"55,000 people know more about Au Bon Pain than you do."

Read the sign above my head at breakfast this morning. It was a poster promoting their e-Club, and I have to admit I loved the sassy approach.

But you can't deny its truth -- if you're running a valuable email marketing program, your subscribers should actually know more about your company than anyone else. And they should be your biggest fans. They should look for your messages in the inbox.

Unfortunately it took me about 17 page clicks to find the eClub on their website when I looked just now...but live and learn.

In the meantime -- nice advertising!

Nicole
Marketing Communications Associate

The difference between doing email appends right and doing them wrong involves changing one significant step… the outbound message.  Instead of the outbound message containing a link to opt-out, the outbound email marketing message should have registration as the primary call to action. This approach to email appends is called "opt-in" email append.

ExactTarget was one of the early proponents of this approach and we have now real life experience with this approach under our belts.  Opt-in email appends have been very successful in delivering highly responsive subscribers without the headaches and pitfalls associated with opt-out appends.  However, the challenge is in getting a significant number of people to convert on these outbound email invitations.

Success in converting opt-in email appends involves defining your value proposition. It involves having a compelling reason for subscribers to register--selling your program to the prospective subscriber. All of which is based in the bedrock of marketing success... a good strategy combined with strong campaign execution.

Once you have your strategy for enticing prospective registrants, follow the steps outlined in my previous post about opt-in email campaigns.

The thing that clients like about this approach is that they only pay for emails that are likely to perform. It can take a while to get past the reality that this is not going to add a million email addresses to your list, but that shouldn’t be the point. There are only two business models that can drive revenue from an unresponsive email address—list brokers and email append vendors. By working with these providers on opt-in programs, you eliminate waste and ensure that you will get email addresses of real, live people that are likely to respond.

Yes, this puts a premium on the associated costs and makes pricing more complicated.  Don't expect to pay $0.50 per email address acquired through an opt-in append.  Things like the loyalty of people on your house file, the strength of the call to action, the size of the input file, and anticipated conversion rates may be considered in determining costs. But at the end of the day, this is in the best interest of the client as it avoids the issues typically associated with opt-out email appends and the overall quality is much, much higher.

The Silver Bullet?

Companies looking at email appends are typically looking for a fast and efficient way to grow their lists.  Don’t buy into the promises of a quick and easy solution to grow your list. To be completely cliché “If it sounds to good to be true, it probably is.”

Done right, email appends can be effective—but they still take time, careful planning, good execution, and financial resources.  It is not the silver bullet that most people imagine when they latch on to email append as the solution to their list growth woes.

• Done wrong, as is the case with opt-out email appends, we have found that these initiatives are more time and cost intensive as other list growth tactics.
• Done right, in the case of opt-in email appends, we have found these initiatives to be at least as time and cost intensive as any other list growth tactics.

Given this reality, 9 out of 10 times, I prefer to invest the same time and resources into other proven list growth methods.  A couple consistent winners are:

1. Make sure that there are compelling opportunities to register for email throughout your website. This is basic, basic stuff… START HERE.
2. Integrate search campaigns with email registration. Search campaigns should be integrated with email registration efforts. Capturing email addresses on landing pages is the first step. Aligning the call to action on your landing pages with specific search campaigns is the second step. For example, visitors from brand keywords should get a different call to action than visitors from direct in-category keywords or competitive keywords.
3. Integrate with offline efforts. Provide an incentive as part of your existing direct mail or print advertising efforts to register with your company online.
4. Partner co-registration. Find like minded companies that you can cross promote. You include a signup space on their page and vice versa.
5. Tradeshows are huge for B2B marketers. This is no secret, but there is often a significant effort involved in collecting all those business cards and then getting those contacts to opt-in to your program. Do the due diligence and get these systems in place.

If my inbox is any indication, list growth was a common goal set for this year.  In the past week, I have been asked for information on email appends and other list growth tactics by several clients a day.

Most email append providers offer what we call an "opt-out" email append service.  The process looks something like this:

1) Client provides a file containing street addresses of customers or prospects that is matched against a database. Where a match to the client's list is found, the email address is appended to the record.

2) An email is then sent to the individuals on the newly created list with the option to opt out. (Interestingly, many email append companies advertise the low number of opt-outs that are received... but more on that in a minute)

3) After allowing some time for people to opt-out (typically a week), two files are returned to the customer. The first file is a list of successfully appended and delivered emails. The second is a list of opt-out emails to be used for suppression.

Cost

We have worked with several third parties on email append projects with clients. Pricing is competitive in this industry with rates from reputable email append providers starting around $0.50 per appended email address with significant discounts based on volume. Pay attention, since there are hundreds of companies that advertise significantly lower rates. If someone quotes you rates starting at $0.05, or even $0.10, per email append... RUN!

Issues with Opt-out Append

1) Those low opt-out rates are not a good thing.

One prominent player in the email append space advertises, "Less than one-fourth of one percent choose to opt out." No one should be impressed by this since opt-out rates are always low.  The industry wide average opt-out rate is about one-tenth of one percent. So, quoting one-fourth of one percent suggests that their average opt-out rate is 2.5 times higher than the industry averages.  Not good!

2) Quantity, not quality.

The opt-out approach to email appends provides no incentives for the email append provider to ensure that the names will be responsive. They get paid by the address they provide back to you, regardless of whether or not the address is responsive. While reputable providers do have an interest in repeat business and referrals, which is some incentive, the fact still remains that you pay for the email addresses you receive back at the end of this process. The only requirements are that the email address is deliverable and they did not opt-out to a single email sent to them as part of the process.  These are embarassingly low thresholds. In my experience, addresses acquired through opt-out append are less responsive than new registrants from other sources. At least part of this can be attributed to “recipient dilution”, which you can read more about in Al’s recent post. At the end of the day, you just end up paying for a lot of deadweight.

3) "Opt-out" is not permission.

Why is this important? Because lists that are not permission-based result in higher unsubscribe rates, higher percentage of people clicking this "This is SPAM" button, and lower open, click-through, and conversion rates. These factors lead to problems with your online reputation, and thus, your ability to get your email delivered. Just because someone does not unsubscribe or report you as SPAM the first time you send an email to them (as part of the opt-out append process) is no indication that they will not do so later. The best predictor of someone reporting you as SPAM is the level of permission you obtained when they were added to your list. "Opt-out" lists, while legal under CAN-SPAM, do not meet the demands of most ISPs receiving your email, significantly increase the likelihood that your email will be blocked, and make it much more difficult to get your email unblocked.

"But all the email addresses are 'double opt-in'!" is a common protest when we bring up this point. Well, yes... maybe at some time they double opted-in for something. But, they never opted-in to anything for you! Permission in marketing is non-transferable.

For that reason, ExactTarget is a permission-based ESP. All ExactTarget clients sign an agreement agreeing that the lists they provide are permission-based and are not permitted to send to opt-out lists using our system.

4) Opt-out append leaves a negative impression with some recipients. 

I have yet to find a way to measure the financial impact of the negative impression that is left in the minds of unwilling recipients of appended emails, but there is no question that there is a dark side. Forrester provides excellent insights based on a survey they conducted in August 2004. "Nearly 50% of likely email subscribers wouldn't mind and would read appended emails from a cataloger. However, appended email blatantly offends between 25% to 39% of consumers, depending on the type of business sending it. And it has hidden risks. About 20% of consumers say that even though they read appended emails, they find them annoying. Another 12% say that although they don't unsubscribe, appended emails annoy them."

5) Results are spotty at best.

MarketingShepra's 2007 Email Marketing Benchmark Guide indicates that of marketers who have tried email appends, more than half said it either didn't work or it wasn't worth the effort.

Part II coming soon... email appends done right!

The only thing I love more than puppies is marketing channel synergy.

Call me crazy, but I just love when companies use their websites, emails, advertising, PR, blogs and other marketing channels to deliver a coherent message. But, it's easier said than done. The guy who runs your website probably isn’t the same guy that handles your email program. And neither one designs your print ads or writes your corporate blog.

It’s hard to keep everyone on the same page, but it’s worth it. Talk to each other. Share messaging calendars. Coordinate product and website promotions. Your customers will notice if you show a little synergy. Take, for example, a recent email I got from the ASPCA. The message included a pitch for their online kids community – Animaland. (I know I’m not a kid anymore. But there were cartoon puppies involved, and they had me at hello.) The site offers fun information on top animal issues, newsworthy young advocates, and quick tips for our “four-legged, finned and feathered friends.” I clicked-through, and the first thing that caught my eye was the opening Flash piece. ADOR-able.

Animaland is also featured in multiple places on the ASPCA homepage – like under the program tab and in a cute call-out in the right-hand column. There are also several relevant press releases in the media archives from the Animaland launch in 2001 and its Gold Award announcement from the Parents’ Choice Foundation in 2004. Talk about synergy – website, PR, email, and more!

How convinced would you be if you got an email saying “HEY this is important!” but couldn’t find anything about the same topic when you looked at the company’s website? In press releases? Or corporate blogs? You might begin to question whether a) the message really IS important, and b) whether the company’s marketing team ever talks to each other. Send a consistent message across marketing channels, and you’ll look like rock-stars next to promotionally disjointed competitors.

But wait a minute, you say. Why would the ASPCA promote an online tool they launched six years ago – it’s old news! Shouldn’t email real estate be reserved for the latest and greatest? Not necessarily. While email is great for pitching a new feature, website, or offer, remember that many subscribers have entered your list since “Campaign X” launched. I opted-in for ASPCA emails in 2007 and had never heard of Animaland. Until the email popped into my inbox. As long as it makes sense with your email’s message, don’t be afraid to remind subscribers about all the great things you already offer. It might be new to them!

Nicole
Marketing Communications Associate

Ps – OK, truthfully, I love puppies more than marketing. But only by a smidgen.

Ending world hunger. Saving children. Teaching self-reliance. These things are undeniably all worthwhile endeavors. As a writer who is passionate about words, I’d like to add one more to that list:

Increasing vocabulary.

Where, you might ask, do hunger and lexicon intersect? At www.freerice.com. My husband recently sent me a link to this fabulously addictive site that trades vocabulary quiz success for rice donations to indigent countries. For every word correctly defined, the United Nations World Food Program (WPF) donates 20 grains of rice to organizations in over 75 countries.

How does it all work? When you play, you’ll notice advertisers at the bottom of your screen. The money generated by these advertisements actually pays for the rice that is distributed.

As marketers, we recognize the power of the written word. As human beings, we understand the comfort of a full belly of food, a healthy child, a warm meal. At www.freerice.com, both the cravings of the mind and the body are fulfilled. Visit today, test your lexicographically-challenged friends, feed a hungry child. Any way you look at it, you can’t lose.

Warmest regards,
Katrina Willis
Copywriter

Last week I spoke at the Email Insider Conference in Park City, UT with Matt Day of Agent SILVERFOX on the topic of search and email integration.  One interesting case study Matt presented was related to how email campaigns affect brand search traffic.  So, the scenario is straight forward enough, a customer or prospect receives an email from XYZ Corp and they then go to the web to search for the term “XYZ Corp” or possibly a product that XYZ Corp sells.  This results in a bump in search traffic to the website that is normally attributed to search marketing instead of email marketing.

While working with Matt on preparing the presentation, we came up with a methodology for quantifying this traffic that many at the conference found useful: “search through rate”.  To estimate this lift, compare the average search traffic on days where no email is sent and then compare it to the search traffic on days where an email is sent.  The calculation for this is very straight forward:

This phenomenon is even more significant when emails are sent through partners.  If you partner with a program like CoolSavings.com to send an offer to their client list the search through rate is usually higher than when sending to an in-house list.  This makes logical sense since the people receiving this offer are less likely to be familiar with your brand and may choose to check out your site before proceeding with the offer.  So, it follows that the conversion rate on these searches may be different than typical searches for your brand as well.  Thus, we need to evaluate the conversion rate on these email influenced searches to get a good understanding of impact of these incremental searches.  The calculation for the conversion rate on email influenced searches is:

Where:

• Conversion RateIS = Conversion rate on email influenced searches
• ConversionsO = Observed Conversions for 24 hour period following the email send
• ConversionsA = Average Conversions for 24 hour period with no email send (Can be calculated as Average Conversion Rate off Search times SearchesA)
• SearchesO = Observed Searches for 24 hour period following the email send
• SearchesA = Average Searches for 24 hour period with no email send

The conversion rate on incremental searches should be compared to the average search conversion rates to determine if these email influenced searches are performing consistently with typical searches.  By looking at the incremental conversion rates, in addition to the direct conversions from the email itself, we can get a more comprehensive view of the efficacy of our email campaigns. 

In my experience, many (by no means all) third party email campaigns have had a tough time justifying themselves in terms of direct sales.  However, looking at the influence of email on search and subsequent conversion provides a more comprehensive financial picture by which to evaluate the success of these campaigns.

We already know that the ROI of email is very strong.  By looking at these metrics and adding them into your analysis of email campaigns, either to your in-house list or through third party advertisers, we reallocate dollars that should have been attributed to email all along—demonstrating even more value being driven out of our email marketing programs.

So the other day I was over at the Chase Bank Tower for lunch. The building hides a nice little cafeteria-style eatery on the second floor packed with the business crowd. Why? Well, 90% of the traffic bee-lines it for the make-your-own-salad section.

Behind those little sneeze-guards rest over 40 fresh toppings and about 500 tiny bowls you can fill with your own personalized mix. Hand it to the chefs, and they make your salad right before your eyes. It's glorious. But back to the point. I had just wandered in the front door when it caught my eye.

The sign read: Email Your Salad. 

Now maybe this just makes me a dork (does anyone still say that?), but a sign like that catches the eye of an email marketer like me.

Email Your Salad. I read it again, peering closer I read the fine print while I stood in line for my hard-boiled eggs, grapes, and breadsticks. And don't make fun of my lunch. I was in a hurry, ok?

Anyway, the sign promoted a new program that allowed people to email their customized salad ahead of time and have it ready and waiting for pick-up. Talk about convenience. And chances are, the reply emails contained an opt-in for regular communications. Talk about list growth.

I haven't taken advantage of the program yet, but it's a clever idea. A nice mix of advertising and efficiency. Done well, just imagine the opportunities behind such a program. Not only would the restaurant staff know which people love salad. They'd know exactly what toppings they like on their salad. Marketers start drooling over rich data like that. 

Or maybe it's just me?

Nicole
Marketing Communications Associate

Am I the only one who gets a bit gloomy when it's dark at 4pm? I’m not claiming anything fancy-schmancy like Seasonal Depression (SAD), but it takes a little extra effort to survive a chilling Midwest winter.

I decided to make a “winter happiness" list. It’s comprised of things that could make the season of frostbite and 24-hour nighttime a bit less daunting.

It’s a short list.

So far it includes things like: Keep fresh flowers in the house, and invest in a bright yellow umbrella. Last weekend I checked another item off the list when I went wreath shopping at Jo-Ann Fabrics. And yes, I bought jingle bells too. I shook them merrily as I walked up to the cashier and asked if they made her happy too. She sort of scowled.

Guess what didn't make her "winter happiness" list…yeah, jingle bells.

Regardless, my door now sports a perky twig-cranberry montage and two golden jingle bells. And I have Jo-Ann’s to thank for it.

I decided to scope out their email marketing program. Though they could do a better job advertising their email opt-in (it’s buried in the webpage text footer), I did see a few items I liked:

1. Privacy Policy Link: Easy to find at the top of the sign-up form.

2. In-Store v. Joann.com Emails: Especially nice considering a decent portion of their audience is older and may not shop online.

3. Frequency Caps: They set expectations. This helps cut down on future spam complaints.

4. Preferences: With nine crafty categories to choose from, Jo-Ann Fabrics can both gather rich customer data and drive highly-relevant email content. It’s a win-win.

Wreath and golden jingle bells: $20.00.

Email opt-in: Free.

Winter happiness: Priceless.

Nicole
Marketing Communications Associate

As reported in eMarketer Daily on Tuesday, October 30^th, the Direct Marketing Association is reporting that spending on direct marketing commercial e-mail in the United States will hit $600 million in 2008. That number represents an increase of nearly 25% over 2007.

That statistic is impressive until you consider that – according to the DMA -- spending on non-e-mail Internet direct marketing—such as search and display—is expected to hit $23 billion! Are you kidding me?

Why more marketers are not locked and loaded with email is amazing -- especially when you consider two other findings – also courtesy of the DMA:

• "E-mail produces the highest response rate for lead generation—especially for house campaigns—of all direct mail methods we have studied," according to Anna Chernis, Senior Research Manager.
• Commercial e-mail's ROI will hit $45.65 for every dollar spent in 2008. By comparison, direct response newspaper advertising ROI is $16.86, non-catalog direct mail ROI is $15.60, and telemarketing ROI is $8.61

I have been – and will continue to be – a staunch advocate of multi-channel marketing. But at a time when marketers are being hammered to produce "more juice for the squeeze" from the dollars invested to drive new and repeat sales, many need to seriously re-consider how their marketing dollars are being invested.

Joel Book
Director, eMarketing Education 

There is a lot of expectation around mobile marketing.  The ability to reach all those people on the move and interrupt them with our messages is oh so alluring.  Yet there are some brutal realities that we need to face.  Friday, eMarketer featured a story, Mobile Marketing Ready for Takeoff, that adds to the expectation.  They did include some wise caveats stating that “delivering something of value to the user is just as important as how a mobile campaign looks”.  But, this is permission marketing 101 and mobile marketing is no different.  Just because the majority of people in industrialized countries own a cell phone… and the capability of pushing messages to these devices exists, does not mean that it is a great idea.  If anything, mobile marketers may be embarking on the toughest direct marketing channel yet.

The challenges with this channel were highlighted in another eMarketer story released yesterday Mobile Users Easy To Annoy?  According to recent research by Web Visible and Nielsen//NetRatings, 92% of respondents say that local business ads sent to their mobile phones would irritate them.  Surprise, surprise.  Mobile marketing, at least when used as push technologies such as SMS and MMS are incredibly invasive.  This study highlights a critical point—there will be significant lashback against companies that invade the personal space of their customers.  Ill-timed SMS messages will be as welcome as a close-talking college professor with bad breath!

I realize that this is not the extent of mobile marketing.  There are opportunities in search, in branded applications, in location-based advertising when leveraging GPS, but the reality is that we are not there yet. As Jordan Bitterman of Digitas stated at OMMA East last month in New York, “It doesn’t have the scale, our marketers are looking for scale.” 

The critical point here is that we are heading for a collision course.  Email marketing continues to struggle with SPAM related issues, and mobile marketing may be heading down a path that could be much worse.  Invade my inbox and I may ignore you.  Invade my phone, and well… remember what happened to telemarketing?  Tread carefully, don’t buy into the hype without knowing the pitfalls.  I say this on the heals of our recent announcement that ExactTarget is launching the ability to send SMS messages as part of our upcoming 119 release.  Yes, I do think SMS will have its place as a direct marketing channel, but not as we have ever known it before.  Before embarking on this new frontier, make sure there is an incredibly valid mobile strategy in place to ensure that messages are not perceived as annoying.