Successful E-Mail Marketing

Originally Published: June 2005

While spam laws and filters have reduced companies’ reliance on e-mail marketing over the last year or so, it remains a very effective tool for customer relationship building and management. In addition, e-mail continues to be effective at maintaining and building those relationships into greater sales over time. While the shine has somewhat come off using e-mail as a lead generation tool, the cost-benefit efficiency of the medium begs for its continued and even expanded use.

In a recent report by eMarketer, their researchers state that e-mail lags behind telemarketing, direct mail, catalogs and coupons in response rate at 1.12%. However, e-mail marketing ranked second in overall direct marketing efficiency when the researchers factored in cost per contact and revenue per contact along with the response rate. By factoring in the cost and revenue per contact, e-mail jumps to the front of the pack, placing behind only telemarketing and above such direct marketing stalwarts as direct mail, newspaper, radio, television, catalogs and coupons in overall cost-benefit efficiency.

However, there are some guidelines marketers should follow when instituting an email program:
- Use e-mail as part of an integrated marketing plan
- Set up a user-friendly e-mail registration form on your website and obtain opt-in (or double opt-in) permission before sending out an email campaign
- Make sure the message complies with current spam laws
- Use only relevant content and give customers what they want instead of what you want to push on them
- Clearly communicate one strong call to action per email as multiple marketing messages in the same communication can confuse recipients and dilute your message
- Personalize your email campaign

The first step in a successful customer relationship building e-mail campaign is to use it as part of an overall integrated marketing plan. E-mail is only one of many effective marketing tactics for building relationships and generating sales, and like all other tactics, it is most effective when used in combination with multiple forms of marketing.

It is always extremely important that your e-mail campaign be directed only to those that have opted-in or double opted-in to your e-mail list. Sending unsolicited email not only lowers your response rate but also if you don’t follow current spam laws closely, can land your campaign in hot water. In order to build a strong opt-in list, it is important that you make it very easy for your website visitors to register to receive emails. Silverpop conducted a study on e-mail marketing and found that as many as 23% of companies in their study failed to include email registration forms on their website homepage. By doing so, companies drastically limit their ability to build strong email lists of willing and oftentimes eager recipients.

Along with a high percentage of companies burying their email registration forms on internal pages, Silverpop found that nearly 80% of companies only offer one choice of communication vehicle when registering. Instead of offering prospects the choice of selecting one or more vehicles like a newsletter, notices of sales or special discounts, coupons, etc., most companies only offer a check box that opts-in to receive emails from the company. Silverpop stated, “The ability to provide content preferences and a variety of choices can help increase the number of people who will opt-in to receive email messages from a company because they know the communications will be more tailored to their needs.” Offering a variety of communication options allows customers to tailor the messages they receive, making them more likely to open and respond to your email campaign.

Along with offering various communications options, you should use only relevant content in your emails. Basically, give customers what they want instead of what you want to push on them. Clearly communicate one strong call to action per email as multiple marketing messages in the same communication can confuse recipients and will dilute your message.

Once you have created a strong message, test it on a small segment of your list. Try sending the messages at different times and different days and measure the open and click-through rates. This will help you establish the optimal day and time to send emails to your list. Also, try sending email with the same overall message or offer but with different content. This will help you establish what type of content your audience prefers and/or responds to.

In addition to the content of your email, personalization can also have a profound impact on building customer relationships. However, few companies make the effort to personalize emails, even when a prospect specifically requests a communication from a company. Silverpop’s study found that 75% of retailers do not respond to prospects’ requests with even simple personalization like the recipient’s name. In a traditional sales setting where a salesperson meets with a prospect directly, it is important for that salesperson to build rapport and confidence in the prospect by using such techniques as repeating the prospects name. E-mail communication can and should be the same way. Personalizing e-mail can be your company’s virtual handshake to a prospect. Along with Silverpop’s findings, recent studies by JupiterResearch have shown that response rates increase when even simple personalization is used.

While e-mail is not as effective when used purely as a prospecting tool, it can be very effective at building customer relationships and driving sales over the long term. According to BtoB magazine, “when properly used, e-mail can balance low costs and high response rates better than other marketing media. But, the challenge is to maximize its effectiveness through improved content, targeting and tracking.” By following some simple guidelines, you can create a successful email campaign. Your customers are looking for prime rib; don’t make them settle for spam.