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Saturday, January 28, 2012
E-Mail Marketing: Best Practices for Small Businesses,
E- mai l i s a key par t of many compani es ’
marketing strategies. As of November
201 0, 94% of marketer s had used or were
planning to use e-mails as part of their
campaigns, an eMarketer study found.
While e-mail marketing’s ROI has dropped
in recent years, it still bri ngs i n more t han
$40 per dollar spent, according to a study
by the Direct Marketing Association.
With consumers buried beneath a daily
aval anche of e - mai l , market i ng mes s ages
often get lost in the shuffle — and less
t han a quar ter are opened. How can
small businesses help their marketing
e-mails stand out?
The key is to provide relevant content, and
that star t s with creating a high- qualit y list . In
this white paper, you’ll learn how to populate
and segment your list and make sure your
messages land in your recipients’ inboxes.
You’ll also discover how to test your tactics to
make your campaigns as effective as possible.
j ump To a pagE
Create a Quality,
Permission-Based List 3
Segment Your List to Deliver
Relevant Content 4
Deal with Deliverability Issues 5
Test Everything 6
Bring it All Together 7
TIp:Ramon Ray explains why “old
fashioned” e-mail marketing is best
for growing your business. Read More
E-mail marketing:
Best practi ces for
Small Businesses3 4
Q. Where do
you concentrate
most of your
e-mail marketing
efforts?
Q. Do you
segment your
e-mail marketing
list ?
providing relevant content to
your customers is essential for
keeping them engaged, but
doing so is no easy feat.
“Targeting recipients with highly relevant
content,” was cited as the No. 1 challenge
facing e-mail marketers in a
Marketing Sherpa study.
To illustrate the issue,
let’s say you run a small
company that sells men’s,
women’s and children’s
clothing. Suppose you
are having a sale, and you
want to send an e-mail
advertising the discounts.
You could send the same
message to everyone on your
list, but this wouldn’t achieve
the best results. A man might not
care about discounts on dresses, and
customers without children wouldn’t want
to learn about kid’s clothing. If you follow
this single send strategy, you will provide a
lot of content with low relevancy, and many
recipients will ignore your offer.
Instead, suppose you split your list into
four categories: men and women both with and
without children. You send a separate message
to each segment that highlights only the
clothing items relevant to them. Now your
customers have a reason to read your e-mail
and take advantage of your sale.
To apply this segmentation technique to
your company, start by thinking about your
customers. From your business’ perspective,
what are the salient differences among
them? Gather the data that
matters in your industry
– whether during the
subscription process
or afterward – and
use it to segment
your list. This way,
you can ensure that
your customers
always receive highly
relevant information.
D e m o g r a p h i c
factors are just one
possibility for segmentation.
Any data can be used, including
purchasing history, preferences and time spent
on your list. Just be sure you are segmenting
for a reason. Irrelevant categories won’t
help your cause.
Segmentation is crucial but not universally
adopted by small businesses, so splitting your
list into even a few different categories will
allow you to provide more carefully targeted
content than your competitors. About a
quarter of SmartBrief on Small Business
readers don’t segment their e-mail lists, a
recent poll found, and the percentage rises
once you remove the 28% who said they don’t
have e-mail lists at all.
Running an e-mail marketing
campai gn wi t hout a hi gh -
quality list is like singing to an
empty theater: It doesn’t matter
how beautiful your voice is
because no one can hear you.
So how can you draw a large, attentive
audience? If you’ve been collecting e-mail
addresses from your customers, it’s tempting
to add them to your list and start e-mailing.
Don’t.
You don’t want anyone on your list who
doesn’t want to be there. You will annoy some
readers, and they may be more likely to mark your
messages as spam, which will make it harder to
get your messages delivered at all.
Permission is critical at all stages of e-mail
marketing: You should ask before adding
customers to your list,and you should include
an opt-out button in your messages to make
sure you keep that permission, experts say.
(This isn’t just a matter of being polite – the
CAN-SPAM Act requires it.)
There are two popular permission-based
approaches to list building: single opt-in and
double opt-in. In a single opt-in campaign,
addresses are added to your list as soon as subscriber
forms are filled out. In a double opt-in campaign,
addresses are not added until users respond
to follow-up e-mails to confirm their intention.
While double opt-in lists tend to be higher
quality, they are also generally smaller. A double
opt-in approach may be preferable if you are
worried about spam complaints or if your target
company has been a target for abuse, says Jeanne
Jennings, an e-mail marketing consultant. No
matter what strategy you use, your company’s
website will play an important role in signing
up readers. You should feature your e-mail
subscription form prominently on your site and
present a compelling pitch to draw subscribers.
Highlight what you are offering, how it
will benefit your customers and what sets your
company apart from your competitors. Incentives
such as free trials can also encourage participation.
A 2009 study found that sweepstakes were the
most effective tactic to get business-to-consumer
customers to join e-mail lists.
The signup phase is also a chance to collect
information about your customers that will allow
you to more effectively target and personalize
your marketing efforts later on, so take the
opportunity to ask for your subject’s name and
other factors important to your business. But be
careful not to overdo it; asking for too much data
can put off your customers, Jennings warns.
Segment Your List to
Deliver Relevant Content
Create a Quality,
permission-Based List
We don’t use
e - ma il f or
marketing
We don’ t c u r r e nt ly
have a n e - ma il
ma r keting list .
Finding new
prospects
No
Yes , by met hods
other than
those below
Moving
prospects
t hrough t he
buying cycle
Renewing
inte r est a mong
former customers
Corresponding
with existing
customers
27
%
29
%
16
%
26
%
22
%
14
%
Yes , by
behavioral
factors
6
%
11
%
Yes , by
demographic
factors
4
%
8
%
Yes , bot h
demographic
and behavioral
factors
13
%
If you follow [a] single send
strategy, you will provide a lot
of content with low relevancy.
Poll of
SmartBrief on
Small Business
readers
Poll of
SmartBrief on
Small Business
readers
TIp:A conversation with Constant Contact’s Eric Groves
reveals how to make the most of permission based
marketing. Read More
TIp: Chris Brogan has some advice on personalizing your
message to your most relevant segments. Read More5 6
Should you use images in
your e-mails? Will video links
increase conversions? Should
you use HTmL or plain text?
It’s impossible to provide universal answers to
these questions; what works for one company
may not work for another. But by regularly
testing your e-mail marketing tactics, you can
find what works for your business.
First, a bit about metrics. Whether you use
an in-house solution or have opted for an e-mail
service provider, it’s vital to collect data with
each send. Without metrics, there is no way to
judge the effectiveness of your campaigns. Two
of the most commonly tracked metrics are open
rate — the number of people who opened your
e-mail divided by the number who received it,
and click-through rate — the number of people
who clicked a link in your e-mail divided by
the number of delivered messages. Keep in
mind that open rates, while popular, tend
to be unreliable.
Suppose you run a kitchen appliance store
and you send an e-mail to your list every month
advertising your new products. You include a
link at the bottom to learn more at your website.
For the last few months, you have noticed that
the open rate on these e-mails is high, but the
click-through rate is disappointing. You reason
that readers may be losing interest before they
get to the end and see the link, and you decide
that moving it to the top of the message would
generate more clicks.
To test this hypothesis, randomly split
your recipients into two groups. Then, send
one the message with the link at the bottom
and the other the test version with the link
at the top. Now compare the click-through
rates from both sends to determine which
performed better.
Note that you can include multiple
categories in your test. You could randomly
split your list into three groups, then send one
the original with the link at the bottom, one the
version with the link at the top and the third
a message with links at the top and bottom.
But if you test too many things at once, you risk
not having enough recipients in each group to
get reliable results.
Despite the crucial nature of testing, the
majority of SmartBrief on Entrepreneurs
readers either do not test their e-mail marketing
campaigns or do so only rarely. Only about 17%
said they tested their e-mail marketing “often.”
Testing can be time consuming, but it is the
only way to be sure changes to your messages
are having the desired effect.
unfortunately, just because
you send an e-mail to your list
doesn’t mean everyone got it.
Delivery problems are a serious
issue in e-mail marketing,
because each undelivered
e-mail could mean a lost sale.
There are many reasons your messages might
not make it to your recipients’ inboxes. Users
may enter their e-mail addresses incorrectly
on your subscription forms, for example, or a
server may be temporarily unavailable. In both
cases, your e-mail will “bounce,” and you may
receive an e-mail explaining why the message
was not delivered. But bounces are only part
of the problem; you also have to avoid ending up
in the spam folder.
Some Internet service providers filter
messages that use wording and formatting
commonly found in spam messages, but your
reputation as a sender is probably the most
important factor in getting your messages
delivered. The amount of e-mail you send,
the number of spam complaints you get and
the number of bounces your messages generate
can all affect your reputation. Messages that
are deleted without being opened and those
deleted immediately after opening also raise
red f lags with Internet service providers.
There are a few steps you can take to keep
tabs on your reputation. Sign up for “feedback
loops” with the major Internet service providers.
Feedback loops will notify you if a recipient
marks your message as spam. “Seed” accounts
can help, too. These are accounts established with
e-mail services and included on your e-mail list to
determine where your messages are ending up.
You should immediately unsubscribe
recipients that mark your messages as spam
to preserve your reputation, says Scott Cohen
of Inbox Group.But how can you stop these
spam complaints in the first place? Once again,
permission is key. Make sure that your recipients
have signed up for your service and that they
know what to expect from your e-mails. Provide
an easy-to-use opt-out system to further reduce
complaints. Unsubscribe inactive users if you
can’t re-engage them in your campaign. Also,
prune list members that generate “hard bounces”
— permanent sending errors related to issues
such as invalid e-mail addresses.
Deliverability can be a tricky topic, and you
may want to consider working with an e-mail
service provider, which is an organization that
helps send out e-mail marketing messages.
These companies can work to improve the
delivery rate of your messages, and they can
also offer other benefits, such as the ability to
track various metrics.
Test
Everything
Deal wi t h
Deliverability Issues
Whether you use an in-house
solution or use an e-mail
service provider, it’s vital to
collect data with each send.
Q. Where do you
usually place calls
to action in your
e-mail marketing
messages?
Q. How often
do you test your
e-mail marketing
efforts to
improve them?
In t he
subject line
Never
In multiple
places
Rarely
Ne a r t he
beginning of
t he body tex t
Sometimes
We don’t use
c a lls to a c tion
Often
Near the end of
t he body tex t
In the middle of
t he body tex t
27
%
30
%
26
%
28
%
16
% 25
%
16
%
17
%
11
%
4
%
Poll of
SmartBrief on
Entrepreneurs
readers
Poll of
SmartBrief on
Small Business
readers
TIp:Find out what you can do to improve deliverability
and avoid your message being flagged as spam. Read More
TIp: Learn more about how to test your subject line before
hitting send. Read More7 8
all marketing is about relationships, and this is especially true
for e-mail campaigns.
If your customers have a bad experience in
your store, their options are limited. Short of
posting a poor review on Yelp or bad mouthing
your company to their friends and social media
followers, there’s often not much they can do.
But if they have a bad experience with your
e-mail marketing, watch out.
That “Report Spam” button is always at the
ready, and each click can hurt your ability to
reach thousands of other people.
Show your audience respect at all stages
of the e-mail marketing process – by using a
permission-based approach, providing relevant
content and continually working to improve
your campaigns – and your recipients will be
less likely to jump for the spam button. It will
also encourage them to engage with you and
buy from your company in the future.
Bri ng I t al l Toget her
1. Keep it legal. Violations of
the federal CAN-SPAM Act can land
you with a $16,000 fine per e-mail,
so make sure you are familiar with
your responsibilities. Among
other regulations, the law requires
marketers to clearly explain how
to opt-out of receiving their e-mails.
Learn more.
2. Experiment with
personalization.
Messages that include
the recipient’s name may
generate more opens.
One study found such
personalization led to open
rates tat were 4.7% above
the average, and more
customized messages
generated even higher
open rates. But those
that mentioned the
recipient’s company
had lower open rates.
3. Create a schedule.
Send too many e-mails
and your recipients will
get annoyed; send too few
and they may forget who
you are. Establish a regular
schedule that doesn’t
overwhelm your readers.
4. Use an appropriate
tone. A consumer-facing
business might take a
lighthearted approach to
engage its customers, while
a business-to-business
firm might opt to be more
serious. Testing can help you
to find the right tone for you.
5.Write snappy
subject lines. Shorter
is generally better —
those under 50 characters
generate the highest open
rates. Avoid words and
formatting characteristic
of spam messages (For
example: “FREE! Click
HERE now!!!!”). Also stay
away from the words “help,”
“percent off” and “reminder.”
All three are associated with
low open rates.
5 Tips for E-Mail Marketing
about opEN Forum
Exchange insights, get advice from experts, and build connections at
OPEN Forum, an online community to help you power your small
business success at openforum.com.
E-mail marketing Resources from opEN Forum
Learn more about the do’s and don’ts for e-mail marketing from
the experts at OPEN Forum including:
• 30 Reasons Why Old-Fashioned Websites and
E-mail Marketing Are Best for Growing Businesses
• MSNBC’s Your Business: E-mail Marketing with Constant Contact
• The 3 Biggest E-mail Marketing Myths
• 7 E-mail Marketing Rules to Follow Before Hitting Send
• Rethink Your E-mail Marketing Campaign
• 7 Reasons Your E-mail Pitches Are Failing
about SmartBrief
SmartBrief is the leading online publisher of targeted business news
and information in a wide variety of markets. The company’s mission
is to give its 4.5 million readers a competitive edge by providing
relevant, timely and reliable information.
Learn more about SmartBrief on Small Business and
TIp SmartBrief on Entrepreneur
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