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The advantages of email marketing have been recognised by a
number of authors. Jackson and DeCormier (1999) recognised
that email provided marketers with communication that
permitted relationship building and real-time interaction with
customers. Wreden (1999, p3) described email marketing as the
'Internet's killer application' because of the precision with
which email can be tailored, targeted and tracked. Low costs
and digital processing allows companies to send out huge
numbers of emails. The medium is push rather than pull, the
consumer does not have to instigate the interaction, and
currently response rates are high (Di Ianni 2000; Rosenspan
2000). Peppers and Rodgers (2000, p 4), claim that 'clear
benefits, including high response rates and low costs are
rapidly turning email marketing into an invaluable tool'.
Email marketing can be used for acquisition or retention; this
paper focuses on acquisition email marketing, marketing
designed to win rather than retain customers.
Table 1 Comparison of Direct and Internet
Marketing Techniques
Table 1 compares email to other forms of
direct and Internet marketing. The basic characteristics of
email marketing are low costs, shorter turnaround (in the time
involved to prepare, send the messages and receive the
responses), high response rates and customisable campaigns.
The advent of HTML, audio and video email improves the scope
for creativity in email marketing. Ultimately it is
conversion, rather than response rate, that will determine the
cost efficiency of acquisition email marketing; this will
depend on the targeting, the message, and the receptivity of
the recipient. Briggs and Stipp (2000) have argued that the
'lean-forward' nature of the Internet increases involvement in
streamed Internet advertising, this could equally apply to
email marketing.
Email is a relatively new medium, in the future, consumer
response is likely to be adversely affected by increasing
traffic volume (Rosenspan 2000; Di Ianni 2000). Mehta and
Sividas (1995) suggest that spam messages are unwanted,
untargeted and therefore negatively perceived. Turban et al,
(2000, p360) define spam 'as the practice of indiscriminate
distribution of messages without permission of the receiver
and without consideration for the messages' appropriateness.'
Jupiter Communications (2000) estimate that the average US
surfer will receive up to 1,600 unsolicited emails every year
by 2005. Windham (2000) believes that unsolicited email is
considered an invasion of privacy, and has already become a
serious problem for some customers; spam taints the reputation
of email marketing. To avoid being perceived as spam, several
authors recommend that companies should restrict the messages
they send (Wreden 1999; Wright and Bolfing 2001); in addition,
marketers should obtain recipients' permission.
Permission Marketing
Godin, (1999, p 43) coined the term 'permission marketing'
which is based on consumers giving their consent to receive
marketing information. Permission marketing 'offers the
consumer an opportunity to volunteer to be marketed to' and it
is therefore 'anticipated, personal, and relevant'. The idea
of consent is not new; customer permission had been introduced
in the context of privacy issues in direct marketing (Milne
and Gordon 1993). The key to permission marketing is knowing
customer interests and knowing their information needs (Sterne
and Priore 2000). It is particularly relevant to Internet
marketing because the low marginal cost of messages creates a
potential volume problem for both consumers and marketers.
Permission marketing improves the targeting and relevance of
promotional messages, thus improving response and conversion
rates. The interactivity of the Internet facilitates
communication of consumer permission and preferences.
A survey by IMT Strategies (1999) found that permission
email has a higher response rate than non-permission email;
more than half of their respondents felt positive about
receiving permission email. Successful permission marketing is
about building long-term relationships with customers once the
initial permission has been granted. The consent, trust and
two-way exchange of information develop the relationship
between the consumer and the company.
Hagel and Singer, (1999) discuss the emergence of
'infomediaries' or information brokers who elicit the
permission of consumers and preserve their privacy. In effect,
these companies are 'permission' brokers; an example is
yesmail.com.
Krishnamurthy (2001) presents a model where consumer
interest in a permission-marketing program depends on five
factors: message relevance; monetary benefit; personal
information entry costs; message processing costs, and privacy
costs. He also introduces the concept of permission intensity,
which he defines as 'the degree to which a consumer empowers a
marketer in the context of a communicative relationship'. In
addition the permission may be more or less explicit. In-order
to obtain as many permission email addresses as possible
marketers sometimes provide options that are unclear with a
default 'opt-in'. A study by Cyber Dialogue found that 69% of
US Internet users did not know they had given their consent to
inclusion on email distribution lists (Bellman et al
2001).
The effectiveness of direct marketing depends on the
targeting, the nature of the offer, the creative, the timing
and the volume of communication (Fraser-Robinson 1989; Stone
1996; Roberts and Berger 1989). Vriens et al., (1998, page
325) develop a theoretical framework for the response process
in direct mail, see Figure 1, distinguishing between factors
that affect the three stages: opening the envelope, paying
attention to the contents and the response.
3 Quick And Easy Ways To Build A Profitable Opt In List
You finally realize that you need a good opt-in list. After reading countless articles and sought expert advices and have read many success stories of people creating a small fortune with opt-in lists you finally decide to have one of your own. Then it happens, you think you have known everything there is to know about opt-in lists and have followed their advices to the T and you still weren’t able to make a profit.
In fact, you may be losing money. You maybe hiring writers to help you out, or there are some expenses incurred, even if you have a big list, but only a very small percentage actually buys from you, your still losing profit. You’ll realize that after a few months when you see your statistics and sales figures.
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