com
  • 301-731-0440
  • 800-399-5449
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