E-Mail Advertising

E-Mail Advertising: Added Value or Spam?

There are two opinions regarding e-mail advertising, simply because someone may not want the message you’re sending, it’s considered spam, known as unsolicited contact or junk mail. This is what makes e-mailing customers a difficult balancing act.

For those customers who have indicated they would like information via their inbox through a method known as an opt-in mailing list, a company can benefit from this form of direct advertising by:

• Developing relationships with loyal customers, especially if it’s two-way communication or customized information.
• Cultivating new customers into becoming more loyal customers through specialized communication.
• Enticing customers with new products or promotions.
• Rewarding customers by allowing them to be privy to events and other special services.

Companies can also try to a obtain larger market share by piggybacking their advertising onto another company’s e-mails in order to attract new customers.

However, other customers view this form of advertising as spam, and it’s a far greater irritant than receiving a coupon in the mail or a pop-up on a Web site. Even if a customer has provided an e-mail address, the type of correspondence, frequency of delivery and certain types of persistent messaging may drive customers away.

So as you develop your advertising plan and identify your target audience, consider doing additional research into the anticipated response to direct correspondence. A focus group among core customers may uncover the answers you need.

The Courtesy of the Medium

If a client indicates he or she would like more information, there are certain proprieties to observe that differ from postal direct mail.

When collecting personal information, follow these guidelines:

1. Clearly state how the data is to be used, including the intent to share with third parties and for what reason.
2. Protect all data as determined by law.
3. Attach or link to your company’s privacy statement and full contact information.
4. Provide opt-out information for customers to access at any time, to any solicitation.

Terminology

Like any industry, e-mail advertising has very specific business terms. Here are a few that will come up quite frequently during your e-mail advertising campaign.

• Bounce back: an e-mail returned to the original sending server.

• Click-through rate: the number of times a specific link is accessed.

• Double opt-in: a method by which consumers confirm participation two ways: by providing e-mail and then confirming that they, indeed, provided it.

• Format: the look of the e-mail communication, which can be in Microsoft rich text, plain text or HTML.

• List broker: someone who sells e-mail addresses.

• Open rate: determines the number of e-mails delivered to number actually opened.

• Trigger-based messaging: a specified result because of a customer’s reply or request for more information.

To better understand the terminology, view a more comprehensive list here.

Getting Started

Setting up an e-mail advertising system isn’t too complicated, but there are a few components to have in place:

• Develop a clean database. The right database will make all your communication easier, and it’s definitely important with electronic communication. Enhance customer service by tailoring the database to identify specific demographics and interests.
• Create an opt-in program. This means your database is comprised of those you know want to receive the information and have provided validated addresses. This greatly reduces customer dissatisfaction and process hassles.
• Consult with your ISP about bulk mail requirements. If handling an e-mailing in-house and not via outsourcing, this step is a must. Many ISPs have stringent guidelines regarding bulk mailings in order to protect clients from, you guessed it, spam. Outlining your objectives with them first will help you determine how the mechanics of the effort will be handled.

Do it Yourself vs. Outsourcing

It boils down to this: if you have the technical savvy and time to manage the database, develop the content and generate the e-mail blasts yourself, or an in-house tech support and marketing team, there are a slew of e-mail advertising software packages that can help you. The average price is approximately $150. One popular software package is provided by PoliteMail.

Likewise, there are many companies that specialize in helping large and small businesses with electronic advertising. Some companies even provide both the product and the service, such as:

• ResultsMail
• Constant Contact

Conclusion

Like any form of advertising, it’s crucial to measure the results of the effort. Evaluate the effectiveness through a handful of elements, including but not limited to:

• Consumers opting out
• Number of bounce backs and opens
• Number of click-throughs to specific topics and promotions
• Request for more information
• Interaction between consumer and company or company’s Web site

Whether you do it yourself or with another company, establish a solid reporting and tracking system to maximize the efficiency of your advertising budget on your goals and objectives.