On Friday I talked with John Fell of E-mail Logic about how small businesses are using email to acquire and retain customers. Here in Part 2 of my interview, we talk about how email drives purchases and how small businesses can get started with email marketing!
Joel: At a time when many businesses are slashing marketing expenditures, how can small businesses use email to drive new and repeat purchases?
John: Joel, I work with over 100 independent specialty brick and mortar retailers and the challenges they have are directly consistent with the overall challenges facing our economy – namely the downturn in consumer spending. While every small business has its unique challenges, I remind my clients that there are three things retailers must do and email plays a role in all three.
- Small businesses need to survive financially. If they don’t have deep pockets, they have to generate enough cash flow to cover their expenses. To survive financially in a down market, expenditures need to be analyzed as R.O.I. and marketing is no exception. Successful independent specialty retailers will tell you it’s much more cost effective to retain existing customers than it is to acquire new customers. And when you’re faced with deciding where to invest your marketing dollars, retention is the clear winner every time over acquisition. Email is perfect for customer retention because it generates the most bang for the buck.
- Small businesses need to “stay connected” with customers. The daily news reminds our customers on a regular basis how bad things are and gives them reasons for not buying. If they are brave enough to open their monthly IRA statements, it gets only worse. That’s why, as marketers, it’s important to have a continual dialogue with the subscriber. In fact, we’re encouraging our retail clients to contact their customers more frequently and provide offers and incentives to return to the store. Email is the perfect tool for staying connected with customers.
- Small businesses must learn how to use email. Customers still want what they have always wanted. And just because they’re cutting back, it doesn’t mean they want something different or want it at a lower price. Email enables retailers to do three important things – (1) keep the store name in the inbox an a regular basis, (2) deliver product information and offers relevant to the needs and interests of the subscriber - and (3) most importantly, “wow” the subscriber, so even if he doesn’t come into shop, he notices the email and thinks “wow” about the sender. We want to remind the subscriber that we’re there, we have what he wants and if he can’t get it now, our brand “rules” and we’re there for him when he’s ready.
Joel: What advice do you have for small businesses who want to know how to get started using email?
John: It’s essential to build your email subscriber database. And when someone subscribes, they must be “welcomed” to the store! The first email that a subscriber gets is the most important one. To a retailer I use the analogy of his store window. An effective store window creates a first impression will invites the prospect to come into the store. The same goes for that “welcome email.” The first email that goes out should thank the person for subscribing and remind her of what she can expect in future emails. Even better, the welcome email should include a special offer just for new subscribers that invites her to come in to the store. This is a simple thing to do that pays huge dividends.
As for building your email subscriber database, many stores have a “snail mail” list they been building for years and should look at that as an opportunity. One of the successful campaigns we’ve been running is a “Go Green and Save on the Green” direct mail post card. We design a post card with a call to action to subscribe to the store’s email. Upon submittal, the new subscriber receives an offer that hopefully brings him into the store. Not only does the retailer generate short term sales, he now has a segmented a list of customers who want to hear from him. If a retailer makes a habit of inviting people who walk into his store to register to receive exclusive offers via email, in almost no time he will build a nice base of email subscribers.
NOTE: In our final installment, John and I will talk about how email has revolutionized retailing and how smart retailers are using email to drive results. You won't want to miss it!
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