Maximizing Results for Email Marketing

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Maximizing Results for Email Marketing

• Call Topic Webcast - October 7, 2008

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Session Goals

• Email Marketing Industry Overview Statistics
• EMM from Banking Point of View
• List Building / Content Strategies
• Managing / Leveraging Response
• Getting Management Buy-in
• Factors in Choosing a Vendor
• Sample Programs

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Email Marketing Industry Overview Statistics
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Industry Overview

• Email Marketing is mature mass marketing is out
  / targeted marketing is in
• Consumers expect only relevant content/offers and
  have little tolerance for anything otherwise
• Definition of spam has evolved to encompass
  anything not relevant (even for opt-in lists)
• CAN-SPAM law updated in May
• More industry associations ISPs at the
  forefront of best practices (EEC, DMA, etc)
• Best practice standards continue to rise

ISPs are the gatekeepers more than ever!
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Industry Statistics

• US email marketing spending is expected to grow
  to 1.65 billion by 2011 (from 1.43 billion in
  2006) eMarketer 2007
• In 2008, email ROI is expected to be 45.65 per
  each 1 spent (more than twice the ROI of other
  mediums including search and display) DMA 2007
• Emails ROI index is 70 higher than any other DM
  vehicle DMA2007
• 83 of marketers chose email as the most
  important media for 2007 DMA 2006
• 80 of marketers indicated email was the
  strongest performing media buy ahead of search
  and display Datran Media 2008

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Email vs. Other Media
Source Datran Media
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Whos using email?

• 95 of U.S. online population uses email
  MarketingSherpa 2006
• 70 of U.S. total population uses email
  MarketingSherpa 2006
• 87 of Consumers online time is spent reading
  their emails JupiterResearch 2007
• Permission email marketing accounts for 27 of
  email that consumers receive JupiterResearch
  2007
• 74 of U.S. adult internet users view email from
  companies they do business with as valuable
  eMarketer 2007
• 40 of subscribers will go "out of their way" to
  patronize a company whose email programs they
  like Quris 2006

People WANT your email!!!
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Email is preferred

• 67 of US Adult Internet users prefer email as
  the mode of communication when dealing with
  businesses (by a 30 margin over ALL other
  modes)

People WANT your email!!!
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Email Marketing from a Banking Point of View
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Financial-Specific Industry Statistics

• Highest Unique Open Rates - 28.84 (higher than
  any other industry in the study) MailerMailer
  2008
• 2nd Highest Unique Click-Through rates - 6.98
  MailerMailer 2008
• Both open rates click rates increased for
  banking/finance from the 1st half of 2007 to the
  2nd half MailerMailer 2008
• Email is the 3 direct marketing tactic in the
  financial industry Datran Media 2007
• 61 of financial institutions are using email
  marketing SilverPop 2006

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Banking Email Marketing Obstacles

• Phishing Concerns
• Compliance Climate
• Information protection
• Email regulations (CAN-SPAM)
• Red Flag Identity theft
• Data Maintenance
• List / address churn (25 - 35 per year)
• Multiple data capture points
• Inertia / Priority Levels
• Ownership Issues
• Marketing / IT / Compliance / Web Team / C-Level
• Deliverability / spam filtering (spammy
  content)

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Overcoming the obstacles

• Be proactive with your customers
• Make email efforts visible across all channels
• Visibly state privacy data collection practices
• Build consistency in messages (creative
  timing)
• Train customer service staff on responding to
  phishing concerns
• Build a good Sender Reputation
• Get permission
• Whitelisting with ISPs
• Accreditation services (Return Path / Habeas /
  Goodmail)

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Overcoming the obstacles

• Implement Authentication Tools
• SPF, SenderID, DK/IM

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Banking Strategies

• Reclaim the channel
• Rebuild security / trust
• Promote benefits / positive
• Stay compliant
• Build / maintain the email list
• Good list hygiene is critical
• Use a mix of content strategies
• Informational
• Promotional
• Relationship

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List Building / Implementation Content
Strategies
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List Building Models

• Opt-Out / Relationship-Based
• Activate online banking customers
• Very effective but requires planning / monitoring
• Single Opt-in
• Easy to implement requires consistent effort to
  build mass
• Should be used with confirmation message
• Double Opt-in (Verified)
• Requires additional monitoring of sign-up
  activity
• Lower participation but more qualified list

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List Building Models permission request
Introduction/Permission email to current online
banking customers Note there is no promotional
content in this initial message
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Alternative Techniques

• No Magic Bullet for list building
• Email append low match rates other issues
• Rented prospect lists NOT AN OPTION FOR BANKS
• Marketing with service/transactional messages
• OK as ancillary tactic if its relevant primary
  purpose must be transactional
• Email via Online Banking Channel
• This audience is primed for relationship email
• High retention rates if used carefully

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Consumers and Online Banking (a primed
relationship)

• From a recent study, 53 of respondents said they
  banked online as of September 2007, equivalent to
  39 of the total US adult population
• Nearly seven out of 10 of people surveyed with
  annual incomes over 100,000 said they had tried
  online banking

Source eMarketer, citing Pew Internet American
LifeProjects Online Shopping 2/08 study
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Consumers and Online Banking (a primed
relationship)
Source eMarketer
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Best Practices for Subscription/Preference forms

• Demonstrate the benefits to signing up
• Show examples (set expectations)
• Clearly state your privacy/security practices
• Gather only data you will use to
  personalize/segment
• Give the subscriber options
• Various types of communications
• Format options (HTML vs. Text)
• Frequency options

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Sample subscription forms
Collecting subscriptions to send different
newsletters to various targeted segments
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Sample subscription forms
Security notice
Demographic information that can later be used to
target/segment
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Sample subscription forms
Description of the program/benefits
Requests subscriber to whitelist them
Samples of previous issues
Simple sign-up form
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Content strategies use email to

• Drive response to website
• Drive response to landing page
• Drive traffic to branches
• Support other advertising / marketing
• Elicit feedback by surveying online customers
• Generate inbound calls
• Customer communication retention

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Content strategies types of email programs

• General Communications
• E-Newsletters
• Product Announcements
• Targeted Promotions
• Product-driven (MCIF)
• Strategically similar to direct mail
• Event-based Marketing
• Driven by customer actions
• Real-time or near-real-time (batch)
• Requires process integration

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Content strategies targeted/segmented

• Targeted / segmented campaigns
• Use MCIF / CRM system to drive programs
• Optimize offers by market segment
• Implement response / results tracking

Responses
Campaigns
MCIF
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Content strategies event / triggered

• Event-based / triggered programs
• Transaction or model-driven campaigns
• Respond to customer behaviors

Trigger Rules Engine
Transactions
Responses
CampaignsMessages
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Implementation Options

• Email service Providers (ESP)
• Low-Cost / Self-Service
• Managed service provider
• Advertising Agency
• Using ESP reseller application
• Working with ESP
• Bundled solution (MCIF / CRM)
• In-house application

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Implementation Options - Email Database Model
MCIF / CRM

• Subscribers
• Opt-Outs
• Sub-Lists
• Campaigns Message
• Mail History
• Response Data

Internet
Other Data Stores
Email DB / Application
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Implementation Options - Email API Model
MCIF / CRM
Internet
Other Data Stores
Reporting / User Interface
Email Campaign Data/reporting built into data
stores
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Managing / Leveraging Response
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Response What to measure Level 1

• Total vs. Unique Events
• How many are viewing?
• How many are clicking?
• How many opt-outs?
• Who is not being reached?
• Bounces
• Blocks

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Response What to measure Level 2

• Who is clicking through?
• What are they clicking on?
• Landing pages
• What happens after they click?
• Measuring ROI

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Strategies for Managing / Leveraging Response

• Use reports of who specifically opened clicked
  as sales leads
• Test remailing to passive subscribers
• Use auto-responders to close the loop
• Follow up or thank subscribers when they complete
  the desired action
• Send relevant information when a subscriber
  expresses interest (measured by a click or open)
• Consider a re-activation campaign for subscribers
  that havent opened or clicked after X amount of
  time

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Strategies for Managing / Leveraging Response
Drill down into specifically who opened clicked
and follow up with them they are HOT LEADS!
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Strategies for Managing / Leveraging Response
Spot trends across campaigns over time
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Strategies for Managing / Leveraging Response
Tracking most effective links from a campaign and
help formulate strategies for future campaigns
Drilling down into who specifically clicked a
link is an indication of subscriber interest that
can later be used to target offers / content
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Sample Programs
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Sample Programs single opt-in sign-up experience
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4
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Sample Programs double opt-in sign-up experience
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2
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Sample Programs content samples
Announcement example - emails dont always have
to be content heavy like a newsletter, simple
announcements / promotions also work and help
round out your program
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Sample Programs - subscription forms
Benefits of signing up and past example
prominently placed
Various subscription options broken down by
personal banking and business/commercial banking
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Sample Programs content samples
At first pass, this email appeared to be
incorrectly targeted (as the recipient is already
a Sovereign Bank customer). Only further down
does it acknowledge that recipients may be
current customers and offers them a different
path.
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Sample Programs content samples
This Go Green promotion generated over 100
e-statement sign-ups in the first hour and had an
overall conversion rate of 15
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Sample Programs content samples
Looking for content ideas for your email
campaigns? Try supporting your offline efforts
like these rate ads.
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Sample Programs content samples
This newsletter combines informational
promotional content
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Sample Programs content samples
Image blocking can impact email drastically if
the majority of the content is in the images
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To Summarize
Getting Started

• Take email inventory
• Understand the compliance rules
• Plan to promote the program via other channels
• Plan on a phased rollout
• Involve marketing agency / e-commerce team
• Involve customer-facing groups
• Do it right the first time

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To Summarize
Why is Email so Effective?

• Pervasive Medium
• Reaches online customer base
• Timeliness / Immediacy
• Interacts with online products
• Low cost / High ROI
• Personalization / Segmentation
• Ready to implement now!

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Thank You

• Contact Joe Timm
• Vice President, Product Manager
• 877-807-2027
• 860-268-2293 (cell)
• joe.timm_at_fiserv.com
• Thank You!