“ Electronic Mail Marketing –
E-mail and Online Tactics That Work”
PRSA e-workshop
October 28, 2003
Gabriela Linares, Vice President Marketing
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Advantages of E-Mail
E-Mail
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Benefits of E-Mail
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Inexpensive communications medium
Generates additional revenue opportunities
Builds relationships
Results are measurable
Quick response cycles
Drives web-site traffic
Popular Medium - 45% US population – 119 million
Complements other communication channels
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Cost Savings due to E-Mail Usage
among U.S. Companies
76%
75%
60%
37%
As a percentage
of respondents
16%
Postal Costs
Marketing
Costs
Time Costs
Source: AIM, April 2002, n=110 companies
Call Center
Costs
Other
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Top 5 Activities of Americans Online
84.0%
E-Mail
Product/Services
Info Search
67.3%
News, Weathers,
Sports
61.8%
42.1%
Playing Games
Product/Services
Purchase
As a percentage
of respondents
39.1%
0
0.2
0.4
0.6
0.8
1
Source: US Dept. of Commerce, February 2002
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“E-Mail Marketing is the wave of the future.
Fast and cost-effective, e-mail must
become an important part of your
integrated marketing and media plan.”
Peppers & Rogers Group
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United Way of America
Use e-mail to improve communication with staff, donors, and volunteers:
“With LISTSERV® Maestro and the other L-Soft products,” Casey Cichowicz, United
Way Online Manager, said, “we will be able to better tailor our message to meet
the interests not only of donors but of people who, through our network of Web
sites, express an interest about knowing more.”
“ Already, we've used L-Soft products to reach out to more than 700,000 September
11th Fund donors who asked to hear from us about how their money was being
used and what needs were being addressed."
Use LISTSERV®, LISTSERV® Maestro & LSMTP® software
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Bell Canada
www.bell.ca
Using E-Mail to shift to Online Billing
 Provide its 12 million customers with personalized e-mail
messaging services
 Sending online billing monthly reminders; promoting new
services and products; and announcing special promotions
"One of the greatest things about LISTSERV® and LSMTP® is the
configuration process," said Bill Attia, Senior Consultant at CGI, a
consulting firm hired by Bell Canada to implement its billing
solutions. "The language is so straightforward it's hard to go wrong.
L-Soft's solution is the natural choice for us."
Using LISTSERV® HPO and LSMTP® unlimited software
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Lifetime Television for Women
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Newsletters inform about TV programming, prompt recipients to tune in to TV
or go to web site
SELFEXAM newsletter designed to raise public awareness of breast cancer and
the importance of early detection
Health newsletters tie in with Speaking of Women’s Health and Denise Austin
shows
Golden Girls and Weekly Movie Countdown newsletters increase show
viewership
LISTSERV® allows Lifetime to:
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Integrate its e-mail operation with its database
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Manage over 1 million subscriptions
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Implement top security measures to protect the personal information that
viewers have entrusted Lifetime with
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Have announcement-only lists to prevent non-Lifetime messages from reaching
the list
“…a product that had gone through the burn test before we used it and LISTSERV
definitely fit the bill.”
-- Shobhit Kapoor, Director of Internet Technology
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What it takes to get started…
1.
Establishing Objectives
2.
Reaching Target Audiences
3.
Developing Message Program
4.
Evaluating Results
5.
To Outsource or not to Outsource
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1. Establish Objectives
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Common E-Mail Communication Objectives
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Enhance relationships & loyalty
Maintain contact with web site visitors
Promote internal communication
Acquisition versus retention programs
Build brand awareness
Establish image of expertise
Drive immediate sales: Increase revenue by up-selling
to existing customers/clients and prospects
Support sales cycle: Post-order targeted e-mails
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Online Methods used for
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
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Effectiveness of Techniques Used by U.S.
Marketers to Drive Web Site Traffic
4.1
eMail to Customers
3.8
Affiliate Programs
3.4
Direct Mail
3.2
Television
3.1
Public Relations
2.8
Banners
Magazines
2.7
Sponsorships
2.7
Radio
2.6
Newspapers
2.6
2.5
eMail to opt-in lists
0
1
Source: Forrester Research, March 2001
2
3
4
5
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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%
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2. Reaching Target Audiences
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Building Contact Lists
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Build in–house opt-in list
Capture web site visitors
Ask already made contacts for authorization
Use database to collect demographic & behavioral
information
Establish a privacy policy
Re-confirm subscription requests
Offer easy unsubscribe option
Survey recipients to enhance relevancy of messages
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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
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Rates for U.S. e-mail
permission-based campaigns
Clickthrough
17.80%
Net
conversion
7.00%
7.80%
Bounce
Unsubscribe
2.10%
0%
Source: IMT Strategies, Sept. 2001
5%
10%
15%
20%
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U.S. 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
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U.S. 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
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Privacy & Regulations
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HIPPA influences health & personal information
COPPA protects children
Gramm-Leach-Bliley Act concerns financial
information
FTC supports corporate privacy policies
Federal spam regulation does not exist
State laws exists in 28 U.S. states
More information about spam regulations visit:
www.spamlaws.com
DMA, AIM, AMA have published e-mail guidelines
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3. Developing a Message Program
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E-Mail Programs to Implement
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Disseminate announcements & press releases
Conduct surveys
Corporate newsletters & archiving
Product updates & announcements
Discussion groups for committee members
Internal workgroups
Event & service reminders
Sales promotional offers
Order transaction confirmations
Account status e-mails
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E-Mail Message Content
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Subject line is crucial for attaining attention
Recipients identify with brand, e.g. FROM name
Format message so it’s easy to skim
Provide hyperlinks to web site for complete message
Formats: HTML versus Text; & Multi-Part Mime
messages
Test HTML message in different e-mail applications
Relevancy of the messages is one of the key
components for success
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E-mail overload: Number of e-mail
marketing messages sent in the U.S.
2001
289
2002
430
2003
549
2004
674
2005
796
2006
939
0
500
1000
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Source: Forrester Research, August 2001
Preferred e-mail formats
3%
35%
HTML
Text
Rich Media
62%
Source: Opt-IN News, May 2002
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Source: Survey of E-Mail Format Preferences and Programs,
Dr. Ralph F. Wilson, April 2003 - N=954
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4. Evaluating Results
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E-Mail Metrics
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Open-up rates
Bounces versus real deliveries
Click-through rates
Track web site click-stream after clicking from e-mail
View tracking results online in real time
Analyze results in statistical programs
Evaluate results and adjust communication efforts
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Response time and cost per unit,
e-mail vs. direct mail
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
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4. To Outsource or not to
Outsource
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Maintain your server
• Hardware/computer
network
• Dedicated Internet
Connection
• Software for e-mail
management and delivery
• Best for large workloads
and those with experience
• More cost-effective/
economies of scale
• 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
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Outsourced E-Mail Marketing Services
Strategy
Creative
8%
2%
0%
10%
Delivery
Analysis
0%
68%
28%
8%
2001
2003
22%
20%
40%
Source: Forrester Research, August 2001
60%
80%
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Evaluating Options
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Evaluate software product or hosting service before
purchasing
Determine if solution provides appropriate features
Decide what reporting features you need
o 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
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Concluding Recommendations
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Integrate e-mail into your integrated communication
plan
E-Mail is best used for retention and other customer
permission-based communications
Consider double opt-in and build your permission-based
lists
Respect recipients’ privacy to earn their trust
Personalize messages to provide relevant information
and increase response rates
Evaluate options and opt for time-tested solutions
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Questions?
Gabriela Linares
L-Soft international, Inc.
www.lsoft.com
Info@lsoft.com
301-731-0440
800-399-5449
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