Chapter 7 Email marketing

1. Email marketing - Cost-effective alternative to direct mail Emails can be developed quickly, tested,
revised on the fly based on almost immediate feedback and can reach many Internet users in a short
period of time.

 Lower cost
 Quicker results
 Higher response

Similarities with Direct mail

 Means of direct communication

 Solid offer, deadline to act

Email marketing is the king of the marketing kingdom – Fast, flexible and controllable format

 ROI - $44 for every $1 spent

2. Levels of permission marketing

Permission-based marketing is the only responsible way to conduct email marketing campaigns.
Reputable marketers do not want to be identified with spam in the minds of the consuming public. In
order not to be considered a spammer, the marketer must obtain permission from the customer or
prospect before sending email. 4 levels of permission:
  Opt-out – means that the visitor DID NOT refuse to receive further communication from the
marketer. This is an improvement over spam, but it does not represent a high level of
commitment on the part of the visitor. Usually there is just a check box that needs to be
unchecked to opt-out. Often collects email addresses via online registration. People become
members of the list by default. This often happens by an already-checked box saying “Send
me an email”. Even if the company decides to pre-check the box a statement should be made
in order to inform the user to what is he agreeing. The statement should be unambiguous
and located in a visible place. All emails must have a clear option to unsubscribe. YOU MUST
UNCHECK THE BOX
 Opt-in – means that visitors have actively chosen to receive further communications, usually
by checking a box on a registration form. It represents active enthusiasm about receiving
future communications from the marketer. YOU MUST CHECK THE BOX
 Double opt-in – technique in which visitors agree to receive further communications
probably by checking an opt-in box on a site, and are then sent an email asking them to
confirm their consent by replying to the email. This approach should indicate an interested,
potentially well-qualified prospect.
 Confirmed opt-in – between the previous two. Users are sent an email to confirm
permission, but no reply is required.

3. Developing an email marketing campaign

 Gather customer data – contact info, email. Purchase history and a record of all customer
interactions. Also the type of info (offer) they wish to receive. And privacy preferences
 Derive customer insight – using the different types of info, begin to understand what the
customer needs and values. The most valuable type of understanding is what should come
next in the purchase cycle – an extended warranty program for a recently purchased
appliance, for example.
 Suggest proactive action – move from analysis to action. Email programs are developed,
executed and refined based on the result in the customer database.
 Evaluate response – metrics collected and analyzed to suggest new strategies and refine
current ones. Encourage feedback from recipients for further understanding.
More detailed approach:

 Build or obtain an email – build permission-based list and rent email lists (investigate them
for privacy preferences)
 Profile and segment the list – descriptive profile, demographical or lifestyle segments.
Companies should know who exactly to target in order to get the best desired response
 Establish a communication schedule - mailing schedule and stick to it. Ask subscriber for
preferences and send email based on those and the schedule that his has dictated.
 Identify the target segment and communication objectives
 Write compelling copy – email copy should be only as long as is necessary to convince the
recipient to take the desired action.
 Structure email to be received and opened – be aware of spam filters. The “from” header
and subject are important.
 Create links to further info
 Make it easy for readers to take action
 Test and revise emails
 Measure results
 Integrate learning into next email campaign

4. Email design

Should have clearly defined call to action, with a time deadline. Should include good pre-header.

Subject line is pre-determinant for open rate.

Hard bounce email – means the email address is bad or truly undeliverable

Soft bounce – means the email could not be delivered at that particular rime, perhaps because of a
system problem

5. The golden Rs of Email marketing and targeting, personalization and customization

 Targeting – directing marketing communications to individuals or businesses that have been

identified as valid prospects for acquisition or retention for the good or service. Visible –
email, invisible – targeted ads
 Personalization – creation of specialized content for a prospect with a known profile by
choosing from an array of existing content modules.
 Customization – creation of new content, service or even products based on the needs and
wants of an individual customer. Nike ID

Golden Rs – an approach that can give marketers the best chance of emails being opened and acted
upon.

 Relevance – all content should be applicable to the recipient’s needs and life-style
 Respect – relevant content cannot be generated without in-depth info. In order to get the
info and keep the trust of the recipient, the sender of emails must guard data from
unwarranted or frivolous use
 Recipient control – make the recipient active partner in deciding what content he wants to
receive and how often.
US CAN-SPAM Act

Mobile Marketing – a multi-channel, digital marketing strategy aimed at reaching a target audience
on their smartphones, tablets and other mobile devices, via websites, email, SMS, social media and
apps.

New technologies being introduced at the increasing speed

Consumer adoption of technology innovations – according to adoption process consumer must first
become aware, then develop an interest, perform some prepurchase evaluation, and then try the
product, either as a consequence of a purchase or of a marketer-sponsored promotion or incentive.
Two important stages follow trial:

 Consumer must decide to purchase/continue purchasing the product, which can be

behaviorally identified as adoption.
 Internalization – the product has become an integral part of the life of the customer. This is
the case of technology because customers pretty often have to undergo a substantial learnin
process. Consumer have to be willing to undertake the learning process, and only if the
process is successful, the product is internalized and becomes integral part of consumer’s

lifestyle.
Adoption chasm – technologies may have initial success among the innovators and early
adopters, but it is their ability to “cross the chasm” and penetrate the mainstream market
that separates the successful from the unsuccessful technology product.
  Why are some products easily adopted? (Right graph)

 Relative advantage – degree to which product benefits are perceived to be superior to those
of existing products
 Compatibility (съвместимост) – consistency between the new product and consumer’s
perceptions of and behaviors towards existing members of the product category
 Complexity – the extent to which the new product is difficult to learn to use
 Trial-ability – the extent to which the new product can be tried on a limited modular basis
 Observability – the degree to which the benefits of the product are evident to or can be
communicated to the prospective customer

2 Essential steps
 Make your website mobile friendly – 53% of mobile users abandon sites that take more than
3 second to load. 2 options
o Create a mobile sub-domain and automatically redirect mobile users to it
m.wikipedia
o A website which automatically adapts its layout to different devices, users,
environments
 Bring “Mobile” into marketing mix

Drivers for mobile marketing

 Location – geofencing enables targeting customers based on “proximity” (location-based

marketing)
 Timing – in the moment of need, customer turn to the nearest device - a smartphone. Firms
need to understand these moments and accompany the customer journey. Google Maps
traffic alert before meetings
Create a useful mobile app - the key is to understand the customer

So-Lo-Mo short for social-local-

mobile, refers to a more mobile-
centric version of the addition of local
entries to search engine results. It
emerged as a result of the growing
popularity of smartphones and
provides greater local precision to
search engine result than what’s
available via a PC.

https://www.youtube.com/watch?v=GSLIsXvoG88

The future of online shopping is multi-device, not mobile

 Problem: Conversion rates for mobile devices are low.

o Mobile device – good tool for search
o Non-mobile – good tool for making purchases (more security)
o Path to purchase includes search on a mobile phone