marketing

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

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

Building Your List  Buyers – everyone who buys should be added to your list  Members – membership sign up should be prominent and aggressive  2 Step Process 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

Registration Process

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 s sent  Full Service approx $6 per 1,000 s sent  Rates decrease significantly with monthly volume – mailing volume of 100 million per year can be as cheap as $1.00 per 1,000

Designing an  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 s  Welcome  Promotion  Newsletter  Notification (Final Notice)  Site abandon  Cart Abandon

Terms  Basic I

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

Reading Test Results

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 Type if You Mail More than 2x a Week

Terms  Basic Industry Terms  ISP - Internet Service Provider AOL, MSN, Yahoo  ESP – service provider deliver the to the ISP  SPAM – unwanted  Opt In Registration – must check a box to Opt IN  Double Opt In – must check a box and confirm usually via  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 that open  Click to Open Rate - % of People that Open an that Click  Click to Sent Rate - % of People that are sent an 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 that unsusbscribe

Helpful Links  CLTV Calculation         Spam Law       SellUp Blog   

Questions & Answers  For More Information  visit:   connect:   follow: Allan Levy CEO