March 2003

Today's consumers live in the now. Give them the info they want and get out of their way. Conventional marketing methods are no longer sufficient for reaching your target audience. Television, print and radio advertising still prevail but the audience's time is at a premium. With the advent of the Internet, consumers are watching less and less television, reading their news online and diverting correspondence from their mail box to their computer inbox. Pre-recorded programs and on-demand technologies are lessening the seller's reach.

Internet usage is on the rise. Experts estimate daily Internet usage growth of 10 percent, with 75% of that growth attributed to new users from the business community. The business-to-business marketing potential is obvious; the business-to-consumer potential is inherent.

Internet communications are now the preferred mode of interaction for many. IBC Research estimates by 2006, total daily e-mails will exceed 60 billion. Marketers are taking notice.

To connect with consumers, many companies are revamping their marketing plans to include e-marketing. In its ever-changing form, e-marketing addresses untapped professionals, bargain shoppers and avid Web surfers. The reach is tremendous. The results are phenomenal.

Whether you're a novice or an expert, you can't ignore what Internet marketing does for your bottom-line. That's not to say you should abandon other marketing efforts. Integration is still key-but review best practices first. Experts have paved the road for you (and smoothed out many bumps along the way.) Follow their lead, and you'll reap the rewards.

E-benefits

It takes time to build rapport with customers. Not everyone can be the Xerox companies of the world, a name interchanged with copy machines at alarming frequency. Business owners long for this type of instant brand recognition-something few achieve. E-marketing expands brand-building opportunities. Web sites, those dreaded pop-up ads and e-mail broadcasts extend a company's exposure.

Brian Lani, vice president of creative and active media director at the Goltz Seering Agency, Inc., stresses the brand building potential of e-marketing, "One of the best ways to build brand identity is through a well put together e-marketing campaign. It builds brand identity better than any direct mail campaign. It's standing in front of your customers and saying-Look what we're doing!"

According to Direct Mail News, two-thirds of all companies have experienced sales growth after turning to e-marketing. Double Click, an Internet research guru, indicates 69% of Americans made purchases after receiving permission-based promotions. With the relatively low cost of e-mail campaigns, return like this is intriguing to any business. By its very nature, e-marketing is viral communication. Pass-along readership is more common amongst the Web than in any other medium.

Contact is immediate, targeted and personalized--and the consumers come to you. Those visiting your Web site will research your products or services and often sign on for the latest news, allowing you to deliver the hottest information directly to their desktop. Free newsletters build paid subscriber lists as visitors-turned-customers come to trust your company, respect your advice and expect your direction.

Companies can also measure results more quickly and easily than with traditional marketing campaigns. As soon as your message is sent, you can sit back and inspect the results. Try different subject lines, content, or senders and witness the effects. By evaluating open and click-through rates, you can determine what grabs your target audience-instantly.

Internet marketing manager at KI, Dana Vanden Heuvel, enjoys the ability to test, review and improve upon campaigns. "[With e-marketing], you know the weaknesses and strengths because you receive immediate feedback from measurable results."

Dana points to the relative ease at which marketers can revise, resend, and evaluate e-mail campaigns. Tools such as WebTrends or Topica E-mail Publisher track open and click-through rates and deliver the results to you, in a readable, easy to understand format.

E-Dos (and Do Nots) - To Web or Not to Web

The user-friendly nature of the Web entices many companies to jump into e-marketing too quickly. Don't let the medium fool you. While it's easy to zip an email to your customer base, it's more cost and time-effective to develop an overall communications plan.

"The only way to do this right is to start with the business objectives," emphasizes Vanden Heuvel. He encourages companies to ask themselves, "Do the strategy and subsequent tactics we use in e-marketing correlate with our business objectives?"

Few argue the importance of a consistent graphic or brand identity. To ensure existing and potential customers develop instant brand recognition, it's important to maintain a uniform corporate image. This can be as simple as the same font, colors, letterhead, logo or tagline

"Form follows form. Your message and e-mail should be done in the same graphics, navigation, and writing style as your Web site and printed collateral," explains Dana.

The decision to launch a Web site is intimidating to many. Our three experts agree it's important for companies to establish a presence on the Web before beginning any e-marketing campaign. Again, this calls for dedicated research and commitment to a standard graphic image.

Lani states, "Your Web site is the first step to developing a lead to e-marketing. It's a stepping-stone to the purchasing decision and helps you build rapport with your customer. Having a Web site increases your overall image. Without one, you lose an opportunity to provide more information."

R-E-S-P-E-C-T

Will Van Epern, active media developer at Goltz, encourages companies to focus on building rapport with customers, "The most important thing is to know your audience and know what they want. Offer them something useful. Don't give them useless information."

Don't send messages simply because you can. Your customers don't want to know you moved your desk six inches. Tell them something they want to know. Promote your knowledge, expertise, and new products but ensure it's newsworthy.

Lani agrees, "You're creating a relationship with that customer or potential customer. The more you give them throughout that process, the more comfortable they become with you and the more they respect you."

Respect. As did Ms. Aretha Franklin, the subject demands attention and consumers flaunt it on their lapel. Customers can easily unsubscribe from newsletters, exit your Web site and refuse contact. And Monty Python beware, SPAM blockers are on the rise. The latest tools are making it increasingly more difficult to reach customers. That's why it is important to develop a dedicated e-mail list of consumers who chose to receive your information. It's called opt-in marketing. Keep in mind that e-marketing is volatile and your customer can leave at any time. If they don't provide basic contact information, you've lost them for good-or until they decide to return.

"The most difficult part of e-marketing is a proper acquisition strategy. Most companies can expect 3 percent attrition each month," says Dana.

By allowing your customers to quickly opt-in and out of your campaigns, you convey respect. If they like what you have to say, they'll come back, but not if you force them to stay.

Respect extends beyond just giving them the freedom to choose. You must also protect their privacy at all costs. "Don't ever sell your list and always include a prominent privacy statement," states Van Epern.

As in traditional telemarketing, the time of fines and lawsuits is near. Legislators are already discussing the possibility of SPAM laws, further limiting your access to consumers. If you sell your list, you are promoting SPAM. The same holds true if you buy a list. Many reputable companies sell opt-in lists but the fact still remains-the consumer didn't give YOU that permission.

Déja Vu

Personalization is a key benefit of e-marketing. E-consumers appreciate your specialized attention. Businesses can personalize the subject line, opening paragraph, and content. A provocative subject line can grab their attention, just as something that doesn't perk their interest can turn them away. Companies like Barnes and Noble maintain purchase records and contact interested customers when similar products become available. Show your customers you listen to them by giving them what they need.

"Thirty percent of all e-mail gets deleted before it's opened. Who the message comes from and what's the subject line is your one shot to get them to open your message," explains Van Epern.

The average e-mail user checks their inbox six times daily. What are they looking for? Important, relevant information from people they know and like to hear from. If the recipient doesn't recognize the sender's address, in the trash box it goes. Choose a recognizable sender for your campaigns, whether it is the name of your newsletter, a high-profile name (like your CEO) or the same sender time and again. For example, the team at Goltz once developed a newsletter for Dean Foods. By choosing to send the e-mails from a highly visible and respected Birds' Eye manager, they increased the open rates and the success of their campaign.

The Muse.

With 27,000 subscribers, the Nakano Foods newsletter, sent out monthly by Goltz Seering, attracts and retains a large customer base. National conversion rates average 9 percent, while the Nakano newsletters average a phenomenal 12 percent return. Touting Nakano's seasoned rice vinegar line, the newsletter provides relevant company news, free recipes and links to the Web site. During its first year, the campaign included text-only messages but has grown to include a branded image and logo. Van Epern and Lani foresee recipe photos in up-coming issues. Through Web site promotion and trade show presence, Goltz encouraged visitors to sign up for Nakano news. The response has been astounding. Launched in May 2002, the Web drew thousands of site visits and sample requests within days of its unveiling.

Motivate your customers. As in a traditional marketing campaign, the call to action is a critical component. Tell your customers what you want them to do-buy this, click here, or sign up now! Don't leave them guessing. The risk they won't pay attention is too great.

Part of your call to action is ensuring the customer arrives at the right landing page. Make sure every link brings your customer exactly where you want them to go.

Dana states, "You always want to give the reader timely, relevant content as a continuation of what they read in the e-mail. You're over twice as likely to convert a customer by a custom landing page rather than a home page. Cash is king. Conversion is king."

Use your e-mail to get their attention and direct them to your Web site for more information-but never to the home page. It may seem logical to direct them to your home page but if you make the customer search for what you want them to see, chances are they'll leave the site before they see the goods.

Push and Pull

The Internet marketing department at KI strongly believes in pull marketing. Dana emphasizes, "Definitely cross-sell your campaign. Every communication should request opt-in e-mail addresses."

Don't limit e-marketing efforts to the Web. While Dana encourages companies to use search engines to draw people to your site, he also stresses the importance of collaboration between print and Web-based communications. Trade shows, business cards, printed literature-all are chances to request an e-mail address.

Dana often uses printed post cards to promote Web based campaigns, as he did with the All Terrain Mobile Furniture Giveaway. During this campaign, Dana encouraged recipients to visit a specialized Web page to sign up for the sweepstakes. In addition, he promoted the campaign in online trade magazines, banner ads, e-mail broadcasts and even on his voice mail. As a result, the campaign drew several thousand registrants.

Timing is everything

Van Epern stresses consistency is key. "When your customers opt-in, tell them when to expect a message from you, fulfill your promise and be consistent. Miss your schedule and you disappoint your customer."

Outline your campaign schedule and follow it to the letter. Lani ensures that Goltz follows their production schedule without fail. "If we promised it would be there today-even 11:59 p.m.-it's there! It's Internet etiquette. If you promised it, it should be there."

Van Epern recommends using an existing Web list service to help you meet production schedules. He notes that some campaigns can be managed internally, but it's often a time-consuming undertaking.

"You can manage lists internally but this can be clumsy and dangerous," he warns. If your machine gets hit with a virus, you could send that virus to everyone on your marketing list."

Whether you do-it-yourself or outsource your campaign, the planning is critical. Vanden Heuvel points to optimum sending schedules as well. For messages to families and consumers, "weekends are the best time to send a message," while the business person, who typically works Monday through Friday, "is more attentive during mid-week, Tuesday, Wednesday, Thursday," explains Dana. Relative to the product and consumer, the timing of your message is an important element. For example, someone who's signed up for travel announcements might be more inclined to review travel promotions during the weekend, when they're not working.

There are several inexpensive tools that can help you manage your campaigns. Local companies like NetNet and GreenBayNet can help you track the webtrends. Dana mentions Internet-based software like Microsoft's BCentral as an excellent resource for the small business owner. He estimates the average business can spend $300 to$1,000 per month on e-marketing campaigns, depending on the campaign design, size and objectives. Some existing tools manage campaigns for less than $100 per month.

Soul Searching

AOL Time-Warner recently announced a decline in dial-up Internet users. Almost simultaneously, Nielsen reported a jump in broadband users. This news is very exciting to Internet marketers. As more and more people use high-speed Internet, highly creative campaigns will flourish. What will this mean for print-based promotions? Will we see a decline in direct mail? Probably. Will marketers stop sending promotions to your mail box? Probably not (sorry.) Nevertheless, there's no doubt we'll see a surge in e-marketing.

Whether you're a small or large company, the Web is your friend. It's easier than ever to research your options online. Take advantage of all the advice newsletters. Opt-in! As Dana puts it, "Do some creative borrowing. Don't re-invent the wheel. Someone's done it before you."

As with any marketing campaign, there are no guarantees for success. Before you initiate any campaign, ensure you're meeting the basic requirements. With that said, you are on your way to developing yet another component of your overall marketing plan. And as stated before, remember your fundamentals.

1. Rapport: Know your audience.

2. Message: Would I respond to this message if I received it? No? Start over.

3. R-E-S-P-E-C-T.

Thank you, Aretha. Enough said.

Reprinted by permission, copyright 2003, Bay Business Journal, a publication of the Green Bay Chamber of Commerce, Green Bay, WI.