Savvy marketeers discovered a long time ago--relatively speaking-- that online marketing using e-mail is quicker, easier, and cheaper than traditional mass mailings. E-mail also makes it simple to test different promotions, different prices, different products, and other such aspects within a given list of prospective customers. And the results can be immediate and directly measured. There are two keys to getting great results.
Obtain a Good Mailing List
You can either purhase a mailing list, or develop your own. Your most successful list will be the one you compile yourself by acquiring the names and addresses of previous customers, persons who have expressed interest in your products, and others who have been in touch with your business. When customers visit your Web site, your brick-and-mortar store, or your booth at a trade show, give them an opportunity to place their e-mail addresses on your mailing list. Make sure the registration form tells them that you will use the addresses for marketing and promotion. For best results, give them the option to select the type of promotional material they will receive, or to opt out completely. This will ensure that you are reaching people who are truly interested in hearing what you have to say.
If you are just starting up your company, or if you have not yet developed your own e-mail list, you can rent a list from a compiler. (Compilers are companies who obtain information from public records and categorize them to fit the needs of marketers.) Experian, the credit tracking company, is one such compiler, but there are many others. Finding the right list can be confusing, but you can also contact a list broker to help guide your choice and get a good deal. This intermediary will examine your needs, then help you buy a list from someone else. Brokers have no accrediting organization, so request references and ask how the broker will be paid. Although you will find it cheaper to use a broker paid by the list owner, remember that the broker will be working for the owner of the list, not for you.
Whether you obtain the list directly or go through a broker, be sure to ask if the company will track the click-through rate, and if the company has the ability to send messages sorted according to zip code or area code. Most reputable companies will spend a brief amount of time helping you write or critiquing your message, says Maria DiSanto, owner of Key Promotions, an internet marketing firm based in Ft. Lauderdale, Fla.
Also consider whether you can communicate with someone at the company on the telephone, instead of solely relying on Web-based communication, DiSanto says.
How Does the Rental Process Work?
Lists usually are rented in batches of a thousand, with a minimum of 3,000 to 5,000 names for one-time use. Take the precaution of renting just a portion of the list for test marketing. If results are satisfactory, you can rent the entire list.
Some list owners may ask to see your marketing materials to verify that they do not offend the recipients. List owners may require a neutral party to do the mailing so that you never actually see the names and addresses on the list. List owners also may include "special" names on the list. These names return the mailing to the list owners and may indicate if someone has "stolen" the list by reusing it.
Because you will have to sign a contract in order to use the list, violation of that contract will leave you open to legal action.
Your negotiating options include asking for a discount or a rebate if the number of invalid addresses goes over a specified percentage.
How Can You Test a List?
Test your list at the beginning of a direct e-mail project by sending your e-mail to a small portion of the addresses on the list.
If the response is good, you know the list is good, and you should proceed with the project. A poor response means you need to revamp either the list or your marketing materials before continuing with the mailing. In fact, you may want to test several lists and compare results before deciding which one to rent. (Ensure that this is feasible by asking the list broker or list owner before making your payment.)
You may be tempted to skip an extensive testing process, but test results can save you a great deal of time and money. Of course, it’s easier to market without testing, but test results can help you fine-tune your marketing package and its presentation to make your mailing as effective as possible.
How effective is that? DiSanto estimates that a successful e-commerce campaign can result in a 5 to 17 percent response rate with 4 percent of those respondents becoming customers.
How Can You Create a Successful E-mail Message?
When marketing via e-mail, an attention-getting subject line is essential. The subject line should draw the reader into the body of the e-mail, where the first few lines should be the most riveting.
Compose your e-mail as if it were being sent only to one person. If possible, personalize it by putting the recipient’s name or geographic location in the subject line.
"Keep the message simple," says DiSanto. "Include your URL in the message. I’ve actually gotten messages that say, 'Click here,’ and there’s no link."
Provide information, as well as sales material, in your e-mails. "Many of us in Internet business have found there is a lot of value in publishing information for an audience as a way we can develop a reputation and a presence in our industry," says Al Bredenberg, publisher of The Direct E-mail List Source. "It’s what you might call a service market. It helps them [customers] to develop confidence in you."
How Can You Make Sure Your E-mails Are Welcome?
Spam, or unwanted e-mail solicitation, annoys many consumers. Some recipients participate in online efforts to keep their names off mailing lists and may even devise ways to cause technical problems for you.
If Internet service providers believe you are sending spam they can block your e-mails. So take the following precautions:
- Recognize the differences between e-mail and "snail" mail marketing.
- Be sure to purchase or rent only opt-in e-mail lists.
"People view their e-mail boxes differently from the way they view their post office boxes," says Bredenberg. "They’re more protective of their e-mail boxes. There’s a privacy issue and also a cost issue. If you send me a direct mail package, you pay the cost. But if you send me an e-mail message, I pay the cost of that. If I’m receiving spam e-mails all day long, you’re forcing me to bear the cost of your advertising. That’s not fair."
Be sure, advises DiSanto, that all persons on the list have asked to be included. When your customers give you their e-mail address make sure they realize that you plan to put them on an "opt-in" list, which means you will contact them to provide useful information and to promote your business and products.
As DiSanto notes, a spam list may cost only 2 to 3 cents per name, as compared to an opt-in list charging 15-20 cents per name; but the conversion rate for the opt-in list will be much higher.
If you use a self-generated list and plan to re-use it, keep copies of the forms on which customers gave you their addresses. If a customer later accuses you of spamming, you have the form to prove that the customer asked to be placed on the mailing list.
Each time you send a mailing, make sure it offers recipients the option to unsubscribe. If they ask you to remove their name from your mailing list, do so.
Be especially sensitive to consumer privacy. According to DiSanto, consumers who feel their privacy is being invaded with pushy e-mails "are in more of a position to retaliate" then those who receive a direct mail package in their post office box, Bredenberg warns. "On the Internet, they can create more trouble for business. Businesses have to assess the risk and use a low-risk strategy."
Successful Electronic Marketing
When Bredenberg worked as a senior editor at EdGate.com, Inc., the company marketed its series of newsletters for teachers by advertising in other e-mail newsletters. Bredenberg said that the company's subscriber list reached 20,000 in six months, and added, "Our Web site traffic ... increased in proportion to that."
"If you know your audience and your goals, you probably are headed for success," DiSanto says. "And you should always have a follow-up plan. If the mailing works, do more. If it doesn’t work, re-evaluate."
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