1. Email Marketing: The Good, The Bad and the Ugly Toronto Talks Wayne Carrigan VP, Client Strategy ThinData Inc. May 25, 2004

2. ThinData E-Marketing Clients include:

3. What I will discuss today What is Email Marketing? Are you Serious? Understanding the Medium Environment The Bad The Ugly The Good Managing Expectations Outside the Campaign Case Studies Final Thoughts

4. What is Email Marketing?

5. Marketing Marketing is the analysis of customer, competitor, and company Marketing is understanding what market segments exist, deciding which segments to target, positioning your products, and then doing what’s necessary to delivery on that positioning The backbone of marketing is market analysis and understanding Analysis + Strategy + Tactics = SUCCESSFUL MARKETING

6. Electronic Marketing Principles of Marketing are the same, but in a DIGITAL context DIGITAL ADVANTAGE Execution Speed Ability to test in ways that where prohibitive Cost Savings 1 to 1 interactions Feedback loop – measurable results Real-time data DIGITAL CHANNELS i.e.. Web sites, Email, PDA, Cell Phones, Print on Demand DIGITAL TACTICS i.e.. on-line contests, web-surveys, email-surveys, e-newsletters

7. Email Marketing Permission-based Value exchange It’s a personal experience It’s just another channel Technology is secondary

8. Are You Serious?

9. Are you serious? If you are not serious, don’t pretend. Spend your time, effort and money elsewhere The damage you can do to your business isn’t worth the risk

10. Understand the Medium

11. Nothing* is more powerful than email for building and maintaining a positive brand experience Are you Prepared for Disaster? Are you Prepared for Success?

12. Understand the Medium It is Measurable. We can track… Open rates Click-through Rates Viral (pass along) Activity In real-time! We can accelerate response Inline forms Direct entry of information into database(s) Velocity to adapt to market needs

13. Understand the Medium Ensure data Integrity Automatically manage bad email addresses Display content correctly regardless of the email client the user is using Empower users to update their own records We can build profiles over time Centralize data Plug-in various channels Include behavioral demographics Segment messages Feed your CRM

14. Understand the Medium Borrow from Direct Personalization works Segment based on profile A Call-to-action works Speed Medium Short subject lines Know the preview pane The 1 second rule Fighting for attention

15. Environment

16. SPAM 4 in 10 users have a SPAM Filter 70% fear giving their email address Receives 64 SPAM Messages per week Average person opens 5 SPAM messages per week (June 2003 :Ipsos-Reid) SPAM includes ALL unwanted email.

17. Environment Canadian Privacy Laws PIPEDA – In full effect January 1, 2004 Personal Information Protection and Electronic Documents Act (www.privcom.gc.ca) Applies Nationally where similar provincial legislation is not in place What do you have to do? Be accountable, includes appointment of Privacy Officer Identify the purpose for use of information Obtain Consent Limit Collection to only data that is reasonably required Limit Use, disclosure and retention Use The Marketer’s PIPEDA Checklist

18. Environment US Ant-Spam Laws CAN SPAM Act 2003 – In full effect January 1, 2004 (www.spamlaws.com) Trumps State Laws – 1 not 37! What do you have to do? Provide valid postal address No deceptive content in the header or subject line The reply email address must work for 30 days Opt-out mechanism, valid for 30 days – 10 days to comply

19. Environment General Trends Canadians receive 123 emails per week 52% of it is SPAM 83% of Canadian’s have registered to receive emails from at least 1 Web site Average user has registered for 7.1 email subscriptions (increase 39% from December 2001) 51% unsubscribe immediately if they don’t find value in the email (June 2003 :Ipsos-Reid)

20. Environment : What does it mean? In spite the negative perception of email as a marketing channel, the TRUTH is people prefer email. Email subscribers want relevant content SPAM is an issue, so deliver email in a way that ensures in it not mistaken for SPAM PIPEDA and CAN SPAM are realities

21. The Bad

22. When Technology Fails  Multiple emails  Broken images Personalization  "Save 0 percent all day, every day...“ Creating Suspicion?  From addresses  People forget that they have subscribed

23. The Bad Content  Not relevant, or valued  Wrong offer, Wrong gender, Wrong time  Spelling counts Design  “A”ffects people  If it looks clickable… Your Company = incompetent

24. The Ugly

25. Punch out the Clowns! CC vs. BCC Clearly SPAM Slow response, No Response Server Traffic Your Company = Spammer

26. The Good

27. Relevant Consistent, Look and Feel, frequency Download Friendly Respectful cultivate the relationship goals Test Rewards permission The offer must be differentiated in a way that is: Relevant Meaningful Believable Defensible Your Company = Loyalty

28. Managing Expectations

29. Reply  Auto-response? When are you open for business  24hrs or 9-5? Start simple – manageable Over achieve Request Feedback

30. Outside the Campaign

31. Outside the Email Campaign Business Email Headers and Footers What does a non-consistent message mean? Public Communications Forums Newsgroups

32. Case Studies

33. Case Study Mirvish Productions Canada’s largest theatre production company The Situation 106,000 They got serious Brand Experience = Theatre Experience Strict rules of engagement 12,700

34. Case Study Mirvish Productions Canada’s largest theatre production company The Results 90% open rates 98% retention rates List doubled in 6 months Reduced “small production” promo budget From $20 ROI to $102 ROI

35. Case Study Office of the Chief Corporate Strategist Ontario Government The Situation Low response rates to Training sessions The problem was the process Brand Experience = Session Experience Remove barriers of engagement

36. Case Study Office of the Chief Corporate Strategist Ontario Government The Results Lower Cost 241 attendees in 12 hours Positive experience 90% participation in post seminar survey

37. From 200 Emails to Explosive ROI in 30 Days Case Study

38. Final Thoughts

39. Environmental factors for Email Marketing, including the negative influences of SPAM can all be overcome Nothing is more powerful than Email Marketing for rapidly creating a loyal relationship with your audience – the key to a strong brand Email Marketing technology provide measurable results, but it is what you do with these results that will really drive your business

40. Final Thoughts Be responsible for your actions. If you mess up, be open, quick to response and clean up! Learn the medium, best practices, and invest in your staff and institutional learning. Email Marketing is a professional discipline Think of PIPEDA and CAN SPAM compliance as part of your Customer Loyalty program and you will be highly rewarded

41. Thanks for Listening Wayne Carrigan VP, Client Strategy ThinData Inc. www.thindata.com wayne@thindata.com