Lecture Six

1
Lecture Six

• Ian Harris

2
Email Strategies Part Two

• Lecture Aim To prove that deploying effective
  email marketing strategies can be the marketing
  tool and killer application

3
Lecture Objectives

• To quickly recap on Lecture five
• To look at and study the 10 virtues of email
  marketing
• We will compare and contrast email marketing with
  other marketing media
• We will examine the issues and costs surrounding
  whether email should be carried out as an
  internal function or outsourced to a third
  party
• We will look at the 10 steps to email marketing
  success
• Will will examine the 12 common mistakes in email
  marketing
• We will look at the top 10 most common internet
  privacy mistakes
• We will examine the metrics surrounding email
  success
• Finally, we will discuss whether or not the last
  2 lectures have convinced you that email is
  really the killer application
• All the above is backed-up throughout with
  pertinent facts and figures

4
Content

• Recap of Lecture Five
• 10 Virtues of Email Marketing
• Facts and Figures eBusiness Benefits By Type
• Facts and Figures eBusiness Activities With
  Customers
• A Comparison of Email Marketing With Other
  Marketing Media
• Email In-House or Outsource
• Top 10 Steps to Email Marketing Success
• 12 Common Mistakes in Email Marketing
• Top 10 Internet Privacy Mistakes
• Email The Metrics for Success
• So Is Email Really the Killer Application

5
Recap of Lecture Five

• What is Email Marketing?
• Uses of Email Marketing
• Writing Good Email Messages
• After You Have Sent The Email
• Empowering Customers with Opt-Ins (Permission
  Based Email)
• Personalisation
• Email Spam
• 20 Ways Opt-in Emailers Can Outsmart Spam Filters
• Email List Development
• Types of Email Marketing
• Different Types of Email

6
10 Virtues of Email Marketing

• Email is highly trackable
• Email can become an integral part of the
  relationship you have with your prospects and
  customers
• Email marketing can be extremely cost-effective
  if you clearly define your goals and expectations
  with regard to cost per lead
• Email allows you to manage undeliverable messages
  in a cost- and time-efficient manner
• Bounces / returned emails are quickly identified.
  You can correct the problem and resend the
  message inexpensively and painlessly
• Email drives sales
• Email provides quick lead generation
• Email allows you to test quickly and
  inexpensively
• Email is an opportunity for customer dialogue
• Email can help build your brand

Source http//www.clickz.com/em_mkt/em_mkt/articl
e.php/916721
7
Facts and Figures
Source CBI KPMG Consulting, 2002, p43
8
Facts and Figures
Source CBI KPMG Consulting, 2002, p26
9
A Comparison of Email Marketing with other
Marketing Media

• Direct Mail
• Radio
• Broadcast TV
• Cable TV
• Print and Outdoor
• Telemarketing

Source http//www.clickz.com/em_mkt/
10
A Comparison of Email Marketing with other
Marketing Media

• Direct Mail
• Direct mail is frequently compared to email
• As cost-conscious businesses increasingly are
  turning to the Internet for its cheapness in
  comparison to traditional direct mail campaigns.
  A report released by GartnerG2 last week (this
  source March 20, 2002) suggests email marketing
  will threaten direct mail by 2005
• "Direct mail has reached its peak and will
  account for less than 50 of mail received by
  U.S. households by 2005, down from 65 in 2001,"
  said GartnerG2 media industry research director
  Denise Garcia. "As email use, familiarity and
  trust increases, consumers will become more
  comfortable with accepting advertisements through
  their computer."
• Gartner suggests direct mail has peaked, while
  permission-based email marketing will continue to
  grow in acceptance
• Some industry observers say the report is flawed,
  as it compares two forms of marketing not yet on
  equal footing

Source http//www.clickz.com/em_mkt/
11
A Comparison of Email Marketing with other
Marketing Media

• Direct Mail - Louis Mastria, director of internal
  and public affairs for the Direct Marketing
  Association, is among the dissenters. "It's too
  premature to make the assumption that people can
  go from direct mail to email," he said
• Radio - Almost everyone listens to radio.
  According to the Radio Advertising Bureau, radio
  reaches 77 of consumers daily, 95 of consumers
  weekly. A radio media buy can cast a very wide
  net, especially if you're buying network time
  across stations. Radio is great for marketing
  communications and can be good for direct
  response. People can be moved from radio to
  online. We have a client doing that successfully

Source http//www.clickz.com/em_mkt/
12
A Comparison of Email Marketing with other
Marketing Media

• Broadcast TV - TV is great for reaching a lot of
  people. You can target a specified audience
  (demographic) and plan media "weight" (amount of
  advertising and where) according to your
  businesses campaign's goals. For instance, if you
  are undertaking an image and awareness
  campaign, the amount of advertising you would
  envisage would be considerably less than if your
  campaign had a sense of urgency, such as a
  going-out-of-business sale. Broadcast TV is an
  established marketing communications channel.
  Like radio, people can and have been moved from
  television to online
• Digital / Cable TV Digital and Cable TV is more
  targeted than wholesale generic TV broadcasts.
  This is because audiences using these mediums are
  smaller than generic TV. The audiences
  (demographics) of generic TV and digital /cable
  TV will vary, which must also be taken into
  account

Source http//www.clickz.com/em_mkt/
13
A Comparison of Email Marketing with other
Marketing Media

• Print and Outdoor - Advertising in newspapers,
  magazines, and other print media can be a good
  marketing communication channel to enhance
  awareness of your product or service. Other
  opportunities include advertorials. Print can be
  expensive on a cost-per-lead basis. It's also
  hard to keep track of which channel medium your
  customers came from
• Telemarketing - Telemarketing can be effective -
  or not - depending on your target audience.
  Everyone will agree telemarketing is intrusive.
  On a cost-per-lead basis, it can also be
  expensive

Source http//www.clickz.com/em_mkt/
14
Email In-House or Outsource?

• When considering an email Marketing Campaign
  businesses really only have three options
• Handle the management of this operation
  themselves
• via in-house management and IS systems and / or
  by
• using off-the-shelf software
• Outsourced distribution
• Or, outsource the whole operation to a third
  party

Reference http//www.opportunitywales.co.uk
(Section on email)
15
Email In-House or Outsource?

• In-House Email Management
• To drive forward ones own email marketing
  campaign will use a tremendous amount of time,
  money and staff resources
• For a business wishing to manage the whole
  process themselves will need to ask the following
  questions
• Do we have people on staff already who can create
  strategic email programs that drive results,
  improve customer relationships, and integrate
  with other marketing communications efforts
• Can we access industry-specific and
  vertical-market-specific benchmarks? If not do we
  have processes to set our own
• Do we have email specific design and copy
  capabilities
• Do we have strong knowledge of the complexities
  involved with coding email which will render
  efficiently and seamlessly across the many ISPs
  and Web based email providers
• Do we have the projects managers and analysts
  with experience in the email channel who can set
  up, execute, and analyse our email initiatives,
  from start to finish

Source http//www.clickz.com/em_mkt/
16
Email In-House or Outsource?

• In-House Email Management
• Does our current system allow you to import,
  export, and analyse data easily and in a
  consistent format to enable the business to
  create highly targeted and effective email
  communications
• Does the system also easily update legacy systems
  with performance data
• Can our current email platform assemble, deliver,
  and track high volumes of email in proper formats
• Can the business tap into all of its databases
  and automate email communications
• Do we have sufficient data reporting tools and do
  they provide the information we need
• Who supports the email system and how
• What are or would be the businesses process for
  resolving issues arising from our email
  communication efforts data quality, bounce backs
  (undeliverable email), delivery, replies,
  customer questions, and so on

Source http//www.clickz.com/em_mkt/
17
Email In-House or Outsource?

• In-House Email Management
• Complete in-house email management could
  potentially be very expensive. However, this will
  depend on the scale of the businesses
  requirements and can actually also be relatively
  cheap and cost effective
• In-House Email Management
• For many small to medium sized enterprises
  without the required skills set or resources
  in-house then it may be more cost effective for
  them to use email marketing software packages
• These packages have to be maintained, managed and
  administered effectively but require less skills
  and resources

Source http//www.clickz.com/em_mkt/
18
Email In-House or Outsource?

• In-House Email Management
• Email marketing software packages need different
  features to standard email software. As well as
  facilities to create messages (such as your mail
  shots or newsletters) and broadcast them to
  customers on your mailing lists, features should
  also include
• Reporting / tracking tools to track and analyse
  email campaigns
• Subscription manager to handle subscriptions
  and remove users wishing to unsubscribe from
  lists
• Returned mail handler i.e. email which is
  undeliverable
• List manager i.e. list cleaning, merging,
  checking and removing duplicate addresses and so
  on
• Personalisation facilities to personalise email
  campaigns for customers
• Filters to sort incoming emails e.g. for a
  particular campaign
• Import / export information e.g. from an existing
  customer database

Source http//www.opportunitywales.co.uk
(Section on email)
19
Email In-House or Outsource?

• Potential Costs of In-House Email Management
• If you are going to do it yourself, be sure that
  you have the resources and means to carry it out.
  You will also need appropriate eMail marketing
  software. An example of such software is
  Broadc_at_st HTML which starts at 249 or 175
  approx. See mailworkz)
• Some software packages have a restriction on the
  size of the lists they can handle e.g. Broadc_at_st
  HTML Business Edition can handle any number of
  mailing lists  but each list can not exceed 500
  eMail addresses Broadc_at_st HTML Commerce Edition
  can handle lists up to 5,000 eMail addresses and
  is more expensive at 795

Source http//www.opportunitywales.co.uk
(Section on email)
Further Resource http//www.ifmodules.com/
(Software resource) http//www.mailworkz.com/ind
ex.htm (Software resource)
20
Email In-House or Outsource?

• Outsource Email Management
• Why outsource your email management
• Cost Effective
• Reliable
• Full-Feature Convenience
• Virus and Spam Protection
• Affordable Scalability

Source http//www.everyone.net/solutions.html
21
Email In-House or Outsource?

• Outsource Email Management
• An outsourcing company may offer the following
  facilities and benefits to a business
• Anti-virus Protection
• Spam Protection
• Free Domain Names and Domains Supported
• Firewall and Security
• Full Backups
• Mailboxes
• List Rental
• List Management e.g. your own in-house email
  lists
• Email Design (Creative Content)
• Campaign Testing
• Response Management
• Tracking and Reporting this is very important
  as you must be able to measure your campaign
  (Usage Statistics)

Source http//www.opportunitywales.co.uk
(Section on email)
22
Email In-House or Outsource?

• Potential Costs of Outsourcing Email Management
• In the UK emailtools.co.uk will charge anywhere
  between 99-199 for setting up the email
  management system. With a monthly charge of
  anywhere between 24.95-49.95 depending on the
  package a business chooses
• A company such as SparkList will charge monthly
  to manage subscriptions and distribution. There
  is a one-off set-up fee dependant on the size of
  the list with prices starting at 50 per month
  depending on the size of the eMail itself e.g.
  set-up fee of 25 for a list of 0-2000 eMail
  addresses plus 1 for every 1,000 messages based
  on a 10k message size (2 for every 1,000 for a
  20k message)
• A company such as IFModules will charge anywhere
  between 50 through to 500 per month dependant
  on space and usage requirements

Source http//www.emailtools.co.uk/compare.htm
Source http//www.opportunitywales.co.uk
(Section on email)
Source http//www.ifmodules.com/
Further Resource and http//www.everyone.net/solu
tions.html
23
Top 10 Steps to Email Marketing Success

• Set Marketing Objectives
• Develop a Privacy Policy
• Collect Opt-In Names
• Develop a Message
• FROM, TO Subject Lines
• Test Your Message
• Three, Two, OneLaunch!
• Unsubscribe Undeliverables
• Track Campaign Results
• Send Additional Messages Based on Campaign
  Results

SourcePersona P-CRM, No date or URL Provided
(sales_at_persona.com)
24
Top 10 Steps to Email Marketing Success

• Set Marketing Objectives
• It is important for a business to decide exactly
  what its marketing objectives are. Are you trying
  to drive more traffic (business) to the website?
  Or are you recommending a specific product or
  service? Or is it the case that the business is
  trying to build a brand by providing relevant
  news and information to subscribers
• Develop a Privacy Policy
• It is important for a business to let their
  customers know exactly what will happen to any
  information, which they provide. It is important
  for a business to say what they are going to do
  and to do what they say. For a business this
  links in with CRM technologies (Customer
  Relationship Management), which is covered in
  lectures 7 8. A business collects information
  about its customers to improve relationships with
  them
• Collect Opt-In Names
• Refer to section 3 Email List Development. It is
  important for a business to build its own list of
  potential clients, which they can market too
  effectively

SourcePersona P-CRM, No date or URL Provided
(sales_at_persona.com)
25
Top 10 Steps to Email Marketing Success

• Develop a Message
• According to Seth Godin, author of Permission
  Marketing and Marketing Guru of Yahoo, successful
  communications should be relevant, anticipated
  and personal
• FROM, TO Subject Lines
• A business may live or die by the FROM, TO and
  Subject Lines of a message. This is the first
  point of contact, and a business must inspire the
  recipient to open the email message
• Test Your Message
• It is important for a message to be tested before
  it is officially sent via a businesses full email
  marketing campaign. It would need to test which
  subject line message gives the most response, it
  is also very important that a business test the
  message for compatibility with different email
  clients, such as AOL, Outlook or Hotmail and also
  to ensure the graphics and text are displaying
  properly

SourcePersona P-CRM, No date or URL Provided
(sales_at_persona.com)
26
Top 10 Steps to Email Marketing Success

• Three, Two, One, Launch
• Make sure everyone in the business is aware of
  the marketing campaign. Once the message has been
  tested and the website is ready for the potential
  increase in visitor numbers then it is ready to
  go
• Unsubscribe Undeliverables
• It is a good idea to allow customers the right to
  opt-out of a businesses future emailing
  campaigns. This could potentially be achieved
  through an unsubscribe link within the email.
  Bounced email or undeliverables should be
  monitored and email address corrected where
  possible or deleted from the system

SourcePersona P-CRM, No date or URL Provided
(sales_at_persona.com)
27
Top 10 Steps to Email Marketing Success

• Track Campaign Results
• Campaigns are measured by how many email messages
  were sent, how many were opened, and how many
  recipients clicked through on the links within
  the message. It is important for a business to
  track these results and measure the expenditure
  against the income generated
• Send Additional Messages Based on Campaign
  Results
• Once results have been analysed it is important
  for a business to extract knowledge from one
  particular email marketing campaign and take this
  knowledge forward into the next one

SourcePersona P-CRM, No date or URL Provided
(sales_at_persona.com)
28
12 Common Mistakes in Email Marketing

• The Desire for Instant Gratification
• Launching an email campaign is like trying get
  your car rolling from a dead stop. You think
  you're going to manage it all in one push?
  Unfortunately this is not the case! It takes time
  to work up some momentum. And before you achieve
  a decent speed, you are going to start wondering
  if you are even up to the task. The key here is
  patience
• Studies have proved the only variable that
  influences the success of any campaign is the
  power of your message. So make sure you are
  saying the right thing. "Uncover the story that
  is uniquely yours focus your campaign commit to
  your message." Be prepared to give it time
• Once you get your momentum, it will be hard to
  stop it! Along the way you are going to have to
  give the occasional push, but with the momentum
  established, the job becomes much easier

Source www.grokdotcom.com
29
12 Common Mistakes in Email Marketing

• Attempting to Reach More People Than the Budget
  will Allow
• This is the reach versus frequency issue. Let's
  say you are going to place an ad in an email
  newsletter. You can afford to make 100,000
  impressions. Do you go for 10 placements in one
  newsletter that goes out to 10,000 people, or do
  you opt for one placement that goes out to
  100,000 people? Same number of impressions, but
  the first option exposes fewer viewers to
  multiple impressions
• Think about it this way Would you rather reach
  100 of the people and convince them 10 of the
  way, or reach 10 of the people and convince all
  of them all the way? When it comes to maximising
  your email marketing efforts, this is a useful
  analogy Your message is the nail, repetition is
  the hammer, and a block of wood is the customer.
  If the nail is sharp and you hammer effectively,
  you will pierce through the wood and clinch the
  customer

Source www.grokdotcom.com
30
12 Common Mistakes in Email Marketing

• Assuming the Business Owner Knows Best
• When it comes to issues in which you have a huge
  personal investment (your children, your homes,
  your business), you risk losing your objectivity.
  Too much knowledge about your company and what
  you offer leads you to answer questions nobody is
  asking. When you're inside the bottle, it's hard
  to read the label. But that's also when you risk
  pushing your own interests at the expense of your
  customers' interests. Sometimes it helps to bring
  in an objective outsider to give you some
  perspective
• Unsubstantiated Claims
• Miss targeting customers' needs with
  unsubstantiated claims will simply turn your
  customers off YOUR businesses products or
  services. Specifics about yourself, your way of
  doing business and your products are far more
  persuasive and get to the point far more
  effectively than generalities. So be credibly
  specific

Source www.grokdotcom.com
31
12 Common Mistakes in Email Marketing

• Improper Use of Passive Media
• Passive media is sight-based media - newspapers,
  magazines, billboards, direct mail, and even
  email. This type of media requires the user to
  sustain focused attention in order to process the
  message. Intrusive media are sound-based - radio
  and television. Sound is heads above sight in its
  ability to get your message lodged into your
  customers' brains. The best use of passive media
  is as a follow-up to intrusive media
• Passive media is an effective way to reach those
  customers who are actively in the market for your
  product or service. You'll improve the
  effectiveness of your emails if you can use this
  to your advantage. Exactness is the key attribute
  of passive media - now is not the time to go
  lining your emails with .wav files - and that
  misses the point anyway. The huge advantage of
  email marketing, passive though it may be, is its
  relative low cost. It's worth the effort, but be
  aware of the limitations

Source www.grokdotcom.com
32
12 Common Mistakes in Email Marketing

• Creating Individual Emails instead of Campaigns
• Remember the hammer analogy stated in bullet
  number two? Now add this No single ad
  constitutes a campaign, Rome wasn't built in a
  day, and friendship isn't a first-sight
  phenomenon. You have more to say and more to
  accomplish than can be said and accomplished in a
  single email
• A very important thing to do as you develop your
  campaign is build upon your previous (successful)
  efforts. Your individual emails have to be
  interconnected, with a logical flow and a united
  presentation - after all, they are all pieces of
  that big puzzle that is YOUR business. Remember
  this you want to keep your customers eager and
  on the lookout for more of what you have to offer

Source www.grokdotcom.com
33
12 Common Mistakes in Email Marketing

• Obedience to Unwritten Rules
• Do you really want to be like everyone else? Do
  you want to communicate the same message as your
  competitors? No, of course not. You want to be
  unique and you want to stand out from the crowd.
  Dare to be different in a believable way. That's
  how you get noticed. Dont go overboard
  (commercial relationship-building requires tact
  and tends toward the conservative end of the
  spectrum), but if your emails sound, act and look
  like everybody else's emails, what's the value in
  doing business with you rather than them.
  Customer relationship management will be covered
  in lectures 7 8
• Ignore Timing
• It should come as no surprise that you've got to
  think about timing your message. Who is your
  audience and when are they most likely to read
  your email?

Source www.grokdotcom.com
34
12 Common Mistakes in Email Marketing

• Ignore Timing
• Your goal should be to give your customers the
  right message and send it when they are apt to
  take the time to read it. This isn't the same as
  suggesting you should time your message to
  exactly when you think your customer is going to
  act on it. Seasonal situations aside, an
  important principle of belief for advertising is
  this "Tell the customer WHY and wait for WHEN.
  Quit trying to predict the moment of need."
• Over-targeting
• Be careful to avoid over-segmenting your database
  in your efforts to reach your target audience.
  It's a myth that you only need to get your
  message to the decision-makers. Lecture 8 will
  cover segmentation and databases in more depth

Source www.grokdotcom.com
35
12 Common Mistakes in Email Marketing

• Event Driven Marketing
• It's best to steer clear of designing an email
  campaign around a single event (unless it's a
  major, well-branded event that strengthens your
  Unique Selling Proposition). When an event is
  over, people will immediately forget the
  marketing pitch behind it, and besides, 99.5 of
  the people you've spent the effort to reach won't
  be coming to The Event anyway. Where does your
  message go when this happens? In the waste paper
  bin more than likely
• Great Production Without Great Copy
• "Slick, clever, funny, creative and different are
  very poor substitutes for informative,
  believable, memorable and persuasive."
• The name of the eBusiness game is persuasion
  getting people to take the action you want them
  to take. Don't even dream of neglecting those
  magical words that are going to help you craft
  your brilliant, perfect message

Source www.grokdotcom.com
36
12 Common Mistakes in Email Marketing

• Confusing Response with Results
• Slick, clever, funny, creative and different ads
  are most likely to generate comment, or
  response." Buzz alone WONT feed YOUR business
  and excitement won't bring in the cash!

Source www.grokdotcom.com
37
Top 10 Internet Privacy Mistakes

• Dont Post a Privacy Policy
• Dont Ask Their Permission
• Dont Tell Them Why Youre Collecting Their
  Information
• Dont Provide Customers Access To Their Own
  Information
• Overuse Required Fields
• Ask For Information Only To Forget It
• Leave The Keys In The Door
• Dont Test Your System
• Forget to Record Where Your Customers Come From
• Fail to Meet Expectations

SourcePersona P-CRM, No date or URL Provided
(sales_at_persona.com)
38
Top 10 Internet Privacy Mistakes

• Dont Post a Privacy Policy
• Your potential customers who are providing
  information to you will need to be aware of your
  businesses privacy policy with regard to the
  information you are collecting from them
• Have a privacy policy
• Display your privacy policy
• Dont Ask Their Permission
• Give customers a clear choice to opt-in or
  opt-out the customers who give permission
  will look forward to your communications
• Dont Tell Them Why Youre Collecting Their
  Information
• It is important that a customer is made aware of
  why your business is collecting or requires
  certain information about them

SourcePersona P-CRM, No date or URL Provided
(sales_at_persona.com)
39
Top 10 Internet Privacy Mistakes

• Dont Provide Customers Access to Their
  Information
• Allow customers access to their own
  information, which they provided in good faith to
  your business so that they are able to update it
  as necessary
• Overuse Required Fields
• Do not ask the customer to provide to much
  required information they may get bored or
  may simply not bother so do not overuse required
  fields in a web-based submission form
• Ask For Information Only to Forget It
• A great way to frustrate your customers is to
  forget what they have just told you. If your
  customers provide you with information on one of
  your web pages, dont ask them to retype the same
  information on a different section of your site
  focus on the end users experience

SourcePersona P-CRM, No date or URL Provided
(sales_at_persona.com)
40
Top 10 Internet Privacy Mistakes

• Leave the Keys in the Door
• When you collect customer information, you are
  doing so under the premise that you will take
  reasonable security precautions with that
  information. This means limiting access only to
  necessary employees, employing up-to-date
  computer security systems and using a shredder to
  dispose of printouts with sensitive information
  on them
• Dont Test Your System
• Theres nothing worse than going through a
  registration process and the system fails to
  work. Not only will you miss capturing a new
  potential sales lead, a faulty system conveys the
  impression that your website is not an important
  part of your business operations

SourcePersona P-CRM, No date or URL Provided
(sales_at_persona.com)
41
Top 10 Internet Privacy Mistakes

• Forget to Record Where Your Customers Come From
• You will need to record where a new customer came
  from so that you can measure the return on
  investment (ROI) within your email marketing
  campaign. Which click-through did they come
  through this helps when justifying expenditure
  against sales achieved
• Fail to Meet Expectations
• If you ask someone for their postal code so that
  you can personalise their web browsing
  experience, you have set a customers expectation!
  If a business then fails to use this information
  someone is likely to think the system isnt
  working correctly. Regardless of this fact, your
  business has just managed to underwhelm a
  potential customer by failing to meet
  expectations

SourcePersona P-CRM, No date or URL Provided
(sales_at_persona.com)
42
Email The Metrics for Success

• Sorting Through Your Logs
• The Traffic Numbers That Count
• How to get the Numbers
• Definitions for Traffic Metrics
• The Ad Campaign Numbers That Count
• The Sales Numbers That Count
• Put Them All Together

Source http//www.emage-emarketing.com/063002.htm
l
43
Sorting Through Your Logs

• Each time a page is requested from the server
  that hosts it, that server records the request
  and various information associated with that
  event.
• Data is collected and stored in the server logs
  and is a treasure trove of useful, and sometimes
  useless, data for the marketer and business
  owner.
• Also interesting, but not the most valuable, are
• Pageviews - a measure of server requests for a
  whole page does not distinguish between unique
  and repeat visitors
• Browser breakdown - gives an idea of how
  technologically savvy your audience is by the use
  of the higher - or lower - browser numbers
• Geographic demographics - only useful in giving
  an idea of where the ISPs of your visitors are
  based for instance, Virginia is always highly
  ranked because of the AOL servers there
• and errors - which may cost you traffic, like bad
  links or malfunctioning scripts

Source http//www.emage-emarketing.com/063002.htm
l
44
The Traffic Numbers That Count

• The most useful web traffic metrics for marketers
  and business owners include
• Visitors and unique users - indicate how many
  people visited your site in any given space of
  time
• Referrers - show where your traffic is coming
  from and can be very helpful in identifying sites
  with which to build a more significant
  partnerships
• Site paths, entry pages, exit pages - give an
  idea of how visitors use your site, where you
  lose them and which areas may be ripe for further
  development or elimination
• Search engine referrers and keywords - show how
  people are searching for and finding your site on
  the search engines

Source http//www.emage-emarketing.com/063002.htm
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45
How to get the Numbers

• The server logs should be found in the directory
  that holds your default.html file (or index.html
  or home.html, depending on what you called it).
  These raw logs are quite unintelligible to the
  layperson, but luckily there are some options to
  help process this data and generate useful
  reports
• If you use a use a reliable hosting service,
  often they will provide you with some kind of
  reporting, which may or may not be detailed
  enough for your needs
• Or you can outsource this task to a service
  provider that specializes in traffic reporting,
  such as WebSideStory or the WebTrends Live
  service, which often provides real-time data All
  of these methods have their pros and cons. Once
  you determine what are the most important numbers
  for your business and the budget you can afford,
  this will go a long way to deciding which service
  is the best fit
• Unfortunately, these packages are not cheap, for
  example at the high end there is WebTrends Live
  Enterprise Edition, which costs 1000 per month
• However, there are free services available. Try
  http//www.webstat.com/?aref1178

Source http//www.emage-emarketing.com/063002.htm
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46
Definitions for Traffic Metrics

• Crawlers Also called spiders or bots (short for
  robots), these programs automatically visit
  websites, read pages, and collect information
• Page Views The number of times a web page is
  opened, typically measured per person. Pageview
  statistics often do not include the specifics for
  frames within those pages. Also, the pageview
  count generally does not distinguish between
  unique and repeat visitors
• Paths The navigation routes visitors take on a
  site - a particularly useful measurement of how
  difficult a site is to manoeuvre and the
  popularity of specific pages
• Referrers URLs denoting the portals or websites
  through which another site is reached
• Retention The measurement of unique users who
  return to the same site or page over a given time
• Unique Users Individuals, often identified
  through the use of cookies, IP addresses, or
  passwords, who visit a site. Compare with
  visitors, below
• Visitors Number of persons who visit a site

Source http//www.emage-emarketing.com/063002.htm
l
Further Resource http//www.marketingterms.com/di
ctionary/ (Directory of IT Terms)
47
The Ad Campaign Numbers that Count

• The three most common paid advertising models
  are
• CPA (cost per action) where the user pays per
  action which can be a sale, a download, a lead
  etc
• CPC (cost per click) where the advertiser only
  pays when a user clicks on the ad
• CPM (cost per thousand impressions) where the
  advertiser buys ad space based upon the number of
  ad impressions that are exposed, rather than on
  clicks.

Source http//www.emage-emarketing.com/083102.htm
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48
The Sales Numbers That Count

• The Sales Numbers That CountWell, of course, all
  sales numbers count. It's what keeps you in
  business. But what sales numbers give you
  meaningful data about how your site is performing
  and where it can improve? The basic numbers to
  keep an eye on are the same whether your business
  is online or off
• Gross sales - Your total sales before any
  adjustments
• Net sales - Equal gross sales minus discounts,
  returns, allowances, and any other adjustments
• Marketing costs - Expenses for marketing your
  site online, including any related to the
  development and upkeep of your website

Source http//www.emage-emarketing.com/083102.htm
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49
Putting Them All Together

• When you combine the numbers from your web logs
  with the numbers from your ad campaigns and the
  numbers from your online sales you get everything
  you need to determine your return on investment
  and website effectiveness. These powerful metrics
  should be noted monthly and annually. They
  include
• Visitor acquisition cost
• Customer acquisition cost
• Website conversion rate
• Advertising conversion rate
• Average revenue per sale
• Average revenue per visitor
• Customer retention rate
• Website penetration rate
• Doing business online is a numbers game. Make
  sure you find the right numbers for your business
  and then take action. Knowledge is only power if
  it is acted upon

Source http//www.emage-emarketing.com/083102.htm
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50
So - Is Email Really the Killer Application?

• Absolutelyif employed properly. But a successful
  eMail campaign involves more than simply
  inserting an ad and forwarding it to a list of
  addresses. The main reason that eMail is such a
  hot marketing tool is that it allows companies to
  offer highly targeted information and build
  relationships with individual customers.
  Permission and personalisation are the buzzwords
  around eMail marketing. Consumers want to feel
  that a company can be trusted and is catering to
  their specific needs, and one-to-one,
  personalised eMail marketing is the ideal means
  to this end.

Source http//www.emage-emarketing.com/102301.htm
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51
Summary of Learning Outcomes

• We looked at the 10 virtues of email marketing
  and learnt exactly what those are
• We compared email marketing with other
  marketing media and learnt that email marketing
  is definitely a cost effective communication
  medium and channel
• We examined the issues and costs surrounding
  whether email should be carried out as an
  internal function or outsourced to a third
  party
• We examined the 10 steps to email marketing
  success
• We looked at the top 10 B2B (Business-to-Business)
  internet marketing strategies
• We looked at the top 10 most common internet
  privacy mistakes and learnt what we need to do to
  avoid them
• We examined the metrics surrounding email success
  and learnt exactly what is involved
• Finally, we discussed whether or not the last 2
  lectures have convinced us that email is really
  the killer application

52
Assessment Question

• With the information and references provided in
  this lecture. Please compare and contrast the
  following situations
• The case for a large multi-million pound
  business
• Utilising its own skills for internal email
  management and / or
• Outsourcing this function to a third party
• Also, the case for a small business with a
  turnover of less than 100k
• Utilising its own skills for internal email
  management and / or
• Outsourcing this function to a third party
• You may wish to argue the advantages and
  disadvantages of each scenario separately
• You will need to provide answers for both the
  large multi-million pound business and that of
  the small business with a turnover of less than
  100k

53
References and Useful URLs

• Bergman, Dr Thomas P 2002, The Essential Guide to
  Web Strategy for Entrepreneurs,
• Prentice Hall
• Clark, C, eMail Marketing (Word Document) April
  2001.
• http//www.clickz.com/em_mkt/ (A huge array of
  eMarketing material)
• http//www.computerweekly.com (Top Stories for IT
  including Spam issues!)
• http//www.emage-emarketing.com/063002.html
• http//www.emage-emarketing.com/083102.html
• http//www.emage-emarketing.com/102301.html
• http//www.email-filtering-software.com/help/stati
  stics.htm
• http//www.emaillabs.com/resources_statistics.html
  
• http//www.emailresults.com/ (Weekly Opt-in
  tips and links)
• http//www.everyone.net/solutions.html (Software
  resource)
• http//www.e-zinez.com/ (Advise on starting your
  own eZine)
• http//www.google.com
• http//www.grokdotcom.com
• http//www.harvestdigital.com/statistics.cfm
  (Links to Internet Statistics)
• http//www.ifmodules.com/ (Software resource)
• http//www.mailworkz.com/index.htm (Software
  resource)
• http//www.marketingterms.com/dictionary/
  (Directory of IT Terms)

54
Glossary of Terms

• Please refer to the following references to help
  you understand
• IT terms used throughout all of the lectures
• http//www.marketingterms.com/ (Internet
  Marketing Dictionary and Acronyms)
• http//www.xetg.com/articles/search_engine_secrets
  /glossary.shtml (Xtreme eMarketing Techniques and
• Guide)
• http//www.activemarketingtips.com/amthome/dict.ht
  m (Essential Tips for Marketing Success)
• http//www.atwebo.com/glossary.htm (_at_WEBO
  eMarketing Glossary)
• http//www.matisse.net/files/glossary.html
  (General IT Glossary of Terms)
• http//www.animatedsoftware.com/statglos/statglos.
  htm (Internet Glossary of Statistical Terms)
• http//www.weihenstephan.de/schlind/genglos.html
  (A Hypermedia Glossary of Genetic Terms)
• http//www.webopedia.com/ (The only online
  dictionary and search engine you need for
  computer and
• Internet technology)
• http//www.grantasticdesigns.com/glossary.html
  (Glossary of Graphic Design and Web Page Design
• Terms)
• http//www.walthowe.com/glossary/ (Glossary of
  Internet Terms)
• http//www.wwli.com/translation/netglos/glossary/g
  lossary.html (Internet Terms)
• http//www.sharpened.net/glossary/index.php
  (Glossary of Computer and Internet Terms).
• http//www.lib.berkeley.edu/TeachingLib/Guides/Int
  ernet/Glossary.html (Glossary of Internet and Web