Testing is unwanted in both direct mail and email marketing. Everyone says that testing is essential, but most marketers postpone tests until some later date when they're not so busy and not under pressure to make revenue goals.
Arthur Middleton Hughes
If you increase your mailing frequency from once a week to twice a week, you'll probably increase your revenue. Three mailings per week increases your revenue even further. So what's wrong with sending oodles of email? You may be losing your best customers.
Arthur Sweetser and I wrote a book two years ago called "Successsful E-Mail Marketing Strategies — from Hunting to Farming." The basic theme of that book was that relevant, personalized, dynamic content is more profitable than batch-and-blast, identical content sent to everyone on your list.
Many email marketers measure their success by open rate. But what determines the open rate? Essentially it's the interest that recipients have in the content being delivered to them. It's always been assumed by some that there's a relationship between email frequency and open rate — by overmailing you turn people off and they fail to open your emails. But this, in fact, might not be true.
Have you ever taken the time to calculate the lifetime value of an e-mail subscriber? To do so costs you almost nothing, but the knowledge can be of great value to you, particularly when it comes to determining how much to invest in e-mail subscriber acquisition. To explain this, let's start by comparing the value of postal addresses and e-mail addresses. The cost to rent an individual's postal address is between four cents and 15 cents; however, to rent the same individual's e-mail address can cost 10 times that amount.
This week I discuss mistakes seven through 12 in my list of the 12 common e-mail marketing mistakes made by today's e-mail marketers.
E-mail is potentially the most powerful and cost-effective marketing method in use today. I say potentially because most marketers don't exploit e-mail to its fullest advantage. Even the most accomplished brands have been known to overlook the medium's most generous benefits. Here are the 12 most common and costly mistakes when creating an e-mail marketing strategy:
Once you have built an opt-in e-mail subscriber database, the next steps are where the work really begins. First, you must ensure a steady flow of additional valid e-mail addresses to make up for those that dissolve over time. Second, you need to communicate frequently with customers in relevant ways in order to build long-term relationships. But how do you measure the value of your opt-in e-mail addresses and ensure that you deliver relevant communications?
Transactional e-mails are the most powerful messages you'll ever send to your customers because they have the highest open rates of any form of e-mail communication. These e-mails let you build lasting relationships with your customers to help improve your bottom line. To make the most of them, concentrate on their contents and method of delivery by following these important rules:
Most successful data-driven companies outsource the construction of their marketing databases. Why? Because it is cheaper and faster, and the product is better. To use a ridiculous example: It would be possible to go to auto parts suppliers and assemble a company truck from spare parts. Since it’s more than likely that no one in the company has ever done this before, it would take a year or more, be quite expensive and would certainly not perform as well as a production model bought from GM, Ford or Chrysler. But as an advantage, your staff would now know how to build a truck from
You’re planning a mailing to a list of customers or prospects. You have spent a lot of time thinking up a really great offer and a clever creative piece. You get a good list and mail it. Let’s say the response is poor. What went wrong? The chances are good that it was the processing of the list. Most marketers don’t seem to know this. Twenty four percent of the Standard Class mail given to the U.S. Postal Service is undeliverable-as-addressed because the address or name is wrong. While you were asleep, the USPS became very efficient and mechanized. It requires that addresses on bulk
Most companies assume that their customers are highly price-sensitive. They design their marketing programs with this idea in mind. When they have sales, more people buy. When their products or services are not on sale, less people buy. What more proof of price sensitivity do you need? Transaction vs. Relationship Buyers Actually, you need a lot more proof, because the response to discounted sales is usually quite misleading. As Paul Wang, associate professor of integrated marketing communications at Northwestern University, points out, there are, in general, two types of customers: transaction buyers and relationship buyers. A transaction buyer is someone who is interested only in price.
We have learned a great deal from database marketing in the last two decades. The following is a list of the 24 essential techniques used in database marketing. Anyone who works in marketing today has to be familiar with, and be able to use, all of these methods. Test your knowledge with this checklist. #1—LTV Customer lifetime value can be calculated in any industry, B-to-B or B-to-C. It is used to guide direct marketing strategy. In the early days of database marketing, few marketers knew how to calculate it or how to use it. Today it is widely practiced. #2—RFM RFM
Prospect databases have become quite popular in the last couple of years. They’re changing the way customer acquisition is done, increasing response rates and reducing acquisition costs. The trick is to negotiate a deal that benefits not only you, the mailer, but also the list owners and brokers involved in the build. A New Direction in Acquisition The traditional direct marketing acquisition process involves renting lists for a single use. A typical marketer will rent 50 to 300 different lists. These rented names are merge/purged together with the marketer’s housefile, deduped and prepared for a single mailing. The mailer may use the list
Despite the success of the Internet as a lead-generation tool, direct mail continues to be the best way for many companies to acquire new customers. During the past two decades, mailers have developed very efficient and profitable direct mail methods. Intense competition has reduced the price of rental names to make direct mail highly lucrative when the right offer is sent to the right audience. Most marketers think that after 20 years of direct mail experience the industry has tried everything—but they’re wrong. What I’m going to outline in this article will astonish some long-time direct mail practitioners. It represents a new direction