One of the most misunderstood tools in the Marketer's Bag of Tricks is direct
email. There's good reason for it, of course. Everyone hates SPAM! I expect that
even the most evil, notorious spammers of the world have SPAM filters on their personal
email accounts.
The end result of this universal distaste of SPAM is a belief, held by many, that
sending emails to prospects or customers "just isn't a good thing to do". Lot's
of potential issues--from alienating your customers and potential users, to having
some wacko attack and bring down your website, just because he doesn't like the
message sent to his in-box. So should we just forget about direct email as a legitimate
marketing tactic, and spent our time and money focused on other aspects of the marketing
mix?
I suggest not.
NOT ALL EMAIL IS CREATED EQUAL
Let's step back and be rational here. First of all, not all direct email is the
same. Let's start with the "worst of" direct email campaigns:
SCENARIO #1
Bob's Computer Stuff, Inc., buys "20 million email addresses for $99" from a SPAM
email that they randomly received. Bob's then fires off an email to the entire list
with an offer for its extremely niche-y computer accessory, the "Swiss Army Computer
Widget". This is bad. Bob will be punished in quite a few ways, and probably deserves
it.
Now let's look at the "best of" direct email:
SCENARIO #2
Distinct Software Corp. has been methodically building a list of customers and prospects
obtained using a variety of online and offline marketing methods, not the least
of which is visits to the company's website. The list has been carefully compiled,
and in each case the client is either doing business with Distinct or has expressly
given permission to receive email. Distinct has decided it would like to launch
its new IT software product, with a special offer to targeted prospects. The company
mines it's database for prospects that meet the targeted customer profile for the
new product. It supplements it's own list by renting an opt-in email list from a
broker, that was compiled from subscribers to a magazine that covers issues related
to the new product. Distinct then puts together a classic direct response offer
(discounted product, money-back guarantee, free gift, time-limited). The company
crafts a short email message describing the special offer, careful to adhere to
the rules of the CAN-SPAM Act, and other applicable state or international laws.
The company sends it out its offer to the target list it has compiled, as one component
of the marketing mix for its new product launch.
IS IT SPAM?
Do you really think that these two scenarios have anything in common? In actuality,
the only thing they have in common is the delivery mechanism--email. Yet it's very
common for these two very different activities to be lumped together in one basket.
It's all SPAM, many people will say.
I beg to differ. One is terrible marketing, the other is classic marketing. BAD,
scattershot marketing is almost always poorly received, and GOOD, targeted marketing
will only offend the zealots out there who are offended by ALL forms of marketing.
This is true regardless of the delivery mechanism. There are people who hate traditional
direct mail, unsolicited phone calls, advertising on TV, people with flyers at the
shopping mall, even print ads that take up 2/3 of their favorite magazine. There's
nothing you can do about them. The only way to please these folks is to go out of
business, so we don't worry about them. Don't let the crazy few stop your business
from being successful.
GREAT FOR "OBJECTIVE" MARKETING DECISIONS
There are many reasons NOT to do direct email. One of the most important is that
it's easy to do, so it is a very crowded medium (thus "SPAM). But there's a lot
of great reasons to try it, as well.
One of the best is its ability to add "objectivity" to the marketing process. Marketing,
especially to a high tech audience, is both art and science. It's best when you
can tilt toward more science than art, but with new products and offers, it often
tends to be primarily art. How are new product prices usually set, for example?
Well, a few objective things are usually done, like a quick look at competitors
price, but mostly, somebody with decision making power just picks a price out of
the air that looks good to them. It may be a good price, it may not be, but there
it is.
The beauty of direct marketing is that you can OBJECTIVELY test until you come up
with the "right" price. Divide the list up into modules, keep all other elements
of the offer static, and use a different price for each module. If you use statistically
significant samples, YOU WILL converge on the price that yields the greatest profit.
That's a rare and valuable thing to a marketer in high tech, where things change
so fast, and are often so squishy, that it's sometimes hard to tell which end is
up. And you can do this with any elements of your offer, simply by keeping everything
but your test element static, and using the "module" approach to test different
"sizes" of that element.
Of course you can do this with any direct form of marketing, but direct email adds
the important ability to do your testing faster. You can test and revise, test and
revise, almost in real time, quickly converging on your optimal offer for the market.
This is very powerful, and the results can then used to optimize other marketing
activities in the mix. It really enables you to switch from subjective guessing
to objective decision-making, which could well mean the difference between success
and failure in a competitive market.
IT'S ONLY SPAM IF YOUR AUDIENCE ISN'T INTERESTED
If your offer is targeted at the appropriate people, it provides benefits for them,
and you deliver your message in a legal manner, you will have very few problems.
The closer it comes to a "one to one" message, and the farther from a mass message,
the fewer problems you will have.
IF DONE RIGHT, VERY FEW COMPLAINTS
I have conducted many direct marketing campaigns over the years, including quite
a few direct email campaigns. The most telling is a most personal campaign I have
used over the years. Prior to starting my consulting practice, I used this technique
in job searches, as well as to reach out to potential customers when I worked as
an employee. Since I have started my consulting practice, I have used it with great
success as well. I send email messages directly to CEOs of target companies. The
messages are extremely "one to one", tailored to the company and person I am sending
it to, and the target is always chosen to be a close fit with whatever I my "offer"
has been at the time (A potential senior executive, a product that I knew the potential
client could use, my consulting services).
I have been using this technique literally since the beginning of commercial use
of the Internet. I have had exactly ONE complaint since I started using this approach.
The gentleman who complained--I actually knew. I had previously had a personal meeting
with him, and he handed me his business card himself! Needless to say, most people
thought this guy was a real jerk! A few people over the years have asked that I
"take their name off of my list". I always do--anyone that requests it, never hears
from me again. But not many have made this request. A lot of non-responses, a lot
of polite no thanks, and many, many requests for meeting that have led to a successful
outcome for both the addressee and myself. But literally no complaints save the
one "exception that proves the rule."
THE BOTTOM LINE
My basic message is don't let fear stop you from using Direct Email effectively
as part of your marketing mix. Maybe it makes sense for your particular situation,
maybe it doesn't. But don't let fear of persecution and alienation rule it out.
If done properly, it is often a profitable, efficient, and very effective method
of reaching your target audience. Just remember to live by the rules:
DIRECT EMAIL RULES
1)Only email to a targeted audience
2)Craft an offer that is very appealing to your target list
3)Do extensive testing, for objective analysis of each element of your offer
4)Always be honest, never deceitful
5)Use an opt-in or in-house list only
6)Always make it easy for addresses to opt out
7)Never send additional messages to those that opt out
8)Include your physical address and phone number in all messages
9) Don't overdo it--send messages sparingly, only when you have something important
to offer or communicate
10)No more than monthly messages in most cases, less frequently is usually better
So that's it! Email is a controversial and often emotional issue for many people.
I look forward to hearing what you all have to say.
