Part Four: Direct marketing with e-mail

1. DM techniques that work in e-mail... and a few that don't

In most respects, e-mail marketing has much in common with other direct marketing channels - especially direct mail.

That's good news because these similarities allow marketers to follow many of the tried and true direct marketing principles that have been established over the past century. These include addressing the specific needs of the target market, creating a compelling offer, communicating that offer persuasively, and having a clear call to action.

E-mail also shares another time-honoured DM principle: test, test, test. In fact, only telemarketing can rival how quickly you can test new campaign elements against the control.

Yet, despite the parallels, e-mail is unique. It follows some of the old rules. But it is also developing many of its own rules as well. Here are a few examples:

• Many of the magic words used in direct mail - especially the word FREE - do not work as effectively in e-mail. More specifically, spam filters will reject or block e-mails that use key words like FREE in the subject line.
• While a four-page letter may be suitable for a direct mail piece, e-mail tends to be a short copy medium. Most letter-style e-mail marketing messages are no longer than 300-400 words. As with the Johnson box in direct mail, the most important part of the message is above the fold, i.e. can be easily viewed on the first screen for users with a computer set at an 800x600 resolution.
• Internet users expect fast turnaround. That's why e-mail offers that can be immediately fulfilled electronically are so successful.
• E-mail is a permission-based marketing medium. Reputable e-mail marketers respect privacy guidelines of such organizations as the Canadian Marketing Association.
• Also, there should be at least three clickthrough links embedded in the copy, with at least two "above the fold".

2. The importance of supporting the brand

There has been a lot of debate concerning the differences - and potential conflicts - between brand and direct marketing communications. The reality is, a powerful brand can add a degree of awareness and credibility to an e-mail marketing campaign that ultimately leads to higher response.

For example, if PRODUCT A is a highly prized and recognized brand, the customer is more likely to trust the claims made within the e-mail marketing message. Conversely, if PRODUCT B is an unknown brand, it becomes more challenging to overcome skepticism and buyer resistance.

Communicating trust

Trusted logos, colour schemes, taglines and other brand elements within an e-mail serve to reinforce the brand, which in turn can bring focused attention to your message and possibly improve response.

So it pays to support your brand communication guidelines in all your e-mail efforts, paying close attention to adapting and integrating your usual tone and manner when communicating your message.

Brand vs. response

Some direct marketers worry how adherence to brand communication guidelines will affect the results of a direct marketing campaign. The most important question to ask: Is neglecting or damaging the brand worth a potentially higher response rate? Marketers know that, in most cases, that answer is 'no.'

3. Standalone vs. integrated campaigns

As with any campaign, e-mail can either work on its own or be co-ordinated with other direct marketing programs such as telemarketing and direct mail.

Standalone campaigns

As the name implies, a standalone e-mail campaign is solo. No other marketing channel is involved.

For example, let's say you're selling upscale travel packages. And you have openings for a vacation in Banff leaving within the next two weeks. To sell the remaining spots, you can e-mail a special offer to your in-house list. Assuming that the e-mail does the job, no other marketing channel needs to be involved.

Standalone e-mail campaigns can be effective when:

• The offer is limited to a select audience;
• You need to create and communicate an offer quickly;
• You need a fast response (e-mail campaign response is often generated within hours);
• You have a tight budget; and/or
• You want to test an offer before it is rolled out into a larger, more comprehensive campaign.

The challenge of a standalone campaign is that the e-mail itself must do all the work. It does not get any help from other marketing channels.

Integrated campaigns

In an integrated campaign, the e-mail is just one component of many direct marketing initiatives all working together within a single campaign.

For example, if you're promoting a new software upgrade, you might make a special discount offer to existing users - and communicate this through multiple channels such as telemarketing, direct mail, tradeshows, advertising, and retail locations, along with e-mail.

Integrated campaigns have a tendency to achieve results greater than the sum of their parts. Typically, the aggregate response is higher because potential customers are exposed to the same message repeatedly through multiple channels. This is consistent with the direct marketing principle: repetition is a key to persuasion.

4. Effective offers for e-mail

E-mail has been proven effective for communicating just about any kind of direct marketing offer. Even complex monetary transactions are no longer an impediment as e-commerce on the Internet has become commonplace.

Because of the nature of e-mail, the most effective offers tend to be "click-able." This allows the recipient to reply to your offer simply by clicking on a hyperlink within the e-mail message. This link typically leads to a special call-to-action URL (Web page) where the transaction can be completed.

What's working

Currently, some of the more popular offers communicated by e-mail are:

• Information premiums. Often in the form of booklets, how-to guides, special reports, articles, executive briefs, white papers, Webcasts, and case studies. These are often published electronically so that fulfilment can be automated and delivered over the Internet. Contests. Of just about every type.
• Newsletters and ezines. Which can be effective for generating leads and building an opt-in e-mail marketing list.
• Products. Just about any type of merchandise, subscription, and even some services can be sold through the e-mail channel.
• Printable online vouchers or coupons. These can be effective for boosting retail store and website traffic and are often imprinted with a special number for tracking response.

Offering an incentive

In traditional direct marketing, a premium - the ubiquitous "free gift" - added to the offer will often boost response. The same also holds true in e-mail marketing. Of course, as with any direct marketing campaign, the costs of the premiums must be weighed against the revenues generated by the resultant increase in response.