creating customer acquisition and retention by means of permission based email marketing
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Creating Customer Acquisition and Retention by means of Permission Based Email Marketing
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Clients
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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
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The Days of “Dumb Email” Are Over!
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Email Marketing Is Growing Quickly
Source: Forrester Research, 2002
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Consumers Trust Email Newsletters
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Email Versus Phone
In you were without e-mail service or phone service for five days, which would cause the greatest difficulty?
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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
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Permission Marketing
Anticipated – people look forward to hearing from youPersonal – message is directly related to the individualRelevant – content is something they are interested in
“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.”
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Retention Marketing
Email is most effective for retention!
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Retention Marketing
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Retention vs. Acquisition
($12)
$34
New Customer3rd YearCustomer
Monthly Revenue
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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
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Retention vs. Acquisition
Retention rates go up over time
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Percentage Retained
from Previous
Year
1 2 3 4 5
Years as a customer
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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%
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Database Marketing: True One to One
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Smarter Marketing
Email enables…
marketers and business owners to deliver on the promise of true one-to-one marketing.
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Personalization & Targeting
How can you break through the
Increasing Inbox Competition?
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Personalization & Targeting
Personalize for Increased Response Email Response Rates by Number of Personalization Elements
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Personalization & Targeting – First Stage
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Personalization & Targeting – Second Stage
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Personalization & Targeting – Third Stage
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Indianapolis Colts Example
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Home Depot Example
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Testing & Optimization
Leverage the Three T’s of Email Marketing
Testing-Test one element at a time -Each email is a chance to learn
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Lower Price Point - Test! Test! Test!
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Lower Price Point - Mail Best Offer to Entire List
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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?
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Testing & Optimization – Timing of Delivery
When is your audience most receptive?
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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?
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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!
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Tracking Results
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Tracking Results - Surveys
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Tracking Results - Surveys
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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
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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
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SPAM & Email Deliverability
Increase in Spam Filtering
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Opportunity:Help Clients Maximize Delivery
Help them Understand:
- Content Filtering
- Volume Filtering
- IP Filtering (Blacklisting & Whitelisting)
- List Quality Filtering
SPAM & Email Deliverability
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SPAM & Email Deliverability
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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.
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How To Get Started?
Step 2: Build your list
A. 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
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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
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