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Email Marketing Intro

Email Marketing Intro
Posted by Salman Khan
imageEmail marketing can be extremely effective – not only in strengthening a brand image, but also in making sales. Businesses use email marketing both internally and externally to generate new customer leads, create brand recognition and awareness, improve customer relationships, cross and up-sell to existing customers, improve website traffic, educate and support customers, promote events and generate product sales. When compared to traditional direct mail, the cost benefit alone offers the greatest advantage. Consider the cost of print, postage and other production factors to realize the value gained. To make email marketing even more attractive, email marketing improves the speed of delivery, offers stronger controls over message delivery and measurably converts to sales.

Peter A. Johnson, Ph.D., Director and Senior Economist, Strategic Information Unit in white paper “Preserving The Promise of The E-mail Marketplace: An Economic Assessment of The Proposed Federal DO-NOT-E-Mail Registry” states: “Based on US Census Bureau data for total e-commerce from 2003, DMA research estimates that already some 14% of the $138 billion Internet commerce marketplace for 2003 was driven by commercial e-mail. This translates into an excess of $19 billion spent in response to commercial e-mails in 2003. Again however, it is important to bear in mind that the Census Bureau E-Stats program has not yet released its first measurements on the value of e-commerce in the vitally important services sector. Since these purchases include many airline tickets and other forms of travel, hotel accommodation and car rentals, etc., that although initiated by an e-mail advertisement, may have been purchased via 800 number and thus not be categorized as e-commerce by the Census Bureau, it is likely this figure significantly understates the true impact of e-mail marketing.” The numbers, combined with the total cost to run a successful email marketing campaign, is unmatched.

In each relationship nurtured with email marketing, there are two sides– the sender and the receiver. The sender wants to reach the audience and promote the most positive image they can. They also want to reinforce their services or products in a way to increase sales and visibility. How can they accomplish this? They need to draw up a clear portrait of their consumer. Answer the following questions:

•    What are the audience demographics – age, education, sex, geography and income?
•    What are the audience’s interests and pastimes?
•    How busy is the audience and how frequently would they appreciate emails?
•    What would appeal to the audience – discounts, information, news or product updates?
•    What value can the business offer the consumer or target audience?

With an understanding of the person behind the email address, marketers may devise a program that appeals to their needs. Then it’s recommended companies reevaluate and review success and results of the email marketing program on a regular basis to fine-tune the tactics.

In spite of government regulation, email marketing is growing. According to DoubleClick's Q4 2003 email survey, deliverability and open rates grew one percent, while click-through rates grew five percent year-over-year.

Eric Kirby, vice president and general manager of strategic services at DoubleClick, expects the industry to survive emerging obstacles: "There are two fundamental drivers behind this: 1) Consumers understand and value permission based e-mail relationships and differentiate these from spam and 2) leading companies are evolving their e-mail programs faster than the environment is becoming more difficult. In other words, they are keeping ahead of the challenges in many respects."

Content and Creative
Email marketing comes in a two formats with content variety – from informative newsletters to discount advertising and specials. Marketers can use one or many varieties of content styles depending on their target audience.

Newsletters are preferred over other media formats. In fact, a new study conducted by Internet Usability expert Jakob Neilson revealed that 11 percent of newsletters were read start to finish. Newsletters reinforce the brand, communicate with customers, build relationships with users and build word of mouth when forwarded to friends and colleagues. To work as intended, though, the information must be timely, useful and brief.

Sign-up for newsletters or promotional email should be quick and simple. When offering a newsletter, link to a sample so the visitor knows what they’re signing up for. Provide privacy policy information that reinforces the integrity and their safety. If sharing data with other companies, offer an obvious checkbox to opt-in to this use. This increases visitor trust and shows respect their preferences.

Newsletters should be scannable, infrequent, informative, convenient and timely. While 11 percent were found to read the complete newsletter contents, many more jump headline-to-headline seeking content relevant to their situation. Scanners ranked 57 percent in the same study, while 22 percent never read the newsletter and 10 percent held it for later reading.

Send newsletters that offer current and timely information, not just general information they can acquire through other sources. For instance, inform the readers about prices and sales, events, important dates and deadlines, work-related news or activities in their own company or information about their personal interests and hobbies.

Email promotions should be of specific interest to the recipient. Bring time-pressing information such as limited-time only sales, new product introductions or Internet-only promotions. Don’t overuse this privilege and always remove emails that opt-out.

Titles, Microcontent and Subject Lines

Email newsletters should be concise and to-the-point. There is no room for long-winded or clever headlines. Readers rarely spend time sorting through this writing style on their screen. Instead, explain the article clearly and include an ultra-short abstract of the content of the article. This helps the recipient decide if they’ll delve deeper or not. Avoid teasers to attract reader attention. Too often, this writing style is used in SPAM email and recipients have learned to click delete when they see this in an email.

Subject lines should be scannable. Think of the inbox view when received. Avoid leading words like “the” or “a”, though these can be used in the email body itself. Realize titles may be sorted by subject line. Strive to stay at the top of the list. The first word should be the most information-packed item of the subject, such as a name, company or concept. This facilitates inbox scanning. Nevertheless, common identification words, such as the business name, should be left to the end. For example: Weed control: Gardners Outlet.

The “from” field develops the customer relationship and reduces the chance of the communication being confused (and deleted) with SPAM.

HTML vs. Text Formatting

HTML email marketing can measurably save time and impress prospects by becoming the welcoming brochure. When receiving a lead from an individual who'd like more information, send a professionally design email brochure leading them to the website with everything from services to prices and hours of operation. HTML email newsletters may enhance customer communications by announcing specials, listing tour dates, promoting new releases or offering informative articles.

•    Here are some guidelines for effective HTML email marketing.

•    Require proactive newsletter subscription and honor all remove requests immediately.

•    Format emails with HTML, as these performed markedly better on average and generated click-through of 11 percent, compared to only 6 percent for text (DoubleClick).

•    Send communications from the main email account. 60 percent of DoubleClick study respondents cited the ‘from’ line moved them to open an email.

•    Use a discount or news related subject line. 35 percent of study respondents cited the subject line in motivating them to open an email. While men are more apt to open news related subject lines, women are attracted to discounts. An astonishing 70 percent cited a discount, as the most compelling motivational factor for making an immediate purchase after clicking an email (DoubleClick).

•    Keep it brief and scannable. Newsletter subscribers like to stay current, but rarely have time to read an email novel.

•    Target the four main newsletter values cited, according to usability guru Jakob Nielsen. Recipients want to see: 1.) work-related news and/or activities in their company or other companies; 2.) prices and sales; 3.) personal interests and hobbies; and 4.) events, deadlines and important dates.

The most important thing for the business is upholding its value and reputation by sticking to Internet marketing best practice. CAN-SPAM adherence is covered later in the legal issues chapter.

The basic bread-and-butter rules for responsible email are:

•    Honest subject lines
•    Accurate header information
•    Physical street or mailing address
•    Clear, honored opt-out method

Developing A List
Developing an opt-in list is the best way to acquire targeted leads. While many firms rent opt-in email lists, these should be used with caution in light of recent federal spam regulations. These can also be pricey, significantly decreasing the ROI.

The website should have a clear and obvious method for subscribing supported by the privacy policy that reinforces the business ethics and integrity. Sign-up should require minimal click and send a confirmation to the recipient upon sign-up. Double opt-in is the preferred subscription method by most website hosting providers, who can become one more obstacle to Internet marketers in reaching their target audience. Double opt-in simply means the recipient must confirm their subscription through email verification, signing up once on the site and twice through the email confirmation. This protects individuals from receiving email that others signed them up for.

To developing an opt-in list, include a sign-up option on the website, offer current clients the option to join during checkout and add a sign-up book at the checkout counter of each physical store location. Be creative, but always gather and retain records of, customer’s request to join. Though growing an opt-in list takes time, the audience is tightly targeted, familiar with the products or services and open to receiving information.

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