Exposing the Secrets of 21 st Century Email

1. Exposing the Secrets of 21st Century Email David DanielsVice President andResearch DirectorJupiterResearch Founder, Chairman Email Measurement Accuracy Coalition Jeanniey MullenExecutive Director and Senior PartnerOgilvyOne WorldwideFounder, Chairwoman Email Experience Council

2. agenda • Reinventing email for the 21st Century • Push and pull, the impact of email in a multi-channel environment • Best practices to drive revenue, relevancy and engagement • Ten points to take home and implement

3. 274 messages a week 304 a week at work email no. 1 time spent decreasing 70% have 2 accounts 8% triage e-mail with handheld

4. 319,000 pages on Google "email bankruptcy“ June 1, 2007

5. 53% Unsubscribe when the content is irrelevant 26% label spam 40% Unsub do to frequency Source: JupiterResearch/Ipsos-Insight Individual User Survey (9/06), n = 2,147

6. 25% of the online population have suppressed paper statements/bills in the last year Jumps to 33% of online population when household income surpasses $100K No age or gender difference Source: JupiterResearch/Ipsos-Insight Consumer Survey (6/07),n=3580 US only

7. Awareness Consideration Conversion Usage Loyalty The Landscape has Changed Communications Goal Email Purpose Examples of Email Usage Bridge media (on and offline) to create interest Email capture at all points of awareness (display, search landing pages, store etc.) Bring company into the consideration set; build customer imagery Make preferred brand by consistently promotingtangible benefits Accelerate interest and qualification through benefits immersion Use email to push people through the funnel faster. Reminder emails, dynamic welcome etc. Close the deal through a dialogue that overcomes barriers to purchase Drive to store and battle switching Drive to mobile for purchase reminder Build engagement with brand, establish advocacy and set stage to upsell/cross-sell Dynamically populate email offers based on business rules/propensity models Stimulate interest in other products and repeat usage Broaden and deepen the relationship topromote renewals Foster and deepen the relationship for LTV impact Deliver value-added information via email (ex. Winter fit tips)

8. The email address is the only data element that links a customer or prospects profile across every digital medium they are engaged with Email Has a Role at Every Stage of The Customer Journey

9. Push and pull, the impact of email in a multi-channel environment

10. Example: Offline to Email Integration

11. Skews Male (68% male, 32% female) • Young (76% under age 45, 49% under age 35) • High-income skew (45% with incomes of $75K or more) • 13% have made 4 or more purchases online Consumers Accessing Primary Personal Email From Mobile Device. Source: JupiterResearch/Ipsos-Insight Consumer Survey (9/06),n=3580 US only

12. Is Wireless a Threat to Email? 27% of online consumers state that they used sms/txt more in the last year for personal communications instead of email.

13. 7% adopted - skews male - heavy 35-44 - early adopter Pros - Secure - Custom readers Cons - Adoption - Measurement Source: JupiterResearch/Ipsos-Insight Consumer Survey (6/07),n=3580 US only

14. RSS isn’t just for your portal anymore • Blackberry RSS offering provides a branded Blackberry reader with pre-populated streams. • Provides high relevance for ‘on-the-go’ prospect audiences. • Provides a service with value within and without the ‘brand umbrella’ • Can be ‘fed’ specific items relevant to the target audience (in this example, the Travelocity reader has pre-populated ‘Beach Trips’ and ‘Outdoors’ vacation stories • Blackberry reader can be programmed to lock out certain feeds (for privacy purposes, or to block competitive feeds) B A

15. 18% of the online population have used social sites (myspace, facebook, etc.) for personal communications instead of email Massive skew in usage by age. 50% of 18-24 use social instead of email. 32% of 25-34 use social instead of email Source=JupiterResearch/Ipsos Insight Consumer Survey (09/07), n = 2,503 (US)

16. Social Networks Facilitate Email Discussion Intelligent targeting of email content based on actual conversation is the newest trend 80% of all Hotmail readers plan for the weekend Wednesday after 6 pm and talk about something different beginning Saturday at noon.

17. 18% of online consumers forward promotional email and newsletters to others 20% of online buyers post on average 9 product reviews a year 77% of the online population find reviews more useful than e-mail JupiterResearch/Ipsos Insight Consumer Survey (09/07), n = 2,503 (US only)

18. Your Message is Moving The Media Speaks The People Speak Louder Wikipedia – 20X more traffic than sites such as Yahoo! answers, Dictionary.com

19. 90% of online consumers call customer service when things go wrong

20. Email is uniquely tailored to guide HVCMs with personalized spend messaging Service is the perfect way to Expand the Relationship OBTM Session records hot buttons for spend Key content themes are pulled from dbase and dynamically populated intofollow-up email Personalized “intent to spend” Key Business management themes (Cashflow, cost savings, expense consolidation, etc. Rewards topics of interest, site links Personalized greeting andRepresentative salutation

21. Best practices to increase revenue, relevancy and engagement • Build your email strategy with the realization that email conversations happen inside and outside of the inbox • Know that an email opt-in is worth as much as your best customer’s spending history • Keep basic best practices in mind: Reputation, delivery, rendering and relevance

22. Email Opt in represents brand loyalty Email opt-in represents brand loyalty • Emailable households purchase $60 more annually • 40% penetration now –revenue lift by acquiring just 10% more opt-ins from existing HH is $4.5M

23. Emails can make or break a brand! This is NOT GOOD

24. The headline saw the highest percentages of viewing, with particular focus on CVS. It was clear that the featured items would be available at CVS. Line of copy informing them of ad in up-coming paper, almost entirely unseen. Main message of email, the upcoming coupon, delivered mainly through imagery of coupon. Participants entered the email, thoroughly reading the headline before reading the statement, “Fight Premature Aging with Nature Made”. “Nature Made” in headline saw 60% of viewing, but logo further down the page saw about 50%. Not obvious to viewers that the email is from Nature Made. Clicks were made on CTA buttons and imagery. Opportunity in increased conversion may lie in hyperlinking previously non-linked images. About 50-60% of participants read over the top portion of the awards program section. On the left hand side, the bolded font caught the eye, as did the call to action button beneath - causing the participants to skip over the bullet points. This area received 30-40% viewing, with increased % around name – It’s a natural tendency for people to look for their own name in an email. Also higher viewing % on coupon image A Nature Made heatmap

25. Ten points to take home and implement • Use your top search words in your email copy • Drive opt-in using every media channel • Integrate email delivery with media launches • Let social networks carry the message • Ensure your service team takes advantage of the opportunity to build relationships

26. Ten points to take home and implement • Ensure your message renders correctly on a wide variety of devices and clients • Prepare a mobile landing page/call to action strategy now • Understand and leverage subscriber behavior • Leverage partners to grow your list • Test, optimize and embrace the notion of failure!

27. Thank-you!Continue this Conversation at the Email Evolution Conference in San Diego 2/12/08 Jeanniey MullenExecutive Director and Senior PartnerOgilvyOne WorldwideChairwoman Email Experience Council jeanniey.mullen@ogilvy.com David DanielsVice President andResearch DirectorJupiterResearchChairman Email Measurement Accuracy Coalition ddaniels@jupiterresearch.com