Building Effective Email Marketing Campaigns

1. Building Effective Email Marketing Campaigns BUILDING EFFECTIVE EMAIL MARKETING CAMPAIGNS HOW-TO GUIDE

2. 2 Building Effective Email Marketing Campaigns How-to Guide Unique Opens: a single open by a single user. Unique Clicks: a single click by a single user. Hard Bounces: a permanent failure due to a non-existent address or a blocking condition by the receiver that returns the email to the server that sent it. Soft Bounces: a temporary failure due to a full mailbox or an unavailable server that returns the email to the server that sent it. This report has been designed to provide practical advice for building an effective email marketing campaign. Read this brief report to learn how to: Read this report and avoid the common mistakes and pitfalls of email marketing. HOW-TO GUIDE Identify the benefits & risks of email marketing Build a business case for an email marketing initiative Improve your delivery rates Track key email metrics Follow email marketing best practices Building Effective Email Marketing Campaigns “E-mail marketing is a form of direct marketing that uses electronic mail as a means of communi- cating messages to an audience. This term usually refers to emails that are being sent over the internet and can include: Sending e-mails with the purpose of enhancing the relationship of a merchant with its current or old customers and to encourage customer loyalty and repeat business. Sending e-mails with the purpose of acquiring new customers or convincing old customers to buy something immediately. Adding advertisements in e-mails sent by other companies to their customers.” Email Marketing Defined Other Important Definitions: 2 Building Effective Email Marketing Campaigns How-to Guide Unique Opens: a single open by a single user. Unique Clicks: a single click by a single user. Hard Bounces: a permanent failure due to a non-existent address or a blocking condition by the receiver that returns the email to the server that sent it. Soft Bounces: a temporary failure due to a full mailbox or an unavailable server that returns the email to the server that sent it. This report has been designed to provide practical advice for building an effective email marketing campaign. Read this brief report to learn how to: Read this report and avoid the common mistakes and pitfalls of email marketing. HOW-TO GUIDE Identify the benefits & risks of email marketing Build a business case for an email marketing initiative Improve your delivery rates Track key email metrics Follow email marketing best practices Building Effective Email Marketing Campaigns “E-mail marketing is a form of direct marketing that uses electronic mail as a means of communi- cating messages to an audience. This term usually refers to emails that are being sent over the internet and can include: Sending e-mails with the purpose of enhancing the relationship of a merchant with its current or old customers and to encourage customer loyalty and repeat business. Sending e-mails with the purpose of acquiring new customers or convincing old customers to buy something immediately. Adding advertisements in e-mails sent by other companies to their customers.” Email Marketing Defined Other Important Definitions:

3. 3 Building Effective Email Marketing Campaigns How-to Guide Open Rate: the total number of emails opened divided by the total number of emails delivered as a percentage. Click Through Rate (CTR): the percentage of those clicking on a link out of the total number who see the link. Click To Open Rate (CTOR): the ratio of unique clicks as a percentage of unique opens. Conversion Rate: the number or percentage of visitors who convert casual content views or website visits into desired actions. Lower Cost: email marketing provides a very inexpensive way of communicating with your target audience. Increased Sales: not only can a permission based email campaign increase your sales conver- sion, but it can also help to generate repeat business and cross/up sell existing customers. Faster Delivery: email provides a faster medium than traditional forms of marketing (i.e. direct mail) because it reaches your audience almost immediately. Build Relationships: email allows you to make your customers happier by keeping them “in the loop.” It also provides the opportunity to raise brand awareness by reaching out to customers while positioning yourself as you would like to be seen in the market. Go Green: email is an environmentally friendly way of reaching out to prospects and customers. Save Time: emails are quick to create and allow for more frequent contact. Measure Results: email metrics are displayed almost immediately. By tracking and monitor campaigns, email marketers have the ability to improve and refine their strategy over time. Many companies have been able to reduce their marketing costs by running effective email marketing campaigns. According to the Direct Marketing Association, email will deliver $45.56 in sales for every dollar spent in 2008. Although this indicates a steady decline in the ROI associ- ated with email marketing in recent years, the tangible and intangible benefits of email marketing can’t be ignored. Most companies are using email marketing for the following reasons: Benefits of Email Marketing 3 Building Effective Email Marketing Campaigns How-to Guide Open Rate: the total number of emails opened divided by the total number of emails delivered as a percentage. Click Through Rate (CTR): the percentage of those clicking on a link out of the total number who see the link. Click To Open Rate (CTOR): the ratio of unique clicks as a percentage of unique opens. Conversion Rate: the number or percentage of visitors who convert casual content views or website visits into desired actions. Lower Cost: email marketing provides a very inexpensive way of communicating with your target audience. Increased Sales: not only can a permission based email campaign increase your sales conver- sion, but it can also help to generate repeat business and cross/up sell existing customers. Faster Delivery: email provides a faster medium than traditional forms of marketing (i.e. direct mail) because it reaches your audience almost immediately. Build Relationships: email allows you to make your customers happier by keeping them “in the loop.” It also provides the opportunity to raise brand awareness by reaching out to customers while positioning yourself as you would like to be seen in the market. Go Green: email is an environmentally friendly way of reaching out to prospects and customers. Save Time: emails are quick to create and allow for more frequent contact. Measure Results: email metrics are displayed almost immediately. By tracking and monitor campaigns, email marketers have the ability to improve and refine their strategy over time. Many companies have been able to reduce their marketing costs by running effective email marketing campaigns. According to the Direct Marketing Association, email will deliver $45.56 in sales for every dollar spent in 2008. Although this indicates a steady decline in the ROI associ- ated with email marketing in recent years, the tangible and intangible benefits of email marketing can’t be ignored. Most companies are using email marketing for the following reasons: Benefits of Email Marketing

4. 4 Building Effective Email Marketing Campaigns How-to Guide When it comes to email marketing you need to be aware of all the legislation restricting the use of email before beginning any campaign – regardless of your intentions. In the United States, the Federal Trade Commission (FTC) is authorized to enforce the CAN-SPAM Act. This act also gives the Department of Justice the authority to enforce criminal sanctions for the improper use of email. Click here for more information on the CAN-SPAM Act. The bottom line is that this law has 4 main provisions: It bans false or misleading header information It prohibits deceptive subject lines It required that you give recipients an opt-out method It requires that commercial email be identified as an advertisement and include the sender's valid physical postal address. The penalties for not complying with this Act are severe and can include hefty fines. Not only can an illegal email marketing campaign hurt your company financially, SPAMMING can also damage your brand, hurt relationships with customers/prospects, and make you appear desperate. Email Marketing Risks Send Email only when it’s Relevant: send emails based on what you know about the recipient (i.e. where they are in the buying cycle, what content they have requested, etc.). It is also important to make sure you show respect for recipient’s time by sending emails at the frequency the recipient asks for. Establish Credibility: the consistency and timeliness of communication has an impact on your brand. By maintaining consistent communication and delivering content that is valuable to the recipient you will improves your brand image and create longer customer relationships. Include a Privacy Policy Link: ensure that prospects and customers know what you plan to do with their personal information by creating a privacy policy that is easily accessible. Make Unsubscribe Easy: make sure the unsubscribe link is easily noticeable, clearly defined and easy to use. Have a Clear Call to Action: don’t send an email unless the required action is easy to under- stand and will provide value to the recipient. As discussed above, email marketing can tarnish your brand if it’s not done correctly. Follow these simple guidelines to ensure your next email marketing campaign will provide you with a solid ROI. Email Delivery Best Practices 4 Building Effective Email Marketing Campaigns How-to Guide When it comes to email marketing you need to be aware of all the legislation restricting the use of email before beginning any campaign – regardless of your intentions. In the United States, the Federal Trade Commission (FTC) is authorized to enforce the CAN-SPAM Act. This act also gives the Department of Justice the authority to enforce criminal sanctions for the improper use of email. Click here for more information on the CAN-SPAM Act. The bottom line is that this law has 4 main provisions: It bans false or misleading header information It prohibits deceptive subject lines It required that you give recipients an opt-out method It requires that commercial email be identified as an advertisement and include the sender's valid physical postal address. The penalties for not complying with this Act are severe and can include hefty fines. Not only can an illegal email marketing campaign hurt your company financially, SPAMMING can also damage your brand, hurt relationships with customers/prospects, and make you appear desperate. Email Marketing Risks Send Email only when it’s Relevant: send emails based on what you know about the recipient (i.e. where they are in the buying cycle, what content they have requested, etc.). It is also important to make sure you show respect for recipient’s time by sending emails at the frequency the recipient asks for. Establish Credibility: the consistency and timeliness of communication has an impact on your brand. By maintaining consistent communication and delivering content that is valuable to the recipient you will improves your brand image and create longer customer relationships. Include a Privacy Policy Link: ensure that prospects and customers know what you plan to do with their personal information by creating a privacy policy that is easily accessible. Make Unsubscribe Easy: make sure the unsubscribe link is easily noticeable, clearly defined and easy to use. Have a Clear Call to Action: don’t send an email unless the required action is easy to under- stand and will provide value to the recipient. As discussed above, email marketing can tarnish your brand if it’s not done correctly. Follow these simple guidelines to ensure your next email marketing campaign will provide you with a solid ROI. Email Delivery Best Practices

5. 5 Building Effective Email Marketing Campaigns How-to Guide Personalize the Email: include the recipient’s name and ensure the spelling is correct. Monitor and Measure Campaigns: it is critical that metrics are identified well in advance and improvements are made over time. Include both Plan Text and HTML: it is important that the formatting is done properly. Emails should be tested to ensure they can be seen properly on different screen sizes, with different browsers and on Blackberry’s. Subject Line should be Clear and Concise: as a general rule of thumb, try not to include a dollar sign, the word free, or multiple exclamation marks as they increase the likelihood of being identified as spam. Use a subject line that actually speaks to what is in the email. Keep the Sender Consistent: make sure the sender is well known and well respected. Use someone from the company instead of a generic email account. Clean your List: keep your list of subscribers clean by asking receivers to update their informa- tion on an ongoing basis. Monitor and Classify your Bounces: this will help to ensure your lists are clean and up-to-date. A review of your bounces will also help you understand why emails are undeliverable (ISP, Domain, etc.) and adjust your strategy accordingly. Use Email Marketing as part of an Integrated Marketing Plan: email alone will not allow you to achieve your desired end result. Read Demand Metric’s report on “Integrating Lead Generation Campaigns” for practical advice on how to use email as part of an integrated marketing plan. Open rate Click-through rate Click to open rate Bounce rate Delivery rate Unsubscribe rate Depending on your objectives, there are many metrics you can monitor. The most popular performance based metrics include: Benchmarking & Metrics Referral rate Subscriber retention Number of orders, transactions, downloads or actions Total revenue Conversion rate 5 Building Effective Email Marketing Campaigns How-to Guide Personalize the Email: include the recipient’s name and ensure the spelling is correct. Monitor and Measure Campaigns: it is critical that metrics are identified well in advance and improvements are made over time. Include both Plan Text and HTML: it is important that the formatting is done properly. Emails should be tested to ensure they can be seen properly on different screen sizes, with different browsers and on Blackberry’s. Subject Line should be Clear and Concise: as a general rule of thumb, try not to include a dollar sign, the word free, or multiple exclamation marks as they increase the likelihood of being identified as spam. Use a subject line that actually speaks to what is in the email. Keep the Sender Consistent: make sure the sender is well known and well respected. Use someone from the company instead of a generic email account. Clean your List: keep your list of subscribers clean by asking receivers to update their informa- tion on an ongoing basis. Monitor and Classify your Bounces: this will help to ensure your lists are clean and up-to-date. A review of your bounces will also help you understand why emails are undeliverable (ISP, Domain, etc.) and adjust your strategy accordingly. Use Email Marketing as part of an Integrated Marketing Plan: email alone will not allow you to achieve your desired end result. Read Demand Metric’s report on “Integrating Lead Generation Campaigns” for practical advice on how to use email as part of an integrated marketing plan. Open rate Click-through rate Click to open rate Bounce rate Delivery rate Unsubscribe rate Depending on your objectives, there are many metrics you can monitor. The most popular performance based metrics include: Benchmarking & Metrics Referral rate Subscriber retention Number of orders, transactions, downloads or actions Total revenue Conversion rate

6. 6 Building Effective Email Marketing Campaigns How-to Guide Action Plan STEP 1 - Business Case 3 Develop 1 Business Case 7 Launch 8 6 Test 4 Build Lists 2 Select 5 Create Consider these Best Practices for creating an effective email marketing campaign. Use Demand Metric’s Business Case Template to provide an opportunity overview and document objectives, requirements, scope, timelines, budget and benchmarks. Build a Business Case Business Case Template V I E W R E S O U R C E Review 6 Building Effective Email Marketing Campaigns How-to Guide Action Plan STEP 1 - Business Case 3 Develop 1 Business Case 7 Launch 8 6 Test 4 Build Lists 2 Select 5 Create Consider these Best Practices for creating an effective email marketing campaign. Use Demand Metric’s Business Case Template to provide an opportunity overview and document objectives, requirements, scope, timelines, budget and benchmarks. Build a Business Case Business Case Template V I E W R E S O U R C E Review

7. 7 Building Effective Email Marketing Campaigns How-to Guide Action Plan STEP 2 - Select It is critical that you evaluate vendors based on your busi- ness requirements. Demand Metric’s Email Marketing Vendor Evaluation Matrix provides a structured approach to evaluating vendors and should be used as a customiz- able framework. Select the Right Vendor Email Marketing Vendor Evaluation Matrix 3 1 Business Case 7 8 6 4 2 Select 5 V I E W R E S O U R C E Develop Build Lists Create Test Launch Review 7 Building Effective Email Marketing Campaigns How-to Guide Action Plan STEP 2 - Select It is critical that you evaluate vendors based on your busi- ness requirements. Demand Metric’s Email Marketing Vendor Evaluation Matrix provides a structured approach to evaluating vendors and should be used as a customiz- able framework. Select the Right Vendor Email Marketing Vendor Evaluation Matrix 3 1 Business Case 7 8 6 4 2 Select 5 V I E W R E S O U R C E Develop Build Lists Create Test Launch Review

8. 8 Building Effective Email Marketing Campaigns How-to Guide Action Plan STEP 3 - Develop Use our Lead Generation Strategy Scorecard to set your strategic objectives, initiatives, measures and targets. Develop an Email Marketing Strategy Lead Generation Strategy Scorecard 3 Develop 1 7 8 6 4 2 5 Select V I E W R E S O U R C E Business Case Build Lists Create Test Launch Review 8 Building Effective Email Marketing Campaigns How-to Guide Action Plan STEP 3 - Develop Use our Lead Generation Strategy Scorecard to set your strategic objectives, initiatives, measures and targets. Develop an Email Marketing Strategy Lead Generation Strategy Scorecard 3 Develop 1 7 8 6 4 2 5 Select V I E W R E S O U R C E Business Case Build Lists Create Test Launch Review

9. 9 Building Effective Email Marketing Campaigns How-to Guide Action Plan STEP 4 - Build Lists Building a list requires offering something that a prospect would find exciting and interesting. This piece of content could be a PDF whitepaper, or a gated video that requires an email address to access. This kind of content is often referred to as a 'lead magnet' as it attracts prospects to take action and sign up to your email list in exchange for something of value. Build your Lists1 7 8 6 4 Build Lists 2 5 Select Develop Business Case Create Test Launch Review 9 Building Effective Email Marketing Campaigns How-to Guide Action Plan STEP 4 - Build Lists Building a list requires offering something that a prospect would find exciting and interesting. This piece of content could be a PDF whitepaper, or a gated video that requires an email address to access. This kind of content is often referred to as a 'lead magnet' as it attracts prospects to take action and sign up to your email list in exchange for something of value. Build your Lists1 7 8 6 4 Build Lists 2 5 Select Develop Business Case Create Test Launch Review

10. . 10 Building Effective Email Marketing Campaigns How-to Guide Action Plan STEP 5 - Create Depending on the nature of your objectives, select content that is relevant and valuable to the recipient. It is also important to decide on the type and frequency of communication as well as the sender. Create the Content1 7 8 6 4 2 5 Create Select Develop Business Case Build Lists Test Launch Review

11. . 11 Building Effective Email Marketing Campaigns How-to Guide Action Plan STEP 6 - Test Test your email messages prior to sending out a major campaign. Send your email to different browsers to ensure it is being displayed correctly. Test the Solution1 7 8 6 Test 4 2 5 Select Develop Business Case Build Lists Create Launch Review

12. . 12 Building Effective Email Marketing Campaigns How-to Guide Action Plan STEP 7 - Launch Split testing is extremely important during your first few email campaigns. By sending 2 different emails to the same list at the same time, you can determine: Headline A vs. Headline B Long email vs. Short Email Single link vs. Two / three links The effectiveness of putting the name in the headline Hard sell vs. Presell Launch the Campaign1 7 Launch 8 6 4 2 5 Review Select Develop Business Case Build Lists Create Test

13. . 13 Building Effective Email Marketing Campaigns How-to Guide Action Plan STEP 8 - Review Evaluate your program following every batch of email that is sent. Pay close attention to trends (i.e. Best time to Sent email) Report on improvements to key metrics and invest further in programs that are providing a quantifiable return on investment. Monitor and Review1 7 8 Review 6 4 2 5 Select Develop Business Case Build Lists Create Test Launch

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