The Best and Worst of Email Marketing

                           By Ann Barr

Some say that the reason they are not using email marketing is because of all the spam they are receiving.  True, junk email marketing is on the increase.  My inbox is full every day with email I end up deleting; phony offers and obvious scams, along with strange new “hot” products and deals on vacations and cruises.  But look at the emails you actually do open and read.  They usually contain information – from a trusted source - that you feel is helpful or valuable; information about new products or services that could benefit you or your company.

Email Marketing is alive and well, but . . .

Forrester Research recently gave a failing grade –- again –- to nearly every piece of commercial opt-in email it surveyed. In “The Best and Worst of Email Marketing In 2006,” the research firm took a hard look at everything from the registration process to message construction, and found virtually everything lacking. Only one, The New York Times daily headline mail, got a passing grade.

“A lot of emails are still newsletters, with no call to action and no way to interact with what’s been given to me,” says Shar VanBoskirk, senior analyst and author of the report. “And a lot are still brochures — they send a pretty picture, but I have no way to respond with what I think about it or to get more information.”

Forrester studied 63 email marketing campaigns in six verticals —

1.)  Business products and services,

2.)  Consumer goods,

3.)  Financial services,

4.)  Media,

5.)  Retail, and

6.)  Travel.

Where is the Value?

The research found that from start to finish, the emails are still plagued by misdirection and a lack of customer focus. Thirty-three (52 percent) of the subject lines described the email content, but did not hint at the value the user will experience by opening the message.

And only 11 programs passed basic usability requirements: easy to scan, had a digestible volume of content, and effectively used bullets and headers to aid navigation.  Twenty-nine programs placed calls to action below the fold, and 25 were almost impossible to understand without graphics.

The Marketing Tool Most Businesses Do Not Use

Even the process of attracting opt-ins scored poorly. Only 27 companies reviewed offered a subscription on their home pages. Failing grades were given to all segments but retail. Companies may be overcompensating for the need to disclose privacy practices and unsubscribe procedures, thus forgetting to make a clear and concise pitch to gain the customer’s trust and attention in the first place. “Putting an email invitation on the home page is probably the most cost-effective tool any marketer can identify, so why wouldn’t you promote that?” VanBoskirk asks.  (I use a sign-up page on my web site www.sellingsupplies.com and new subscribers join every day.  It is a great way to build an opt-in email database.)

Surprisingly, financial services firms ranked last among the verticals.  Typically they are considered leaders in online customer contacts, but VanBoskirk is unimpressed with their email strategies. “Two factors are dragging financial services down. They have been slower to adopt email as a medium, so they haven’t had as many chances to try different things,” she says. “And their emails are very focused on pitching products.

Customers want their needs met, not just to hear about what you have to sell them.”

Media companies, retailers, and travel were the top three verticals, helped along by calls to action, the ability to transact, good use of text and images in tandem, and good marketing communication. Consumer goods and B2B companies followed, with financial services in the bottom spot.

Forrester was similarly negative about corporate email practices and campaigns in a 2003 study on the subject. “For whatever reason, people are still getting responses to emails that are executed poorly –- spammers also use bad principles and yet people are responding and that’s why you’re still getting those messages,” VanBoskirk says. “Imagine the results companies could be getting if they were sending out good programs.”

Make Emails Relevant and Personalized

In a recent study conducted by ChoiceStream, 80% of consumers said they were interested in receiving Emails with personalized content.

In an age where over 62% of Email is spam (source: BrightMail), speaking to each customer in a relevant and personalized manner has never been more important.

Relevancy Beats Frequency

From ExactTarget.com

Email is unique. Unlike other traditional mediums, Email - when used properly - is primarily about permission.  And when the agreement between a customer or prospect and an organization is present, value and relevancy outweigh all other elements. Including frequency.

Organizations that send their subscribers dozens of irrelevant messages in an attempt to “keep in front of them,” are missing the big picture.  Regardless of whether a subscriber is expecting special discounts, information or advice, the point is that they are expecting something of VALUE to them.

You can get great tips on successful email marketing at www.constantcontact.com and www.verticalresponse.com .  I use these services to send out my weekly sales tips and recommend them very highly, both in ease of use and excellent customer service.  An actual live human to talk to when you have questions!  Imagine that.

So, don’t give up on email marketing.  It still works! u

Ann Barr is a consultant and sales trainer who has written eight books on sales and marketing.  You can sign up for Ann’s free Weekly Sales Tips e-mailed newsletter at her web site www.sellingsupplies.com