Sep 07
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According to a report from Mailround, an email branding and marketing specialist firm, 100% of the world’s most valuable brands surveyed are missing an important marketing opportunity by leaving their emails unbranded and not utilizing the medium’s unique potential for interactivity. The research analyzed responses to email and postal approaches to both personnel and customer service departments of 75 of the 100 most valuable brands in the world as determined by Interbrand in 2001 (www.interbrand.com).

The research uncovered a gaping marketing and communication opportunity. Despite massive investment in brand consistency and awareness, companies are ignoring the most popular and cost effective means of corporate communication - email.

Each department, (personnel and customer service), received one email enquiry and one postal enquiry. Not one of the 87 employee emails received by Mailround from the world’s top brands exhibited any form of branding. The only email to include a corporate logo was an HTML automatic reply, which was followed up by an unbranded response. In contrast only one of the 76 postal responses received did not arrive on branded stationary.

Yet these figures are in stark contrast to the actual method of response most often used by the leading brands. Companies were nearly twice as likely to respond to email enquiries than requests for information by post. Of the letters to customer services departments 43% went unanswered, compared to only 25% of the emails.

However, those companies who did reply to Mailround’s enquiries tended to do so promptly. All of the responses received from the customer services email enquiries arrived within a working week, 51% responded on the same day.

Eldar Tuvey, Managing Director of Mailround, comments; “These results reveal that email is still seen as an informal method of communication, which is not only inadvisable but also potentially damaging to a company, now that email has become the de facto tool for business communication. Companies would not dream of sending out letters which are unbranded, why should emails be any different?”

“Companies with employees that regularly use email are also missing a communication and marketing trick (especially as these top companies are also the biggest advertising spenders, with well over $7.8bn being spent on big-budget campaigns by them in the US alone*). The research proves that email can and is being used as an effective communication tool by many brands, but emails are an unrivalled medium for external marketing and communication if you look beyond the body text. Companies send out tens of thousands of emails a month. They can be as uniformly branded as print media, and yet they have the added potential for holding interactive marketing messages and reinforcing key elements of the brand.”

Surprisingly, dot.com and technology companies performed slightly less ably than the traditional brands surveyed - 23% of tech based companies did not reply to customer services emails, compared to 25% of traditional companies. * source: Advertising Age Megabrands survey 2000

Sep 07
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ORLANDO, FL, OCTOBER 13, 2003 – A new landmark study from the Direct Marketing Association (The DMA) found that e-mail offers, particularly those sent to in-house customer lists, produced the highest overall return-on-investment (ROI) for marketers focusing on soliciting direct orders, generating leads or building store traffic.”Throughout the years, The DMA has seen many developments since the days when direct marketing was mostly make up of catalog and other mail order companies,” said H. Robert Wientzen, president & CEO, The DMA. “Changes in the marketplace, coupled with database technology that drive most direct and interactive marketing programs, have led to a broadening of the scope of direct marketing techniques.”

According to “The DMA’s 2003 Response Rate Study,” E-mail marketing, with a ROI index of 14.2 for marketers driving direct order purchases, is followed by direct response television (DRTV) at 8.4, inserts at 7.3, and direct mail at 7.2.

DIRECT ORDER REVENUE AND COST BY MEDIA

Media

Revenue Per Contact

($)

Promo Cost Per Contact

($)

 

Response Rates

(%)

ROI
Index

(#)

E-Mail

$1.28

$0.09

0.99

14.2

DRTV

$1.35

$0.16

0.27

8.4

Inserts

$1.31

$0.18

1.46

7.3

Direct Mail

$3.95

$0.55

1.61

7.2

Dimensional Mail

$8.99

$1.61

3.46

5.6

Radio

$3.77

$0.74

0.38

5.1

Catalog

$2.88

$0.63

2.32

4.6

Telephone

$6.17

$1.45

5.73

4.2

Coupons

$1.32

$0.43

2.78

3.1

Newspaper

$0.75

$0.35

0.14

2.1

FSIs

$0.03

$0.06

0.09

0.6

Magazine

$0.10

$0.22

0.13

0.5

DMA RESPONSE RATE SURVEY: RETURN-ON-INVESTMENT -2/

While telephone marketing and catalog pulled a higher response rate than most other direct response media, 5.73 percent and 2.32 percent respectively, both generate a lower ROI index, as labor and production fees increase the cost per contact.

Lead Generation: E-mail, telephone, and magazines proved to be the three most efficient media for generating leads. E-mail leads all media with the highest ROI index (94.4), followed by telephone (54.7), and magazine (48.4).

Store Traffic: E-mail leads in producing the highest ROI index (44.4) for traffic building efforts, closely followed by coupons (40.3), and direct mail (30.7).

Fundraising: Since most fundraisers have an ongoing flow of contributions from their donors, fundraisers have great success with each media used to their house file. However, prospecting efforts by fundraisers pulled the overall ROI indexes down. Direct mail was the most popular media used with a ROI index of 4.1, followed by telephone (3.0), and e-mail (2.9).

“Results indicate that the lines are starting to blur between direct and interactive marketing channels as they complement each other, and all appear to have particularly successful response rates and ROI indexes,” said H. Robert Wientzen, president & CEO, The DMA. “The addition of catalog and retail Web sites, as well as the now common use of e-mail as a retention tool, also seem to help the successful synergy of multi-channel marketing.”

Response rates for campaigns directed to customer or house file lists consistently generated a higher response then those targeting prospects. In virtually all media, campaign results were best for those targeting smaller audiences.

The DMA 2003Response Rate Study provides, for the first time anywhere, response rate benchmarks detailed by media and industry. Conducted by The DMA during the first quarter of 2003, the study measures data on more than 1,500 direct and interactive marketing campaigns. The research contains response rate information from 23 industry categories — such as financial products & services, health services, insurance carriers/agents, manufacturing, packaged goods, retail, and travel — broken down by purpose — direct order, lead generation, traffic generation, and fundraising — media, and market. Detailed information on promotional tools, free offers, shipping, rebates, and sweepstakes also are included in the study.

Sep 07
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Continuing Email Productivity Shows Positive Signs for Holiday Shopping Season
DoubleClick’s Q3 2004 Email Trend Report reveals a significant increase in the productivity of email for online merchants, with conversion rates and number of orders per emails delivered both rising over the previous year’s rates. For all mailers, the latest trend report shows continued stability in overall email performance over the past two years, while year-on-year figures show an increase in delivery rates and a decline in open rates and click-through rates.

Email Continues to Drive Sales, Although Revenue per Email Has Declined The Q3 Email trend report shows an increase in email click-to-purchase conversion rates and number of orders per email delivered for Retail and Catalog customers that track purchase activity through DARTmail. The click-to-purchase conversion rate grew 23.5 percent or 0.8 points year-over-year, from 3.4 percent in Q3 2003 to 4.2 percent in Q3 2004. The average number of orders per email delivered also rose significantly (17 percent or 0.04 points) year-over-year to 0.28 percent in Q3 ‘04 from 0.24 percent in Q3 ‘03. Despite these increases, two other measures of email productivity showed declines. Revenue per email delivered declined year-over-year to $0.21, a 19.2 percent drop, while the median order size, declined 6.9 percent year-over-year to $94 in Q3 2004.

These figures, combined with a decline in click rates for Retail and Catalog mailers (discussed below), suggest that email recipient behavior is evolving with regards to promotional email from retailers. As the email medium matures, recipients seem less likely to always click on a promotional email, but when they do click, they are demonstrating that they are more likely to be “in market” for products and services and have a higher propensity to convert.

Overall Performance Remains Steady Despite year-over-year fluctuations, overall email performance over the past two years remains stable with regards to bounce rates, open rates and click-through rates. The average delivery rate (emails sent minus the combined hard and soft bounce-back rate) grew slightly year-over-year to 89.3 percent, an increase of 1.2 percent or 1.1 points from Q3 2003 (88.2%).

The average open rate (average of 34.3%) declined 7.5 percent from Q3 2003 (37.1%), while the average click-through rate (8.2%) decreased 10.9 percent during the same period (9.2%). Despite the year-on-year decline, click-through rates have remained relatively stable over a period of two years, down only 3.5 percent or 0.2 points in that time, from 8.5 percent in Q3 2002 to 8.3 percent in Q3 2004.

Email Performance by Category Delivery rates increased from the previous year in almost every category, especially Travel, which rose 9 percent or 7.8 points from 14.3 percent to 6.5 percent. Open rates (37.1% in the Travel category) also dropped in almost every category, while click-through rates (8.7%) rose marginally in Travel over the previous year (from 8.5% to 8.7%)

Business Publisher was the only category that saw an increase, albeit marginal, in open rates (from 38.2% to 38.3%). Business Products and Services had the highest open rates at 41.5%, while Retail and Catalog had the lowest open rates of any of the categories at 30.8%. The biggest declines in open rates were in Consumer Products, which fell 22.8% from 43.9% to 33.9%, followed by Financial Services, down 14% from 44.3% to 38.1%, and Business Products and Services, down 10.4% from 46.3% to 41.5%.

Consumer Publisher (up 24.3%, from 9.3%) and Travel were the only categories to record an increase in click-through rates. The biggest declines in click rates were in Retail and Catalog (down 36.4%, from 8.8% to 5.6%), Financial Services (down 27.9%, from 10.6% to 7.6%) and Consumer Products (down 22.6%, from 11.5% to 8.9%). The highest click rate was for the Consumer Publisher category, at 11.6 percent, and the lowest was Retail and Catalog at 5.6 percent.

“Once again, this Quarter’s data reveal the incredible effectiveness of email as a marketing tool for online merchants and underscores the maturity and stability of email as a communications vehicle,” said Kevin Mabley, Director of Strategic Services at DoubleClick. “As more and more marketers adopt and abide by best practices in list hygiene and continue to pay attention to customer preferences, we predict response rates and conversion trends will continue to hold strong – a great message for merchants this holiday season.”

Methodology The DoubleClick Email Trend Report contains aggregate data from DoubleClick’s DARTmail email delivery technology. The Q3 data are based on billions of permission-based emails from hundreds of clients. The full results are available to DoubleClick customers and an executive summary is available at: www.doubleclick.net/us/knowledge

Performance metrics in this release relate to un-weighted averages across all companies. This is done to provide a measure of average company performance, due to the fact that very large mailers can bias the overall and category results.

Sep 06
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In this article we will give you several tips that can help you in improving your open and click-thru rates.

1) Open rate

In order to your email campaign be successful the first necessary thing is that people open and read your email newsletter. Online publishing is very similar to traditional publishing. When you buy a daily newspaper, you probably don’t read everything. You don’t have that much of free time and not every subject is equally interesting for you. If you are a sports fan you will read the sport section but you might skip an article about latest movies . In most cases you will decide what you are going to read upon subject titles. 

Same thing with email newsletters. One of the two most important factors that influence whether or not your subscriber will open your email newsletter will be your subject line. In order to have good open rates and click-thru rates you have to know your audience. Your message has to be well targeted.

There are several rules you have to follow in order to make effective subject lines. 

Subject lines

Your subject lines should be short and snappy to get attention of your subscribers. Many people receive dozens of emails every day and some other people that have web sites and often make posts on different places like web forums, discussion lists, publish articles, can get more than 100 emails per day. So your message will have a very big competition in your subscriber’s inbox. That’s why your subject line has to grab attention of your subscriber. This doesn’t mean that you have to use usual spam techniques. On the contrary. Avoid using words FREE, GUARANTEED, Make Money Fast, Limited Offer and other get-rich-quick schemes words. Not just because of your subscribers. If you use these words it is most likely that your emails will never even reach them. Their ISP will take care of that with their spam filters. Also don’t capitalize every letter and don’t put several times exclamation. You don’t need to shout, people will “hear” you if you know how to “tell” them your message. 

So your subject line has to be short and snappy, best thing is that you include one title from your articles in your subject line. It can be some breaking news or exlusive interview. People like to read breaking news or exclusive interviews that can’t be found anywhere else. Also, people often read how-to articles (for example - How To Choose The Right Email Marketing Software) or so called “number” articles (for example – 7 Tips For E-publishers On A Shoestring Budget).

Good thing is that you put your newsletter name in brackets, at the beginning of your subject line in order to be easily recognized from other emails in inbox. 

Please bear in mind, that your subject line has to be consistent. What do I mean by that? Of course that you will change the title in your subject line but you have to find the best subject form and stick to it. For example:

[NewslettterName] Your Subject Title, Issue #x, Date 

Don’t forget, in order to make effective ads and this apply to subject lines, as well you have to remember 3 words – test, test, test! You have to experiment with different models and find out which work best for you.

From field 

Beside Subject line, From field is another info that your recipients will see in their inbox. People have to trust you in order to decide to read your emails. You don’t open your doors to every person who knocks, don’t you?

If you are well-known person, trusted expert in your industry, for example some reputable Internet consultant and you are the only person that is involved in creation and publishing of the newsletter put your name in From field. If several people are involved in that process and if it is a corporate newsletter, use your company name. 

Most important thing with From fields is that you don’t experiment with it. Choose one From field and stick to that. It is very un-professional that you often change your From field and beside that, in that case, your open rate will decline.

Useful tip is that you ask your subscribers to make a filter rule for your email newsletter, based on your email address, From field or some part of your Subject line. For example, they can put [YourNewsletterName] in a filter rule for your newsletter or your From field name so every time they get the email newsletter that matches that rule it will be moved to a specially designed folder, for example YourNewsletterName. So this way your newsletter won’t end in their Bulk folder. That is also one of the reasons why you should be consistent with your From field and subject line.  

2) Click-Thru Rates

Clicks come once your email newsletter is opened. With good open rate you have finished only one part of the job. Now, your newsletter has to be well designed with appropriate content and concept, and most important, well targeted in order to have a decent click-thru ratio (CTR). You have to know your audience. You can increase your CTR if you put your most important articles and ads at the top of your email newsletters. Don’t write too long articles. It is better to write articles where you will list several tips. Also, don’t overload your newsletter with ads. People want to read useful things and not lots of ads.

Also, you know that a picture is worth more than 1000 words, so it is good that if you publish a HTML newsletter that you include photos that will be relevant to your articles and that are clickable. Click-Thru rates get higher if you give some value-added services to your subscribers. You have to make a good relationship with them. Treat them well, write useful articles, give exclusive discounts to your subscribers and they will show their appreciation. 

Different types of email newsletters have different click-thru ratio. Click-Thru ratio is important, but it is not the most important. Just because many people click on your follow-up article or offer doesn’t mean that they will actually buy your software or service. In some cases, lower CTR can get you more sales than some good CTR. Think about that next time you start your email campaign.

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