Email Marketing Redefined: Driving Sales

Increasing sales is the primary objective for most email campaigns. Email marketing works so well for driving revenue that people forget it is a multifaceted tool. There is a tendency to create a template and then delegate its population to a lower level team member. Doing this provides consistent revenue generation without requiring allocating additional resources. Since it works so well, why invest in making it better. The argument against the status quo in email marketing is simple. Redefining your strategy increases sales, improves loyalty and reduces costs.

Increasing sales is the primary objective for most email campaigns. Email marketing works so well for driving revenue that people forget it is a multifaceted tool. There is a tendency to create a template and then delegate its population to a lower level team member. Doing this provides consistent revenue generation without requiring allocating additional resources. Since it works so well, why invest in making it better

The argument against the status quo in email marketing is simple. Redefining your strategy increases sales, improves loyalty and reduces costs. It is an investment that delivers a strong return. The best thing about changing your strategy is that it can be done without having a negative effect on revenue. There is no down time or culture shock if you implement the execution gradually. To do this, plan your new approach complete with expected responses from your customers and then start adding your new messages to the mix.

If you are uncomfortable about making changes because your email campaigns are working so well, select a segment of customers to test your new strategy. Comparing the results with your control will help you determine the best way to go forward. In addition to guiding you down the right path, the results provide analytical proof that making the changes benefits your company.

There are four types of emails that contribute to short-term sales and long-term growth—Promotional, Highlight, Trigger and Informational. There may be some crossover between the types, but each email should have one primary objective. Limiting the focus improves response and makes it easier to measure results. A singular message is less confusing to recipients. People respond better when they know exactly what you want them to do.

  • Promotional emails include special offers, discounts and events. They are time sensitive and predictable. With a little history, marketers can project the number of orders and amount of revenue generated from each planned email with a high level of accuracy. People respond well to promotional emails because of the time sensitivity and the opportunity to save money or participate in an event. This is the staple of your email strategy because of the effectiveness in delivering short-term revenue.
  • Highlight emails showcase products and services. They may be used to introduce new items or share additional information on established ones. These emails are most effective when sent to segmented lists of people who have shown an interest in the items by inquiry or purchase. They deliver a higher return on investment than promotional emails because the items are offered at full price.
  • Trigger emails put your marketing on autopilot. They are designed to automatically transmit when people perform specific actions. They can be used to welcome new subscribers, provide transactional information and convert abandoned carts. Best practices begin with the creation of the emails and follow with consistent review of the results to provide continuous improvement.
  • Informational emails educate your customers and prospects. They may include promotional information in the form of links, but their primary objective is to teach people how to use your products and services. It’s very easy to presume that the people that shop with your company know what they need and what you provide. This presumption costs you money because it is rarely true. Educated customers and prospects are more loyal and buy more often. Teaching people what they need to know provides long-term value.

To get started redefining your sales strategy:

  1. Review your existing campaigns. Make a list of what works, what doesn’t and what’s missing. Do you have an abandoned cart strategy? Are informational emails sent on a regular basis? When was the last time you changed your welcome email? Are products being introduced and highlighted?
  2. Outline your new strategy. Define and prioritize your corporate objectives for your email marketing. Using the review, identify opportunities to increase sales, reduce costs, improve loyalty and accomplish any other objectives. Rank the opportunities by how well they match corporate priorities. Document the results so you will have a path to follow.
  3. Test everything. Create an email or series of emails designed to fulfill a high priority objective. Select a segment of customers or prospects most likely to respond to your campaign. Define specific goals to be achieved before sending the first email. Send the emails, review the results and revise as needed. Repeat.

Expanding your email arsenal to include trigger, highlight and informational emails changes your strategy from one-off offers to integrated campaigns. It engages customers and prospects and makes them more responsive to all of your emails. Isn’t it time to do this for your business?

Introducing ‘The Integrated Email’ Blog by Debra Ellis

Why is email marketing so effective? Is it the one-to-one communication, ability to connect with customers and prospects on the go, or the provision of instant gratification with one-click shopping? The answer depends on the company and the customer relationship, but there is one universal truth: The combination of interactive communication with self-service solutions makes email the most versatile tool in a marketing workshop.

Why is email marketing so effective? Is it the one-to-one communication, ability to connect with customers and prospects on the go, or the provision of instant gratification with one-click shopping? The answer depends on the company and the customer relationship, but there is one universal truth: The combination of interactive communication with self-service solutions makes email the most versatile tool in a marketing workshop.

My experience with email marketing began shortly after Hotmail launched the first Web-based email service in 1996. A client had compiled approximately 11,000 customer email addresses and wondered what we could do with them. Our first test was a 25 percent discount on any order placed that day. A text-only message was sent using the mail merge functionality in Excel and Outlook. It took over two hours to send all the emails.

Those two hours were quite exciting. We had two computers in close proximity so we could watch the progress of the outgoing emails and monitor sales on the website. Within minutes of starting the email transmissions, orders started flowing in. By the end of the day, more than 1900 orders were received. A handful of people asked to be excluded from future mailings. Over 200 people responded with personal notes. Some were grateful for the discount. Others apologized for not placing an order and asked to receive more emails.

Things are much different today. The novelty of receiving a personalized message from a company is long gone. Spam filters make getting emails delivered a near impossible mission. And the competition for recipients’ attention is at an all-time high. Even so, email marketing remains one of most effective marketing and service vehicles available.

The emails that deliver the best return on investment are the ones that are integrated with the other marketing channels to provide information and service to the recipients. They create a connection between company and customer that motivates people to respond. A successful email marketing strategy builds loyalty while increasing sales.

Many email campaigns today are little more than a systematic generation of one promotional email after another. Discount emails are relatively easy to create and deliver sales with each send, making them a quick way to inject some life into lagging sales. The simplicity of sale marketing combined with solid response rates creates an environment where marketers are reluctant to move beyond the easy, low-hanging fruit.

In addition to generating sales, discount marketing also trains people to always look for the best price before buying the company’s products and services. It is not a sustainable strategy because there will always be another company that can offer lower prices and lure customers away. A better plan is to develop an integrated email marketing strategy that educates and encourages people to develop a relationship with the company. This requires more effort, but it delivers loyalty and long-term results.

Every email that a customer or prospect receives is an opportunity for the company to establish itself as the best service provider and solidify the relationship. Best practices include:

  • Using a valid return email address so the recipient can respond with one click.
  • Sending branded emails that identify your company at first glance.
  • Mixing educational emails that provide “how to” information for products and services with new product launches and promotional messages.
  • Transactional emails that communicate shipping information and challenges so customers aren’t left wondering, “Where is my order?”
  • Highly targeted and personalized emails designed to engage customers and prospects at every point in their lifespan.

Finding the right combination of educational, event and promotional emails requires testing and measuring results for incremental improvements. The resources invested improve relationships, increase sales and create a sustainable marketing strategy.

Note: Over the next few months, we’ll feature winning and losing email marketing strategies and campaigns on this blog. If you would like to share your company’s killer emails, send them to Debra at dellis@wilsonellisconsulting.com.