The document discusses advanced email marketing strategies presented at an eMarketing conference. It provides steps for an effective email marketing plan including defining objectives, determining strategies, targeting audiences, designing content, evaluating results, and selecting technical solutions. Specific tactics are examined, such as preference for opt-in lists, personalization, and measuring click-through rates and conversions. Outsourcing email services is also addressed.

1. Advanced e-Mail
Marketing Strategies
eMarketing Association Conference
Redondo Beach, California
September 5, 2002
Gabriela Linares
L-Soft international, Inc.
www.lsoft.com
Info@lsoft.com
301-731-0440
800-399-5449
© 2002 L-Soft

2. Steps for an e-Mail Marketing Plan
 Defining e-Mail Marketing Objectives
 Determining Effective Strategies
 Reaching your Target Audience
 Designing e-Mail Content
 Evaluating Results
 Selecting a Solution
© 2002 L-Soft

3. Defining e-Mail Marketing Objectives
Common e-Mail Marketing Objectives
 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

4. e-Mail marketing campaign response
rates by campaign objective
North
Conversion
CTR
Awareness 6.80%
17.10%
Sales 5.60%
15.20%
Leads 7.90%
15.30%
Source: IMT Strategies, September 2001 © 2002 L-Soft

5. 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%
Conversion Costs for Retention and
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

6. Determining Effective Strategies
Popular e-Mail models
 Sales Promotions  Rewards program
 Transaction  E-mail discussion
confirmations groups
 Account status e-mails  Product updates of
 Recommendations interest
from friends (viral  Independent media
marketing) newsletters
 Scheduled corporate  Entertainment (humor,
newsletters film clips)
 Customizable  E-Mail education
information updates series
 Time-based reminders  Contests for address
© 2002 L-Soft

7. Reaching your Target Audience
E-mail overload: Number of e-mail
289
2001
430
2002
549
2003
674
2004
796
2005
0 200 400 600 800
© 2002 L-Soft
Source: Forrester Research, August 2001

8. Response to permission e-mail versus
unknown senders
13%
Eager to read
1%
49%
Curious to read
12%
29%
Indifferent
15%
6%
Open but annoyed
21%
3%
Delete
52%
0% 30% 60%
15% 45%
Permission e-mail West Unknown senders 2002 L-Soft
©

9. Opt-in, opt-out, double opt-in, spam:
Preferred e-mail marketing methods
11% 3%
Opt-in
Opt-out
Spam
86%
Source: Opt-In News, May 2002
© 2002 L-Soft

10. CTR and Conversion rate of US e-mail
Click-through
17.80%
Net conversion
7.00%
Bounce
7.80%
0% 5% 10% 15% 20%
Source: IMT Strategies, Sept. 2001
© 2002 L-Soft

11. US Consumers’ Privacy concerns
75%
Sharing info with third parties
70%
Transactions not secure
69% 72% 75%
Source: Harris Interactive, February 2002
© 2002 L-Soft

12. US E-Mail users’ preferred e-mail
marketing privacy and customer-support
practices
 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

13. Most Important e-Mail Marketing trust-
building factors among US users
 Secure sign-up form
 Trustworthy reputation
 Loyal customer
 Well-known brand
 Friend recommendation
 Trusted site referral
 Relevant offers
© 2002 L-Soft

14. 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

15. Building Customer Intelligence
 Harness your Customer Database
 Effective personalization and targeting
 Common Segmentation Factors:
 Purchase history
 Location/zip code
 Demographics
 Lifestyle/hobbies/interests
© 2002 L-Soft

16. 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

17. Creating the Content
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

18. Email users’ preferred e-mail marketing
personalization models
 Communication Control
 Self-select content
 Name recognition
 Personal events & reminders
 Geography
 Account History
 Lifestyle
 Purchasing Behavior
© 2002 L-Soft

19. Evaluating results
How to measure the effectiveness of e-
mail marketing campaigns
 Click-through rates
 unique and sum of events & comparisons
 Unsubscribe rates
 Open rates
 Conversion rates (website tracking)
 Click-stream analyses
 E-mail pass along rates –viral marketing
 Coupon codes
 Unanimous tracking to respect privacy
© 2002 L-Soft

20. Response time and cost per unit, e-mail
vs. direct mail
 Be prepared to handle responses
E-Mail Direct Mail
Response 3 days 3-6 weeks
Time
Cost per unit $0.25 $1.25
Source: DMA, Forrester Research, Gartner Group, 2002
© 2002 L-Soft

21. To Outsource or not to Outsource
© 2002 L-Soft

22. To Outsource or not to Outsource
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
© 2002 L-Soft

23. To Outsource or not to Outsource
Maintain your server Outsource your list hosting
VS.
 Hardware/computer  Reliability and experience
network  Redundant servers and
 Dedicated Internet delivery capacity
Connection  Flexibility to maintain
 Software for e-mail company Internet presence
management and delivery  Ability to move from
 Best for large loads and hosting to in-house when
those with experience ready
 More cost-effective  More expensive
 Flexibility to create  Rely on company’s
campaigns on the fly schedule
© 2002 L-Soft

24. 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