E-mail Update: Trends and tips for beginning mailers

As we rapidly gain experience and test results from Internet direct mail, we are learning more every day about what works in this new medium. Here are some techniques that seem to be successful in increasing clickthroughs and conversions, and the trends and results we are seeing.

With more than 100 million opt-in e-mail addresses currently on the market, you now have the ability to test and roll out. Demographic profiling is becoming more available, allowing you to pinpoint your audience and send your message to those who are more likely to respond. Buyer data – historically slower to market – is also starting to surface.

Remember that the Internet and e-lists are worldwide. Therefore, when renting lists, be sure to specify the geographic area – region, state or country – you want to target. Don’t send e-mails to Europe or Asia if you can’t handle leads or orders from overseas.

How well is Internet direct mail working? E-mail ads are dramatically outperforming banner ads. They also outpull conventional paper direct mail at a much lower cost per thousand.

E-mail clickthrough response is typically 10% for consumers and 5% for business-to-business e-mail. Banner ads, by comparison, average only 0.5% clickthrough response.

Conversion rates for Internet direct mail are similar to regular direct mail. So if you are used to seeing a 10% conversion rate in your regular direct mail, expect a similar conversion for online respondents.

Usage of e-mail enhanced with HTML graphics is on the rise. In some, the HTML is used simply to display fonts and put headlines and subheads in color. In others, it adds images to the text. HTML e-messages take longer to send and require more bandwidth to transmit, but they don’t take any longer for the recipient to view. Depending on the list, there can be no extra cost for sending HTML, or it can run an additional $10 to $50 per thousand names.

HTML e-mail can outpull plain text messages by as much as 20%, both in clickthrough and conversion rates. Perhaps those who receive HTML and click are more Internet-savvy and more willing to purchase online. According to an article in American Demographics (June 2000, p. 44), an eMarketer survey found that 80% of e-mail users owned computers capable of managing HTML e-mail.

In these very exciting times, where a brand new medium can bring in customers more effectively and at a lower cost, marketers must put on their thinking caps and find ways to benefit from e-mail marketing. There is not one quick and easy answer to this challenge. Why? No two companies are the same. There are, however, many tricks of the trade that can lift response rates and increase profitability.

Timing’s Everything

The buzz recently on Internet marketing has been that Tuesday through Thursday are the best days to send out e-mail messages. Today 80% of all commercial e-mail is transmitted between Tuesday and Thursday. If this continues, maybe we can reduce our work week down to 3 days! This might appeal to some but it’s not very realistic. The truth is Monday, Friday and even the weekend can produce response rates that equal or exceed Tuesday through Thursday. It really depends on the product you are selling and the time of year you are doing the promotion.

Let your customers tell you which is the most responsive day. Take a look at the activity on your Web site. It’s your customers who will tell you when they like to shop for your product. The highest volume days and time of day are the best time to transmit your message.

Despite the Internet being an electronic medium, Internet direct mail seems to have a longer shelf life than first believed. Many people are saying responses come in the first three days, but I am seeing some responses come in as long as 6 to 8 weeks after transmission.

Hot responders are those who clickthrough within 24 hours. Hot responders are the most likely to send your message to other people – 10 on average. These hot prospects are interested in the next and best thing. Their behavior is difficult to predict, and they frequently bounce from site to site. They prefer short e-mails – 60 words or less.

Warm responders clickthrough within three days. They will often read several paragraphs of copy, and they are solid prospects.

Cold responders take more than three days to respond. They are not as e-mail-responsive as hot or warm responders, and are a tough sell. You can get through to them in a number of ways, such as with free trial offers or a strong online community on your Web site.

You can increase the pass-along of e-mail by the recipient to his or her associates by suggesting it in the copy. For instance: “Why not pass this e-mail along to your friends so they too can take advantage of this great money-saving deal?”

Actively encouraging e-mail pass-along is known as viral marketing, and it is very effective at increasing overall response rates. Think creatively. For instance, maybe there’s a neat image, puzzle, tool, Web link or factoid you can put into your e-mail that recipients will want to pass along to their friends.

Does Size Matter?

The tradition in Internet direct mail is to use short copy, which poses a problem for marketers whose paper direct mail typically depends on long copy to make the sale. Increasingly, we find that longer e-mail copy can work.

The key is to incorporate the benefit, offer and response link into the first paragraph or two of your long-copy message. Those people who are more comfortable on the Internet or are familiar with the product might want to click on the link at the top without reading the rest of the message. Others who need to be sold before they click and purchase can delve further into the copy.

Subject lines should be as short as possible to get the point across quickly. Standard e-mail readers can accommodate a subject line of up to 60 characters, but many don’t display them all. So long subject lines can get cut off.

Make your subject line the online equivalent of a short outer envelope teaser, with a message that lures the recipient into reading further or wanting to get more information. Arouse curiosity. “Advice from Bill Gates” is better than “Bill Gates on innovation.”

If you have a strong offer, put it right in the subject line and the lead of your e-mail; don’t bury it halfway down in your message. Price-off discounts, premiums, sweepstakes, drawings, free shipping and handling, cash prizes and bonus points all have proven to be effective offers for Internet direct marketing.

Don’t force recipients of direct marketing materials to switch media to reply. For instance, the best response method for e-mail is a link embedded in the message that sends the recipient to a Web-based response form. The prospect can fill out the form and click to submit it for more information or to place an order. Not permitting online replies will significantly lower your overall response rate.