List Revival

Faced with lackluster sales, a multi-channel cataloger offered its catalogue file an incentive to shop. Buyers were offered a coupon for one level, non-buyers were offered a little more of an incentive – they made a huge splash promoting the offer, beginning with a direct mail piece including an access code and expiration date. Recipients went online, entered the code, filled out a couple questions and were emailed the coupon code.

After the coupon was redeemed, shoppers received a series of emails asking for additional preference information, feedback on the purchase channel and product feedback – the typical email included two or three questions.

Overall impact was phenomenal; before the list revival project, their email list was 20% of the catalogue file, they averaged less than 5% open rates and had dismal click-through. Following the project, the cataloger had more than doubled their email list, quadrupled their open rates and had click throughs that were through the roof. The data from the survey series resulted in better segmentation, targeted messaging and a boost in overall sales.

Following the email survey cycle, the cataloguer sent an additional, random survey to 1,000 new customers – findings showed that these new customers felt they were part of the club and received offers that were exactly what they wanted.

Maybe you’re not ready for a total revival, but you could easily begin to survey shoppers and create the necessary dialogue – remember our push for interactive conversations?

SIA: SEO Basics

One of the top questions we receive in the eComm Biz centers around SEO – and I’ll admit that despite researching myself, there are still items that give me pause.

Interest in the topic has inspired Friday’s Service In Action call; we’ve invited our friends from SearchPeers to provide an overview of keyword targeting, proper coding for your site and the mysterious world of metatags.

I’ve seen a sneak preview of the presentation and we’re covering Dos and Don’ts, tactics for reducing risk and the cost benefits of SEO versus affiliate marketing, adwords and other efforts. This is your chance to brush up on the fundamentals, so clear your calendar or sign up through the Service In Action site.

We look forward to 'hearing' you on the call!

New Rules for CAN-SPAM

This week, the Federal Trade Commission approved four new rule provisions under the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (CAN-SPAM). This special post is meant to update you on the changes. Interpretations are still being formed for how this impacts you as an e-mail marketer – we suggest reading the summary of the FTC posting (detailed version also available) and consulting your legal department for their recommendations. You may also visit this blog for additional information in the future.

The Provisions
The new rule provisions address four topics that may affect your eMarketing efforts:
1) An e-mail recipient cannot be required to pay a fee, provide information other than his/ her e-mail address and opt-out preferences, or take any steps other than sending a reply e-mail message or visiting a single Internet Web page to opt out of receiving future e-mail from a sender.

2) The definition of “sender” was modified to make it easier to determine which of multiple parties advertising in a single e-mail message is responsible for complying with the Act’s opt-out requirements.

3) A “sender” of commercial e-mail can include an accurately-registered post office box or private mailbox established under United States Postal Service regulations to satisfy the Act’s requirement that a commercial e-mail display a “valid physical postal address.”

4) A definition of the term “person” was added to clarify that CAN-SPAM’s obligations are not limited to natural persons.

In addition to the new provisions, the Commission provided a view on how CAN-SPAM applies to forward-to-a-"friend" marketing campaigns – where someone receives a commercial e-mail message and forwards it to another person or uses a web-based mechanism to forward a link/ copy of a webpage to another person. The SBP explains that, as a general matter, if the seller offers something of value in exchange for forwarding a commercial message, the seller must comply with the Act's requirements, such as honoring opt-out requests.

Items detailed in this update will be finalized and go into effect 60 days from the May 12, announcement date. The FTC's Statement of Basis and Purpose (SBP) will be published in the Federal Register on a date yet to be announced. In the SBP, the FTC will include their views on other CAN-SPAM rules, including forward to a friend email messages.

What a Deal

A small cataloger offered a great deal – a 30% off coupon with only 150 available. They casually mentioned the offer on their lifestyle blog and noted that the offer was going fast; they then emailed the offer to their prospect file, the first 150 people to call their call center with the special code got the discount, the rest were offered 15%.

The rules were simple – the program was first launched with great secrecy. It was to be an exclusive event for friends of friends only; the blog leaked the offer. To redeem, users were to fill out an online form with their preferences.

The impact of this offer on their list size was quite dramatic; they received over 2000 new names with targeted preferences. They also got a lot of inquiries from others asking about the program. Based on interest, they posted their next offer on their site – Some of you recently redeemed a coupon for substantial savings. We will be doing this more often, offering special discounts on specific items of interest to you. To take part, fill out your preferences and you’ll be the first to know.

This advertising garnered over 6,000 new names along with a massive drive to collect customer preferences. The results continue today, they now enjoy a list that is focused, significant word of mouth and a marketing team that has polished their process of delivering offers for their file.

The Huh Factor

Ever receive an offer for something you already have – maybe a mortgage, credit card or savings program from your bank. You’d think they know you, but for some reason they’re still selling you products you already have… even after you log in or refused the offer previously.

The same rings true with emails, you click on an item but are taken to a general portion of the company site. Wouldn’t you have preferred a landing page with additional information?

Both of these examples give you that Huh Factor. As marketers, it’s imperative to listen to our customers and prospects. Clicking on an item implies interest, so lead them to the next logical page in the marketing sequence – it could be the fastest, least expensive way to improve sales.

This growing discipline has shown impressive results, an overseas bank has achieved close to 30% higher return by optimizing the landing pages, and there are even courses on how to make the most of this approach. So start giving your recipients what they want!

A Bird in Hand

I had recently had meetings with three organizations; the first was an online retailer that told me that they have very little repeat business despite their selection. Another merchant (catalog, web and B2B store presence) told me that half their hits on search come from existing customers. The third was a bank that gives away $50 to open new accounts, yet only one in 20 of the people opening these accounts actually establish more than one other relationship with the bank. These numbers are disappointing, but not atypical.

We spend so much money on acquiring new customers, but very little is done to take care of the existing – our focus should start from within, by nurturing existing relationships. Start with a thank you email that is personal; follow up with a call (even a voicemail will do). The goal is to establish a dialogue to thank the new customer and solicit feedback to improve your process.

After the initial email (and/ or discussion) put the customer on a recurring campaign to introduce them to your brand; highlight certain parts of your business and make sure that your dialogue is educational. Regularly solicit their feedback on your campaigns.

It might seem like too much work, but keep in mind that if you compare this with the cost of new customer acquisition – it is only a part of the overall cost.

To the first company, I suggest creating an email help desk to call customers, thank them and solicit direct feedback about their experience. Follow this up with two to three campaigns that inquire, educate and introduce recipients to other parts of the business.

To the second company, put the customer on a recurring stream of communiqués – part of your bonding program. Send them a sample, solicit their feedback and keep in touch.

Finally, to the bank, make the recipient tell you more about themselves in exchange for the $50. Then assign a rep to this newly acquired customer – make it their responsibility to stay in touch with them over the first four weeks. The goal should be to make them aware of the services your bank has and see if you can help the new account holder meet their personal goals.

The Birthday Email

My kids get cards and phone calls from the dentist on their birthday. It is the one place they really don't like to go, yet this call is something that they have begun to look forward to. Usually, this call is preceded by a birthday card, and includes a coupon to a treat at a local fast food place. Not a voice recording but a real person calling to speak to the kids. Very thoughtful of the dentist's office, and something we all appreciate.

I have two main financial institutions - one which serves as a conduit for my paychecks, the latter is where I save for the future. Both of them know my birthday date, in fact they both know a whole lot more, yet it is a credit union where I have less than $250 that doesn't forget to send me an email and a real card each birthday. The card is personally signed by the branch manager.

A major apparel retailer asks those who sign up for their birthday date. This information is then used to target the recipient with a special promotion during their birthday month. While this is good, it is interesting to note that the open rate on these emails goes from an average of 20% to approximately 60%. The next three emails from this retailer to the 'birthday recipient' leads to open rates of between 35 - 50%. Twenty percent of those who open the special promotion actually redeem it. This makes this particular promotion quite special for the retailer. Now you do have a few people that abuse this by creating a birthday to get a discount, but the retailer counters this by trying to get the recipient to provide some preference information.

A jewelry company asks you for your birth month so they can wish you and also talk to you about your special stone. Remarkably, this has done very well for this company. People are intrigued by their stone and what it all means. They read, they click, and they eventually buy.

A men's clothing company used to give out $10 gift cards on people's birthdays. This is a practice that has since been abandoned, as after much testing we realized that most of the recipients were redeeming up to $10 (only). Also, in split tests we found that it didn't boost overall response. This company has since switched to simply wishing the recipient on their special day. The results are almost the same. Now, if you are a higher tier buyer, you get a real birthday card from this company. This is appreciated and acknowledged in subsequent purchases by the customer.

Do remember, if you ask for a birthday date - please be sure you are going to protect the information. Also, if you ask people for the exact date, please use it as you have created an expectation.

I would like to borrow an approach from a Florida newspaper. They put in your luck for the year as part of their message. I know many people who used to cut that out and keep it in their wallet or purse (for the entire year).

From an email marketers perspective, why not ask for the birthday date - include a little snippet about their annual forecast, thank them for their past business, wish them the best, and introduce them to a special landing page where they can find great deals. Transactional email gives you the opportunity to make things conversational - you ought to leverage it.

So if today is your birthday - here is a little note - There’s plenty of activity this year, traveling near and far. You’ll get lots of practice scheduling and setting priorities. Don’t bet the ranch, you won’t be that lucky, but you should do quite well. Once you learn the game you can achieve your objective. Celebrity birthdays today - Billy Joel, Candice Bergen, & Reagan Taylor.

If nothing else, just wish the recipient - Happy Birthday! It goes a long way in building a relationship.