| One such low cost, high ROI marketing activity is email | | | | are using a service like AOL) and be automatically |
| marketing. In fact, a 2008 Direct Marketing Association | | | | unsubscribed through the feedback loop, or the email |
| (DMA) study showed that, "E-mail's ROI in 2008 was | | | | can hard bounce (the email address does not exist |
| $45.06 for every dollar spent on it." | | | | any more). It is very important for these features to all |
| In addition, a February 2008, retailer survey by shop.org, | | | | be in place because if these subscribers are not |
| showing that email marketing has the second lowest | | | | unsubscribed immediately and you send to them |
| Cost Per Order (CPO) of any online marketing | | | | repeatedly you run a much higher risk of being blocked |
| method. The email marketing CPO of $6.85 beat paid | | | | by one or more ISPs. |
| Web search, which yielded $19.33 CPO. | | | | It is also important to choose an ESP that either gives |
| Despite its low cost and high ROI, email marketing still | | | | you a private IP address or has you share an IP |
| accounts for a very small fraction of most marketing | | | | address with a relatively small number of other |
| budgets or not used at all as a marketing medium. | | | | customers. The IP address, whether it is shared or |
| According to a 2008 Forester study, "only 48% of | | | | private, is the caller ID of your emails. If too many ESP |
| small and medium-size businesses (SMBs) have been | | | | customers share an IP address, you can easily run into |
| using email for four years or longer. But now they're | | | | problems with being blocked by ISPs for mistakes |
| beginning to embrace it with gusto." | | | | made by other customers of the ESP. Most reputable |
| For those already doing email marketing for a relatively | | | | ESPs do their best to keep out the spammers but |
| low cost you could increase the amount of time and | | | | even legitimate email marketers sometimes get their IP |
| energy you put into your email marketing to increase | | | | address blocked by an ISP and it can take some time |
| your ROI. This means striving to improve your content, | | | | to get the IP address unblocked. |
| offers, and make use of some features of your ESP | | | | Finally, if you are in the process of choosing an ESP, it |
| that you may not currently be using. For example, | | | | is a good idea to choose one that does not require a |
| most ESPs enable you to segment your email lists by | | | | contract term beyond one-month. That way, if you are |
| demographic or other criteria (e.g., city). In addition, | | | | not happy with the service you can cancel and switch |
| many ESPs enable you to send out triggered emails | | | | to a more suitable ESP. Not every ESP is going to be |
| based on a number of criteria, including sending emails | | | | a good match for your needs and a good value for |
| at set intervals from the day the user subscribes to | | | | you. |
| your list (sometimes called "drip marketing") and | | | | An excellent way to start evaluation process is to |
| date-based triggers, such as a special offer email on | | | | research a number of ESPs and narrow your choices |
| someone's birthday. | | | | down to a few that seem to offer a good service at |
| If you have not yet started using email marketing, this | | | | a good price. Then do a free trial of each and upgrade |
| is a great time to start. You will want to evaluate Email | | | | the service you like the best to a full account.. Since |
| Service Providers (ESPs), which hosts email marketing | | | | you are restricting your choices to month-to-month |
| services on their servers. While you control your email | | | | services you are not locked into a bad choice. You |
| marketing account and send out emails using a Web | | | | can switch ESPs, move your lists, and move your |
| browser interface, the ESP's servers and Internet | | | | HTML and text emails over to the new service. Having |
| connections do the heavy lifting. | | | | used one ESP will have given you some valuable |
| Look for an ESP that provides delivery reports, open | | | | experience that you can now apply to the new ESP |
| rates, click-through rates (CTR), bounce handling (both | | | | you have chosen. |
| hard and soft bounces), an automatically placed | | | | Email marketing is a bright spot in marketing that has |
| unsubscribe link in each email, feedback loops with the | | | | high ROI and has excellent metrics. High ROI marketing |
| major ISPs (complaint management), and Google | | | | efforts are always a good idea but are especially |
| Analytics integration. | | | | valuable when the economy is soft. Of course, it is |
| It is important to clarify the different ways that | | | | best to engage in a mix of marketing activities, with |
| someone can, intentionally or unintentionally, unsubscribe | | | | email marketing as just one component of a larger |
| from your list with a good ESP. They can click on the | | | | strategy. |
| unsubscribe link, click on the complaint button (if they | | | | |