Email is Still Exciting

You’d be surprised how often people look at me and say, “Really? Email marketing for lead gen?”  I always find this curious, because I’ve relied on email marketing for years, with great success.  It may seem old school (at least compared to social or SEM), but it’s actually an exciting tactic, offering great ROI and opportunity for customer engagement.  If you don’t believe me, here’s what some top-tier industry experts have to say:

• According to the Direct Marketers Association, email marketing has an average return on investment of $43.52 for every dollar spent which is expected to reach $44.25 by the end of 2011.

• Forrester Research reports that investment in email marketing will grow from $1.3 billion in 2010 to $2 billion by 2014.

• A survey conducted in December 2009 by ExactTarget indicates that more than 50% of consumers make purchases as a direct outcome of email. It also drives more ROI than any other channel including social media and PPC advertising.

• In its 6th Annual Consumer Email Study, DoubleClick revealed that as many as 90% of consumers go online to send and receive emails every day. At present, the average US consumer receives 361 emails every week which is a 20% increase since 2004.

• At an average, each US Internet users engages with 11.8 brands via email, compared to 9.4 brands through Facebook and only 7.9 brands through Twitter. – ExactTarget “Subscribers, Fans, and Followers: The Social Profile” (2010)

• As many as 42% of consumers said that they preferred receiving promotional emails from companies. Econsultancy “How We Shop in 2010: Habits and Motivations of Consumers” (2010)

• In 2010, a leading marketing research firm, Merkle reported that consumers who received direct mail as well as email on average contributed $17 in revenue and $4 in margin per household.

• Smith-Harmon in a study titled “Retail Email Unsubscribe Benchmark Study” reports that Friday is the most popular day of the week to send out promotional emails. About 42% of the US Online Retailers send at least one promotional email on every Friday.

• At least 64% of US and UK internet users want marketers to demonstrate knowledge of the types of products or services they like in email marketing messages. Most of the consumers were concerned with receiving irrelevant or poor quality emails.  -e-Dialog “Manifesto for E-mail Marketers: Consumer Demand Relevance” (2010)

• Disregarding popular belief that email marketers were offended by the strong presence of social network channels, MarketingSherpa in a study called “Email Marketing Benchmark Survey” reported that as many as 80% of marketers believed that social sharing extended the reach of email content to new markets and 78% believed it improved brand reputation and awareness.

As you can see, email is still a vibrant tool, offering lots of opportunities for the strategic marketer.  Its proven success has earned it a treasured place in my marketing strategy, and it could work for you too.  If you include email as an integral ingredient in your marketing mix, please leave a comment.  Let us know how it’s worked for you.

 

 

Dave Scott Founder and CEO of Marketfish Inc.

(Original post by: Josh Hinds at 17-02-10)

Dave Scott is the CEO and Founder of Marketfish, creator of innovative list marketing technology. Prior to founding this technology start-up, Dave served as vice president of global marketing and strategy at Intermec, Inc. (NYSE:IN), where he was named “CMO of the Year” in 2006. Scott also served as the vice president of marketing and strategy for the global services division of PeopleSoft, Inc., which was acquired by Oracle.

Josh Hinds: How do you define Business Networking and why do you feel it’s important?

Dave Scott: To me, business networking is another way to say “word of mouth” marketing. It’s a way to promote your services or what you do to others within your network, or circle of acquaintances. It’s the oldest form of marketing and the most reliable. First of all, the return on investment (ROI) is great because all it costs is your time. Second, no one can sell the value of the business better than you.

Josh Hinds: Can you give a few ideas that someone could put into practice which would help them to improve their business networking skills?

Dave Scott: Get out there and mingle. Every event you attend, from a networking event to a happy hour, has the opportunity to bring you business. I’ve found leads in the weirdest of places – alumni events, Cub Scout dinners, even the gym.

Josh Hinds: Based on your experiences, which places and activities have you found best for meeting new people and expanding your professional network (either online or offline)?

Dave Scott: The most important thing to realize is that, even if you don’t yet have the budget for a huge annual convention or trade show, there are still many great networking opportunities. Your local networking opportunities provide a perfect opportunity for finding clients and business partners right in your area.

In Seattle, we have a Seattle Direct Marketing Association. This is a perfect place to get in touch with my target customer without having to weather a huge annual convention or trade show. Online opportunities provide equally great networking opportunities for businesses of all stripes. LinkedIn has many professional groups who have interesting discussions about your industry, as do Facebook and Yahoo Groups. Just dive in!

Josh Hinds: Can you share a personal networking success story with us?

Dave Scott: I belong in Rotary, the ultimate in business networking locations. At a meeting I sat next to a friendly gentlemen and started chatting about traveling, the weather, and service above self. When I explained that I wanted to start a company – Marketfish – he revealed that he was an angel investor and startup lawyer. It’s been a beautiful marriage ever since.

Thank you Josh for the interview!

Is the list rental industry dead? Marketfish CEO’s perspective

Focus.com just launched a fantastic Q&A forum where business owners can talk about lead generation and the sales process. A while ago, a question was posed to the community. It read: “Is the rented email list business dying?” This compelled me to post a reply which is what you see below.

This industry is certainly heading toward extinction unless a disruptive force comes in and fixes the problems that marketers face with renting lists. As a disclaimer, I’m the CEO of one such company that I think is doing that.

I’ve been a marketer for the past 18 years and Chief Marketing Officer for 3 companies. Over that period I’ve probably worked with hundreds of rented lists to generate almost 30 million marketing qualified leads. The things that frustrated me about this industry were:

  • It took too much back and forth to find and secure a list.
  • My partners couldn’t/wouldn’t give me insight into how a list performed until I spent thousands of dollars on a test.
  • Performance information was hard to come by and not detailed enough for me to make better future decisions or defend the spend in the board room.
  • I always felt like I was getting ripped off and entering into seemingly shady practices

There is also an over-arching trend that’s affecting this industry. In today’s board room, The Chief Marketing Officer (CMO) is the shortest lived position. According to Korn Ferry, the position turns over every 15 months. This is because there is more pressure than ever to prove immediate results on marketing spend. The CMO needs to prove the effectiveness of every campaign they execute. if they can’t, they get fired.

I believe that the rental industry is behind the times in delivering the tools that the CMO needs to justify the spend. And without such tools, the CMO is forced to shift their dollars to those tactics they can confidently measure. While the rental industry provides some data today, it’s not enough to compete with Search Engine Marketing (SEM), Search Engine Optimization (SEO), or even Display Advertising.

Until the items listed above are addressed (and Marketfish was designed specifically to resolve these issues), the industry will continue to be in question and potentially in decline.

That being said, there is strong data to show that renting lists is one of the most effective lead generation tactics. The effective Cost Per Milia (eCPM) of search engine marketing (SEM) was around $60 across all of the top search engines this last quarter. It’s getting more and more expensive to buy keywords. A strong list-based marketing campaign can easily beat these numbers and create a viable alternative to SEM.

Moreover, list marketing has its advantages over purchasing list and SEM. List purchases are usually cheaper in the short run, but have so much inaccurate data (IDG claims 60% accuracy on average), that you spend a fortune on qualifying the leads. Campaigns using rented lists are different and often times superior to SEM because it provides an active form of marketing often being able to attract customers into the buying cycle earlier than SEM. This tactic also allows you to control your brand and message better than SEM because you can brand the entire experience.

If this industry can provide marketers with the proper tools to find the right lists, optimize these campaigns and show results, I think this industry can flourish.

Exclusive first look at SV2 list filtering technology – TechCrunch DISRUPT 2010 San Francisco

Marketfish is attend this year’s TechCrunch DISRUPT conference in San Francisco.  Our disruptive technology is challenging traditional business models and pushing the limits of design.  Marketfish is the most innovative way for agencies, marketers, list owners and enterprise businesses to enhance, deploy and track the performance of their opt-in email marketing campaigns.

For one week only, we will be previewing our latest platform which features a dynamic, filter-based environment that provides deeper, real-time targeting capabilities.  We’re confident that marketing professionals will see immense value in the Marketfish platform.  Get your own sneak peek and preview the new Marketfish platform for yourself – tell us what you think by tweeting #mfdisrupt.

For Smart Marketing Agencies, Outsourcing Is a No Brainer

Shrinking and scrambling are two words we normally don’t see when it comes to marketing agencies. But, in today’s economy, we are watching marketing budgets shrink and agencies scramble as they drive to stay relevant.

In steps smart outsourcing.

Let’s take a look at some brand agencies that we all know that have successfully tapped into technology partners to better outsource campaigns.

Razorfish, one of the largest interactive marketing companies in the world, has always taken a progressive, smart outsourcing approach.  “We do see a value in email as an acquisition and engagement tool and rely on partners to support us in targeting, reaching and building engagement work-flows as an extension of our media and search strategies” said David Baker, Vice President of Razorfish.

Outsourcing is not new.  What’s changing is its perception. Traditional advertising agencies are looking toward new media companies to complement the services they offer clients. For example, while Seattle-based advertising agency HL2 has a long history of partnering with traditional companies like public relations agencies and reporting companies, now Don Low, senior partner at HL2, is constantly thinking about how to add more value for clients from a technology marketing partner. “Because of our company’s size, we’ve often look toward partnering,” said Low.  “Harnessing expertise by seeking smart, savvy partners for augmented services is key to an agencies’ ability to stay current and ahead of the curve.” He attributes this general shift in perception to the convergence of CMOs calling for tangible analytics and the unparalleled explosion of communication that’s replaced traditional media.

Agencies like HL2 are rethinking the benefits of partnering with vender companies like us Marketfish for list-based marketing, as well as Google for search-engine marketing, RapLeaf for studying social footprints and BlueKai for data exchange.  Today, while there are so many ways to reach customers, there’s no simple way to reach customers, and you can’t just buy one form of media and expect to achieve the penetrating results most clients want.

One clear example that Don brings up is the notion of Client Relationship Management (CRM). Not too long ago, CRM was perceived by agencies as more science, less art.  Optimizing campaigns based on desired outcomes can seem dry versus coming up with the million-dollar idea.  But helping agencies realize the science behind the art and showing their clients how to be more results-driven within specific market segments – for clients adds up to dollars well-spent.

With an open mind and a solid approach, agencies can package adjunct services to create a dynamic platform from which to launch a client’s integrated marketing strategy with executable outcomes and precise analytics.  This allows them to focus on what they do best –developing creative strategy and account management – while vender partners do the heavy-lifting of implementing new marketing tactics.

Through these partnerships, agencies not only differentiate themselves, but also provide clients with increased results and the analytics to prove their success. The key is to be open and nimble – to do what you do best, and leverage exceptional expertise with like-minded organizations. In the end, the best idea and its robust offerings wins by producing creative and measurable results.