1. email marketing

2. Overview  Basic Calculations  Building your list  Choosing a mailing company  Designing an email  Mailing frequency  List selection and segmentation  Specialty emails

3. Basic Calculations  It’s important to know what your customers are worth  Customer Life Time Value “CLTV” – see last page for links to calculations  Simple Calculation - Say the average customer buys for 2 years. Therefore, we define the LifeTime of a customer as 2 years. Over 2 years, the average customer makes 10 purchases. 10 x $2.50 Profit per Unit = $25.00 LTV of the average customer  Once you know what your customers are worth you can start to work on the value of new members  If 10% of your members become customers than the value of a member is 10% of $25 or $2.50 (don’t forget to reduce out the cost of getting them to buy)  Using analytics determine what % of your business is New vs Existing Customers  Existing business varies based on the industry and the products understand your industries retention rate and assess your companies rate vs the industry  Example – Appliances 15% vs Cosmetics 50%  You can spend more to acquire new customers as you increase your CLTV

4. Building Your List  Buyers – everyone who buys should be added to your email list  Members – membership sign up should be prominent and aggressive  2 Step Process email ONLY in step one  More data in step 2 but only collect what you really need  Partnership and Business Development – find win / win partnerships where you don’t pay for members – use your products as prizes for another company’s contest and share the data  3 rd Party Data  Once you know the CLTV of a member you can test out 3 rd party list rental an co-reg programs - it is important to ALWAYS analyze new members by source – outside sources can be worth 10% of the value of a member on your site Buying Lists - Not an acceptable practice - some lists can be shared but be careful and mindful of the CAN SPAM Laws

5. Registration Process

7. Choosing a Mailing Company  If Your List Size is under 5,000 use Constant Contact – it’s self service and easy to use  If Your List Size is over 5,000 decide If you want a full service or a self service company  Self service approx $2 per 1,000 emails sent  Full Service approx $6 per 1,000 emails sent  Rates decrease significantly with monthly volume – mailing volume of 100 million per year can be as cheap as $1.00 per 1,000

8. Designing an email  Create a Template  Determine what you want to promote and make sure the message is clear  Make sure there is a clear Call to Action  Make sure the design is consistent with your brand and entertaining  Cover the basics – navigation, unsubscribe link and address, footer with company information and all disclaimers  HTML – Pre Header so if viewed on a mobile device with images off the message is still there  Types of emails  Welcome  Promotion  Newsletter  Notification (Final Notice)  Site abandon  Cart Abandon

10. Terms  Basic I

15. Before You Send  Come Up With More than One Version of the Promotion – 25 % OFF vs Buy One Get One 50% OFF  Test Multiple Subject Lines  The Difference between a 12% Open Rate and a 15% Open Rate is NOT 3% - it’s 20%  Test in multiple browser settings using the ESP tool for testing  Send yourself a test email

16. Reading Test Results

17. Segmentation and Mailing Frequency  Create and Follow a Promotional Schedule  Monitor Open and Click Rates  Open Rates Should Average Above 10%  Click Rates Should Average Above 15% of Opens  Segment Your List and Market to Responders More Frequently  Vary Your email Type if You Mail More than 2x a Week

18. Terms  Basic Industry Terms  ISP - Internet Service Provider AOL, MSN, Yahoo  ESP – email service provider deliver the email to the ISP  SPAM – unwanted email  Opt In Registration – must check a box to Opt IN  Double Opt In – must check a box and confirm usually via email  Opt Out – automatically signed up must Opt Out to get off of the list  Unsubscribe – ask to be removed from list  Black List – complainer –NEVER Mail even if re-subscribe  CLTV – Customer Life Time Value  Open Rate - % of people who receive an email that open  Click to Open Rate - % of People that Open an email that Click  Click to Sent Rate - % of People that are sent an email that Click  Click through Rate- ask for a definition it can be one of the 2 above  Conversion Rate - % of people that click that make a purchase  Unsubscribe Rate - % of people that are sent an email that unsusbscribe

19. Helpful Links  CLTV Calculation   http://hbsp.harvard.edu/multimedia/flashtools/cltv/index.html   http://www.jimnovo.com/LTV.htm   http://en.wikipedia.org/wiki/Customer_lifetime_value http://en.wikipedia.org/wiki/Customer_lifetime_value   Spam Law   http://www.spamlaws.com/federal/can-spam.shtml http://www.spamlaws.com/federal/can-spam.shtml   http://en.wikipedia.org/wiki/CAN-SPAM_Act_of_2003 http://en.wikipedia.org/wiki/CAN-SPAM_Act_of_2003   SellUp Blog   http://www.etailsales.blogspot.com/ 

21. Questions & Answers  For More Information  visit:  http://www.etailsales.blogspot.com/  connect:  http://www.linkedin.com/in/allanlevy1 http://www.linkedin.com/in/allanlevy1  follow: https://twitter.com/#!/allanlevy1https://twitter.com/#!/allanlevy1 Allan Levy CEO www.sellup.net allan@sellup.net