Introduction
An increasing number of companies are turning to email as an
alternative to traditional direct mail marketing, recognizing the power
of this medium as a low-cost, high-value communication channel.
This trend is a natural outcome of the proliferation of email itself. Ten
years ago few people had email addresses; today, few do not. Most
people have integrated email into their personal and professional lives.
Studies show that many people check their email both day and night,
thanks to the proliferation of mobile devices. In AOL’s most recent
“email addiction” survey, 59% of people emailing from portable devices
admitted to using them in bed, in their pajamas!1
With this kind of penetration into peoples’ lives, email is an excellent
tool for establishing and maintaining customer relationships.
Success in business is all about creating customer loyalty and driving
repeat business. The value of customer loyalty is too compelling
to ignore, since acquiring a new customer is much more expensive
than selling to an existing customer. Customer loyalty is a function
of trust, and that trust is best established through ongoing,
consistent communication.
“Communication” includes any contact with customers or potential
customers, so it could include newsletters, coupons or Web sites.
The chief advantage of email marketing is that it’s less expensive to
produce and deliver, in terms of time, money and resources. It reaches
more people, and is the least expensive form of communication, right
behind telemarketing. When done well, consumers respond positively;
67% of U.S. consumers say they like companies that did a good job
with permission-based email marketing, 58% open such emails, and
53% say these emails affect their buying decisions.2
Callout 2
Communications is something that has both “push” and “pull”
components. Push communications channels (like direct mail) actively
reach out to a target audience, while pull communications channels
(like a Web site) deliver information when the audience is motivated to
look for it. Email can integrate the two channels, by letting you reach
out with a quick note and attract customers to your Web site. That
means you don’t have to wait and hope that they can find your site
on their own. Another benefit of email marketing is that it levels the
playing field: there’s no significant economy of scale, so big companies
have no cost advantage. Doing email marketing well requires
knowledge and skill, but it’s affordable for anyone.
The benefits of email marketing make it a very attractive proposition
for almost any business. It’s inexpensive, versatile and adaptable
to many kinds of products and services. It can be used for general
communications, to alert customers to new products or special events
and to spread the word about special offers or promotions. Most
consumers respond positively to email communication, especially
from companies with whom they have an established relationship.
That means it’s one of the best vehicles for building a base of loyal
customers – the kind of loyalty that will generate repeat business.
Selecting Your Targets
The Internet experience has a lot to do with personalization, and it’s
important to determine subscriber preferences. The most successful
email marketers are very good at matching past purchase behavior
to future promotional messages. Email marketing lists can also be
segmented based on Web site behavior, such as links clicked or
actions taken. Segmenting the audience provides insights into sales
performance and buying trends based on customer demographics.
There are many email marketing tools and vendors, suitable for
anything from very small to very large campaigns. Email marketing
service providers can automate many routine tasks, such as tracking
delivery, dealing with unsubscribes, and measuring open and clickthrough
rates. (The open rate tells you how many people are reading
the mail and the click-through shows how many actually take an
action, based on what they’ve read.) Email marketing tools and
templates can let non-technical people create messages that comply
with the HTML standards of the World Wide Web Consortium (W3C),
and that is something that can help deliver a consistent experience
across different clients and platforms. Finally, most email marketing
providers have the necessary process controls in place to ensure
compliance with anti-spam legislation.
Delivering the Message
It’s not all good news, though, since getting your message through
to the target audience is becoming more of a challenge. Both
Internet Service Providers and individual customers have grown
more aggressive about blocking spam, and legitimate marketing
communications are always at risk of being caught in the same nets.
Spam is a threat to the effectiveness of email marketing, both because
of volume effects (which lead people to delete mail without reading
it) and because of various spam countermeasures. ISPs try to limit
the amount of unsolicited email entering their systems, and may
inadvertently block legitimate traffic. Legitimate marketers generally
require a double opt-in process, so that commercial mail is never
sent unsolicited. Despite the spam challenge, though, email is still an
excellent communications medium. A well-crafted message, with a
compelling Subject Line, will be opened by a large share of the people
to whom it’s sent.
In the end, it comes down to “deliverability.” The content of
the message was once considered the most important factor in
deliverability, but that has become less so in recent years. Today,
deliverability is understood to be primarily related to the reputation
of the sender. The sender is whatever appears in the FROM field of
the message itself. The message might actually be sent by a service
provider, but how the target reacts to the name in the FROM field is
the key.
Email Marketing Success FactorsCallout 3
Building trust is the most important feature in an effective marketing
program. Without trust, recipients are less likely to open or act
on your emails, and are more likely to unsubscribe or file spam
complaints. To build trust, ask only for the most necessary information
at registration, and use a double opt-in system. This kind of system
requires the subscriber to respond to a confirmation message, in order
to ensure the subscription request was valid. Make sure your lists are
good; unsolicited, incorrect, out-of-date or duplicated addresses affect
both a campaign’s performance and your company’s reputation.
The timing of email delivery is important. Wednesday is the most
popular day for opening emails, followed by Tuesday. There’s an
ongoing debate about whether plain text messages are more or less
likely to succeed than HTML messages. There’s data to support
both schools of thought, and customers should be offered a choice.
Some ISPs will block images, which can diminish the impact of an
HTML email.
A simple rule is to communicate often, but not so often that your
messages are annoying. On-line consumers are impatient, so use
short paragraphs, and keep it simple. Always provide an opportunity
for interaction, so the communication can be two-way; provide a link
that will take the reader someplace where an action can be taken.
Use the right level of authentication technologies. ISPs have a
variety of techniques for separating spammers from recognized
senders, and you need to understand and comply with them. Make it
easy for readers to perform administrative tasks (such as unsubscribe,
change profile and contact). Also, be sure your messages are
W3C HTML-compliant; if not, they risk being blocked, particularly at
MSN and Hotmail.
Design your message with the Inbox in mind. An attention grabbing
subject line is a must, and the fewer characters the better. HTML
emails are handled differently in different email programs (AOL,
EarthLink, Hotmail and Yahoo!), so be sure to test your message in
multiple clients to spot bad links and identify copy that triggers spam
filters. Follow good, user-friendly design principles. Don’t frustrate
your readers or they may decide to report you as a spammer, even if
they have opted in.
In Closing
Email marketing is most successful when used in conjunction
with other marketing channels. It will deliver a higher ROI when
it’s integrated with direct mail, telemarketing, trade shows, Web
advertising and other marketing elements. Email communication
shouldn’t be expected to stand alone, and should be promoted on the
Web, in print and in any other customer-facing material. Your Web site
“landing page” is another important factor in encouraging customers
to begin a relationship. If you manage to draw a customer to your
site with email, make sure you do not confuse them when they get
there. Just as with your email, your Web site should deliver crisp and
clear communication.
Recognize the potential, but don’t underestimate the effort.
Companies may start email marketing because it’s cheaper than
direct mail, but it’s a complex activity. An email marketing program
needs an adequate budget, as well as the right resources and knowhow.
Finally, be sure to understand the law – there are privacy and
spam prevention laws in 36 states, at the Federal level and in most
foreign countries.
Sources
1. http://press.aol.com/article_display.cfm?article_id=1271
2. eMarketer.com (2005)
For more information contact your AT&T Representative or visit us at
www.att.com/business.