Defining e-Mail Marketing Objectives Common e

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Industry Analysis
 Target Market
 Market trends & needs
 Effective E-Mail Strategies
 L-Soft Customers
 Industries
 Survey & feedback
 Competitors
 Product comparisons
 Classification of e-mail services
 U.S. Legislation
 Spam and Privacy
 2002 L-Soft
Weekly Online Activities of US Home
Internet User, 2001
None of the above
Online Trading
Online Photo Services
Pay bills
Online auction
Travel Arrangements
Online Banking
5%
12%
13%
24%
30%
34%
37%
53%
54%
55%
Instant Messaging
Online Shopping
Online Games
93%
E-Mail
0%
20%
Source: Yankee Group, October 2001
40%
60%
80% 100%
 2002 L-Soft
Top Five Activities of Americans
Online, 2001
84%
E-Mail
Product/Service
Search
67.30%
News, weather,
sports
Playing games
Product/Service
Purchases
61.80%
42.10%
39.10%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00
%
Source: US Department of Commerce, February 2001
 2002 L-Soft
Defining an e-Mail Marketing Plan
1.
2.
3.
4.
5.
6.
Defining e-Mail Marketing Objectives
Determining Effective Strategies
Reaching your Target Audience
Designing e-Mail Content
Evaluating Results
Selecting a Solution
 2002 L-Soft
1. Defining e-Mail
Marketing Objectives
 2002 L-Soft
Common e-Mail Marketing Objectives

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Build brand awareness
Acquire new leads/ registrants/ customers/ clients
Drive immediate sales
Enhance customer retention
Build stronger relationships with existing
customers/clients
Provide company or product information
Increase revenues by up-selling to existing
customers/clients
Post-order targeted e-mails
As part of an integrated marketing strategy
 2002 L-Soft
E-Mail Marketing Objectives among
US Marketers
65%
New leads
Information
55%
Retention
55%
Awareness
55%
53%
Immediate sales
51%
Upselling
0%
Source: DoubleClick, June 2002
N=190, multiple responses allowed
20%
40%
60%
80%
 2002 L-Soft
Primary E-Mail Marketing Goals for
US Marketers
Shorten purchase cycle
Disseminate information
17%
49%
67%
Sell products/ services
80%
Acquire new customers
Deepen relationships with
existing customers
0%
Source: e-Dialog, April 2002
N=302
87%
50%
100%
 2002 L-Soft
e-Mail marketing campaign response
rates by campaign objective
Conversion
CTR
Awareness
Sales
6.80%
5.60%
Leads
Source: IMT Strategies, September 2001
7.90%
17.10%
15.20%
15.30%
 2002 L-Soft
Effectiveness of acquisition versus
retention
Acquisition
Retention
Search engine positioning
94%
6%
Banner ads
91%
9%
Referral/viral programs
85%
15%
Affiliate programs/
sponsorships
75%
25%
Incentive programs
51%
49%
E-Mail Marketing
37%
63%
Source: DMA- April, 2002
N=247
 2002 L-Soft
Conversion Costs for Retention and
Acquisition Goals
Acquisition
Retention
E-mail
$57.10
$2.50
Direct Mail
$25.00
$60.00
Banner ads
$140.00
N/A
Source: IMT Strategies, September 2001
 2002 L-Soft
2. Determining Effective
Strategies
 2002 L-Soft
Popular e-Mail models
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Sales Promotions
Transaction confirmations
Account status e-mails
Recommendations from friends (viral marketing)
Scheduled corporate newsletters
Customizable information updates
Time-based reminders
Rewards program
E-mail discussion groups
Product updates of interest
Independent media newsletters
Entertainment (humor, film clips)
E-Mail education series
Contests for address
 2002 L-Soft
Types of e-Mail Marketing Campaign
Models Used by US Marketers
One-time
direct offer
44%
Scheduled
Newsletter
Reminders
Other
0%
28%
7%
21%
20%
Source: IMT Strategies, September 2001
40%
60%
 2002 L-Soft
Types of E-Mail Campaigns used by
US Marketers
66%
Newsletters
60%
Promotions
Event
notifications
52%
Product
announcements
48%
Customer
service
Other
0%
41%
10%
20%
40%
60%
80%
Source: e-Dialog, April 2002
 2002 L-Soft
Average CTR for B2C and B2B e-mail
newsletters
B2C
B2B
2002
2001
2000
0.30%
1.90%
0.50%
2.80%
0.90%
0%
Source: Opt-in News, May 2002
2%
3.40%
4%
 2002 L-Soft
Top Interest Areas for Permission eMail Users in the US
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Specials/offers from online merchants
Specials/offers from local retailers or restaurants
Household tips/recipes/crafts
Humor
Travel
Entertainment
Weather
Local news
Tech/business news
Finance/stock information
Sports
 2002 L-Soft
Top Interest Areas for Permission eMail Users in the US
Specials from online merchants
Specials/local retailers or restaurants
Household tips/ recipes/ crafts
Humor
Travel
Entertainment
Weather
Local news
Tech/ business news
Finance/Stocks info
Sports
77%
65%
57%
55%
55%
49%
47%
44%
41%
35%
28%
0% 20% 40% 60% 80% 100
%
Source: DoubleClick/ NFO WorldGroup, October 2001
 2002 L-Soft
How US internet users learn about
new web sites
Search engines
80%
Link from other site
59%
Viral Marketing
56%
Television
48%
Guess URL
22%
Radio
19%
0%
20%
40%
60%
80%
100%
 2002 L-Soft
Source: Forrester Research, June 2000
Types of messages that are
forwarded
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Merchandise deals and promotions
Social/political message and petitions
Warnings and advisories
Relevant
Funny
Work related
Informative
Cool
New Technology
Prize/coupon/reward
 2002 L-Soft
3. Reaching your Target
Audience
 2002 L-Soft
E-mail overload: Number of e-mail
marketing e-mail sent in the US
2001
289
2002
430
2003
549
2004
674
2005
796
2006
939
0
Source: Forrester Research, August 2001
500
1000
 2002 L-Soft
US Internet User Attitude towards eMail Volume, 2001
Cannot
handle
15%
34%
Too many
Somewhat
more
3%
Just right
0%
49%
20%
Source: IMT Strategies, September 2001
40%
60%
 2002 L-Soft
Response to permission e-mail
versus unknown senders
Eager to read
1%
Curious to read
13%
12%
Indifferent
Open but annoyed
Delete
49%
15%
6%
29%
21%
3%
0%
Unknown senders
52%
20%
40%
Permission e-mail
60%
 2002 L-Soft
Opt-in, opt-out, double opt-in, spam:
Preferred e-mail marketing methods
1%
4%
31%
64%
Double Opt-In
Opt-in
Opt-out
Spam
Source: Opt-In News, May 2002
 2002 L-Soft
Permission e-mail marketing vs.
direct mail retention costs
E-mail to
in-house
list
Cost per
thousand
(CPM)
ClickThrough
Rates
(CTR)
Conversion
Rate
Cost per
sale
$5
15%
3.7%
$1
N/A
3.9%
$20
Direct Mail $761
to inhouse list
Source: Forrester Research, August 2001
 2002 L-Soft
CTR and Conversion rate of US e-mail
marketing campaigns – for
permission based lists
Clickthrough
17.80%
Net
conversion
7.00%
7.80%
Bounce
Unsubscribe
2.10%
0%
Source: IMT Strategies, Sept. 2001
5%
10%
15%
20%
 2002 L-Soft
US Internet Users’ Level of Concern
Regarding Online Privacy
8.80%
2000
29.50%
61.70%
5.50%
2001
23.10%
Not
concerned
Somewhat
concerned
Extremely
concerned
71.30%
Source: UCLA Center for Communication Policy, November 2001
 2002 L-Soft
US Consumers’ Privacy concerns
Sharing info
with third
parties
75%
Transactions
not secure
70%
Hackers will
steal info
66%
69%
68%
70% 72%
74%
76%
Source: Harris Interactive, February 2002
 2002 L-Soft
US E-Mail users’ preferred e-mail
marketing privacy and customersupport practices
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Unsubscribe option in all e-mails
Explicit no-share-address policy
48-hour e-mail support answers
Editable personal preferences page
Provide phone numbers in e-mail
Explicit privacy policy
Double opt-in confirmation
Unchecked default opt-in box
Third-party privacy seal in e-mail
 2002 L-Soft
Most Important e-Mail Marketing
trust-building factors among US
users
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Secure sign-up form
Trustworthy reputation
Loyal customer
Well-known brand
Friend recommendation
Trusted site referral
Relevant offers
 2002 L-Soft
Top reasons why US Internet users
respond to e-mail offers
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Know and trust brand
Relevant information
Good prices
Friend has recommended
Price/coupon/reward
Timely
Compelling subject
Entertaining
 2002 L-Soft
Top Reason Why US Internet Users
respond to e-Mail Offers
34%
Know & Trust
20%
Relevant
19%
Goo d p rice
13%
mended
Friend rec om
n/ reward
Price/ c oupo
Tim ely
ubjec t
Compelling S
Entertaining
5%
3%
2%
1%
0%
Source: IMT Strategies, September 2001
10% 20% 30% 40%
 2002 L-Soft
Why customers would give personal
info
 Guarantee that the information will not be
misused
 Eligibility to win a prize in a sweepstakes
 Regular e-mail updates on products they are
interested in
 Access to more or better content or
information
 Affinity points
 Receive targeted ads they’re likely to be
interested in
 2002 L-Soft
Building Customer Intelligence
 Harness your Customer Database
 Effective personalization and targeting
 Common Segmentation Factors:

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

Purchase history
Location/zip code
Demographics
Lifestyle/hobbies/interests
 2002 L-Soft
Building your lists
 Subscriber form on web site
 Sponsor lists of sites with a similar
demographic
 Send to a friend button – viral marketing
 Ask for permission to customer base
 Maintain list hygiene
 E-mail appending…
 2002 L-Soft
E-mail appending
24%
Ethical
Not ethical
76%
Source: Opt-In News, May 2002
 2002 L-Soft
4. Evaluating results
 2002 L-Soft
How to measure the effectiveness of
e-mail marketing campaigns
 Click-through rates
 unique and sum of events & comparisons
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Unsubscribe rates
Open rates
Conversion rates (website tracking)
Direct revenue
Click-stream analyses
E-mail pass along rates –viral marketing
Coupon codes
Unanimous tracking to respect privacy
 2002 L-Soft
Response time and cost per unit, email vs. direct mail
 Be prepared to handle responses
E-Mail
Direct Mail
Response
Time
3 days
3-6 weeks
Cost per unit
$0.25
$1.25
Source: DMA, Forrester Research, Gartner Group, 2002
 2002 L-Soft
5. Creating the Content
 2002 L-Soft
E-Mail Message Content
 Subject Line – getting recipients to open mail is half the
battle
 Creativity
 Personality and dynamic content
 Keep it short and use links to draw reader to your web
site
 Keep it fresh – don’t re-use the same content
 Relevance – the more you understand your customers,
the more targeted and relevant messages will be
 Frequency
 Test messages
 2002 L-Soft
Email users’ preferred e-mail
marketing personalization models
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Communication Control
Self-select content
Name recognition
Personal events & reminders
Geography
Account History
Lifestyle
Purchasing Behavior
 2002 L-Soft
US e-Mail Users’ Preferred
Personalization Models
4.2
Customizable content
3.9
Personalized name
3.7
Demographic targeting
3.6
Reminders
Human sales representatives
3.5
Geographic targeting
3.5
3.4
Account summary
Targeted by purchase history
3.3
Targeted by content history
3.3
0
1
2
3
Source: IMT Strategies, September 2001
5-point scale rating, “1” as “strongly dislike” and “5” as “strongly like”
4
5
 2002 L-Soft
Preferred e-mail advertisement
formats worldwide, Q1 2002
3%
35%
HTML
Text
Rich Media
62%
Source: Opt-IN News, May 2002
 2002 L-Soft
Response rates per format
ClickThrough
15.60%
18.50%
5.30%
9.00%
Conversion
7.70%
7.40%
Bounce
Unsubscribe
HTML
Text
3.20%
1.20%
0.00
%
5.00
%
Source: IMT Strategies, Sept. 2001
10.00 15.00 20.00
%
%
%
 2002 L-Soft
6. Selecting a Solution:
To Outsource or not to
Outsource
 2002 L-Soft
Maintain your server
 Hardware/computer
network
 Dedicated Internet
Connection
 Software for e-mail
management and delivery
 Best for large loads and
those with experience
 More cost-effective
 Flexibility to create
campaigns on the fly
Outsource your list hosting
 Reliability and experience
 Redundant servers and
delivery capacity
 Flexibility to maintain
company Internet presence
 Ability to move from
hosting to in-house when
ready
 More expensive
 Rely on company’s
schedule
 2002 L-Soft
Outsourced e-Mail Marketing
Campaigns
Strategy
Creative
8%
2%
0%
10%
Delivery
Analysis
0%
68%
28%
8%
2001
2003
22%
20%
40%
60%
80%
Source: Forrester Research, August 2001
 2002 L-Soft
Evaluate Options
 Evaluate software product or hosting service before
purchasing
 Determine if solution provides appropriate features
 Decide what reporting features you need
 online real-time reporting, compatibility with other
software you employ
 Differentiating levels of privacy tracking
 Campaign manager to organize jobs
 Integration with your database and other applications
 Handle bounces
 2002 L-Soft
Questions?
Presentation for Sales Team,
September 2002
Gabriela Linares
L-Soft international, Inc.
www.lsoft.com
Info@lsoft.com
301-731-0440
800-399-5449
 2002 L-Soft
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