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ROI From Email Surpasses Traditional Direct Marketing

According to a new study the return on email campaigns surpassed $15.00, or over 15% higher than direct marketing campaigns email marketing

The amazing thing here is that despite the fact that most systems, especially the over 80% that are outsourced are handling their email marketing campaigns in an “Ugly” fashion, according to industry insiders. Imagine if we could take it from “ugly” to “Pretty” how much higher the ROI could be! “Pretty” should bring over 100% more revenue per dollar spent than traditional direct marketing.

It’s about time to “Pretty Up” your email marketing campaigns. Many of you should bring it inhouse, many just need to insist the proper systems be put into place through the outsourced firms.

Behind the Curtains at Email Service Providers
In previous articles written by ActivSoftware, we wrote about things going on behind the scenes at email service providers. Most are things that customers would certainly not be happy about. The truth has now been exposed by the writers at Email Sherpa and these facts have reached the customers. There are many aspects of outsourced ESP’s that are making the customers unhappy and the ironic thing is that the majority of what the ESP’s have been HIDING, is still not the main focus of this particular inquiry.

Industry insiders call the behind the scenes of the ESP’s “Ugly.” Industry sales people try to steer customers away from sending large lists no matter how many customers they have, due to limitations with email servers used. Marketing Sherpa provides a list of items customers want from their ESP’s and frankly it is perplexing how these very simple requests seem complicated.

High Tech Tools to Increase ROI From Email Campaigns
Our most recent news release covers how high tech tools will revolutionize the way we use email communications to increase ROI from Email campaigns. For decades business and technical minds alike understood the benefit of more carefully storing information in a hierarchy to better retrieve the data at a later date. This form of data storage is also known as a database. And yet, since we’ve been using email to communicate with large groups of customers even the savviest business managers will just now have the ability to use the power and flexibility of their corporate database to increase effectiveness and ROI from Email campaigns.

Definitions

ASP (Application Service Provider) – A third party company that offers solutions hosted on their servers. Customers log into these providers through the Web.

ESP (Email Service Provider) – ESP’s provide email marketing services such as sending bulk email communications and tracking results in an ASP model.

Web Based Email Provider – These are providers of email accounts such as MyName@YAHOO.com. Examples include YAHOO, AOL, HotMail, etc.

Identification Protocols – These are a growing number of standards used by Web based email Providers to try to ensure that email senders are legitimate and that they are who they say they are. Server level access is required to implement ID protocols and are based on domain and IP Address related information, thus they are very hard for spammers to spoof. Examples include YAHOO Domain Keys, Sender Policy Framework (SPF) and SenderID. For more details Free the Adsense Email Marketing

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IP Addresses: Punished by the Judge, Jury & Executioner

Punishment is usually doled out one IP at a time. This drives the necessity for email servers that quickly shift IP addresses based upon delivery criteria. At some point in time a valid customer who is a valid email recipient will report you as a spammer. The PPC E-mail Marketing Despite numerous safeguards to ensure your list is perfectly valid, 100% opt in and NOT in any way spam, you WILL eventually get reported as spam. Unfortunately, at this time, every single recipient acts as judge, jury and executioner. A well-written offering sent to a strong list with a high assurance of deliverability should always result in higher than average open rates, click rates and sales conversions. Using these standards as a basis to ensure the email list creation and delivery occur effectively, you can then alter splash pages or tweak the Web site to further strengthen campaigns. Without a strong list and assured deliverability, to an Inbox, the campaign is doomed to fail.

Likely List Scenarios

a) Bad List: A new firm bought a list from a recently defunct company. The list was guaranteed to contain recipients who opted onto the list. Hint: It isn’t. You can verify this by asking the list provider if the name and contact information of the original list generating entity can be included in mailings. If the answer is anything other than YES, you are about to have major delivery problems. There will be a very high bounce rate, meaning poor deliverability, low opens, clicks and sales. No matter what you try to do to correct the low results it will be in vain.

b) Good List – No Assured Delivery: You generated your list in-house by data mining, calling customers, etc. The main problem is that you are using a standard and freely available email server and are not listed in white lists. In your very first email campaign the email server sends too many headers at one time to YAHOO, AOL and HotMail recipients. If the entire first list does get through, deliverability will be squashed on your next campaign and you might not even be aware of the fact that deliverability is low. Opens, clicks and sales will be artificially suppressed and low.
“Choosing a return on investment over your brand name is ludicrous. Most email campaigns generating a fairly high ROI are causing irreversible damage to your companies brand and long term profitability as you burn your lists.Other Factors: In-sourcing

V. Outsourcing

The same old arguments apply in this new industry as they have since the debate started whether to outsource or bring business systems inhouse. The answer is also still the same. For larger firms, systems are managed inhouse using systems provided by third parties, while for smaller firms, without the same resources, the extra cost to outsource these systems, is the most logical avenue. Parameters that will affect the decision are:
1) Composition of Emails: HTML versus text, hyper-personalization & dynamic content
2) Organization, segmentation & return on investment tracking
3) Security & protection of sensitive customer data
” The PPC E-mail Marketing Search

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