1. For internal use only / © Siemens AG 2008. All rights reserved.For internal use only / © Siemens AG 2009. All rights reserved. email Marketing Cookbook Corporate Guide for email Marketing

2. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 2 Table of content  Background  eNewsletter vs. email blast  How to get started  Challenges  Tips and Tricks  Don’t forget the glue  Getting Started

3. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 3 Statistics 81% of U.S. executives subscribe to industry email newsletters for product information and business intelligence. (Wall Street Journal) 60% of business decision makers said Internet and email are the best ways for advertisers to reach them. (Jupiter Research) 35% of email users open messages because of what's contained in the subject line. (Jupiter Research) 69% of at-work users usually view their emails in preview panes. (Marketing Sherpa) 59% of online consumers routinely block images. (Marketing Sherpa) 70% of enterprises use Outlook. (Marketing Sherpa) 64% of key decision makers are viewing email on their Blackberry. (Marketing Sherpa)

4. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 4 Statistics 73% of email recipients make the decision to click on the "report spam" or "junk" button using the from line. (Email Sender and Provider Coalition, 2007) 64% of small businesses execs said they decide whether or not to open the (email) newsletter based on who it's from. (Bredin Business Information, 2007) 35% of email users open messages because of what's contained in the subject line. - Jupiter Research (2007) 38 to 47 characters is the average number of characters that show up in the subject line of 57% of all U.S. email recipients' email programs. (Epsilon 2009) Emails with shorter subject lines significantly outperformed emails with longer subject lines. (MailerMailer 2008)

5. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 5 Editorial E-Newsletter and E-Mail Blast I/II One sender  Siemens Two possible sender  Siemens  Third party (AuntMinnie) Sender Subscription Content Subscription  Siemens channels Three possible ways  Siemens channels  Buying of addresses  Third party (AuntMinnie) Information  Editorial rather than commercial/marketing  Predominantly more than one topic  Headline +Teaser + more link to Website ‘Commercial’  Marketing language  Often only one topic  Headline, often ‘complete’ info + more link to registration, Website

6. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 6 Editorial E-Newsletter and E-Mail Blast II/II Regularly  Monthly planned Global eNewsletter Irregularly  e.g. around trade shows, training  e.g. around product launches Examples Specific Approach  useful, if e-mail blasts are accepted in the market General Approach  Combining news from CC, BUs and Countries Coordination needed (Topics, Timeline) Frequency Siemens: ACC AuntMinnie: Breast Care

7. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 7 Getting Started – at the Sector Level I/III What’s the Law?  Most countries have some rules/laws in place around what they consider to be correct email practices that companies should (minimally) follow.  Most companies (especially the size of Siemens) have a mass email policy that dictates emailing behavior  Such guidelines, more importantly, are what will keep you in your customer’s mailbox  For guidance regarding legal aspects please contact your sector representative (see the end of the document) Do you have a tool for email distribution?  No, you should not email thousands (or even handfuls) of people from Outlook  There are MANY benefits of having a third-party tool

8. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 8 Getting Started – at the Sector Level II/III Governance  How do you ensure that customers are receiving relevant information (to them) at an optimal frequency level (again, to them)?  How do you govern email messages going out from various areas of the company?  Should email messages go through the same review process as some of our other communications tools?  Who is the over arching governing body?  Where does measurement come in when governing email efforts?

9. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 9 Getting Started – at the Sector Level III/III  Define email Marketing Goals  Assess Metrics to Benchmark  Develop Messaging, Call to Action, and Graphics  Ensure Deliverability  Make it Relevant  Certify Segmentation  Test, Test, and Re-test  Analyze and Optimize

10. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 10 Challenges Creating a successful email campaign is complex. Barriers to keep in mind:  tougher filters  more competition for the subscriber’s attention  constantly evolving technology  policies and regulations change  best practices change and new ones develop  process and procedures change  new trends emerge based on behaviors, technology, etc.  time and budget constraints

11. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 11 Tips & Tricks: Writing a Good email Message I/VI 1.Make sure you know what the objective of you email is (leads, new contacts, branding, etc.) 2. You should test to see how your message looks in different email inboxes, but optimize for most popular one (e.g., Outlook, Lotus Notes, Public email services, handhelds, etc.,etc.) 3. Watch the volume that you send  Sending to more people does not equal success  Send less messages that are more valuable  Bottom line: your open rate and click through rate should be what you shoot for NOT # of people/messages

12. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 12 Tips & Tricks: Writing a Good email Message II/VI 4. Analyze your statistics and make adjustments  Monitor your bouncebacks (bad email addresses may have easy fixes).  Monitor your open rate  Monitor your most popular links in your messages (and adjust as needed) – one offer versus many comparison  Document (SF.com) “reply to” messages 5.Do segmented emails (e.g., email clients you are “courting” or “big spenders”, etc. their own special campaigns that don’t look like they went to everyone) 6.Consider the length of your copy (keep it short and rely on landing pages for “meat”; newsletters should have paragraphs 4 lines or shorter)

13. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 13 Tips & Tricks: Writing a Good email Message III/VI 7. Think like a publisher  Consider what readers want to read; not what you want to tell them  Don’t pummel readers with “here’s who we are working with today” or “here is what we did today”  Deliver more value than your competitors do. Bring in “fresh blood” (e.g., guest writers)  Look at web site traffic data for ideas for articles

14. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 14 Tips & Tricks: Writing a Good email Message IV/VI 8.Watch your subject lines! They drive your deliverability and response. Don’t:  Repeat something in the subject line that appears in the from line  Give a date (the email is time stamped)  Give a issue number; they don’t care. They only what to know what is in there.  Use content flagged by spam filters: "Free!", "Special Offer!", "Call Now!", and excessive punctuation.  Over promise or mislead, it destroys trust and the brand

15. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 15 Tips & Tricks: Writing a Good email Message V/VI 8.Watch your subject lines! They drive your deliverability and response. Do:  Pay attention to the 3 seconds rule: based on the subject line, the user must be able to answer the following questions within the first three seconds:  who is the email from  why am I receiving this email  what is it about.  Front load subject lines with the most important information: The subject line should be action or benefit oriented, ensuring the most important part of the message is within the first 35 characters  Keep your subject line as short as possible. A good practice to follow is about 35 characters or 5-7 words, many email clients start truncating the subject line after 35 characters.  Test, test, test

16. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 16 Tips & Tricks: Writing a Good email Message V/VI 9. Time when your messages gets delivered for each geographical region 10. Continuously IMPROVE!

17. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 17 email in the Integrated Campaign

18. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 18 Landing Page Content repositioned each month to complement the promotional messaging with robust content Landing Page Content repositioned each month to complement the promotional messaging with robust content Direct Mail Series of 6 direct mail pieces drop the 1st of each month Direct Mail Series of 6 direct mail pieces drop the 1st of each month email Series of 6 complement each direct mail piece and sent the 15th of each month email Series of 6 complement each direct mail piece and sent the 15th of each month Get to Know Us Portfolio Product Brochures Case Studies Leasing Offers Siemens Financial Services Customer Care/ Life Design and Construction Service Education Images CD Demographic Study Teaser Get to Know Us Portfolio Product Brochures Case Studies Leasing Offers Siemens Financial Services Customer Care/ Life Design and Construction Service Education Images CD Demographic Study Teaser Telesales Follow-up schedule appointments and demo analysis Telesales Follow-up schedule appointments and demo analysis Sales Visit Paid Search email in the Integrated Campaign

19. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 19 Key Take Aways I/II  Use statistics to get background on email Marketing in the B2B world  Decide carefully which email Marketing tactic leads to your goal (eNewsletter vs. email blast)  Keep in mind to do important things before you get started (email policy, tool, governance)  Be aware of challenges  Leverage tips and tricks from others  Don’t forget the glue in your integrated campaigns

20. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 20 Key Take Aways II/II The key to success is to balance valuable content with the correct amount of email frequency According to Jupiter Research, “untargeted email campaigns have open rates of only 20%, a click through of only 9.5% and conversion rates of only about 1%. On the other hand, targeted email campaigns have a 33% open rate on average, a 14% click-through rate, and a conversion rate of 3.9%”.

21. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 21 Planning the email Campaign I/VII Define email Marketing Goals  What do you want to accomplish with your email marketing campaign?  How will other marketing tactics complement email and vice versa?  What is the key message/value proposition?  Is your focus lead generation, web traffic, branding, relationship building, or direct sales?  What metrics define success?  Can you fine tune landing pages that support your specific goal?  What segmentation meets the needs of your objectives?

22. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 22 Planning the email Campaign II/VII Assess Metrics to Benchmark Open Rate (OR) = unique opens/emails delivered  Measures: relationship, subject line, timing and frequency  Challenge: preview pane, blocked images and deliverability Click-through Rate (CTR) = unique clicks/emails delivered  Measures: relevance and perceived value of the content  Challenge based on total emails delivered Open to Read Rate (ORR) = unique clicks/unique opens  Measure: Relevancy and value specific to those that opened the email and eliminates the variable of deliverability and preview pane Deliverability Rate= emails delivered/emails sent Bounce Rate= bounces/emails sent Unsubscribe Rate= unsubscribe/emails delivered Conversion Rate = web action/unique click-through

23. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 23 Planning the email Campaign III/VII Make it Relevant - Developing Messaging and Call to Action  Provide content with value to your audience in their terms. This strengthens the relationship with a high perceived value, and increases brand value.  Place the most important information at the beginning. You only have a few seconds for capturing the readers attention.  Keep your text short and concise using an active voice. An email should be a call to action, resulting in a conversion to a landing page.  Avoid sending attachments. This increases the probability that your email is rated as spam.  Link only to a landing page that contains updated content.  Use a redirect for communicating the URL of the landing page.

24. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 24 Planning the email Campaign IV/VII Use relevant Formats and Graphics Use templates that are within the Siemens design Guideliness, but at the same time are appropiate for the medium:  The email template width shouldn’t be wider than 600 pixels.  Use static images or animated GIF; no Flash  email file size should be under 100K, less is better  Use ALT attribute for image; most clients block images  Use Company name in the from line display  Disregarding the layout to be applied, every email has some mandatory parts: -the header which includes a link for viewing the email as a webpage -the footer which contains the sender information and a link that enables the user to unsubscribe from email communications.

25. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 25 Planning the email Campaign V/VII Ensure Deliverability  Monitor Internet Server Provider changes  Understand and Monitor Spam Filters and high risk content  Suppress and unsubscribe hard bounces  Tuesday through Thursday are optimal B2B days to send Certify Segmentation  Complement the segmentation by ensuring that your message is delivered at the right time, to the right person, with the right content.  Content and offers that are delivered strategically will make an impact  Behavior  Preferences  Demographics  Purchase value of a customer  Product-based

26. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 26 Planning the email Campaign VI/VII Test, Test, and Re-test Testing is critical for success.  Create different landing pages, offers, call to actions, graphics, and content allows you to optimize your campaign to its greatest potential.  Subject line length, tone, message and brand  Content layout, format, style and length  Offers  List distribution  Personalization  Graphics  A/B testing: testing one element of a campaign against another.  Multivariate Testing: Testing multiple changes simultaneously in a live environment.

27. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 27 Planning the email Campaign VII/VII Analyze and Optimize  Determine where there is opportunity to impact performance  Adjust the campaign and/or strategy if needed  What's next after this campaign? Creating a successful email campaign is complex. Barriers to keep in mind:  tougher mailbox/firewall filters  more competition for the subscriber’s attention  constantly evolving technology, policies and regulations  best practices change and new ones develop  process and procedures change  new trends emerge based on behaviors, technology, etc.  time and budget constraints

28. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 28 Best practice Example - Energy  This bi-monthly Energy Newsletter provides i nformation from HVDC, FACTS & Grid Access about project highlights, new advances & innovative solutions for the power industry.  The newsletter exists since March 2003  Average Metrics: OR: 38% CTR: 17% HVDC, FACTS & Grid Access Newsletter

29. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 29 Best practice Examples - Healthcare  This monthly Healthcare Newsletter provides updates on products, events, case studies, and education offerings.  The newsletter was launched on December 2008 – country versions are constantly being set-up  Average Metrics for the Global Version: OR= 38% ORR=38% CTR=16% Siemens Healthcare Newsletter and ist respective country versions:

30. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 30 Best practice Examples - Healthcare  This monthly email communication is used to stay in contact with subscribers of the print magazine MAGNETOM Flash providing them with clinical cases until the next magazine issue.  Average Metrics for the Global Version of the email: OR= 39% ORR=41% CTR=17% MR clinical email:

31. Energy/Healthcare/Industry For internal use only / © Siemens AG 2008. All rights reserved. September 15Email Marketing CookbookPage 31 Best practice Examples - Industry  Modular newsletter to inform customers and employees about exhibition highlights in the forefront of Hanover fair 2009  Recipients registered themselves on the corresponding website with their individual interests (profile)  Findings:  3 Newsletters were sent (2 before, one during fair)  149 subscribers  Average openings: 70,8% Newsletter around Hanover Fair 2009:

32. For internal use only / © Siemens AG 2008. All rights reserved. Klaus Schmitz Energy Sector Lead Sector Online Communication klaus.schmitz@siemens.com +49 9131 18 85748 (office) Katja Stöcker Healthcare Sector Director of Interactive Media katja.stoecker@siemens.com +49 9131 84 6189 (office) Jochen Specht Industry Sector Head of Online Communication jochen.specht@siemens.com +49 (9131) 7-27123 Interested in using email Marketing? Contact your sector Web Managing Board Representative