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Internet Direct Mail Campaign

From Development To
Results Analysis
A recent study reported that 40% of the Internet users change their opinion
due to the information they gathered online. In this terms it is very
important to pay a special attention to the brand image you create using
online advertising and e-mail maerketing campaigns.

TreeWorks
Blvd. Coposu nr. 4
bl. 105 A sc. A ap. 1
Bucureşti, România

Phone: +40.213.260.602
Fax: +40.213.267.233

www.tree.ro
office@tree.ro
Content

Definition ______________________________________________________________________________ 3

Benefits ___________________________________________________________________________ 3

Elements Of An E-mail Marketing Campaign __________________________ 4


List Of Subscribers _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 4
Develop The Content And Format Of The Message _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 5
Evaluation And Review Of The Campaign _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8

Avoiding Spam Messages ______________________________________________________ 10

Conclusion _________________________________________________________________ 10
Definition
Internet direct mail is an e-mail advertising a
product or service and soliciting orders, which is
sent to a large number of potential customers.

Direct Mail permits the marketer to design marketing pieces in many different formats like:

• Sales Letters: Often personalized, the sales letter pursuades the recipient to buy the
product or service.
• Response Device: This can be an order form, opinion survey or applications used to buy the
product or service. This piece involves the recipient.
• Lift Note: The lift note is extremely effective in boosting the response to an email. You can
highlift an important to buy, incorporate a testimonial or print an endorsement by a
celebrity.

Benefits
1. Inexpensive 2.Measurable Results

The email is less expensive than other There is software designed to measure
advertising options, such as the banner ads, campaign success. These programs generate
outdoor and telemarketing. The price of reports on the number of emails opened by
sending a single B2C email marketing message your recipients (open-ups) and the number of
is less than 1 cent, the Association of times your clicks were clicked (click-through).
Interactive Marketing shows in their reports. Being able to quantify the success of
campaigns in progress, marketers can quickly
adjust their strategies to increase response
rates.

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3. Wide Reach 6. Emails can be highly customized

Email became already a part of many people's When email list works together customer
daily routine. It is a communication medium database, even the large volume campaigns
with an exceptional large audience and allows can be customized so that messages include
recipients to immediately respond the specific customer data.
message. An email can be sent in a few Database integration also allows select
seconds, anywhere in the world. customer groups to receive messages
appropriate for only a portion database entries
4. Drives website traffic and registration (for example, ZIP Code, gender etc.).

You can include in your messages links that 7. Time saving


direct the consumers to your website. This will
increase site traffic and the will lead to According to the Association of Interactive
increase website registration. You may then Marketing, companies that use email
follow up by providing your customers with marketing to administrate campaigns rather
personalized and targeted content. than traditional direct mailings save 60% of
their time.
5. Strengthnes Brand Awareness
8. Email is easy to implement and requirers
Regularly delivered emails that contain limited resources.
important subjects and logos reinforce
company' and product awareness. Email Email campaigns can be easy implemented and
creates an interactive connection with realized with only minimal software, hardware
customers and nurtures long lasting, quality and personnel investments.
relationships.

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Elements Of An E-mail
Marketing Campaign
1. List Of Subscribers

First step in an email marketing campaign is Prospective Customers


compiling a list of email addresses from those These e-mail addressed can be obtained
who have agreed to receive your messages. through sign-ups on your website or in-store
This is known as an opt-in email marketing and locations. There are e-mail list management
is a very important part of the campaign. A softwares that can interact with your site and
recent study reported that only 6 percent of your visitors may automatically subscribe to
permission-based e-mail is deleted unopened, newsletters without having to perform this
while 59 percent of opt-out e-mail is deleted function manually.
unopened.
List Brokers – companies specialized in
Start gathering addresses with: compiling opt-in mailing list. To make sure you
will get quality opt-in lists, ask your brokers
Current Customers who may have given you these questions:
their e-mail addresses and permission to send • What is the website's method for opting
messages. Depending on how your business in the people on its lists?
operates, there may be multiple opportunities • What type of relationship does the site
to collect clients' email addresses (order forms have with the people in its list?
etc.). Or, perhaps e-mail communication may • How old are the names?
already be the most common way you • How is the e-list maintained?
correspond to your clients and therefore the • What selections are available on the e-
perfect opportunity exists to ask them if they list?
would like to receive newletters or other • Does the e-list owner offer any value-
offers. added services?

These questions can help you determine which


lists can produce profitable results for your
product or service.

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2. Developing the Content and Format of the
Message

Messages should be created according to the Message Content


results you wish to achieve. Establish your
campaign goals and then create a strong • Ensure your message reaches the
message that reinforces your brand, describes target audience needs. Make sure the
your products and clearly establishes how the offer of your products and services
consumers can contact you. The subject line is reaches the needs of the recipient of
possibly the most important part of an e-mail the mailing.
message. Write a powerful line, by combining
an action phrase with a response-boosting
incentive.
• Get to the point quickly. Do not start
the e-mail with general information,
Message format: text, HTML (text and
get to the point from the beginning. It
graphics) or multi-part format.
is important to make your point in the
first five lines.
HTML mail has the ability to strengthen the
message, by combining fully graphic images
(like your company's logo) with text.
• Keep most direct e-mails short. The
Studies show that less experienced internet message should be short, clear and to
users tend to desire HTML e-mail, while the the point. On the Internet people want
experienced ones prefer text-only. It is information and the want it right away.
advisable to allow subscribers to choose their
desired format. Recipient format preferences
can be stored in the data base, just like other • Mention sell benefits. If you want to
preferences and demographic information. sell don't forget to tell potential buyers
about the benefit of using your product
A multi-part specification allows you to send or service. Before starting to write,
email in both text and HTML format, while the make a list with all the benefits this
email program of the recipient will expose maight bring. When you write the
only the desired format. copy, be sure to start with the first
three major benefits.

• Use an impersonal style. It is


recommended to personalize each
letter you send in the direct e-mail
campaign. Write like you are talking to
the recipient of the letter. Be
conversational, informal, but be sure
not to use a too familiar language.

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● Use letters to generate leads, not • Create a deadline. Even if it is a real or
sales an imaginative one, be sure to include it
A one-page letter is an excellent tool to in the email. Usually, the imposition of
generate interest, but is much to short deadline increases the rate of answers
to effectively sell. Your goal is to because the recipients understand they
generate a response, either it is a only have a limited time to act.
return mail card, an email, a phone or a
fax. You just want an opportunity, you • Include a guarantee. If you can offer a
cannot get the sail from the first direct quarantee, do it. Some products or
mail. services do not easily lend themselves to
the offer of a guarantee. In this case you
• Use a P.S. A response rate survey can guarantee the delivery, the service
showed that often recipent's eye moves or the best price. By offering a
down the page to the P.S before they guarantee, you offer credibility to your
read the entire letter. If possible, products and services.
restate your selling proposition in the
P.S. • Include testimonials. Testimonials from
satisfied clients are the strongest way to
• Use white space. It is difficult for a bring credibility to your copy. Also,
user to read a block of text. Use short recommandations from a celebrity can
paragraphs, bulleted or numbered lists lend a note of credibility.
. These will help the recipient read
your message. • Include all your contact information.
Include in the message your name, phone
• Include a call to action. Do not let the number, fax and e-mail. People respond
recipients wonder what to do. It is not differently, so offer them the possibility
enough to tell them to check your home to choose.
page. Include in your message a special
URL that people can click on to go to
your site and fill out a form to request
additional information.

• Make a no risk offer. Offer the


recipient something and make it no
risk. A free trial and a money back
guarantee are will work when your
buyer is uncertain about accepting your
offer. Make sure it is clear there is no
risk or obligation on their part.

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3. Evaluation And Review Of The Campaign

Create a pilot campaign that tests the Measuring Results


efficiency of the message on a selected
portion of your database. Measure the results Campaign success is measured through ROI
from the trial, make adjustments and test it (return of investment). Other standard
on another group. Refine your message until measurements, such as cost per piece or cost
you think it is good enough to launch a full per lead are useful, but they will not provide
campaign. the “big picture” view given by the ROI
analysis. The most accurate ROI calculation
Once you have sent your final message to the takes into account the amount of sales
recipients you may start measuring the results generated by the consumers over the time.
of the campaign. Monitoring responses enables
you to determine the quality of your recipient The first step is to run small tests mailings to
lists and the effectiveness of the message. get a feel for your baseline response rates.
E-mail marketing programs are capable of Subsequent mailings can try different things,
recording if the recipients open or not your such as: a different design of the mail, a
message, if they click or not on the URL that different text or a new mailing lists. When you
links to your website. Being able to quantify are confident of your results you can extend
these activities you can measure the succes of the campaign at a larger group, assuring that
the campaigns and make adjustments to the return of investment will be positive.
achieve a higher conversion rate. This is the
key of an e-mail marketing campaign. While the standard profile of a subscriber does
not assume a minimum rate of response, each
Response Analysis effort must be made to achieve the biggest
answer rate possible, using the following
There are three main measurement ways procedures.
currently used:
Resonse Rate can be calculated as it follows:
• Click-through rate. This tells you how many  substract the non-deliverables from the
people who received the message clicked amount of sent messages to determine
on a link in the e-mail to a specific site, the net mail-out;
page or form on the web.  substract the incomplete or non-usable
• Replies of the people who clicked though returns from total returns to determine
to a response form, how many completed net-returns;
the form and submited it to you.  divide net returns by net mail-out to
• Sales or inquires. How many people who determine the response rate.
completed the form actually ordered a
product or requested more information.

Your e-list manager should provide log reports


that summarize the results. Such a report
should include the data of transmission, the
number of promotional email transmitted,
click-through response rate, undeliverable
messages and opt-outs.

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The following example illustrates how the To increase the response to your next
response rate must be calculated: mailings, watch out the next factors:

Total mail-out ................................. 1,000 Campaign Goal


Establish the campaign goal: rise awareness,
Non-deliverables .................................. 99 generate leads or generate website traffic.
Once you have decided, establish a baseline
Net mail-out ...................................... 901 and track responses again. For instance,
determine the average number of phones
Total returned ................................... 541 received during a month and compare it to the
number of phones you get the following month
Net returns with completed Demographic after your mailing. Alternatively, if you take
questions* ......................................... 500 order through a website, your mail piece can
ask customers to enter a discount code when
Response Rate ....................................55% placing the order by which you can track the
sales associated with your mailings.
*A questionnaire is considered complete only when two
thirds of the mandatory demographic questions have
Target Audience
been answered.
Identify consumers and their social,
One way of maximizing ROI is to drive out pshychological and demographic
hidden costs throughout the process of sending characteristics. This will help you build a
mail. For example, there are direct mail targeted prospect list to gain more customers.
services that allows you to achieve greater
operational efficiencies by having all the The Offer
processes under one roof and minimizing Concentrate your campaign on selling the
administration costs. benefits of receiving and responding the offer.
Do not forget the goal is to convince your
A good rule in strategy is to test between target purchase your product and increase
1000-5000 pieces before strating. In this way your ROI. If you succeed in making them
you will get a sufficient number of answers interested enough to respond to the offer,
back from your mailing to determine what then you could get them to buy.
your response rate will be.
The Mailing List
The response rate will vary depending on your Without testing your mailing list, offer or
product, industry, target market and other design you will never know if the success of
factors, no general rules apply. For instance, a the campaign was due to an attractive offer,
sub 0.2 percent response rate is common in eye catching graphics and enticing text or a
the credit card industry, while a response note great list. Consequently, without testing you
higher than 50 percent is common for the will not know which aspect of your campaign
nonprofit companies. This should not needs improvement.
discourage you; on the contrary, it highlights
the necessity of tracking your response rate
for your prospecting customers list. If you do
not do this, you will only get a vague idea of
the real chances of your campaign and you risk
wasting money.

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Avoiding Spam Messages
" A Spam" is an unsollicited message, usually If you are developing a promotional email
promotional, sent out to multiple recipients. campaign, ask costumers for consent. Remind
them in every message that they can opt out
To generate spam special programs that can from receiving future messages and give them
scan the text and recognize your email address the chance to make this simple, just by
are being used. They add the email address in clicking “Remove” or “Unsubscribe”.
a database and it is possible to buy such a list.
The Direct Marketing Association launched an
The spam is considered unethical and its risks email preferences service which allows
are considerable: using it you can loss the consumers to register for free at www.e-
internet services and also affect your mps.org for an opt-out list indicating they
company's reputation. The voice of internet don't want to receive promotional emails.
users is a strong one and your company could Marketers can download the list online and
be labeled as a “spam advertiser”). eliminate these names from their own mailing
list.
The golden rule for preventing spam is the
“opt-out” possibility. Also, you should not try to deceive customers
into thinking your e-mail marketing message is
not a promotional one.

Conclusion
Email marketing is an effective communication method with customers, prospective customers
and business partners. The main objective is increasing products and services sales, but also the
improval of company's image and clients' reports. Being an easy-to-use tool that creates a
powerful bond between the clients and the brand, it allows the testing and retesting
campaigns and offers an accurate image of the results. The email marketing is used by a fifth of
the European marketers. The actual tendency is rising, in America the use rate is a lot higher.

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Resources
Robert W. Bly, Michelle Feit, Steve Roberts, ”Internet Direct Mail - The Complete Guide to Successful
E-mail Marketing Campaigns”; NTC Business Books - NTC Contemporary Publishing Group INC; 2001.

http://www.zairmail.com/direct_mail_articles.asp

http://www.lsoft.com/

http://www.kochgroup.com/directmail.html

http://www.accessabc.com/

TreeWorks
Blvd. Coposu nr. 4 Phone: +40.213.260.602 www.tree.ro
bl. 105 A sc. A ap. 1 Fax: +40.213.267.233 office@tree.ro
Bucureşti, România