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Results Oriented E-Mail
Marketing:
My Personal Journey from D-Mail to
E-Mail, and, maybe on to F-Mail

          By Dickie Soriano
“The real danger is not
 that computers will begin
 to think like men but that
 men will begin to think
 like computers.”
                   Sydney J. Harris
This talk
is NOT about:              it is ABOUT:
- Technology               - Targeting
- Making a one-time sale   - Finding and keeping a
   and running away            customer
- Software                 - Common sense
- Using the cheapest       - Using the most cost-
   medium available            effective medium
- Sending out e-mails      - Developing a marketing
                               strategy
The problem with Email Marketing
A bit about my spotted history
             • Started direct mail
               business in 1988
               – Targeted, compared to
                 mass media
               – Results-based: a query, a
                 sales lead, a sale
               – Individual Customer,
                 rather than faceless AB
                 Upper C
D-Mail Lessons for E-Mail
Direct Mail in Philippines
• Mostly unsolicited
  (credit cards,
  insurance, real
  estate, catalogs)
• Mostly worked (at
  least the ones we
  did) at generating
  an ROI
What made ‘junk mail’ work?
In classic direct mail, the outer envelope
     is the first thing the reader sees
Name of organization and sender
is prominently displayed

                                     Teaser
                                     copy to
                                     make you
                                     want to
                                     open the
                                     envelope
                                     and read
                                     contents




List code on label
In classic DM, the letter was crucial

A story                     Johnson box for headline
written to                  offer, typically bold or
an                          underlined
individual,
by an
individual
                               Typeface chosen for
                               readability for
                               sustained reading
Tested offers

Tested lists
The real secret to results
     in direct mail:
      Ruthless testing
Sampaguita Pack vs. Kuya Bill Pack
List: BPI Credit Card Holders
Table. Comparison 55 Days After 1st Mailing / Full Mail-Out

                                                 One Time                                                       Pledge                                    TOTAL
        Pack              Response                         Amount                            Response                  Amount                # of Responses Project Amount
                         # Rate (%)       Highest     Lowest      Total         Average     #    Rate (%) Highest Lowest      Total  Average Resp. Rate (%) to be raised*
                                                                                                                                                    835
Sampaguita                779     0.433   50,000.00     10.00 1,088,181.25 1,396.90            56 0.031 2,000.00 100.00 37,250.00 665.18                0.46 1,535,181.25
                                                                                                                                                   1816
Kuya Bill                1445     0.723   15,000.00    100.00 1,661,556.00 1,149.87           371 0.1855 6,000.00   50.00 239,588.00 645.79             0.91 4,536,612.00

                                                                                                                                                     *assuming pledges w ill last for 12 mos.


Difference                666     0.290 (35,000.00)           90   573,374.75   (247.03)     315 0.15439 4,000.00     (50.00) 202,338.00   (19.39)             981.00       3,001,430.75
(Kuya Bill less                                                                                                                                                  0.44
Sampaguita)

Kuya Bill/Sampaguita   185.49   166.94        30.00 1000.00            152.69     82.32    662.50   596.25   300.00      50.00    643.19    97.09         217.49                    295.51
(%)                                                                                                                                                           195.74
The obvious problems of direct mail
• Expensive: printing, postage, list rental
• Long gestation: from brief, to creative
  development, to tests (creatives, lists, offers)
  to analysing results
• The more people send out direct mail, the less
  effective it becomes (junk mail vs relevant
  mail)
The beauty of e-mail
My personal experience of a
  results-oriented e-mail
Sent by our
  Creative
  Director      Deals with a subject   Contains
  (female)      close to any working   promising *.jpg
                man’s heart            files, which,
                                       given the
                                       subject line, is
                                       bound to be
                                       worth opening
Can you relate to this typical e-mail?
How many of you will:
a. Open it immediately
b. Wait to make sure no one else is lurking
   behind you before opening it
c. Save the files into a secret folder and open it
   at your leisure
d. Delete the message without opening any of
   the .jpg files
If, like me, you answered ‘a’ and
opened the file immediately, here’s
  just a small teaser of what you
           would have seen
There are any number of lessons you
          can get from this:
• Never , ever expect that your female creative
  director will forward anything enjoyably
  pornographic
• The techniques of classic direct mail are used
  by the most successful e-mail messages
De-constructing effective e-mails
1. The e-mail has to come from a
       trusted or known source

• A known brand, a known person
• Opt-ins are important, to get through spam
  filters (but even then, not a guarantee)
Consumers find promotional emails from companies
    they already have a relationship with most useful!
                                                              68%
Promotions/Offers

     Site/Prod. Info                          47%

          Useful Info               24%

      Entertainment                22%

Promotions/Offers            14%

 Useful Reminders            13%
                                          Companies with Relationship
                        6%
     Site/Prod. Info
                                          Companies with
                                          No Relationship
A case in point:
In contrast
2. The e-mail must be relevant
An even more relevant e-mail!
The value of relevance
Email marketing is increasingly more effective as marketers
  learn to segment and target their customers
  with individualized, relevant information and
  offers at a time that is right for them, rather than
  the organisation. According to Epsilon’s Email Trend and
  Benchmark Report11, volume of email has increased, as
  too have open and click rates. Deliverability rates have also
  increased – 91% of email is thought to now hit the inbox
  compared with 84% in 2008, and bounce rates are on the
  decline. The advent of social media has enhanced the
  efficacy of email rather than caused it to decline.
3. The shorter the email, the better
• This is in marked contrast to direct mail,
  where the more information you put in the
  mailing pack, the better the response rate
• Then again, in an e-mail with hyperlinks and
  an active internet connection, the receiver has
  information he needs at his fingertips
email Offer based
                             Short text 4,120 open rate
email Product Based          Long text 3,642 open rate
Short text 4,376 open rate   Short text 23.67% CTR
Long text 4,174 open rate    Long text 18.47% CTR
Short text 23.61% CvTR
Long text 18.47% CTR
4. E-mail use is strategic, not
              promotional
• Look within the marketing context, not as a
  stop-gap measure
• Never as a ‘panic button’ to push when sales
  are down
The Bigger Picture
                                                       Information
                                 Product & Service     Detailed brand support
                                    Attributes         Differentiation
                                                       Value                                       Questionnaire
                                                       Solutions                Consideration      Virtual trial/demonstration
 Target and identify:
                             Attitude                                                                (configurators & locators)
  registration process         Gap                                                                  Information on demand
  (Personalization)                                                                                 Call to Action

                                                                           Prospect
                                                                           Prospect
     Brand                             Suspect
   Awareness                                         Acquisition                                           Conversion
                                                        Gap

                                                                                         Customer
                                                                                                            Response Mgt.
                           Market                                                                           Lead Cultivation
                                                                                 Sales                      Close Sale (Build-In Metrics;
                                                                                                             ROI/LTV)
                                                                                 Gap
       Data Capture
        Profiling
        Segmentation                      Retention          Customer
                                                              Cross-Sell                          Cross-sell/Upgrade
        Customer Moments of                 Gap                Care                              Loyalty Build
         Truth                                                                                    Enterprise wide service & support
        Link to db and legacy
         systems

                                                                                      Post-Sale
                                                                                   Service/Support
5. An e-mail should make it easy for
    me to give you my business
Links to different
landing pages of
website
Real time
choices of
available
inventory,
with
specific
prices
6. Results-oriented e-mail does not
         have to be boring
Putting our brains together for a
         quick exercise
      The Ateneo Family Business
         Development Center
Quick Case
• Ateneo Family Business Development Center is
  holding a series of seminars on family businesses
  – They have a database of previous seminar participants
  – They do not want to spend on a print ad due to likely
    election clutter
  – They have access to Ateneo alumni e-mail
  – They are given space on the Ateneo web site

• How should they get people to enroll in their
  seminars, given their limited budget?
Your suggestions
What we actually did
• Small cheap and dirty website
  (www.ateneofambiz.com)
• Facebook ad
• E-mail Blast
• Fax Blast
• Outbound telemarketing
• Tarp on campus
• Small print ad on PDI
The results?
And the winner
      is:
 Page 3, Business
 Section,
 Philippine Daily
 Inquirer
From D-Mail To E-Mail.
Is F(B)-mail about to take over?
“More people now spend more time
  on social networking than on e-
               mail”

           Nielsen, 2009
Global Consumer Trust in Ads
1. Friends recommendations
2. Brand websites
3. Consumer forums
4. Editorial content
5. Branded sponsorships
6. Television
7. Newspapers
8. Magazines
9. Radio
10. Billboards
“Social networks are arguably having
  an even greater impact on small
 businesses than on the big league.”


    Economist, January 30, 2010
What’s next for the people in this
             room?
Thank You

dickie.soriano@bcdpinpoint.com

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Results Oriented Email

  • 1. Results Oriented E-Mail Marketing: My Personal Journey from D-Mail to E-Mail, and, maybe on to F-Mail By Dickie Soriano
  • 2. “The real danger is not that computers will begin to think like men but that men will begin to think like computers.” Sydney J. Harris
  • 3. This talk is NOT about: it is ABOUT: - Technology - Targeting - Making a one-time sale - Finding and keeping a and running away customer - Software - Common sense - Using the cheapest - Using the most cost- medium available effective medium - Sending out e-mails - Developing a marketing strategy
  • 4. The problem with Email Marketing
  • 5. A bit about my spotted history • Started direct mail business in 1988 – Targeted, compared to mass media – Results-based: a query, a sales lead, a sale – Individual Customer, rather than faceless AB Upper C
  • 7. Direct Mail in Philippines • Mostly unsolicited (credit cards, insurance, real estate, catalogs) • Mostly worked (at least the ones we did) at generating an ROI
  • 8. What made ‘junk mail’ work?
  • 9. In classic direct mail, the outer envelope is the first thing the reader sees Name of organization and sender is prominently displayed Teaser copy to make you want to open the envelope and read contents List code on label
  • 10. In classic DM, the letter was crucial A story Johnson box for headline written to offer, typically bold or an underlined individual, by an individual Typeface chosen for readability for sustained reading
  • 11.
  • 13.
  • 14. The real secret to results in direct mail: Ruthless testing
  • 15. Sampaguita Pack vs. Kuya Bill Pack List: BPI Credit Card Holders Table. Comparison 55 Days After 1st Mailing / Full Mail-Out One Time Pledge TOTAL Pack Response Amount Response Amount # of Responses Project Amount # Rate (%) Highest Lowest Total Average # Rate (%) Highest Lowest Total Average Resp. Rate (%) to be raised* 835 Sampaguita 779 0.433 50,000.00 10.00 1,088,181.25 1,396.90 56 0.031 2,000.00 100.00 37,250.00 665.18 0.46 1,535,181.25 1816 Kuya Bill 1445 0.723 15,000.00 100.00 1,661,556.00 1,149.87 371 0.1855 6,000.00 50.00 239,588.00 645.79 0.91 4,536,612.00 *assuming pledges w ill last for 12 mos. Difference 666 0.290 (35,000.00) 90 573,374.75 (247.03) 315 0.15439 4,000.00 (50.00) 202,338.00 (19.39) 981.00 3,001,430.75 (Kuya Bill less 0.44 Sampaguita) Kuya Bill/Sampaguita 185.49 166.94 30.00 1000.00 152.69 82.32 662.50 596.25 300.00 50.00 643.19 97.09 217.49 295.51 (%) 195.74
  • 16. The obvious problems of direct mail • Expensive: printing, postage, list rental • Long gestation: from brief, to creative development, to tests (creatives, lists, offers) to analysing results • The more people send out direct mail, the less effective it becomes (junk mail vs relevant mail)
  • 17. The beauty of e-mail
  • 18.
  • 19. My personal experience of a results-oriented e-mail
  • 20. Sent by our Creative Director Deals with a subject Contains (female) close to any working promising *.jpg man’s heart files, which, given the subject line, is bound to be worth opening Can you relate to this typical e-mail?
  • 21. How many of you will: a. Open it immediately b. Wait to make sure no one else is lurking behind you before opening it c. Save the files into a secret folder and open it at your leisure d. Delete the message without opening any of the .jpg files
  • 22. If, like me, you answered ‘a’ and opened the file immediately, here’s just a small teaser of what you would have seen
  • 23.
  • 24. There are any number of lessons you can get from this: • Never , ever expect that your female creative director will forward anything enjoyably pornographic • The techniques of classic direct mail are used by the most successful e-mail messages
  • 26. 1. The e-mail has to come from a trusted or known source • A known brand, a known person • Opt-ins are important, to get through spam filters (but even then, not a guarantee)
  • 27. Consumers find promotional emails from companies they already have a relationship with most useful! 68% Promotions/Offers Site/Prod. Info 47% Useful Info 24% Entertainment 22% Promotions/Offers 14% Useful Reminders 13% Companies with Relationship 6% Site/Prod. Info Companies with No Relationship
  • 28. A case in point:
  • 30. 2. The e-mail must be relevant
  • 31. An even more relevant e-mail!
  • 32. The value of relevance Email marketing is increasingly more effective as marketers learn to segment and target their customers with individualized, relevant information and offers at a time that is right for them, rather than the organisation. According to Epsilon’s Email Trend and Benchmark Report11, volume of email has increased, as too have open and click rates. Deliverability rates have also increased – 91% of email is thought to now hit the inbox compared with 84% in 2008, and bounce rates are on the decline. The advent of social media has enhanced the efficacy of email rather than caused it to decline.
  • 33. 3. The shorter the email, the better • This is in marked contrast to direct mail, where the more information you put in the mailing pack, the better the response rate • Then again, in an e-mail with hyperlinks and an active internet connection, the receiver has information he needs at his fingertips
  • 34. email Offer based Short text 4,120 open rate email Product Based Long text 3,642 open rate Short text 4,376 open rate Short text 23.67% CTR Long text 4,174 open rate Long text 18.47% CTR Short text 23.61% CvTR Long text 18.47% CTR
  • 35. 4. E-mail use is strategic, not promotional • Look within the marketing context, not as a stop-gap measure • Never as a ‘panic button’ to push when sales are down
  • 36. The Bigger Picture Information Product & Service Detailed brand support Attributes Differentiation Value  Questionnaire Solutions Consideration  Virtual trial/demonstration  Target and identify: Attitude (configurators & locators) registration process Gap  Information on demand (Personalization)  Call to Action Prospect Prospect Brand Suspect Awareness Acquisition Conversion Gap Customer  Response Mgt. Market  Lead Cultivation Sales  Close Sale (Build-In Metrics; ROI/LTV) Gap Data Capture  Profiling  Segmentation Retention Customer Cross-Sell  Cross-sell/Upgrade  Customer Moments of Gap Care  Loyalty Build Truth  Enterprise wide service & support  Link to db and legacy systems Post-Sale Service/Support
  • 37. 5. An e-mail should make it easy for me to give you my business
  • 38. Links to different landing pages of website
  • 39.
  • 40.
  • 42. 6. Results-oriented e-mail does not have to be boring
  • 43.
  • 44. Putting our brains together for a quick exercise The Ateneo Family Business Development Center
  • 45. Quick Case • Ateneo Family Business Development Center is holding a series of seminars on family businesses – They have a database of previous seminar participants – They do not want to spend on a print ad due to likely election clutter – They have access to Ateneo alumni e-mail – They are given space on the Ateneo web site • How should they get people to enroll in their seminars, given their limited budget?
  • 47. What we actually did • Small cheap and dirty website (www.ateneofambiz.com) • Facebook ad • E-mail Blast • Fax Blast • Outbound telemarketing • Tarp on campus • Small print ad on PDI
  • 49.
  • 50.
  • 51. And the winner is: Page 3, Business Section, Philippine Daily Inquirer
  • 52. From D-Mail To E-Mail. Is F(B)-mail about to take over?
  • 53.
  • 54. “More people now spend more time on social networking than on e- mail” Nielsen, 2009
  • 55. Global Consumer Trust in Ads 1. Friends recommendations 2. Brand websites 3. Consumer forums 4. Editorial content 5. Branded sponsorships 6. Television 7. Newspapers 8. Magazines 9. Radio 10. Billboards
  • 56. “Social networks are arguably having an even greater impact on small businesses than on the big league.” Economist, January 30, 2010
  • 57.
  • 58. What’s next for the people in this room?
  • 59.