www.exacttarget.com Email Versus Phone In you were without e-mail service or phone service for five days, which would cause the greatest difficulty?
www.exacttarget.com Email Marketing Works Compared to traditional media, email is… -fast -cost effective -personal -interactive -and measurable! McKinsey – “Harnessing the Power of Email” reports that email… -drives responses of 15% vs. 1% for direct mail -costs 3-10 cents per email vs. $2 for direct mail -generates 80% of responses within 48 hours
www.exacttarget.com Permission Marketing Anticipated – people look forward to hearing from you Personal – message is directly related to the individual Relevant – content is something they are interested in “Permission Marketing encourages clients to participate in a long-term interactive marketing campaign in which they are rewarded in some way for paying attention to increasingly relevant messages.”
www.exacttarget.com Retention Marketing Email is most effective for retention!
www.exacttarget.com Retention vs. Acquisition ($12) $34 New Customer 3rd Year Customer Monthly Revenue
www.exacttarget.com Retention vs. Acquisition 80% of your business comes from 20% of your customers It is significantly more difficult and expensive to recruit a new customer vs. retaining an existing customer On average, US small businesses lose 50% or more of their customers each year Every company suffers from defections Most of them don’t monetize these losses If a valuable piece of physical inventory were missing, we would turn the place upside-down looking for it
www.exacttarget.com Retention vs. Acquisition Sanders Cleaners South Meridian Store Facts: In 1998 there were three competitors within 3 miles. Today there are 11 New customers down by 40%* Loyal % increased from 11% to 39% Store revenue has grown 40%
www.exacttarget.com Database Marketing: True One to One
www.exacttarget.com Smarter Marketing Email enables… marketers and business owners to deliver on the promise of true one-to-one marketing.
www.exacttarget.com Personalization & Targeting How can you break through the Increasing Inbox Competition?
www.exacttarget.com Personalization & Targeting Personalize for Increased Response Email Response Rates by Number of Personalization Elements
www.exacttarget.com Personalization & Targeting – First Stage
www.exacttarget.com Personalization & Targeting – Second Stage
www.exacttarget.com Personalization & Targeting – Third Stage
www.exacttarget.com Testing & Optimization Leverage the Three T’s of Email Marketing Testing -Test one element at a time -Each email is a chance to learn
www.exacttarget.com Lower Price Point - Test! Test! Test!
www.exacttarget.com Lower Price Point - Mail Best Offer to Entire List
www.exacttarget.com Testing & Optimization Leverage the Three T’s of Email Marketing Testing -Test one element at a time -Each email is a chance to learn Timing -When is your audience receptive?
www.exacttarget.com Testing & Optimization – Timing of Delivery When is your audience most receptive?
www.exacttarget.com Testing & Optimization Leverage the Three T’s of Email Marketing Testing -Test one element at a time -Each email is a chance to learn Timing -When is your audience receptive? -How often is appropriate?
www.exacttarget.com Testing & Optimization Leverage the Three T’s of Email Marketing Testing -Test one element at a time -Each email is a chance to learn Timing -When is your audience receptive? -How often is appropriate? Tracking -What metrics are most important? -How do you react to the data? -Test, fire, adjust!
www.exacttarget.com Email Metrics – Open Rates Open Rates: Average Range is 40 – 60% To Increase Open Rates: -Reduce Frequency -Improve Permission (Evaluate Name Capture) -Improve Subject Lines -Evaluate “Preview Window” Look and Feel -Evaluate Content vs. Expectations -Modify Content to Reduce Impact of Spam Filtering
www.exacttarget.com Email Metrics – Click-Through Rates Click-through Rates: Average Range is 5 – 15% What if Click-through rates are low? -Evaluate “Preview Window” Look and Feel -Evaluate “Call to Action” -Test Offers -Provide Incentives -Relevant Descriptions
www.exacttarget.com SPAM & Email Deliverability Increase in Spam Filtering
www.exacttarget.com Opportunity: Help Clients Maximize Delivery Help them Understand: - Content Filtering - Volume Filtering - IP Filtering (Blacklisting & Whitelisting) - List Quality Filtering SPAM & Email Deliverability
www.exacttarget.com How To Get Started? Step 1: Determine your objective A. Sell Product –often B to C and B to B lower cost products, low touch. B. Educate, Generate Leads & Enhance Credibility –often B to B product and service solutions or B to C higher margin products or services, high touch.
www.exacttarget.com How To Get Started? Step 2: Build your list A.Start with your customer database -export out of contact database -call clients to fill in email address B. Capture email addresses through web site -offer incentives for sign-up -use other media to drive people to sign-up page C. Leverage forward to friend to grow list -reward your advocates -send great content: humor, articles, case studies, etc
www.exacttarget.com How To Get Started? Step 3: Test and adjust A. Objective: To Sell Product -how much did you sell, does the ROI work? B. Objective: Educate, Generate Leads & Enhance Credibility –what business or service offerings are generating most interest, track individual activity, etc