Email Marketing Archive

Having been in meetings with marketers and via anecdotal third party comments, I know many are sitting on the fence with respect to mobile, uncertain whether it’s a novelty, tactic, strategy, channel or alternative to email.  For better or worse, it can be some or all of these.

When you add to this mix that many businesses are reaping mobile marketing benefits, as shown every day on MobileMarketer.com and other sites, marketers in all industries sense urgency to at least try mobile marketing – be it developing a mobile optimized version of their website, an iPhone application or trying to employ SMS text messaging simply due to its reach.

I think this is the landscape documented in research covered today on eMarketer.com, in an article titled, “Mobile Marketers Demand ROI.”  Results of a survey suggest marketers will pursue mobile marketing efforts in 2010 – even allocating budget – but obstacles remain (as shown in the diagram included in this post).

“It appears that 2010 will be a year of experimentation and education on mobile marketing as marketers struggle to come to terms with its practicality and ROI.”

The greatest challenge – not surprisingly – is uncertainty around building the business case for mobile marketing, followed closely by a lack of ROI metrics and mobile not a part of the “strategic roadmap.”  I’d argue all of these issues fall under the heading of simply “I don’t know where to start, given my business, my product or service and customer base.”

For this reason, Interactive Mediums developed an exercise called “Mapping Mobile to Your Marketing Strategy,” that when complete identifies the best candidate projects that align with your existing marketing plans and channels.  This is based on our direct experience and observation of the ways leading companies are going to market with mobile as strategic elements of their business.

Taking time to experiment and educate is simply not an option for marketers given the pace of advancement among leading mobile marketers.  Even trialing various approaches will leave you behind the curve as competition for consumer mobile mindshare escalates.  Taking a thoughtful approach to mapping out a strategy can ensure your business plays a role in the mobile customer relationships that will surely separate the winners from losers.

I once before blogged at taking pleasure in reading contradictory views on important goings on in the mobile industry, and much to my delight (or chagrin) it has happened again.  It’s important to highlight and interpret these cases, as both savvy and novice mobile marketers look to supposed experts to help guide their decisions.

On one hand you have this February 4, 2010 post on MobileMarketingWatch.com citing expert commentary from a recent event, where the consensus view was that mobile advertising was “harder than ever…citing extreme fragmentation and a plethora of new devices sporting varying technical aspects as the main culprits.”  The situation sounds intimidating to say the least, begging for a wait and see approach.

Juxtaposed with this is research cited in a February 5, 2010 article in MobileMarketer.com titled, “Mobile ad campaigns 5 times more effective than online: InsightExpress study.”  Based on the title alone, you can imagine the article describes how much more effective mobile advertising is today than its online counterpart.  And that is the case.

You can read about the differences in effectiveness but it all comes down to “engagement and context” according to the study, both of which we describe as central to mobile marketing’s value proposition, be it a focus on advertising or direct engagement via SMS text messaging, email and mobile web.

I think the disconnect between “experts” and the facts on the ground is due to control; advertising networks are the gateway to this value while many experts working on the boundaries are left struggling for relevance with end customers who have cash to spend.  Marketers would be wise to quickly discern the quality and subjectivity of viewpoints they consider when prioritizing mobile marketing efforts.

The title of this article today on DMNews.com titled, “Marketers still missing opportunities with loyalty programs: Survey” immediately brought to mind this recent post of ours, as well as the answer to the missing component: mobile engagement.

The article doesn’t call this out per se, but does strongly imply that engaging in-store strategies such as SMS text message promotions are an absolute necessity to address the potential threat to retailers offered by comparison enabled mobile shoppers:

“…when it comes to consumers, nearly 65% acquired information about the programs in retail environments at the point of sale, compared to only 2.8% who did so on social media networks.”

The article is based on results of a study released today by the Chief Marketing Officer Council and conducted by IBM and Ricoh.  Its key finding is that although marketers are focusing spend on social networks to communicate loyalty programs, consumers are unreceptive to this channel as opposed to strong calls to action in and around the point of sale.

A similar focus on email marketing is also cited as a disconnect between marketer priories and consumer preferences.  Speaking of preferences, relevancy is found to be at the core of effective loyalty programs regardless of how an offer is delivered.  Certainly, data is crucial to developing targeted offers, the kind of which can be efficiently collected also via text message programs such as customer surveys.

Marketers need to as well be aware that even relevant offers may struggle against the tide of comparison shopping enabled consumers expected to change the retail landscape this year and beyond.  Successful retailers will build relevancy into their loyalty programs, but also recognize that engagement strategies such as SMS text message promotions advertised in store can prevent customers from leaving for better deals, addressing key challenges threatening to make loyalty a mythical concept.

This post today on MobileMarketingWatch.com cites a Business Week article in which the Apple honcho bluntly describes his view of the utility offered by current mobile advertising formats.  He also apparently sees this as an opportunity for Apple to innovate and ultimately dominate the mobile ad medium, even in the face of online ad champ Google and its mobile focus.  We have speculated as much here.

Just the other day we blogged about the hype around mobile advertising created by recent acquisitions.  We’ve also covered issues surrounding mobile ad metrics.

We’re keeping close tabs on developments in this area for our customers so they understand where to prioritize mobile advertising alongside their broader customer engagement charters inclusive of SMS text messaging, mobile optimized websites, smartphone applications and social media.

An integrated approach to mobile channel marketing – akin to creating more effective mobile ads – is an innovation which greatly increases the likelihood your mobile marketing efforts won’t suck.

2009 marked the beginning of an effort at Interactive Mediums to keep watch on the mobile marketing industry and lend our unique perspective on happenings as they relate to the value we bring to our clients.

The pace of innovation in mobile and urgency to begin engaging customers in mobile interactions demands we pay attention to news of the day.  More importantly is that we have a relevant point of view.  Hello Mobile! is our forum for communicating these views.  Others are listening as well, such as MobileMarketer.com which today recognized our article “9 Steps for SMS Marketing” among the “Top 15 industry-expert columns of 2009.”

As 2010 begins, look for further insights, commentaries and directives from our blog.  Before we look forward though, here are the top 10 most popular posts of 2009 – I wonder what this list will look like next year, the key trends and topics?  Stay tuned.

• Is Apple the Mobile Walmart?
• The Key to Mobile Customer Data
• Acxiom Clients Seeking a Differentiated Mobile Offering Should Look Elsewhere
• Advice to Marketers: Don’t Confuse Mobile Advertising with Mobile Marketing (or Active Customer Engagement)
• Establishment Converges on Active Customer Engagement
• Lessons From Less Than Successful Mobile Apps
• Thankfully, More about Active Customer Engagement
• Vendor Lines Blurring but One Thing is Clear: Active Customer Engagement
• Insight into Apple’s App Store approval process
• Best in Class Marketers to Focus on Customer Engagement in 2010

Today I came across a November 25, 2009 MarketingSherpa.com article titled, “One-Two Campaign Punch Grows Email & Mobile Lists: Segmentation Delivers 40% Lift in CTR” that is a great example of Active Customer Engagement in action.  As we have said before, Active Customer Engagement is not so much about mobile as it is targeting consumers “on the go.”  In this case, the targeted customers are truly active, as the example cited in the article is for a retailer of sporting goods, bicycles in particular.

Similar to what we described in our Point of View on Active Customer Engagement and this actual customer example, email, web and mobile communications work together as part of a larger effort consisting of media buys supporting a promotion.  It isn’t apparent that the retailer had access to a system encapsulating all the components required to configure, execute and measure the program, but you can be certain if it did, ROI would have been greater.

A tidal wave of buzz is building around Active Customer Engagement, as illustrated by another recent article outlining the solution here on the Illinois Technology Association website.  Today as well, we were featured in a brief article titled, “Time to market with mobile” at brand-e.biz in which we say the following that gets to the heart of what Active Customer Engagement’s value is all about:

“What should drive mobile marketing investments is a strategy which focuses on the customer experience, what you want to achieve with your customers.  Developing ideal mobile paths for your customers to follow to achieve your goals should yield the best results…And in practice this will almost always mean some combination of text message interactions, mobile applications, mobile optimized web and even e-mail.”

Today on MobileMarketingWatch.com a post appeared titled, “Applying Email Strategies To Mobile Marketing,” which suggests email marketing best practices have applications within mobile.  While I agree that strategies like targeting and relevance apply to either discipline, as noted here marketers should remember that email and mobile often have different or interdependent applications.

More interesting than the recommendations were references to an earlier November 24, 2009 article on MarketingVox.com citing Direct Marketing Association (DMA) ROI research for email and search marketing:

“…commercial email now returns $43.62 for every dollar spent on it in 2009…”

“…search advertising..is the next most effective channel with an ROI of $21.85 for every dollar spent.”

A simple conclusion would be that email’s return is about 100 percent that of search.  Consider as well that, with respect to email, “41% of consumers find that promotional offers are irrelevant, according to a study by the Chief Marketing Officer (CMO).”  That means despite nearly half of those subject to email marketing rejecting those offers, ROI is greater than 4,000 percent!  It isn’t clear if ROI was calculated based on direct sales driven by email promotions.

Even so, you could argue that relevance is a key determinant of return for email and search marketing investments.  Paid search may help connect consumers with relevant results, yet search by its nature is rather broad, pointing consumers to some destination rather than calling them to action.  An email communication pushed to a consumer by a business should be more targeted, relevant and contain a compelling call to action.

Considering mobile — especially SMS text message interactions – by its nature must be relevant, ROI should exceed both email and search.  Extrapolating figures cited in the article, ROI for mobile marketing could be another 100 percent greater than email, offering upwards of $80 for every dollar spent.  Even if it’s no better than email, mobile’s ROI is highly relevant to marketer’s interested in making the most of their budgets.

Earlier this month I came across an article about a consumer segmentation method launched by Acxiom for telcos to understand loyalty patterns among mobile subscribers.  It was notable simply due to the fact a large marketing services company was launching a mobile marketing data service not for marketers generally, but for marketers of mobile services specifically.

Before reading about something like that I expected to see Acxiom instead enter the mobile marketing fray like its cousin in the marketing services market, Experian.  So it was not surprising to see this headline today: “Acxiom, Partnership Infuses Consumer Intelligence in Mobile Channel.”  What was surprising is that the company is partnering with a third party to provide mobile marketing capabilities to its clients as opposed to developing something itself.  Moreover, Acxiom is partnering with the exact same firm as Experian to provide the service.  Sadly for their clients, even the benefit is the same, down to the quote in the announcement: mobile as an enabler of effective “customer life cycle management (CLM).”

That bit of déjà vu was not in the announcement, no doubt because Experian and Acxiom often compete for business.  While the news highlights the importance of the mobile channel to large, established marketing services companies, it also shows they don’t exactly know what to do with mobile (other than tack it onto their services as a means of ensuring their clients don’t look elsewhere).

Marketers who use these companies for services need not be locked into using a commodity third party for mobile messaging.  The beauty of many offerings in the marketplace are their openness and ease of integration with third party data sources to help segment mobile customers and inform more relevant dialogues.  Firms like Interactive Mediums also offer services encompassing the entire mobile customer experience, which is fundamentally the focus of marketers looking to achieve real business results at the point of device.

The beauty of mobile marketing is that by definition, you have to approach the channel with the perspective of creating a relevant message, call to action or offer – a marketer has no choice.  Whether needing to obtain permission from customers to communicate via SMS text message or ensuring an investment in a mobile application pays off with thousands of downloads, relative to other marketing tactics such as email, relevance is a must in formulating any mobile marketing strategy that hopes to succeed.  You could argue the high response rates common with mobile promotions reflect the necessity to craft plans that focus on the customer (convenience, for example) more so than the marketer’s goal (such as selling more products).

I call out email specifically because of a few different things I’ve read over the past week which suggest certain marketing tactics make it too easy to be ineffective – or less relevant to consumer needs.

Although mobile email use is growing, email as an interactive channel by itself has hurdles to overcome in my view which hurts its ability to serve a marketer’s objectives.  Today, for example, on eMarketer.com an article titled, “Relevance Remains a Challenge for E-Mail Marketers” cites statistics which suggest email for many consumers is very much like traditional snail mail – for the bills:

“Promotional e-mails were the most common thing for respondents to find in their inbox, with 60% saying they received such e-mails most. E-newsletters were the next-most-common type of messages.

But it was the least common messages that were most likely to be opened—monthly bills and bank statements. Only about four in 10 recipients said they “always” opened promotional offers or newsletters.”

It’s the consequence of this mismatch between consumer preference and marketer practice that marketers need to be wary of:

“Web users also complained of receiving too many to manage and getting tired of all the clutter.  In many cases that clutter can have consequences for marketers: 22% of respondents have decided not to purchase from a company because of irrelevant promotions, either via e-mail or direct mail.  A further 41% said they would consider doing the same.”

Another article, a November 20, 2009 item titled, “Yesmail talks strategy behind mobile email, SMS features” quotes the email marketing firm’s leaders regarding their move to offer mobile marketing services to its clients:

“Yesmail is already starting to early stages of mobile marketing evolving from an acquisition channel to a retention channel.  We expect to see SMS campaigns being created with the same level of sophistication as many email marketing campaigns – both in terms of segmentation and in terms of staged triggering over the next two years.”

In fact, some mobile marketing providers are already offering the ability to create triggered campaigns based on customer segments – no need to wait two years.  It’s illustrative of an undercurrent of FUD (fear/uncertainty/doubt) from email marketing services companies scrambling to extend their offerings into mobile in order to hang on to their customers, many of whom increasingly view email as a commodity.  Wise marketers should recognize the difference and not get fixated on mobile as an add on to an email campaign.

When it comes time to creating a relevant message flow, offer or call to action, it’s logical to segment your customers into groupings which lend themselves to the task.  This was the topic of a great October 22 article on ChiefMarketer.com titled, “Lock and Load: The Basics of Triggered E-mail Campaigns.”  The article is all about email as a means of crafting an interactive dialogue with customers to achieve business goals – a task that email may be ill suited to given the recent statistics cited in this post.  It concludes with a quote that marketers should take to heart, but with a view toward mobile as the means – not email:

“The beauty of event-based triggered messaging is that you can make it extremely relevant to the person receiving the e-mail.”

Problem is, email may not be the right approach to delivering those messages.

We recently blogged about challenges facing organizations as they begin considering mobile within their marketing and customer relationship development mixes.  From mobile getting confused with email as a tactic, to convincing top marketers that mobile is a key interaction channel, mobile faces barriers to adoption.  Add in potential confusion over the need to first obtain permission to contact your customers via mobile and the consequences of not doing so, and the discussion often comes to an impasse.

It need not though, and today I came across a good article on DMNews.com with some sage advice for marketers sitting on the fence with mobile.

Titled “Why SMS messaging is more than a teen tool for marketers,” the author makes some good, common sense recommendations about how to obtain opt in permission and thus begin marketing to customers through the mobile channel:

“…when a customer visits your Website and signs up to receive updates on sales, new products or services, offer the customer the option to receive updates via SMS in addition to, or instead of, email alerts.”

“For those businesses or product lines with standard customer agreements in place, the consent to receive important updates and offers via SMS and other communication channels can be added directly to the customer agreement, securing an opt-in immediately upon the origination of the business relationship.”

I thought the latter point was notable, as I have not seen such a recommendation before yet it makes complete sense, for both B2B and B2C customer relationships where some agreement accompanies the transaction.

The takeaway here is that opt in doesn’t need to be the centerpiece of a complex or costly marketing program with various calls to action.  In fact, gaining permission using existing forms of customer communication means the opt in step may be right under your nose.