The power of email marketing

Email is a helluva drug. That must be why I’m sitting here in a hotel room in Chicago where it’s minus something-a-lot outside and the roads are full of ice, salt and dingy snow.
It seemed like such a great idea at the time. Virgin America sent me an email advertising a 20% off sale for 20 hours. Al has been bugging us to come visit him in Chicago for months and I could get a storming deal on tickets. I poked around various websites and found a decent deal on a mini-suite at a hotel in downtown, just a block off Michigan Avenue.
It will be fun! The lights! Christmas Shopping! Maybe see some snow!
Well, we got the lights. We got to watch Christmas shoppers hurry along the avenue. We got to see the ice on the lake and throw snowballs. We even got to walk outside in a gentle snowfall on Saturday.
I realized, though, that I no longer have outerwear appropriate for midwest winters. I remember my years in Madison fondly, but I seem to have forgotten that I lived in 2 – 4 layers between September and March. I have forgotten that gloves and a scarf are not a fashion accessory, but are a necessity.
It was email marketing that reminded me of all that. And I have my fill of cold and snow and ice for a while.
Had a great time in the city, and Al was a wonderful host. But I’m ready to go back to my warm California, where as a friend of mine commented, “we keep the snow in the mountains where you can visit it.”

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Timely and appropriate mail

I woke up this morning to an exploding twitter and FB feeds with lots of friends cheering the defeat of DOMA and Prop 8. Apparently some companies are getting into the act as well.
(Behind a cut because some of this may be slightly NSFW in some places)

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Opting customers in to new programs

Recently, I started getting “1 sale a day!” emails from buy.com. I’ve made purchases from Buy in the past and generally have been content to get emails from them. They’re not always relevant, but hey, it’s relatively non-intrustive marketing.
When they started this new program, they just started mailing: no warning, no introduction, nothing. So I decided to opt out of this mail.
Buy.com has a preference center, and while I was there, I opted out of all email marketing. Why? Because a company that is going to randomly add me to new (daily!) marketing lists is a company I don’t trust any more.
A lot of folks have complained about Amazon doing the same thing. Amazon started a daily deals program and opted in a lot of people without warning, without introduction and without permission.
I get why companies do this. It’s a lot easier to ask for forgiveness than permission. It lets them sell things to people who might never opt-in to that program. And in many areas of direct marketing, consumers have no rights to make the marketing stop. They have no tools to make the marketing stop.
Email is different from many direct marketing channels, though. Many consumers have the tools to make mail stop (filters, this is spam buttons, changing their email address completely) and they do take advantage of them.
Given a marketers job is to extract as much revenue from customers as possible, they can’t respect recipients. They have to treat them as money dispensing machines. But at least in email recipients have some ability to opt-out of the transactions.

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Inbox challenges and dull email in the tabbed inbox

Getting to the inbox is becoming a greater and greater challenge for many marketers. According to Return Path, 22% of opt in mail doesn’t make it to the inbox.
The challenge to marketers is that a lot of opt in mail isn’t important to the recipient. Sure, they’re happy enough to get it if they notice it, but if it’s not there then they don’t care. They’ll buy from an email ad, but it might not be something they’ll seek out. Recipient behaviour tells the ISPs that the mail isn’t all that important, and a lot of it is just background noise so the ISP not delivering it to the inbox doesn’t matter.
Email marketing is like the Girl Scout of the Internet. If the Girl Scout shows up at your doorstep, you’re probably going to buy those 3 boxes of thin mints. But if she doesn’t, that’s OK. If you really want the cookies, you’ll find the co-worker who is taking orders for his daughter. Or you’ll find the table outside the local coffee shop. The Girl Scout showing up on your doorstep makes it more convenient, but she’s not critical to get your fix. Of course, the bonus of the Girl Scout on the doorstep is that a lot of people who won’t go find the cookies will buy when she’s on the doorstep.
A lot of email marketing triggers purchases that recipients would make anyway. They think they might want a particular product, and when they get that coupon or discount or even just a reminder they make the purchase. The email triggers the purchase of a product the buyer intends to purchase anyway. Some email marketing trigger purchases of things the recipient didn’t know existed, but is so enticing after one email they can’t live without. Some email marketing triggers an impulse purchase. In most of these categories, if mail doesn’t show up in the inbox, the recipient really doesn’t miss it.
Many marketers, despite loud protests that all their mail is important and wanted, know this. That’s why so many marketers are having conniptions about the new Gmail tabbed inbox. They’re losing access to the impulse.
From the data I’ve seen, tabs are effecting email marketing programs. Some programs are seeing more revenue, some are seeing less. I think it really remains to be seen what the long term effects are. For many recipients the new tabbed inbox is a new way to interact with their email. Change is hard, and there is a period of adaptation whenever an interface changes. We really don’t know what the long term effect of tabs on sales will be. Sales may go back to previous levels, sales may increase over previous levels, sales may decrease from current levels or sales may stay at their current levels. The full effect isn’t going to be obvious for a while.
It does mean, though, that email marketers need to step up their game. Email marketing in the age of a tabbed inbox might be less about the impulse purchase and more about cultivation and long term branding.
 
 
 

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