Recession Proof Email Marketing (OMS Chicago 2009)

DJ Waldow – OMS Chicago – May 27, 2009

RECESSION PROOFEMAIL

MARKETINGOnline Marketing Summit

Chicago27 May 2009


DJ Waldow

@djwaldow

• Married, no children• Dog, 3 cats• Michigan, NY Giants• Beer, coffee, people• Former middle school teacher•Current Director of Best Practices & Deliverability at Bronto



Saving the World in 45 Minutes

• What You Want to Know

• The Good News, The Bad News

• More Good News

• The Secret to Successful Email Marketing

• Other Thoughts


Flickr Photo: a2gemma


The Good News

1. Email is cost effective

2. Email has a killer ROI

3. Anyone can send email


The Bad News

1. Email is cost effective

2. Email has a killer ROI

3. Anyone can send email


HUH?


Good NewsEmail is cost effective

“Discussions with marketers and vendors

indicate that CPM sending costs are at their lowest

levels in years”Forrester (2009)


Good NewsEmail is cost effective

Email spend in 2009eMarketer (2008)

$488 million

% of email marketers who agreed email is the most cost-efficient marketing tool at their company

Forrester (2008)

66%


Good NewsEmail has a killer ROI

*more than 2x search and other marketing channels

DMA

Year ROI2008 $45.06

(actual)

2009 $43.52* (proj)

55% of respondents expect ROI from email to be higher than any other channel.

Datran Media (2008)

Perception…

And Reality…


Good NewsAnyone can send email

47% of marketers planning to boost their traditional marketing

budgets this yearAberdeen Group (2009)


Good NewsAnyone can send email

158 billion (2008)

258 billion (2013)Forrester (2008)

# of marketing emails sent by U.S. retailers and wholesalers


Good News = Bad NewsEmail marketers are motivated by low-CPM tactics that conflict with relevancy. Untargeted email that does not involve the use of dynamic content and more advanced features will continue to enjoy lower CPM (cost per thousand) sending costs than their more sophisticated counterparts, since these advanced email marketing features are typically associated with premiums. Additionally, email marketers are often motivated by the wrong incentives — such as sending to larger lists that include nonresponsive subscribers — simply to benefit from lower CPM sending costs. However, such practices often conflict with best practices such as reducing list sizes to weed out dormant subscribers, the use of relevancy to dictate frequency, and the notion that email marketers should be rewarded based on subscriber engagement rather than list size.

(Forrester, 2009)


Good News = Bad NewsEmail marketers are motivated by low-CPM tactics that conflict with relevancy. Untargeted email that does not involve the use of dynamic content and more advanced features will continue to enjoy lower CPM (cost per thousand) sending costs than their more sophisticated counterparts, since these advanced email marketing features are typically associated with premiums. Additionally, email marketers are often motivated by the wrong incentives — such as sending to larger lists that include nonresponsive subscribers — simply to benefit from lower CPM sending costs. However, such practices often conflict with best practices such as reducing list sizes to weed out dormant subscribers, the use of relevancy to dictate frequency, and the notion that email marketers should be rewarded based on subscriber engagement rather than list size.

(Forrester, 2009)

Low-CPM tactics conflict with relevancy

…motivated by the wrong incentives — such as sending to larger lists that include nonresponsive subscribers — simply to benefit from lower CPM sending costs


MoreGoodNews




The Secret to Successful Email Marketing



Send Timely, Targeted, Relevant Emails To Subscribers Who

Have Asked For Them“…delivering anticipated, personal and relevant messages to people who actually want to get them.” S. Godin (1999)


"I DELETE ALL OF THAT JUNK EMAIL!"


But wait. Many consumer are saying…


THE PERFECT EMAILIS LIKE

THE PERFECT MEAL



Timely


Timely


Targeted

Flickr Photo: biskuit


Targeted


Relevant


Relevant


Relevant


Relevant


Subscribers Who’ve Asked








Subscribers Who’ve AskedTop 4 Reasons You Know Your List is NOT

Opt-In:

1.You don’t know where your list is from2.Your boss sends you an email list of 10k+ and says, “send this now!”3.You exported your email list from Gmail, Outlook, or some other web based client4.After you send to your list, you get a high number of complaints (>1%)


Other Thoughts…• Provide Incentive• Meet the consumer where they are• Retention. Retention. Retention.• Integration w/ all channels. NO SILOS!• Provide more support for EM Mktg Team• Prove value to C’s (speak their language)


Follow UpBronto DJ Waldow

@Bronto

Blog.bronto.com

@djwaldow

[email protected]

Technology

Recession Proof Email Marketing (OMS Chicago 2009)