Asking Permission for Loyalty:E-mail marketing’s influence on

customer attitudes

Luke TaylorUniversity of St Thomas

Why is this important?

By 2004, marketers will be sending over 200 billion e-mails each year (Rizzi, 2001)

Catalyst for Research Question

“Well-executed e-mail communications can be an extremely effective way to earn the confidence, respect, and most importantly, [the] ongoing business of customers.”

(Rizzi, 2001, p 56)

Research Question

Does opt-in e-mail messaging promote customer loyalty?

Background

Permission or “Opt-in” Marketing

Good E-mail Marketing

Customer Loyalty

Permission Marketing

“It [involves] contacting individuals with targeted offers or messages in an agreed-upon format at agreed-upon intervals.”(Lyons and Fletcher, 2002)

Good E-mail Marketing

Personal

Anticipated

Relevant

Customer Loyalty

A combination of attitudes and behaviors, including:

repeat purchase customer satisfaction recommendation to others

(William D Neal, cited by Grisaffe, 2000)

Most Popular Purchase Items

Books

Travel

Music

Methodology

E-mail survey Sent to 156 employees, all e-mail

users, of a large company Many employees do at least some

travel

Survey Questions Identify airline Indicate opt-in or not Give information about purchase,

recommendation, and level of satisfaction

Provide simple demographic data

Two Key Groups

Recipients

Non-Recipients

How many trips by air have you taken in the past 12 months?

67% of Recipients took 1-5 trips

67% of Non-Recipients took 1-5 trips

How many pleasure trips by air have you taken in the past 12 months?

97% of Recipients took 1-5 trips

94% of Non-Recipients took 1-5 trips

Are you a member of your specified airline’sfrequent flyer club?

FrequentFlyer

Recipients 85%

Non-Recipients 55%

Do you visit your specified airline’s website?

Yes

Recipients 94%

Non-Recipients 64%

Have you recommended your specified airline to a friend, relative, or other acquaintance?

Did Recommend

Recipients 59%

Non-Recipients 64%

Have you seen an advertised fare and told someone else about it?

Referred to Ad

Recipients 71%

Non-Recipients 48%

Please indicate how you feel about your specified airline.

Neutral Feelings

Like / Strongly

Like

Recipients 18% 74%

Non-Recipients 41% 50%

Please indicate your level of satisfaction with your specified airline.

Satisfied / Very Satisfied

Recipients 77%

Non-Recipients 72%

The Answer

Does opt-in e-mail messaging promote customer loyalty?

Research seems to say “no”

Conclusions

A good sales tool

A decent advertising medium

Not good vehicle for customer loyalty

Recommendations

Larger sample size

Additional product categories

Discussion

Price may be only important factor

Illusion of personal relationship

Questions?