2002 L-Soft

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
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
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
Defining e-Mail Marketing Objectives
2002 L-Soft
e-Mail marketing campaign response
rates by campaign objective
15.30%
15.20%
17.10%
7.90%
5.60%
6.80%
Leads
Sales
Awareness
Conversion
CTR
Source: IMT Strategies, September 2001
2002 L-Soft
Conversion Costs for Retention and
Acquisition Goals


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

Determining Effective Strategies
2002 L-Soft
E-mail overload: Number of e-mail
marketing e-mail sent in the US




939
796
674
549
430
289
0 500 1000
2006
2005
2004
2003
2002
2001
Source: Forrester Research, August 2001
Reaching your Target Audience
2002 L-Soft
Response to permission e-mail versus
unknown senders
52%
21%
15%
12%
1%
3%
6%
29%
49%
13%
0% 20% 40% 60%
Delete
Open but annoyed
Indifferent
Curious to read
Eager to read
Unknown senders Permission e-mail
2002 L-Soft
Opt-in, opt-out, double opt-in, spam:
Preferred e-mail marketing methods
64%
31%
4%
1%
Double Opt-In
Opt-in
Opt-out
Spam
Source: Opt-In News, May 2002
2002 L-Soft
CTR and Conversion rate of US e-mail
marketing campaigns for permission
based lists
2.10%
7.80%
7.00%
17.80%
0% 5% 10% 15% 20%
Unsubscribe
Bounce
Net
conversion
Click-
through
Source: IMT Strategies, Sept. 2001
2002 L-Soft
US Consumers Privacy concerns
69%
70%
75%
66% 68% 70% 72% 74% 76%
Hackers will
steal info
Transactions
not secure
Sharing info
with third
parties
Source: Harris Interactive, February 2002
2002 L-Soft
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
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
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 theyre likely to be
interested in
2002 L-Soft
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
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
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 dont re-use the same content
Relevance the more you understand your customers,
the more targeted and relevant messages will be
Frequency
Test messages
Creating the Content
2002 L-Soft
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
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

Evaluating results
2002 L-Soft
Response time and cost per unit, e-mail
vs. direct mail
Be prepared to handle responses
E-Mail Direct Mail
Response
Time
3 days 3-6 weeks


Cost per unit $0.25 $1.25
Source: DMA, Forrester Research, Gartner Group, 2002
2002 L-Soft
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

Outsource your list hosting
Reliability and experience
Redundant servers and
delivery capacity
Flexibility to maintain
company Internet presence
Ability to move from
hosting to in-house when
ready
More expensive
Rely on companys
schedule

To Outsource or not to Outsource
2002 L-Soft
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