Email Marketing: The Good, The Bad and the Ugly Toronto Talks Wayne Carrigan VP, Client Strategy

1. Email Marketing: • The Good, The Bad and the Ugly • Toronto Talks • Wayne Carrigan • VP, Client Strategy • ThinData Inc. • May 25, 2004

2. ThinData E-Marketing Clients include:

3. What I will discuss today • What is Email Marketing? • Are you Serious? • Understanding the Medium • Environment • The Bad • The Ugly • The Good • Managing Expectations • Outside the Campaign • Case Studies • Final Thoughts

4. What is Email Marketing?

5. Marketing • Marketing is the analysis of customer, competitor, and company • Marketing is understanding what market segments exist, deciding which segments to target, positioning your products, and then doing what’s necessary to delivery on that positioning • The backbone of marketing is market analysis and understanding • Analysis + Strategy + Tactics = SUCCESSFUL MARKETING

6. Electronic Marketing • Principles of Marketing are the same, but in a DIGITAL context • DIGITAL ADVANTAGE • Execution Speed • Ability to test in ways that where prohibitive • Cost Savings • 1 to 1 interactions • Feedback loop – measurable results • Real-time data • DIGITAL CHANNELS • i.e.. Web sites, Email, PDA, Cell Phones, Print on Demand • DIGITAL TACTICS • i.e.. on-line contests, web-surveys, email-surveys, e-newsletters

7. Email Marketing • Permission-based • Value exchange • It’s a personal experience • It’s just another channel • Technology is secondary

8. Are You Serious?

9. Are you serious? • If you are not serious, don’t pretend. • Spend your time, effort and money elsewhere • The damage you can do • to your business isn’t worth the risk

10. Understand the Medium

11. Understand the Medium • Nothing* is more powerful than email for building and maintaining a positive brand experience • Are you Prepared for Disaster? • Are you Prepared for Success?

12. Understand the Medium • It is Measurable. We can track… • Open rates • Click-through Rates • Viral (pass along) Activity • In real-time! • We can accelerate response • Inline forms • Direct entry of information into database(s) • Velocity to adapt to market needs

13. Understand the Medium • Ensure data Integrity • Automatically manage bad email addresses • Display content correctly regardless of the email client the user is using • Empower users to update their own records • We can build profiles over time • Centralize data • Plug-in various channels • Include behavioral demographics • Segment messages • Feed your CRM

14. Understand the Medium • Borrow from Direct • Personalization works • Segment based on profile • A Call-to-action works • Speed Medium • Short subject lines • Know the preview pane • The 1 second rule • Fighting for attention

15. Environment

16. Environment • SPAM • 4 in 10 users have a SPAM Filter • 70% fear giving their email address • Receives 64 SPAM Messages per week • Average person opens 5 SPAM messages per week • (June 2003 :Ipsos-Reid) • SPAM includes ALL unwanted email.

17. Environment • Canadian Privacy Laws • PIPEDA – In full effect January 1, 2004Personal Information Protection and Electronic Documents Act (www.privcom.gc.ca) • Applies Nationally where similar provincial legislation is not in place • What do you have to do? • Be accountable, includes appointment of Privacy Officer • Identify the purpose for use of information • Obtain Consent • Limit Collection to only data that is reasonably required • Limit Use, disclosure and retention • Use The Marketer’s PIPEDA Checklist

18. Environment • US Ant-Spam Laws • CAN SPAM Act 2003 – In full effect January 1, 2004(www.spamlaws.com) • Trumps State Laws – 1 not 37! • What do you have to do? • Provide valid postal address • No deceptive content in the header or subject line • The reply email address must work for 30 days • Opt-out mechanism, valid for 30 days – 10 days to comply

19. Environment • General Trends • Canadians receive 123 emails per week • 52% of it is SPAM • 83% of Canadian’s have registered to receive emails from at least 1 Web site • Average user has registered for 7.1 email subscriptions (increase 39% from December 2001) • 51% unsubscribe immediately if they don’t find value in the email • (June 2003 :Ipsos-Reid)

20. Environment : What does it mean? • In spite the negative perception of email as a marketing channel, the TRUTH is people prefer email. • Email subscribers want relevant content • SPAM is an issue, so deliver email in a way that ensures in it not mistaken for SPAM • PIPEDA and CAN SPAM are realities

21. The Bad

22. The Bad • When Technology Fails • Multiple emails • Broken images • Personalization • "Save 0 percent all day, every day...“ • Creating Suspicion? • From addresses • People forget that they have subscribed

23. The Bad • Content • Not relevant, or valued • Wrong offer, Wrong gender, Wrong time • Spelling counts • Design • “A”ffects people • If it looks clickable… • Your Company = incompetent

24. The Ugly

25. The Ugly • Punch out the Clowns! • CC vs. BCC • Clearly SPAM • Slow response, No Response • Server Traffic • Your Company = Spammer

26. The Good

27. The Good • Relevant • Consistent, Look and Feel, frequency • Download Friendly • Respectful cultivate the relationship goals • Test • Rewards permission • The offer must be differentiated in a way that is: • Relevant • Meaningful • Believable • Defensible • Your Company = Loyalty

28. Managing Expectations

29. Managing Expectations • Reply • Auto-response? • When are you open for business • 24hrs or 9-5? • Start simple – manageable • Over achieve • Request Feedback

30. Outside the Campaign

31. Outside the Email Campaign • Business Email • Headers and Footers • What does a non-consistent message mean? • Public Communications • Forums • Newsgroups

32. Case Studies

33. Case Study • Mirvish Productions • Canada’s largest theatre production company • The Situation • 106,000 • They got serious • Brand Experience = Theatre Experience • Strict rules of engagement • 12,700

34. Case Study • Mirvish Productions • Canada’s largest theatre production company • The Results • 90% open rates • 98% retention rates • List doubled in 6 months • Reduced “small production” promo budget • From $20 ROI to $102 ROI

35. Case Study • Office of the • Chief Corporate Strategist • Ontario Government • The Situation • Low response rates to Training sessions • The problem was the process • Brand Experience = Session Experience • Remove barriers of engagement

36. Case Study • Office of the • Chief Corporate Strategist • Ontario Government • The Results • Lower Cost • 241 attendees in 12 hours • Positive experience • 90% participation in post seminar survey

37. Case Study From 200 Emails to Explosive ROI in 30 Days

38. Final Thoughts

39. Final Thoughts • Environmental factors for Email Marketing, including the negative influences of SPAM can all be overcome • Nothing is more powerful than Email Marketing for rapidly creating a loyal relationship with your audience – the key to a strong brand • Email Marketing technology provide measurable results, but it is what you do with these results that will really drive your business

40. Final Thoughts • Be responsible for your actions. If you mess up, be open, quick to response and clean up! • Learn the medium, best practices, and invest in your staff and institutional learning. Email Marketing is a professional discipline • Think of PIPEDA and CAN SPAM compliance as part of your Customer Loyalty program and you will be highly rewarded

41. Thanks for Listening • Wayne Carrigan • VP, Client Strategy • ThinData Inc. • www.thindata.com • wayne@thindata.com