The Marketleap Report
Vol. 1 - Issue #18 - October 16, 2001

The Draw of Mail
How Successful Online Marketers Find Their Target
by Keith Boswell

Permission is a sacred trust between the consumer and the intelligent online marketer. Break it once and you'll likely be remanded. Break it a second time and the consumer will strain, grasping at reasons to remain civil. Violate that trust a third time, and likely the mutual relationship will end, the consumer now determined to rid herself of the unwanted message.

Patrons who allow you access to their inbox deserve careful attention. Once a person's e-mail address has entered a company's radar through a purchase, a sales lead or an information request, all future messages should match the knowledge you have about that person.

Every message you deliver stands to create or maintain an ongoing source of revenue and reference if treated with appropriate care. Turning that inbox into a steady customer requires the sophistication that a well-built marketing program can provide. Profiling, personalization and customer driven preferences provide the marketer with the right message at the right time.

Internet Retailer reported in August that J.C. Penney has seen their online business grow from sales of $15 million in 1998 to $294 million in 2000. Estimates for 2001 sales are $400 million. They identified targeted e-mail as one of the primary driver of online sales. To date they have permission from more than 4.5 million people to solicit with "appropriate" sales messages.

Forrester Research predicts that by the year 2005, commercial e-mail will represent $6 billion dollars or about 10% of all online marketing. Considering the reduced cost to produce e-mail messages versus traditional direct mail pieces, an even greater flood of e-mail awaits us all. We can only hope that marketers begin to explore all the benefits that the technology affords them.

Spam will continue, but it will not prosper. It will maintain marginal returns for minimal investments. The real goldmine for marketers lies in every willing group of customers who has asked to be kept in the loop.

Online consumers appreciate a personal touch and something they can act on. When the message matches the need, the conversion rates for sales can be as high as 15%. Even better, when online messaging is mixed with traditional direct mail, the results can go even higher, averaging anywhere from an 18% - 20% conversion.

Marketers also stand to find success within messages that may appeal to a very broad group, so long as they provide action items and relevant links that help drive success. A focused message that can be seen "above the fold" - the point where reading further means you have to scroll down - helps the marketer appeal to those in a broad group who are looking for direct action.

Even automated response e-mails serve as another indicator of what the consumer can expect when dealing with your company. Many companies put very little thought or planning into the automated e-mails that are sent in response to requesting information or signing up for a newsletter. Instead of simply giving the person their user name, password and address to unsubscribe, sophisticated companies use the automated response to reinforce the value of their offering as a whole. Details about unique selling points and links for future reference reinforce and broaden the relationship with the customer.

Companies like Mediaplex and Digital Impact unite purchase history, personalization, preferences and detailed reporting for their clients into easily managed online marketing campaigns. Helping to deliver highly targeted e-mails for their clients' marketing needs, the technologies they utilize are proving the value of true Internet-based commerce.

The information today suggests combining web sites, e-mail and historical data strikes the right balance between intelligence, technology and consumer permission to strike gold for smart marketers everywhere. People like things they like. It's as simple as that. Stick with the formula, respect your customers, and success will find your door.

report@marketleap.com.