| Reggie Brady Marketing Solutions 203-838-8138 | |||||||||||
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| Reggie's articles appearing in Target Marketing Magazine | |||||||||||
| The Importance of E-mail …And why it should be part of your marketing mix January 2006 BY REGINA BRADY If you follow Internet marketing, you’ve been inundated with coverage of the importance of search engine marketing, blogs, RSS feeds, etc. Each of these techniques may have a place in your marketing planning, but it’s time to underscore the importance of email as a critical component of your marketing planning. As a retention and loyalty-building channel, email can even surpass direct mail the industry’s “workhorse.” Here are nine reasons why email should be part of your marketing mix. 1. It is cheap! The cost to communicate with existing leads, prospects and customers can range from almost no cost (if you send emails internally) to very low cost ($1 - $10/M )if you outsource delivery. A good retention email marketing program should represent less than five percent of your entire marketing budget. While most readers of this column are direct mail marketers, you can’t argue with the facts: Direct mail is expensive; and soon rates will rise even further with the upcoming postal increase. Email affords you the opportunity to reach out and touch your audience more often to create a deeper relationship. 2. It provides a substantial return on investment (ROI). A well-constructed email stimulates interaction. Recipients are motivated to purchase a product, register for an event, request more information or read additional Web content. On average emails generate a seven percent click-through rate. These are individuals interested enough in your message to learn more. Studies have shown that between 4 and 5 percent of those who click will purchase. When coupled with the relatively low communication cost of email, means a strong ROI. 3. It is the primary way to leverage your investment in your Web site. Most sites actually get enough traffic. The real issue is more than 80 percent of site visitors never return. This is a lost opportunity! If you prominently feature on your Web site a value proposition that establishes why visitors should sign up for your email program, you’ll receive permission to develop and sustain that relationship. They’ve specifically told you they want to hear from you. What a wonderful thing! 4. It is a great way to leverage other marketing activities. There have been many studies done on the importance of multi-channel marketing and the substantial increase in sales marketers gain from customers who purchase in more than one channel. If you’re sending a direct mail campaign, consider using email to pre-announce your mailing. Include your toll-free number in every email to allow customers to order from your call center if they prefer. Drive retail traffic by promoting store locations or even a particular store near a customer. 5. You get tracking “on steroids”. Direct mail marketers would die to know how many people opened their mailings. Email marketers know who opened a message (assuming it was HTML). And, they can track what particular parts of the message got attention, down to the level of which customers or prospects clicked through on a specific product, piece of content or offer. You have the ability to easily track every click-through on an aggregate level and an individual level. 6. You can personalize and speak directly to your audience. Even the most basic email solutions allow you the ability to personalize subject lines and salutations. We all know that the eye is drawn to our own name in any medium. This tactic will increase interaction. But that’s just the beginning. Advanced email capabilities allow you to present prior order histories, particular products based on prior orders, or geographically pinpointed messages. You can use triggered messaging to pre-establish alert and reminder messages based on market conditions or timing that are tailored to the interests of your customers. Examples include renewals, cross-sell and up-sell offers based on prior purchase, last chance announcements for customers to take advantage of a promotion, or even to alert customers with abandoned shopping carts that they can complete their order. The beauty of this technique is that you create the message and contact rules once and messages automatically are sent when the condition arises. 7. You get deeper segmentation options. All good email tracking provides tracking information down to the individual level. You should be easily able to drill down to determine who clicked through on items of interest. One click may not be a powerful indicator. However, if you have the ability to analyze activity over multiple campaigns you can identify a group of recipients who show an interest in a particular facet of your communications through multiple click throughs. Now, you have information to build a specialized and targeted effort based on specific interest. For example, a marketer of music CDs can identify specific genres and artists of particular interest to a group of customers based on their click-through activities over several campaigns and tailor subsequent offers based on that knowledge. 8. Customization does not mean confusion. Direct marketers are schooled in analysis. Advanced email techniques, such as dynamic personalization, easily allow marketers to customize and personalize messages. All recipients may receive a campaign, but one portion of the email might be customized to the individuals’ particular interests, demographics or geographical area. As a marketer you can begin to capitalize on the specific interests of each customer or prospect. 9. Your customers expect it. Today, consumers — whether at home or in business — want to control the relationship. They want to understand your company and do business with you on multiple levels. They want to develop a sense of who you are, what you do and whether you care. A well-constructed email program can buttress the relationship. Consumers want to be in touch with you on their terms. I was surprised by Silverpop’s recent study of major retailers that represented brand names we would all recognize. Slightly over 30 percent did not appear to have an email program. They are missing the boat! So, don’t ignore a vital channel. When done right, it will not “break the bank” — email should be a low-cost and effective way to build your list of qualified prospects and customers, stimulate awareness and loyalty, and return a healthy ROI. Regina Brady is president of Reggie Brady Marketing Solutions, a direct and e-mail marketing consultancy. She can be reached at (203) 838-8138 or reginabrady@att.net. Return to Articles | |||||||||||
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