2008 Panel of Peers: Taking Stock II
Building upon yesterday’s post, we’ve expanded with the true applications. Today’s build-out is straight from the learning we gained in Las Vegas earlier in the week… if you missed yesterday’s post, be sure to start there first.
Your list has to grow
Most company’s have an email file that is about 20 – 30% of their direct mail file and most consider contests as the top collection method. While an effective strategy, the effectiveness of an email collected via a contest diminishes significantly; a more effective strategy would be to reward your employees in the collection process. Help educate them in the collection process and provide them with scripts that sound natural and explain the value of the email program.
Also, take a harder look at your churn and attrition – one-time buyers, unsubscribes or the recipients who have simply started ignoring you. This group has to be placated and the net effect has to be positive on your business.
Remember customers are expecting you to ask them for an email ID.
You have to know more
You need more than an email ID or mailing address; while this is good information, it doesn’t help your segmentation strategy much. In order to make the most of your communiqués, you must leverage preferences which requires that you first ask for choices and then track their clicks – tracking will help validate their sign-up and determine if other categories are of interest as well.
Request, track and keep asking questions, be sure to include survey data into your overall customer profile; many of us use the survey data as stand alone information far diminishing the effectiveness.
Remember customers expect you to know them, not just on the email channel, but across all channels.
You have to interact often
This isn’t a strategy of more is better; the dialogue needs to be deliberate. Start trying to build up the frequency of your communiqués over time and think about setting up an email center – a notion of a help desk that answers questions directed via email. Your responses from the help desk should be via both phone and email. If you have a big newsletter, allow people to see the entire piece and follow up with some of the non-clicked articles.
Remember you have to create a back and forth dialogue; if you do it via email, it becomes so much easier to track.
You have to Micro-Segment
Most email marketers have their segments split into buyers and non-buyers; some have enhanced these segments by leveraging preferences, even fewer have leveraged transactional data into the mix. The elite are beginning to take a new approach, one-to-one campaigns with dynamic personalization. The more you can target the end user, the better your result. A small company with an email department of one has a list of 200K, this company breaks their email campaigns into two streams – a recurring dialogue with about 45K people who are buyers, the rest of the file is broken into 32 segments.
Remember, technology and data can facilitate effective targeting. As a marketer you have to derive these segments.
You have to communicate across channels
Your email file should be included as part of the overall communications, direct mail is not the only other channel. You have your branch/ store, call center, print, mobile, ATMs/ self-service kiosk and you have people. Every one of these channels can and should be coordinated into an effective stream of messages. If you don't have a big database – no big worries start small by using email to drive behavior both towards each of your other channels and from these other channels.
Remember your messaging has to make sense, even for in-bound transactions.
You have to leverage Social Media Channels
The goal of your messaging is to create a dialogue and a hub for your users to take part. New media Web 2.0 channels are an absolute for any business, consider MySpace, Facebook, LinkedIn, Flickr, Twitter, YouTube and Blogs. The role of email is evolving into a coordinating channel that facilitates these other channels.
Remember, your web site by itself is just an order form, email is a push channel and social media is a pull channel. As a marketer you have to plan and leverage this.
You have to provide Superb Service
Your channels cannot hide from each other; your consumer keeps a score card. As you target the customer or prospect with different messaging – a single act of lousy service can totally tarnish all experiences. A lot of companies are beginning to think about implementing sophisticated loyalty programs. The best first step here is to focus on your people and channels – train your people to recognize and serve the customer well. Also, if you simply offer superb service, the customer will not forget.
Remember, you have to focus on intangibles and make goodwill deposits – all of this adds up to great service.
To recap the seven absolutes – grow your list, know more, interact often, micro-segment, cross channels, leverage social media and provide great service.

