Inside The List

One of the best aspects of email marketing is that it has the ability to turn out considerable revenue from a promotional email campaign or ecommerce. But the common perception of this type of marketing is that you design your email, forward it to a list of subscribers and then wait and watch the revenue rolling in. But it is not that easy.

For an ecommerce program to be successful it takes more than just emailing the newsletter. And because of this, marketers jeopardize a lot of money by not dividing their customers into segments and utilizing more advanced emailing features. Segmentation can be done on the basis of demographics, personalization, actions, customers responses detail tracking and trigger based emails. By considering these variables, a lot of investment may not be made in infrastructure or technology.

The revenue of an opt-in program can be doubled or even tripled within a few months with a little extra effort, analysis, refinement and testing. The things to be taken care of here are list building, content creativity, list management, segmentation and testing.

List building is the most effective means for increasing revenue. The email subscription form must be optimized for growth of the email list. Just a good home page won’t do the trick of capturing new subscribers. An eye catching link to the subscription form must be placed on every page of the website, possibly with an impossible to miss image. Many readers expect incentives when they sign-up for something. Try to offer ‘free shipping’ or ‘$25 off on the first order’, or something like it. The email address of a customer should be captured on the shopping cart form. Then a transaction confirmation email can be sent which includes link to the subscription form. This opportunity can also be used to get additional information from the customer in order to target them better. Demographics such as gender, product interests, and preferences can be asked about.

Try to use a search engine pay-per-click or PPC program, because search is the most frequently used way for customers to buy products they desire. PPC program increases the traffic towards your website. If such programs are used, the signing up process must be made easier for visitors who have or haven’t bought products from your website. Making the website search engine optimized is the most cost effective method of getting traffic and improving your list. This optimization can be done either internally or by hiring an external SEO consultant. Every page of the website must be optimized to get the top rankings. The ‘Send-to-a-friend’ feature must be included in every eNewsletter as this feature generates a considerable amount of new subscribers. Although the number won’t be big, but it will be enough to satisfy the number of unsubscribes every month.

If the business or shop is located somewhere, in-store promotion offers can be sent via emails. Sign-up forms can be given at cash registers and subscriptions can be promoted at the point of purchase.

According to researches, a compelling subject line can increase the open rate by fifty percent. Solid offers and great design are the perfect blend for doubling the click through rate. Give customers options from which they can choose the most appropriate one which suits their appetite. The products must be divided into categories. Personalization helps in increasing the response rate. Emails can be personalized by referring to the customers by their first name or by their past purchase history. Since the email is just an extension of the website, it is better to leverage the website’s navigation. If the website has search capability, it must be incorporated in the email.   

The personality of the marketer should be reflected in their emails and its designs. Emails main job is motivating the recipients to click on the links to go to the website or subscription form. Some other very important links can be included, but a clutter shouldn’t be formed so that the most important one cannot be located. Graphic buttons and images can be used to draw attention. Great subject lines, top lines and offers just to wonders.

List should be managed by calculating email churns and fatigues. Incorrect email entry can be solved by including a second email entry box. Send out confirmation to check the validity. Update email address and manage account link should be included in every email.

Testing is very critical in optimizing the email program. Majority of the email variables must be checked before the emails have been send out.

Beating Adwords

Inside The List

Email lists die a slow but steady death if action isn’t taken from time to time. For most , fifty percent of their subscribers leave them every year. Everyone uses their click, conversion and open rates in order to measure their email program’s successt they fail to measure the size of their and quality of their email list. Email list hurdle rate is the new metric to be considered, along with the other old ones, in order to keep the list growing.

The email list hurdle rate determines the loss rate from the email list which needs to be overcome for the list to grow. It gives the exact number of new subscribers to be attracted in order to replace the old ones which have  left the list. The other stumbling blocks to be tackled are list churn and list fatigue.

List churn is the percentage of subscribers who have left the list during a certain time period. This is measured either monthly or annually. Out of this only three percent constitute of people who have unsubscribed from the list. Other thirty percent constitute of email addresses which have been lost to hard bounces every year. The subscribers can either enter their email address incorrectly when signing up or the emails addresses might no longer be valid, causing the emails to bounce. The rest of the percentage constitute of people who have reported spam complaints. Even the biggest legitimate permission marketers get spam complaints.

The list churn rate can be calculated monthly by looking at the email performance reports. The yearly lost subscribers can be calculated by adding up number of unsubscribed, hard bounces, and spam complaints. The total should then be divided by the current size of the list to find out the list hurdle rate. Calculation of the list hurdle rate is very important for the annual planning process and for forecasting the revenues.  The list churn rate can be improved by reducing the number of spam complaints and bounces.

List fatigue deals with the subscribers on the email list which have hibernated and have become inactive for quite a while. These people haven’t unsubscribed, but have stopped reading the emails and interaction. Therefore the un-subscription rate cannot give a clear picture about how the readers feel about your emails. The most common cause of list fatigue is irrelevant offers, over mailing and newsletter content which dose not deal with the interest of the reader.

The percentage of the inactive subscribers should be calculated to figure out the list fatigue. People who haven’t clicked or opened not even a single email over a certain period of time should be counted. Usually thirty to fifty percent of an email list becomes inactive annually. There can be a variety of reasons why these people are receiving your emails but aren’t unsubscribing. Major reason is because your mail can be going directly to their bulk folder or because your un-subscription link isn’t working.  So there can be a possibility that out of the fifty percent, forty percent are inactive and the rest ten percent are busy, on vacation, or just not motivated enough by the subject line or email content. Small surveys can be conducted to understand the changing needs of the subscribers.

These sleeper subscribers need to be activated from time to time by giving them spicy stuff  like special offers, different newsletter outlook, interactive tools, etc. On one had the old subscribers must be re-energized and new subscribers must be added from time to time. Otherwise the list gets shorter and shorter. Resources must be obtained and plans must be established in order to get the targeted list growth rates. The ratio of inactive subscribers must also be reduced and slowed down.

Inside The List

It requires  hard work to build a robust, responsive and high-quality mailing list. Just flooding thousands of emails to the list of recipients in the database won’t do the trick. The truth is that acquiring email addresses is just a small part of the large process of email marketing. It is very important to realize that you should build an individual relationship with every person behind the email address. If start out wrong, every chance for building a rewarding relationship with the subscribers is instantly killed. And on the other side, if you prove your self worthy to your list of subscribers, then many happy years lie ahead for both of you. 

For list building some key components need to be kept into account like the method of acquiring the email addresses, how new subscribers should be welcomed, and how the relationship is maintained after the opt-in process. Acquiring the list of addresses is the easiest part of list building. But the basic rule here is to take explicit permission from the owner to send emails. Violation of this rule is going against the U.S. CAN-SPAM law regarding commercial email. This also leads to breaking of the relationship with the customer.

Addresses can be collected by online and offline means. Links for email opt-in should be posted on every page of the website, including the registration page and every transactional page. Paid search can be used to reach elevate the position in search engines results. The landing page should include a vivid link to the sign up page. Alliances can be searched who have a similar or a complementary business  to promote one’s company in return for promoting the other company. Incentives such as email only discount and free shipping can be offered to increase the subscription list. If the list is being rented from another organization make sure the list contains subscribers which have given permission. Offline means include collecting email addresses from visitors to the company, trade show or on-site. Email addresses can be asked for in appropriate situations by the customer support employees and telephone sales workers. Links for subscription can be posted in all printed material such as newspapers, flyers, magazines, bags, store signs, customer survey and feedback forms, catalogs, etc.

The next important step is to welcome the new subscriber. Because of the flood of emails filling one’s inbox, it is  tough to make one read the email and trust in it. A welcome message, with appropriate content, helps in building the relationship of trust with the subscriber. In fact, a complete welcome program must be build for this purpose. Welcoming a subscriber actually starts from the website’s registration page. This page should clearly explain the content, benefits and frequency to the subscribers. The opt-in page should be easy to navigate and shouldn’t be bothersome with numerous questions to be answered. For start four fields are sufficient: first name, last name, email address and format preferences. The other information can be collected via optional forms. After sign-up a thank you page must pop up immediately. This doses the confirmation job and leads the subscriber to the optional form. Next, a welcome email should be send to the customer. This email will not only build up the initial trust but will also check the validity of the email address. This email should include links to optional forms and the detailed preference page. It can also contain the subscription benefits and sample of the past best newsletters.

The next step of relationship management is the most important and delicate phase because of the personal relationship with every subscriber. If it is not taken care of properly, all the effort taken to collect email addresses for subscription list will be wasted. The subscriber’s preferences must be honored in order to expand the email program. The trends in bounces, inactivity and unsubscribing can be noted by the list statistics. Occasional special offers and surveys can be created for sustaining the interest of the readers. People who haven’t opened the emails for a long time should be concentrated upon, especially. Send follow-up emails and query messages.

Opt-in list building takes lots of time, energy and dedication. Certainly all the effort is worth it in the end, which can be seen by the healthy growth of the mailing list.