Warming Up to E-mail Marketing (1,004 words)
The ease of ordering paid off. In a split test against fax and postal mail, QuickReply generated a 5,000 percent ROI, and a response rate four times that of fax and six times that of post.
Once the offer and medium were tested, HBSP delved into prospect lists. Says Pratt, "We tested an e-mail list from IDG, and the early indications were that the response was nowhere near the response of our own opt-in list."
That's to be expected, since a house list is "warm" in a way a prospect list can't match. Pratt acknowledges this and plans to use the proven offer and method in additional list tests. HBSP is also testing e-Append, an E-Dialog product that appends e-mail addresses to an existing customer database using a patented algorithm.
In fall 1998 Music Boulevard, an online music store founded in 1996 in New York, was already using e-mail marketing to communicate with its house e-mail list. Its My MusicBlvd program, administered by Post Communications, a San Francisco Internet marketing company, allows individuals to register their music choices, then receive messages from Music Boulevard about related new releases and offers.
The re-marketing method increased the frequency with which customers ordered, but Music Boulevard faced an imperative: Acquire new customers as online competition for music dollars threatened to whittle its customer base.
Instead of renting prospect lists, Music Boulevard leveraged an existing strategic alliance with Ticketmaster. E-Dialog was chosen to handle the e-mail campaign, which was to include personalized messages to the Ticketmaster file and a three-week split test with 10 different acquisition offers.
E-Dialog constantly monitored and tweaked the campaign to find Music Boulevard's winning acquisition offer—$10 off the recipient's first CD purchase. The e-mail prospecting campaign delivered new customers less expensively than banner advertising or direct mail, and once recipients made purchases, they were captured in the Music Boulevard house file to be targeted for future marketing efforts.