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Email Marketing 101

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Title: Email Marketing 101


1
Email Marketing 101 Stephen Guerra Email
Communications Strategist Silverpop
2
CPE Credit
  • To receive CPE credit for this session you must
    attend the entire session
  • Session code BB20
  • Recommended CPE credit 1 (this changes to 1.5
    for 90min sessions)
  • Delivery Method Group-Live
  • Field of Study Specialized Knowledge and
    Applications
  • Enter your credits at the CPE kiosks available in
    the Tennessee and Presidential Lobbies

3
Objectives
  • Email as a Marketing Channel Sophisticated
    Capabilities with Multiple Challenges
  • How Email Works
  • Practice Hierarchy
  • Legislation
  • Industry Best Practices
  • Organizational Best Practices
  • Deliverability
  • List Growth
  • Message Design
  • Discussion and Questions

4
I Know How To Send An Email
  • Favorite misconception of the new emailer

I know how to send email. In fact I just sent one
to my Mom five minutes ago. Lets rent a list and
get started!
5
Why Commercial Email is Different
  • Just because you know how to cook dinner doesnt
    mean you can run a restaurant
  • Different environment
  • More sophisticated tools
  • Customers are less forgiving of errors
  • Regulatory authorities have a say in how you
    conduct your business

6
About Email
45 of consumers say that email is a great way
for companies to stay in touch with customers.
Quris and Executive Summary Consulting,
November 2004
  • Email is a tremendously powerful tool
  • Costs much less than direct mail
  • Reveals reader behavior through measurable events
  • Enables advanced communication possibilities

7
Email Advanced Techniques
  • Personalization Go beyond the name
  • From Address
  • Subject Line
  • Relevant historical data
  • Dynamic Content
  • Timed Delivery
  • Segmentation
  • Testing

8
What can go wrong?
  • Poor practices contend with
  • Legislative regulatory issues
  • Recipient impact
  • Offend recipients
  • List burn
  • Deliverability problems
  • Brand damage

9
Email Marketing 101
  • How Email Works

10
How Email Works
Header data
Text message
From communications_at_silverpop.com From
name Silverpop Subject Participate in our list
growth survey Reply-to reply_at_silverpop.com Env-fr
om v-hibgm_mfbaj_a_at_bounce1.rm05.net
ltxxxgt
HTML message
ltxxxgt
List
jsoren_at_yahoo.com Jessica kevin_at_blu.edu Kevin juli
a_at_nadiot.org Julia mildred_at_aol.com Mildred john_at_ex
cite.com John .
One message per recipient
11
How Email Works
Send message to elaine_at_yahoo.com
Where do I send mail bound for yahoo.com?
Outbound MTA (mail transfer agent)
DNS
Give message to elaine_at_yahoo.com
Send to 125.46.350.219
Inbound MTA (inbound gateway)
Internet
Heres a message for 125.46.350.219
12
Email Marketing 101
  • Email Practice Hierarchy

13
The Flaming Hoops of Email Compliance
Internal Policy
Industry Best Practices
Legislation
14
Legislation CAN-SPAM Major Provisions
  • Pre-empts states private right of action
  • Provides for enforcement by the FTC, State
    Attorneys General, ISPs
  • Prohibits fraudulent email practices
  • Establishes fines up to 2MM and prison sentences
    up to 5 years
  • Segments transactional relationship email from
    commercial email
  • Prohibits sending additional commercial email
    more than 10 business days after opt-out is
    received.

Provided for discussion purposes only please
refer to your legal counsel for guidance
15
Legislation CAN-SPAM Major Provisions
  • Requires for all commercial email
  • Clear and conspicuous identification that the
    email is an advertisement or solicitation
    (exception for prior confirmative assent)
  • Working opt-out for a minimum of 30 days after
    the date of the message (keep the opt-out site
    live for 30 days post-mailing)
  • Postal address of sender recommended for both
    transactional and commercial messages.
  • Requires special labeling and message content
    restrictions for sexually-oriented material

Provided for discussion purposes only please
refer to your legal counsel for guidance
16
Legislation CAN-SPAM Key Definitions
  • Affirmative Consent
  • The recipient expressly consented to receive the
    message
  • If the message is from a third party, the
    recipient was given clear and conspicuous notice
    at the time consent was given.
  • Commercial email
  • Any electronic mail message the primary purpose
    of which is the commercial advertisement of
    promotion of a commercial product or service

Provided for discussion purposes only please
refer to your legal counsel for guidance
17
Legislation CAN-SPAM Key Definitions
  • Transactional and relationship messages
  • Facilitate, complete, or confirm a commercial
    transaction
  • Provide warranty information, product recall
    information, or safety or security information
    with respect to a commercial product or service
  • Notifications
  • Provide information directly related to an
    employment relationship
  • Deliver goods or services

Provided for discussion purposes only please
refer to your legal counsel for guidance
18
Legislation Other Legislation
  • The U.S., EU, Australia, Japan and Korea have
    email-specific regulations
  • All but Korea and the U.S. are opt-in regimes
    requiring affirmative consent
  • All also require easy opt-out, plus
    identification of the sender
  • Korea and the U.S. have opt-out regimes
  • Korea has unusual and strict labeling
    requirementssee your local counsel
  • Some South American states use data privacy to
    address spam issues opt-out approach
  • Sending email to a cell phone in the U.S. is
    highly regulated by the FCC
  • Consider blocking cell phone domains
  • Incented forwarding in the U.S. is covered under
    U.S. commercial regulations
  • This has important considerations for viral
    campaign design

Provided for discussion purposes only please
refer to your legal counsel for guidance
19
Industry Best Practices Permission Level
Not Recommended Brand Damage Deliverability Problems
Opt-Out Recipients added without clear permission (pre-checked box)
Opt-In Recipient actively requests subscription
Confirmed Opt-In Recipient actively requests subscription and receives a confirmation message
Double Opt-In Recipient actively requests subscription then receives an email which they must respond to before subscription is complete
Minimum Level Some deliverability issues
Best Practice Good balance between deliverability and marketing goals
Good Practice Excellent deliverability, limits list growth rate
20
email Trivia
  • How did the term spam email originate?
  • Comparing unwanted messages to undesirable food
  • Reference to a Monty Python skit
  • First spam sent by a meat packing company
  • Acronym for Superfluous Product Advertisement Mail

21
Industry Best Practices Who Decides A Message Is
Spam?
Sender
Inbox Provider
Law
Recipient
22
Organizational Polices Considerations
  • Branding
  • Creative Design
  • Font selection
  • Image selection
  • Tone
  • Permission
  • House lists
  • Partner mailings
  • List rental
  • Frequency
  • Governance
  • Decentralized
  • Centralized
  • Federated

23
Email 101
  • Email Deliverability

24
(No Transcript)
25
Email Deliverability Significance
  • In a July 2004 JupiterResearch study, over 20 of
    online buyers reported at least one instance of
    opt-in email failing to arrive.
  • "JupiterResearch executive interviews revealed
    investing in delivery services/solutions can
    improve e-mail delivery by 10 percent to 20
    percent. --Delivery Auditing Tools Tactics to
    Improve E-mail Delivery December 29, 2004

26
Email Deliverability - Definition
  • Email Deliverability How successfully a majority
    of messages in a mailing will be delivered to a
    recipient inbox in a readable format.
  • Majority of Messages any bulk mailing to a
    variety of domains will have a certain percentage
    of messages that do not arrive in the Inbox
  • Inbox Placement messages can be challenged,
    rejected, discarded, or routed to Bulk/Spam
    folders
  • Readable Format message should retain all
    elements as designed

27
Email Deliverability Challenges
  • Anti-spam filters
  • Blacklists
  • HTML rendering / Image Suppression
  • Message element blocking rich media, images,
    links
  • Recipient fatigue

28
What You Can Do
  • Find the right partner
  • Obtain high-quality, memorable permission
  • Get in the address book
  • Design delivery-effective messages
  • Be relevant
  • Leverage your brand
  • List hygiene

29
Email 101
  • List Growth and Management

30
List Growth Very successful options vs. planned
to add
Source Silverpop List Growth Study, 2006
31
List Management
  • List Hygiene practices employed to maintain only
    active and engaged recipients in an email list
  • Maintains list performance - eliminates
    non-productive records
  • Deliverability best practice - addresses major
    deliverability issues
  • Brand best practice portrays brand in best
    light
  • List hygiene practices encompass management of
  • Bouncing addresses
  • Changed addresses
  • Inactive addresses

32
List Management Bounces
  • Bounces Notice to sender indicating the message
    delivery failure
  • Hard Bounce Recipient server To Address does
    not exist
  • Addresses that produce hard bounces should be
    immediately unsubscribed from lists
  • Soft Bounce Any non-hard bounce (Examples
    Mailbox Full, Recipient Server Offline,
    Message Rejected By Spam Filter)
  • Addresses that produce soft bounces should be
    unsubscribed from lists only after two conditions
    are met
  • The address bounces for three or more consecutive
    mailings
  • The address continues to bounce for greater than
    fifteen days

33
List Management Changed Addresses
  • Individual recipients often change their email
    addresses
  • Switching companies
  • Corporate mergers
  • Discard addresses due to high spam reception
  • Automated email response reply notification of an
    address change
  • These should be collected and the address change
    should be made in the customers record
  • Usually will not receive notice that the address
    has been changed
  • May or may not receive bounces
  • The address may appear abandoned
  • Address reacquisition procedures
  • Call center
  • Direct mail
  • Stuffers
  • Email Change of Address service

34
Email 101
  • Message Design

35
HTML vs. Text
  • Fancy formatting and images require HTML coding,
    like a web page
  • HTML emails have higher response rates and are
    more measurable than plain text email
  • Experiment with the degree of design present in
    your email
  • Text-like formats can perform better for
    certain types of messages, and can also perform
    well as a variant in a longer campaign
  • Your HTML will not render the same in all email
    clients
  • Perform periodic reception testing to see what
    your email looks like in various clients,
    especially webmail clients like Yahoo and Hotmail
  • You will still need to create a text version of
    your email for recipients that cannot open
    HTML-based email.
  • Both the HTML and text versions of the email will
    be sent in the same message (multi-part
    messaging), and the appropriate one will be
    displayed

36
Message Anatomy
Header
From Name
From Address
Subject Line
Body
37
Header
  • What a recipient sees in their inbox
  • Must reassure, compel, intrigue, entice, excite
    recipient enough for them to OPEN the message
  • Includes
  • From Name
  • From Address
  • Subject Line

38
Message Construction Overall Page Design Above
The Fold
  • Portion of the message that is first viewed
    without scrolling
  • Recipient will scan this first then decide to
    read
  • Must engage the recipient immediately
  • Should encompass in an easily scanned format
  • Offer
  • Call To Action
  • Urgency Indication
  • Brandmark
  • Any other important content
  • No exact fold demarcation due to differences in
    email software, viewing window size, and screen
    resolution

39
Sample Message Strong Above The Fold Design
  • click to view link
  • Brandmark
  • Offer
  • Call To Action
  • Urgency Indication

Above The Fold (400 pixels)
Fold
40
Sample Message Weak Above The Fold Design
Above The Fold 400 Pixels
  • Significant content (image only partially
    viewable without scrolling quick links below
    fold)
  • Significant content (Most of the offer is below
    the fold)
  • Call To Action

Fold
Below The Fold
41
Color Layout
  • Overall appearance of the message depends on good
    design of layout
  • Use color and layout to pull reader into the
    message and guide the eye to important content

42
Sample Message Strong Color Layout
  • Color Usage
  • Regions of message defined with blocks of color
  • Overall color usage unifies the message

600 pixel width
  • Layout
  • Clearly defined regions ease navigation
  • Page header
  • Body
  • Quick navigation
  • Page footer
  • Easily scannable
  • Left justified primary body copy
  • Centered footer
  • Message width within approximately 600 pixels

Fold
43
Email Metrics
  • Good News
  • Email campaigns produce a lot of data
  • Bad News
  • Email campaigns produce a lot of data

44
email Metrics
  • Tracking generally requires HTML messages
  • Image suppression can interfere with tracking
  • Unique message created for each recipient
  • Identification codes embedded in message
  • Codes relate the message to an individual
    recipient
  • Links
  • Images
  • Envelope
  • Replies
  • Many metrics measured either as unique or
    aggregate (gross)
  • Unique number of individuals who perform the
    action
  • Counts only ONCE per recipient
  • Aggregate number of times the action is
    performed
  • Counts multiple occurrences per recipient

45
Benchmarks
  • The average open rate and click-through rates for
    email are
  • a) 15 Opens, 0.5 Clicks
  • b) 30 Opens, 4 Clicks
  • c) 68 Opens, 25 Clicks
  • d) 96 Opens, 68 Clicks
  • Answer Averages dont matter
  • What you need to know is how you compare to
    averages for your company and for the type of
    mailings you send

46
Open Rate
  • The percentage of people who render the message
    in an HTML environment and dont have images
    blocked

47
Average Open Rates
JupiterResearch, Email Marketing Metrics
48
Open Rates Dropping
  • MarketingSherpa reports marketers finding open
    rates decreasing

MarketingSherapa Email Marketing Benchmark Guide
2006
49
Open Rates External Influencers
Image Blocking
50
Open Rates External Influencers
Inbox Fatigue
51
Open Rates External Influencers
  • Spam Concerns

Pew Internet American Life Project, April 2005
52
Open Rates External Influencers
  • Preview Panes

Open Rates
53
Open Rates How to improve
Improving open rates takes time and a commitment
to respecting the lifetime value of your
subscribers
  • From Address Name
  • Friendly
  • Consistent
  • Subject Line
  • Branded
  • Short (40 characters or less)
  • Compelling, but not mis-leading
  • Frequency Relevancy
  • List maintenance
  • Request address book placement

54
Click-through rate
  • The percentage of people who click on a tracked
    link in a message
  • Click-through rates can be measured uniquely or
    in aggregate
  • Click-through rates can be measured as a
    percentage of sent messages, or as a percent of
    opens (also called the effective rate)

55
Average Click-through Rates
JupiterResearch, Email Marketing Metrics
56
Conversion Rate
  • The percentage of people who performed the
    call-to-action
  • The most common way to measure this is by passing
    parameters to a website
  • EX If the recipient clicks from the email and
    makes it to the target page (e.g., the thanks
    for your purchase page, then a conversion has
    occurred

57
Average Conversion Rates
JupiterResearch, Email Marketing Metrics
58
Bounce Rate
  • The number of messages that the Inbox provider
    entity did not acknowledge receiving (they
    bounced them back) divided by the number of
    messages sent
  • Bounces can be caused by bad addresses, full
    mailboxes or spam blocks
  • Bounce rates are notoriously unreliable

59
Unsubscribe rate
  • Also known as the opt-out rate
  • The percentage of recipients that unsubscribe
    from a mailing, or over the course of a period

60
Quiz
  • Which measure is NOT useful for evaluating the
    success of your email campaign
  • a) Bounce rate
  • b) Unsubscribe rate
  • c) Open rate
  • d) Click-through rate
  • e) Conversion rate

61
Quiz
  • Unsubscribe rate is a terrible measure of email
    success
  • Bounce rate is useful for evaluating appends,
    list rentals or old lists
  • Open rate is useful for evaluating the
    combination of your brand value and your subject
    line
  • Click-through rate is valuable for evaluating
    your call-to-action
  • Conversion rate measures success directly

62
Getting Started With Email Checklist
  • In-house system versus Email Service Provider
  • Permission policy
  • List growth strategies
  • Determine messaging goals
  • Promotional
  • Sell product
  • Drive traffic to site
  • Drive Point of Sale traffic
  • Informational
  • Transactional
  • Design messages and campaigns to achieve your
    goal
  • Design test plans to evaluate your design,
    content, offer
  • Monitor tracking results and modify accordingly

63
Questions and Discussion
64
Your Feedback is Important to Us!
  • Your feedback helps us improve future conferences
  • Please complete the evaluation form for this
    session
  • Please include your session code on the
    evaluation form BB20
  • Contact Information Stephen Guerra Email
    Communications Strategist Silverpop sguerra_at_silv
    erpop.com
  • Thank you for your participation
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