In recent years it seems as if E-Mail marketing has fallen by the wayside in light of emerging technologies and trends. Time and time again statistics have supported the profitability and legitimacy of E-Mail marketing, so it’s important to take a step back and see how E-Mail marketing is or more importantly isn’t, affecting your company.
Here are three questions to ask yourself or your marketing team in order to answer the bottom line; do we need to invest or reinvest in E-Mail marketing?

1) Have you forgotten about the basics?

In this new Web 2.0 world marketers are constantly scrambling to keep up with the latest trends, throwing money at anything deemed “cool,” “trendy,” or “popular.” At first glance new social outlets and advertising mediums may seem appealing, but sites such as YouTube, Twitter, Facebook, and Myspace have short track records in terms of performance and viewership capabilities. These mediums aren’t poor investments by any means, but more often than not companies are blinded by the popularity of new social sites and forget about the basics of interactive marketing; E-Mail marketing. 
In one Forrester survey E-Mail more than 80% of businesses surveys achieved a significant return on investment - double that of most other marketing initiatives. I highly doubt any current social media site can boast 80% ROI satisfaction for use of their advertising and marketing platforms.

There’s a reason social media and Web 2.0 technology is called the “frontier” of internet exploration; IT’S UNKNOWN TERRITORY. If you’re hoping to catch the wave early and become one of the first settlers on the new frontier, be prepared to sacrifice quite a bit of blood, sweat, and treasure. A word of warning though for those looking to brave these mysterious, ever-changing virtual landscapes;  by the time you and other businesses jump on the bandwagon, the consumer has most likely started getting off to ride the new model bandwagon – the one that has three axels instead of two.

BOTTOM LINE: Like my great grand pappy use to say, sometimes the best things in life are the simplest things; E-Mail marketing may not be as flashy as a MySpace page, but 9/10 it will dole out a much larger reward upon investment.

2) Are you putting your data to good use?

For those already utilizing E-Mail marketing it’s important to take a step back and review your E-Mail marketing process. Do you simply click “send” every two weeks to blast your newsletter or promotion? One of the foremost reasons E-Mail campaigns fail or plateau revolve around the marketers lack of interaction, understanding, diligence, or experience analyzing and applying the data generated by their E-Mail campaign.  E-Mail is light years ahead of almost every other advertising medium in terms of accountability and tracking, the question is whether you’re leveraging this unique capability or not. With the ability to instantly review the results of your efforts, it’s important to analyze the outcome through multiple lenses rather than just a couple such as “E-Mails opened,” “conversions,” or “bounced rates.”

As a rule of thumb every time you receive the results of an E-Mail blast you should be changing at least ONE aspect of your next E-Mail strategy or design. It’s entirely possible to deploy E-Mail blasts without acknowledging the data and still receive a good response and return. As a marketer you need to apply the data you receive in order to run a GREAT campaign. Just because you’re running a “good” campaign with minimal effort doesn’t change the fact that in reality you’re really running a poor to mediocre campaign.
The most effective E-Mail marketing is an evolutionary process consisting of hours, and hours, and hours (and hours) of data compilation, review, and reform. If you or your marketing team takes performs no action other than clicking “send,” odds are you’re missing out on the true strength of E-Mail marketing; quick, intuitive, statistically supported campaign adaptation.  

BOTTOM LINE: We don’t live in a static world; neither should your E-Mail marketing.  

 3) Are you maximizing your dollar during the recession?

Marketing departments across the world have been laying off employees in droves. Even higher level management today is looking for any way possible to show their superiors that they add value to the company. What would your superiors say if they saw you could not only boost revenue but cut costs at the same time?
Marketing budgets have shrank, but thankfully E-Mail marketing prices have stayed relatively the same – cost efficient. Of all the advertising mediums both virtual and physical, E-Mail marketing is among the most cost effective with the privilege of being able to boast one of the highest ROI’s. A single print ad can cost thousands upon thousands after the cost of graphic design and ad-space. Instead of paying $10,000-$25,000+ for one month of magazine advertising, you can run a four month e-mail campaign which normally entails better audiences, conversion rates, and accountability. If you find the costs of traditional advertising to be exorbitant, it may be time to dust off the E-Mail marketing proposal and take another look.

BOTTOM LINE: As the great Benjamin Franklin once said, “A penny saved is a penny earned.”

So ask yourself:

1) Would it be beneficial to scale back on costly new-age technology investments in order to temporarily invest in more dependable marketing initiatives?

2) Would it be beneficial to engage in an E-Mail marketing discovery phase to see if you’ve truly been interacting with your campaigns and applying the data you find?

3) Would it be beneficial to divert your limited budget to more cost effective (and often times profitable) marketing venture such as E-Marketing?

 

Project Manager, Lisa Seals, shared a great case study with us that she found on the Marketing Professionals site.  The study talks about how the Days Inn chain uses mobile text marketing as opposed to mass email marketing and rich media advertising to communicate with guests, build loyalty, increase revenue and provide value-add services.  The article boasts text marketing as “customer service 2.0” for the hospitality industry.  Here are a few key items Lisa shared with our Client Services team…

1. Building the opt-in list.  The campaign began by generating awareness for the new texting program - front-desk associates ask guests at check-in whether they'd like to participate.  Special contests are set in place driving people to text (and opt-) in order to win a weekend getaway.  The program was promoted through elevator notices, keycard holders, and other key collateral.

2. Engaging the opt-ins.  The chain implemented a marketing plan of text messages which consisted of general promotions, hotel-specific promotions, and customized messages based on guests’ specific needs.

3. Lessons Learned.  The chain used a double opt-in program to attract only those guests who were truly interested – guests were reassured that their information would not be shared.  The time of day for messaging was considered for nationwide messages and messages were managed on frequency depending on a guest's length of stay.

Days Inn had a 22% increase in room upgrades and substantial increases in website traffic through their text marketing campaign.  There was even an increase in the use of hotel amenities with a 15-20% increase in reward program signups – not to mention the immeasurable increase in brand awareness.
 

I came across a Mediapost article that I found very interesting because as a technical project manager at an online agency, I work with several clients that do market to the Spanish speaking community. It shows that most US Hispanics who prefer to speak Spanish are using a lot of websites outside of the US.  In fact, 7 of the top 10 are websites in Spain, Mexico and Columbia.  So companies that need to reach out to Hispanics need to find ways to advertise on these non-US websites in order to bring those customers back to their US websites.

Here are a few key points I got from this article:

1.US Hispanics who prefer Spanish prefer to read Spanish sites and most of them go to websites outside of the US to get the content they want.

2.To reach US Hispanic consumers, companies need to run their media and advertising on non-US Spanish websites.

3. US Spanish speaking consumers use non-US sites more than the major Spanish portals in the US, such as Yahoo! En Espanol, Univision, Telemundo and AOL Latino.

In addition to builing multilingual websites, Definition 6 is an interactive ad agency who helps clients strategize on how to best market to different segments, which can include cultural, regional or age groups.
 

Gabe Rand, a Definition 6 Client Manager, discussed an article he recently read in Fortune Magazine's Fast Forward...

Why Microsoft needs Yahoo to be competetive. The article discusses that even though Microsoft has caught up to Google search capabilties in terms of results that they are still losing market share.  This is due to a few factors, Microsoft uses live.com, which is relatively new and unknown as a search portal.  Microsoft is also battling the perception that Google is now the Technology giant, even beyond search, which is definitely not the case. For all of these reasons as well as the profitability and associated stock price of that profitability Microsoft will continue to pursue Yahoo's search business.  Microsoft is currently in talks with AOL and Time Warner about acquiring Yahoo's non-search business.

Gabe highlighted a few eye opening points from the article:
1. Microsoft needs Yahoo search to stay competetive.
2. Google is dominating the search market and is looking to partner with Yahoo, which would give an 80%+ market share.
3. Microsoft is willing to deal and push to make this happen.  Clients win with competition, no one wants Google to be the only one out there.

Gabe's closing thoughts to the group were that Google has operated successfully in a single business, search, and done extremely well, but that competition is healthy for web search engine optimization and to help control the costs of paid seo.  The full article can be viewed at: http://money.cnn.com/2008/07/03/technology/kirkpatrick_search.fortune/index.htm?postversion=2008070714

The needs of a user searching on a mobile device are different than one searching from a PC.

Today, a search on Google from a PC generates a massive Web “crawl” and returns pages and pages of search results with rankings based on number of daily hits a website gets or paid advertisement placement.  These rankings have little to do with the quality of the product or service.

In the mobile environment, such thoroughness can be the digital equivalent of using a shotgun to take out a housefly — way too much firepower for the task at hand.  Mobile consumers are typically on the run and have little patience for pages of search results and no patience for ads.  They want highly relevant and useful information.


By 2010, a growing segment will use wireless services to access the Internet 95% of the time.


Today about 1 billion people have PCs; about 3 billion have mobile phones and that number is expected to grow to 4 billion by 2010.

Search engines are trying to replicate a 20-inch experience on a 2-inch screen, and that's leaving them, inevitably, about 90% short.

Search engines that don't change could wind up following in AOL's famous footsteps. AOL in the '90s was an online juggernaut with a gold-plated brand name and more than 30 million subscribers. Today, it's a free service with a dwindling base of about 8.7 million customers.

Google is making a few accommodations.  Instead of giving wireless users pages of search results, for example, it only offers "snippets" — Google-speak for the first few search results that appear at the top of the page.  It's also limiting the number of ads to one or two per search.

They are also pushing the development of an open wireless operating system — dubbed Android — that would make it easier for consumers to use Google's mobile services.  Android-loaded devices are expected to hit the market later this year.


Bottom  line:  Unless traditional search engines adapt, they will be come dinosaurs.

A lengthy article appeared in USA TODAY:  http://www.usatoday.com/tech/products/services/2008-06-09-mobile-search_N.htm?loc=interstitialskip

Definition 6 helps clients with mobile marketing campaigns and can help you understand Web 2.0 and 3.0 trends.

Lynn Moss
Def 6 Client Manager