Email Marketing Insights

Successful Marketing Campaigns:

Contrary to popular belief, email marketing is just as valuable as it was say, ten years ago. Even with the creation of social media and texting, email marketing is just as valuable as it ever was. According to an article in Inc.com, written by Peter Roesler, there are five main reasons why email marketing is still so important.
1. It’s easy to reach mobile customers
2. It’s an effecting way to inform your customers
3. Email coupons are a driver of in-store and online sales
4. It’s easy to use in other marketing avenues
5. It’s inexpensive
While email may seem obsolete at first glance, it is still a very necessary marketing strategy for businesses. I definitely agree with the first point made by Roesler. As a member of the millennial generation, I use all types of social media: texting, aps, you name it. Out of all avenues, I prefer to get promotions through email. I have a certain email that I have all of my coupons sent to, and then I have it all set up on my phone for in-store use. This allows me to stay informed as well as have the ability to keep ‘in touch’ with my favorite stores.

However, in order for this type of marketing to even be successful, the plan needs to be executed correctly. In an article titled “Tips for a Successful Email Campaign” describes what the author, John Rampton feels to be the best way to execute an email marketing campaign:
               1. Start with an objective. Make sure that there is a point to the email. In turn, make sure that the email content is a reflection of what is in the subject like of the email. Often times I’ll receive emails from companies discussing one thing in the subject line, with the content of the email being totally different. This is confusing and frustrating to customers and can lead to a decrease in effectiveness.
               2. Use a clear subject line. Sometimes it can seem irrelevant to use a detailed subject line. However, it is more beneficial than it may seem. This increases site traffic. The customer is more likely to open the email if the subject line is short, sweet, and to the point.
               3. Call to action. Using a time sensitive call to action is the best way to get the customer to open the email and visit the site.  This leaves the customer wondering what they might be missing out on if they don’t visit the website. Recently I was on Nordstrom.com and they had a pair of shoes that I loved. I clicked on them just to look, and wouldn’t you know it, there was only one more in my size. Two seconds later it was in my shopping cart and I was checking out.

Additions to Email Marketing:

The best way a company can insure that they are sending emails with valuable content to consumers who will access the specific email is through knowing the customer’s purchase history.
               Have they been to your store?
               How many times/how often?
               What did they buy?
               Is there a way to know what they may buy in the future?
All of these question’s answers can lead to very successful email marketing. If the subject line of the email shows that the email contains something of interest to the consumer, the odds of that email leading to a purchase just increased. Response rates will increase and company revenue will increase as well. There’s no use in sending an email containing a promotional coupon for diapers to a single woman with no signs of being pregnant- that was a waste of an email. Not to mention now this woman is less likely to open emails from your company because it will most likely contain something of zero interest to her. This is called cookie profiling, or online profiling.

Response Rates:

I was reading an article found on MarketingProfs.com that discussed the open rates per industry. It was found in a study discussed in the article that the computer software industry had the highest number of open rates, reaching 55%. On the other end of the spectrum: travel, health care and retail all were struggling at around 17%. While this study is a few years old, the trends it describes make sense.

There is a high need and interest regarding most technology. It is no surprise to me that it ranks the highest in email-open rates. Everyone wants to see the new and exciting things that tech companies have to offer. When these emails are presented to their target consumer (who also happen to be very loyal…apple), the consumer is intrigued and ready to visit the website as if it were Christmas day.
The open-rates for these types of customers is naturally high. Something that really intrigues these customers is the "new" aspect that is typically associated with these emails. Customers open these emails mainly because there is a new product that the customer is eager to see and learn more about. According to an article on Entrepreneur.com, the number one way to increase email open-rates is to have a captivating subject line. This means that it needs to be short and sweet, but also call the customer to action (using scarcity or promotional language), or has very appealing content that makes the customer curious. Finding a way to make subject lines as personal as possibly will increase open-rates as well.

Now, travel, health care, and retail are all different. I am still a broke college student with no business going on an elaborate vacation any time soon. This is why if I were to receive and email from a travel agency promoting a new destination or a limited time offer on cheap plane tickets to Aruba, I would easily be able to click ‘delete’ and move on to the next email. Same with health care. These two specifically are very situation-based (if you will) industries. Hypothetically speaking let’s say I was to go on a trip to Europe. My travel agent would get my email and from then on send me monthly emails about the next exciting promotion their company was offering. However, I just spent all my money on my three week trip in Europe with no plans to go back, or anywhere else for quite some time. I wouldn’t have the desire, or need for that matter to open any promotional emails from said travel agent. The same could be said for health care. Say I had appendicitis two years ago. The surgery was covered by my insurance. However, I still get emails from the insurance agency about upgrading to a more expensive plan. I simply delete these messages because I am the only one on my plan and don’t need a more elaborate health plan.

In the same article from Entrepreneur.com, it was mentioned that having segmented email lists will increase open-rates immensely. Knowing the age and other demographics of your recipients and segmenting them based on differences will allow you send more tailored emails to optimize open-rates. Demographic information such as age and gender can also help in order to know when to send emails and what content should be included. Younger people probably want less emails than older people, mainly because younger people (teenagers and early twenties) don't use our emails as much as older people. In addition, most young people don't have the finances to buy things frequently online like the older, more financially stable adults have. These are just a few examples of why segmenting your email recipient lists is important.

Sometimes emails don't make it to its recipient. This is normal and is called a bound-rate, but there are ways to lessen this number. One way to decrease this number is to send emails that requires the recipient to confirm their email address or 'opt in'. When they opt in, you can ask them a few demographic questions as well in order to best segment recipients. According to activecampaign.com, this way your campaign manager has a record of all the addresses that were and were not confirmed, and then they can discard all non-confirmed email addresses. Another way to lessen this number is to email in set intervals. By doing so, you're keeping your recipients up to speed on your company and its products/services. You want to make sure you're doing this so that they don't forget who you are and mark your emails as 'spam' next time you send out an email.

The conversion rate is probably the most important when measuring response rates. This measures the number of people who opened the emails, saw the promotion or whatever is being advertised, and then followed the instructions within the email on how to access the deal.
Click-Through rate is also very important. This calculates the percentage of people who see the ad, and then click on it.
Both of these are key to response rates because they show the marketer how often their customers are visiting the sites, and how well their ads/ subject lines are capturing their market consumer’s attention.

The Future of Email Marketing:

Will email marketing continue to be a key component in IMC campaigns in the coming years? That’s a tough one. Until recently, I thought that email marketing was a thing of the past. So it’s difficult to say whether or not I think it will continue to be a strong strategy, or if it will soon fall to the way side similar to telecommunication marketing. If I were to choose right now, I would say that in five years, email marketing will become obsolete for the average household consumer, and continue to be a strong marketing technique when marketing to large companies and corporations.

I think that with all the apps that are being created with their promotional marketing integrated within them, that collecting customer emails at the register will become one of those things we tell the next generations about. Millennial’s especially are so tech savvy that they are branching out every day, using new apps every day. I currently use an app that shows me new promotions every day for all the companies that I have allowed it to show me.

Large companies and corporations need email to sort their interactions and keep things organized. I don’t see email being something that are strayed from. Email has been the largest form of communication and organization since its existence. I don’t know a life without email. That being said, in my opinion, within the next five years, B2B promotions will still be using email and it will be just as prominent and beneficial in the advertisement regard as it is now. 

Helpful hints from:
http://www.marketingprofs.com/9/measuring-what-matters-email-marketing-part1-talavera.asp

http://www.marketingprofs.com/charts/2012/8560/email-open-and-click-rates-benchmarks-trends

http://www.forbes.com/sites/johnrampton/2015/05/07/tips-for-a-successful-email-                              campaign/2/#64b150b0480f

http://www.inc.com/peter-roesler/top-5-reasons-why-email-marketing-is-still-works.html

http://www.copyblogger.com/37-email-marketing-tips/
http://www.entrepreneur.com/article/242799
http://www.activecampaign.com/help/how-to-reduce-a-high-bounce-rate/
http://www.digitalmarketer.com/101-best-email-subject-lines-2014/