E-mail
marketing has gone through a lot during the past 5 years or
so. In the beginning, it was seen as the ultimate marketing
tool -- inexpensive, instantaneous, and 100% measurable. Click-through
rates were the only numbers that mattered, and people were willing
to open -- and read -- just about every single e-mail they received.
How times have
changed! Nowadays, most of the talk is about spam, how e-mail
marketing can hurt your business, and why click-through rates
are a fraction of what they used to be. Yet we still hear stories
about companies who, despite all the pitfalls, manage to generate
millions of dollars in profit every year using e-mail marketing.
So this raises
the question: How do some marketers manage to earn six-figure
incomes (and higher) relying almost exclusively on e-mail as
their marketing medium? How are they able to get their messages
read and acted upon despite all the hurdles that stand in their
way? It seems that those people who understand e-mail marketing
the most are the ones who are able to profit from it the most.
With that in mind,
I'd like to clear up some of the misconceptions that you may
be having. I've put together a list of some of the most common
myths regarding e-mail marketing, and answered them using cold,
hard facts. Pay attention, because if you've bought into any
of these myths yourself, you're in danger of losing out on a
lot of potential profits.
E-mail
Marketing Myth #1: E-mail Marketing Is No Longer Effective
This is the most
common misconception I hear when I talk to people about e-mail
marketing. Many think that the sheer volume of e-mail that we
all receive on a daily basis has ruined the effectiveness of
e-mail as a marketing tool. And the fact that spam has received
so much attention in the news lately also hasn't done much to
instill confidence in this medium.
In my opinion,
the idea that e-mail marketing is no longer effective really
stems from people failing to make the distinction between spam
and legitimate, permission-based e-mail marketing. While it's
true that spam is not an effective marketing tool -- it never
really has been -- permission-based e-mail marketing continues
to be a tremendously powerful, easily trackable, and
instantly measurable way to market your product or
service.
Need proof? A recent
DoubleClick study reports that 69% of American e-mail users
have made purchases online after receiving permission-based
e-mail marketing.
That's great news
for companies who continue to use e-mail as a marketing tool.
The fact that almost 70% of people have made purchases as a
result of receiving an online promotional offer demonstrates
that e-mail remains one of the most effective marketing
tools in history.
E-mail
Marketing Myth #2: E-mail Promotions Will Damage My Credibility
There is a pervasive
myth among some small and home-based business owners that using
e-mail as a promotional tool will cause subscribers and customers
to have a lower opinion of your business. Now, I'm not sure
who started this rumor, but I'll bet that it was someone who
didn't do a very professional job of putting together their
own e-mail campaigns!
If you launch a
poorly designed e-mail campaign, of course you will damage your
credibility. The same goes for a direct mail campaign filled
with spelling mistakes or an offensive newspaper advertisement.
However, if you spend some time creating a well-formatted promotional
e-mail that is of real value to your customers and subscribers,
you will actually enhance your credibility.
In a recent report,
eMarketer found that 67% of US consumers said they liked companies
who, in their opinion, did a good job with permission e-mail
marketing. This is proof that an e-mail marketing campaign that
is well-designed and properly delivered will actually enhance
your credibility among your customers and subscribers, as opposed
to damaging it.
The key to delivering
an e-mail promotion that your opt-in list will appreciate is
paying attention to quality. Here are three easy steps to ensure
that your customers and subscribers receive professional, quality
messages from you every time:
- Make
sure that your offer is directly relevant to your subscribers'
interests. If they opted-in to learn more about gardening,
don't send them offers for candles.
- Be
sure to proofread everything you send out at least
a couple of times. And get someone else to proofread it for
you as well.
- Sign
up for a free e-mail address at each of the most
popular e-mail services, like Hotmail and Yahoo!, and test
your e-mail promotions to those addresses before you send
out your mailing. This will help you catch any formatting
glitches that might show up in those services.
Remember, if you
are selling a product or service over the Internet, e-mail is
probably the only dialogue you'll ever have with your customers
and subscribers. This means that, along with your web site,
your e-mail messages are the only tools you have to build trust
and credibility. If you do a professional job creating and testing
your e-mail messages before sending them out, your customers
will get a great impression of your business, and feel comfortable
conducting business with you.
E-mail
Marketing Myth #3: My Customers Will Think I'm Spamming Them
Here's where we
need to talk a little bit about the difference between spam
and legitimate, permission-based e-mail marketing. Spam is basically
unwanted e-mail that has been sent by a company with which the
recipient has had no prior contact. Spammers usually get their
lists of e-mail addresses by "harvesting" them from
newsgroups and chat rooms, or through a wide range of other
unethical sources.
Permission-based
e-mail is quite the opposite. Marketers who practice this type
of e-mail marketing have previously been in contact with the
individuals on their opt-in lists. The people who make up their
lists include current and former customers, as well as those
people who have left their e-mail addresses with the company
for the purpose of receiving e-mail from them -- be it a free
eBook, a newsletter, or promotional messages.
And studies indicate
that e-mail users are well aware of the difference between the
two. According to IMT Strategies, more than 80% of people feel
negatively towards spam, whereas 78% of the people surveyed
in a recent DoubleClick report said that they wanted
to receive e-mail from their favorite online merchants.
Now, if 78% of
people actually want to receive promotional e-mail from you,
you're doing terrible damage to your bottom line if you aren't
using e-mail as a marketing tool. And unless you really are
spamming, you don't need to worry that your customers will think
that you are (as long as you follow a few simple rules like
providing clear unsubscribe instructions). Your customers are
smart enough to tell the difference.
E-mail
Marketing Myth #4: People Will Unsubscribe From My List If I
E-mail Them
Another really
common concern among online business people is that their customers
and subscribers will start unsubscribing from their list if
they receive promotional e-mails. The only time these companies
e-mail their customers and subscribers is when they want to
notify them of a some company event, like a move to a new location
or a total redesign of their web site.
It's true that
if you never send any e-mail to your customers and subscribers,
you won't get any unsubscribes. There's nothing for them to
unsubscribe from! But what was the point of collecting all those
e-mail addresses if you aren't going to use them? The fact of
the matter is that people who leave their e-mail addresses with
you fully expect to receive e-mail from you. Why else would
they have given you their contact information?
Still not convinced?
According to a joint study recently released by The Direct Marketing
Association and the Association of Interactive Marketing, 63%
of companies surveyed reported that e-mail marketing was their
most effective customer-retention tool. A "customer-retention
tool" simply refers to a method of preventing your customers
from buying products or services from your competition rather
than you.
Customer-retention
is one of the most important aspects of any business. Losing
a customer to your competition is very harmful to your bottom
line, because one existing customer is more valuable than a
list of potential customers.
And remember, a
few unsubscribes here and there aren't going to destroy your
business. In fact, people who unsubscribe from your list as
a result of responsible, well-written e-mail marketing campaigns
are actually doing you a favor! After all, why would you want
to waste your valuable time and resources on people who have
no interest in your offer?
E-mail
Marketing Myth #5: E-mail Campaigns Are Difficult To Design
And Deliver
Whenever I'm talking
with someone who insists that e-mail marketing doesn't work,
I always ask them if they've ever actually tried it themselves.
Most of them admit that they haven't. When asked why they haven't
tried it themselves, the answer is almost always the same: They
think that the process of creating and sending out an e-mail
promotion is too complicated or too difficult.
Those of us who
do use e-mail as a successful marketing tool know that nothing
could be farther from the truth. Once you've learned the basics,
the process is a breeze. And there are new tools being created
all the time that make the process even easier.
When we conducted
a comprehensive survey of our customers and subscribers, we
asked what some of the biggest challenges you faced as marketers
were. Here are the three of the most common answers:
- Growing and
Managing Your Opt-In List
- Writing Effective
E-mail Promotions
- How to Avoid
Having Your Legitimate E-mail Promotions Mistaken For Spam
I thought it would
be a good idea to address these topics in greater depth in the
next few issues of the "Marketing Tips" newsletter.
So, in the coming weeks, I'll be sharing with you some of my
most coveted e-mail marketing secrets that address
the most common challenges people face when putting together
an e-mail marketing campaign.
In our next issue,
I'll address your Number One Problem: Growing And Managing
Your Opt-In List. I'll talk about how to build a huge
list of qualified, targeted prospects from scratch, using simple
tools on a shoestring budget. By applying these
methods to your own business, you'll discover why finding and
managing good prospects never has to be a challenge ever again.
I hope you'll keep
an eye out for these upcoming issues, as I'll be letting you
in on some tips and techniques that I've never before been able
to share with the public. These are strategies that have proven
time and time again to produce solid results -- not
just for me, but for thousands of my clients and customers as
well.
Final Thoughts:
Armed with some
basic information and a few simple tools, any business can make
e-mail a profitable component of their marketing programs. The
truth about e-mail marketing is that it remains an incredibly
powerful and cost-effective way to sell goods and services,
despite what the people behind the myths would have us believe.
The key to making
e-mail advertising work for your business lies in understanding
how it can help you build and maintain relationships
with your customers (and customers-to-be). The responsible
use of permission-based e-mail will allow you to tap into the
profit-generating potential of your opt-in list more efficiently
-- and cost-effectively -- than any other marketing tool.
In the coming weeks,
I'll be sharing with you the secrets to extracting the maximum
profits from your opt-in audience. There's a lot to learn, but
the steps to a successful e-mail marketing program are easy
to follow and are guaranteed to grow your business.
If you already have an e-mail marketing program in place, I
hope to be able to provide you with some new ideas that you
may not have thought of.
ABOUT
THE AUTHOR: Derek Gehl specializes in teaching real people how
to start profitable Internet businesses that make $100,000 to
$2.5 Million (or more) per year. To get instant access to all
his most profitable marketing campaigns, strategies, tools,
and resources that he's used to grow $25 into over $60 Million
in online sales, visit: http://www.marketingtips.com/t.cgi/892189
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