Creating Customer Acquisition and Retention by means of Permission Based Email Marketing

1. Creating Customer Acquisition and Retention  by means of Permission Based Email Marketing

2. Clients

3. Agenda 1) Why Email Marketing? 2) Email Is the Best Medium For... -Permission Marketing -Retention Marketing -Database Marketing 3) Email Marketing Advanced Concepts -Personalization & Targeting -Testing & Optimization -Tracking Results -SPAM & Email Deliverability 4) Q & A

4. The Days of “Dumb Email” Are Over!

5. Email Marketing Is Growing Quickly Source: Forrester Research, 2002

6. Consumers Trust Email Newsletters

7. Email Versus Phone In you were without e-mail service or phone service for five days, which would cause the greatest difficulty?

8. Email Marketing Works Compared to traditional media, email is… -fast -cost effective -personal -interactive -and measurable! McKinsey – “Harnessing the Power of Email” reports that email… -drives responses of 15% vs. 1% for direct mail -costs 3-10 cents per email vs. $2 for direct mail -generates 80% of responses within 48 hours

9. Permission Marketing “Permission Marketing encourages clients to participate in a long-term interactive marketing campaign in which they are rewarded in some way for paying attention to increasingly relevant messages.” Anticipated – people look forward to hearing from you Personal – message is directly related to the individual Relevant – content is something they are interested in

10. Retention Marketing Email is most effective for retention!

11. Retention Marketing

12. Retention vs. Acquisition Monthly Revenue $34 ($12) 3rd Year New Customer Customer

13. Retention vs. Acquisition • 80% of your business comes from 20% of your customers • It is significantly more difficult and expensive to recruit a • new customer vs. retaining an existing customer • On average, US small businesses lose 50% or more of • their customers each year • Every company suffers from defections • Most of them don’t monetize these losses • If a valuable piece of physical inventory were missing, we • would turn the place upside-down looking for it

14. Retention vs. Acquisition

15. Retention vs. Acquisition Sanders Cleaners South Meridian Store • Facts: • In 1998 there were three competitors within 3 miles. • Today there are 11 • New customers down by 40%* • Loyal % increased from 11% to 39% • Store revenue has grown 40%

16. Database Marketing: True One to One

17. Smarter Marketing Email enables… marketers and business owners to deliver on the promise of true one-to-one marketing.

18. Personalization & Targeting How can you break through the Increasing Inbox Competition?

19. Personalization & Targeting Personalize for Increased Response Email Response Rates by Number of Personalization Elements

20. Personalization & Targeting – First Stage

21. Personalization & Targeting – Second Stage

22. Personalization & Targeting – Third Stage

23. Indianapolis Colts Example

24. Home Depot Example

25. Testing & Optimization Leverage the Three T’s of Email Marketing Testing -Test one element at a time -Each email is a chance to learn

26. Lower Price Point - Test! Test! Test!

27. Lower Price Point - Mail Best Offer to Entire List

28. Testing & Optimization Leverage the Three T’s of Email Marketing Testing -Test one element at a time -Each email is a chance to learn Timing -When is your audience receptive?

29. Testing & Optimization – Timing of Delivery When is your audience most receptive?

30. Testing & Optimization Leverage the Three T’s of Email Marketing Testing -Test one element at a time -Each email is a chance to learn Timing -When is your audience receptive? -How often is appropriate?

31. Testing & Optimization Leverage the Three T’s of Email Marketing Testing -Test one element at a time -Each email is a chance to learn Timing -When is your audience receptive? -How often is appropriate? Tracking -What metrics are most important? -How do you react to the data? -Test, fire, adjust!

32. Tracking Results

33. Tracking Results - Surveys

34. Tracking Results - Surveys

35. Email Metrics – Open Rates Open Rates: Average Range is 40 – 60% To Increase Open Rates: -Reduce Frequency -Improve Permission (Evaluate Name Capture) -Improve Subject Lines -Evaluate “Preview Window” Look and Feel -Evaluate Content vs. Expectations -Modify Content to Reduce Impact of Spam Filtering

36. Email Metrics – Click-Through Rates Click-through Rates: Average Range is 5 – 15% What if Click-through rates are low? -Evaluate “Preview Window” Look and Feel -Evaluate “Call to Action” -Test Offers -Provide Incentives -Relevant Descriptions

37. SPAM & Email Deliverability Increase in Spam Filtering

38. SPAM & Email Deliverability Opportunity: Help Clients Maximize Delivery Help them Understand: - Content Filtering - Volume Filtering - IP Filtering (Blacklisting & Whitelisting) - List Quality Filtering

39. SPAM & Email Deliverability

40. How To Get Started? Step 1: Determine your objective A. Sell Product –often B to C and B to B lower cost products, low touch. B. Educate, Generate Leads & Enhance Credibility –often B to B product and service solutions or B to C higher margin products or services, high touch.

41. How To Get Started? • Step 2: Build your list • Start with your customer database • -export out of contact database • -call clients to fill in email address • B. Capture email addresses through web site • -offer incentives for sign-up • -use other media to drive people to sign-up page • C. Leverage forward to friend to grow list • -reward your advocates • -send great content: humor, articles, case studies, etc

42. How To Get Started? Step 3: Test and adjust A. Objective: To Sell Product -how much did you sell, does the ROI work? B. Objective: Educate, Generate Leads & Enhance Credibility –what business or service offerings are generating most interest, track individual activity, etc