How To Make Email Marketing Work for Your Small Business or Non-Profit
by Janet
Attard
Email marketing, when used properly, is one of the
most cost-effective tools you can use to communicate with your customers,
clients, or membership groups. Whether you sell products or services,
email is a fast, efficient and inexpensive way to keep in contact with
your customers and prospects, make sales, get traffic to your web site and
boost your profitability. Furthermore, if you use a good email management
company to deliver the mail, you can track the effectiveness of subject
lines, article headlines or special offers.
But the ability to send email doesn't mean your
mailing will get opened and read. Nor does it mean those who do open the
mail will be interested in your offers or click on links to your web site.
So what does it take to make email marketing work for your small
business or non-profit?
To answer
that and other key questions about email marketing, I interviewed
Gail Goodman, CEO of
Roving Software, makers of Constant Contact® Do-It-Yourself Email
Marketing™.
Constant Contact is a leading
provider of email marketing products and services for small- and medium-sized businesses.
Janet:
Hi, Gail! Many
people associate email marketing with advertising. Is that all it is?
Is email marketing just about advertising, or is there more to it?
Gail:
Email marketing is all about communication.
It is about starting a dialog and creating good customer
relationships. Email marketing can be a promotion, newsletter,
announcement, holiday greeting etc.
There is much more to it than advertising because
advertising is usually a one-way message, while email can encourage
two-way communication that will bring you closer to your customers and
increase your understanding of what they want and need.
Janet:
Why is email marketing important? Is it any better than more traditional
means of communicating with prospects and customers?
Gail:
There is no better, faster, cheaper way to communicate with
prospects and customers.
Permission-based email marketing is the most cost effective direct
marketing method available – with dramatically higher response rates than
both banner ads and direct mail - and measurable, immediate results.
Email marketing can be used to compliment and enhance every other
marketing activity that a business engages in.
Janet:
Who should be using email marketing, Gail?
Is it cost-effective for small businesses?
Gail:
The real question is, who shouldn’t?
Any business that wants to communicate and develop relationships
with prospects and customers should be using email marketing.
Services like our product, Constant Contact are specifically
designed for small and medium-sized businesses, making it easy and
affordable to manage and grow permission-based email lists, and create,
deliver and measure the results of email marketing campaigns.
There is no reason not to.
Janet:
What about really small businesses - one-person businesses, for instance?
Can a one-person business benefit from email marketing?
Gail:
Any business, no matter what size, can benefit.
With limited time, budgets and resources, email marketing is even
more important to a small business because it can make even a one-person
operation look larger and more professional.
Janet:
Gail, I'm seeing an increasing number of consultants and self-employed
individuals who are sending out mailings - sometimes with their own email
accounts - for their clients. Is this wise? And if not what would be a
better solution?
Gail:
Using an email marketing service is more than just a better
solution. It’s the only real
solution. One of the most common mistakes is
exposing your entire list in the To: line. Another is failing to
include the ability for the recipient to unsubscribe, or sending an email
campaign without a trackable call-to-action.
Bottom line? Your basic email client is not
designed to be used as an email marketing system and therefore has
significant limitations. For
one, your email client (e.g. Outlook, Eudora, Hotmail, AOL, etc.) sets
limitations on the number of emails you can send at one time.
ISPs also pay attention to the number of recipients
on emails coming through their systems.
An email with too many recipients may be classified as bulk and go
into a recipient's bulk mail folder, or it can be classified as spam and
end up undeliverable.
An email marketing service delivers your emails
with proper protocols, and a good one develops relationships with ISPs to
be sure their customers' permission-based email gets through. Should a problem arise, a solid email marketing service will
get more attention than you could ever get on your own.
Janet:
So, even if you always remember to use the blind copy option (so your list
isn't public), it's better to outsource management of your email list than
to use Outlook or some other email program to manage the list?
Gail:
Always! Your email client is not designed to perform critical list
management functions including new subscribes, un-subscribes and
bouncebacks, so you would have to do all of this manually while an email
marketing system does it all for you.
This is just one of the many reasons to use a reputable email
marketing service instead of going it alone.
Basic email clients cannot tell which email format
each recipient is able to receive – HTML or text.
If you send HTML from your basic email client, some of your
recipients will get gibberish that they can't even read. If you just send
text, you are missing out on the lift in response rates you can get from
HTML. An email marketing
service creates and delivers your email in the correct format every time.
A good email marketing service also provides
reports and statistics on the number of emails sent, opened and clicked
through to help you track and measure your success,
and improve your campaigns over time. With your basic email client, this
information is not available, so you are basically flying blind.
Janet:
What types of email marketing are there?
Gail:
There are two legitimate types of email marketing – email marketing
to your own permission-based list and email marketing to reputable opt-in
rental lists.
Email marketing to your own list is very effective
and offers response rates of up to 15% or even higher - particularly in
the case of newsletters. Every company - from one-person operations to
multi-national corporations should collect email addresses from all of
their customers and prospects to build their email list. Companies can do
this on their website, on sales, service and customer support calls, at
trade shows or events or in a guest book at their office or store.
They should always be sure to gain their customers’ or prospects’
permission to email to them.
There are email lists available (not unlike Direct
Mail address lists), of individuals who have requested to receive
promotional messages within selected categories of interest. Be sure to use a reputable list vendor and expect to pay
between .15 cents and .40 cents per name.
In the case of opt-in rental lists, you really do get what you pay
for.
The one area of email marketing you want to
absolutely avoid is spam or UCE, which stands for unsolicited commercial
email. Spam is email sent
without the recipient’s permission.
A good email marketing vendor can help you email responsibly, make
sure your email gets delivered and keep the reputation of your company
intact.
Janet:
What's the difference between a promotion and a newsletter?
Gail:
In a nutshell, email promotions are primarily one-way
communications designed to achieve a short-term goal
- driving traffic and sales.
Promotions generally contain one or more direct calls-to-action "click
here to buy now," "sign up today," “give us a call” to elicit immediate
action on the part of recipients.
Email newsletters, on the other hand, are regularly
scheduled communications that encourage a two-way "conversation" and
include valuable information.
While a newsletter can contain some calls-to-action that provide
short-term benefits, it is uniquely suited to accomplish the long-term
goals of customer retention and loyalty.
Janet:
When do you use each?
Gail:
Both email promotions and email newsletters have their place. My
advice is to use both in your email marketing plan, but treat them
differently to maximize the value of each communication type.
Use a promotion to:
-
Help you get your share of holiday business
-
Boost sales, appointments or traffic in otherwise
slow months
-
Promote your brand
-
Clear space for new stock
-
Move excess inventory
-
Get your name in front of a new or existing
customer
-
Or, reward your most loyal customers
Use a newsletter to:
-
Build relationships with your customers and
prospects
-
Position your company as a valuable resource
-
Obtain and retain the mind share of your
customers
-
Educate and inform your customers
-
Build your credibility over time
-
Widen your audience via "word-of-mouth"
-
Begin a dialog with your readers by asking for
reader feedback
Janet:
Do you need a web site to do email marketing?
Gail:
Absolutely not! While
everyone with a website should use email newsletters and promotions to
bring their subscribers back to their site, businesses that are not
online, can also benefit from email marketing.
Email is the communications medium of choice for most businesses
and many consumers. Businesses without websites can easily send
newsletters, promotions, announcements and invitations by email and
generate an email reply, a telephone call, an appointment or a personal
visit.
Janet:
How do you get people to read your newsletter?
Gail:
Janet, you know this one! There are so many things that you can do
to get people to read your newsletter.
The most important of which is to ensure that your newsletter is
relevant and pertinent to the people on your list.
When subscribers “join your mailing list” they should know what
they are signing up for – and you should meet those expectations!
Once you’ve done that, you can improve readership by making your
subject line “interesting” and your copy and message concise, compelling
and to the point. We have
lots and lots of information on how to be a better email marketer in our
Email Marketing Hints & Tips Newsletter. (visit the archive at
http://www.roving.com/marketing/newsletters/hints-tips/)
Janet:
What prevents people from reading newsletters and promotional
mailings?
Gail:
First and foremost, the key is to
-
Identify yourself and your communication (let
them know the email is from you and remind them that they opted in to
receive it)
-
Be relevant
-
Be concise
-
Be easy to read (check spelling, grammar etc.)
-
Offer value – whether in a promotional offer,
key information and coaching
Your email reflects your business – add images,
links and colors to make your communication look compelling and
professional.
Janet: Gail,
what are the most common mistakes made by email newsletter publishers and mailing list owners when they mail
to their list?
Gail:
One of the biggest mistakes an email marketer can make is failing
to send what was promised when the subscriber opted in.
It is important that your emails be relevant and add value, so
targeting is important.
A common newsletter mistake is delivering a
newsletter that is nothing more than a promotion in disguise. Remember -your newsletter should be mostly informational.
Emailing too frequently is another common mistake.
We recommend no more than four times per month if your emails are
strictly promotional.
Janet:
What suggestions do you have to them for improving the response to mailings?
Gail:
Think of this as a customer or prospect dialog.
Make sure that your promotional offers are compelling and your
newsletters and announcements significant and newsworthy.
I’ve already mentioned targeting and relevance a couple of times.
It’s simple - just ask your readers what they want to receive and
then give it to them. There
are lots of
hints and tips available on our site.
Increase your response rates by incorporating
call(s)-to-action (links to click, phone numbers to call, store/office
locations to visit) and creating a sense of urgency. The urgency should begin with your subject line and then continue
throughout your email.
If your email is a promotion, you may want to limit
the time of the offer or include a bonus for the first 50 customers.
Coupons, contests, special discounts, white papers etc. are also
effective means of encouraging response.
Janet:
Gail, those tips are really helpful! Do you have any last tips for small businesses who are considering
email marketing as a way to communicate with their prospects and
customers?
Gail:
Sure, just try it! Constant
Contact offers a no-obligation free trial so small businesses can see for
themselves how it works and how easy it is to use.
Janet:
Thanks for all the information. It's been great talking with you.
Gail Goodman is CEO of Roving
Software, makers of Constant
Contact® Do-It-Yourself Email Marketing™, a leading email marketing
service for small- and medium-sized businesses. She can be reached at mailto:gail@roving.com
Janet Attard is the owner of Attard
Communications, Inc., which provides editorial content, online community
and web development services. She is the founder of the award-winning
Business
Know-How small business web site and information resource.
Janet is also the author of The
Home Office And Small Business Answer Book and of Business
Know-How: An Operational Guide For Home-Based and Micro-Sized Businesses
with Limited Budgets. She can be reached at (631)
467-6826 or by email at attard@businessknowhow.com.
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