Sunday, 17 February 2008

E-Mail Marketing: Don't Spam, Know Your Audience


Say email marketing, and everyone thinks spam.

But it isn't the case.
If you are not communicating with people you know, and I mean clients, prospects, people you've met, then you are potentially shooting yourself in the foot.

Can I ask you a favour? Humour me. Suspend that belief for a few moments because there's so much more email can do for you without spamming, so please press "pause" on your views.
It's a medium that has one significant benefit that makes it very powerful - it's free.
Your clients want to hear from you and email is as convenient for them as it is you.

But The First Thing To Get Right And Avoid Spamming Is Knowing Your Audience
This article is the third in a series which shows you how to identify and work with your chosen audiences using email as a polite marketing tool.

So housekeeping first, you may wish to track back to the first article E-Mail Marketing For The Cash-Strapped Small Business Person, and the second, E-Mail Marketing Is NOT Spamming.

Before you even think about it as a marketing tool, you need to be able to do 3 things:

1. Firstly, think about your contacts differently - define the basis of your relationship with them

2. Be able to talk only to those people relevant to your message, what other characteristics do they have?

3. Address them all personally

I'll Show You How, And Where To Start... with Microsoft Outlook and a screen shot (a bit further down).

But first, let's think about number 1 and 2.

So what business are you in? And more precisely what is the basis of your relationship with people who are, or could be a customer?

Now not every email communication needs to sell. In fact, I'd advocate doing that infrequently, and thinking of email marketing as a form of communication instead.

You can send your clients news, details of service changes, ask their opinion on how you're performing, send them tips or information on how to use your product/service more effectively.

If every message from you is hawking a product or service, your contacts will soon switch off. Regardless, your message needs to be adapted to the audience, and it will change depending upon the nature of your relationship with them.

For example, you wouldn't want to send a satisfaction survey to non-clients. So you need to be able to filter out the people you're about to email.

So quite simply, I have a category in Outlook which is "Client", "Client - Support" or "Prospect".

But I also use some other categories which help me determine if they will receive a message. I also have a category for "Met".

I use this category if I think the relationship has developed sufficiently to be able to contact them by email. Otherwise, even if I have met them, I won't tick it. I have other similar relationship fields, but yours will be different.

REMEMBER: This isn't all about selling. My personal goal is to get "selling" out of our heads. I don't like selling. And it conjures up people folding their arms defensively because they're about to hear a pitch.

Some people you meet you may just get on with. They may be a great potential supplier. They may be someone you can refer business to and vice versa. So set up other categories.

For example, if it's someone I think offers a great product or service, I class them as firstly "Potential Partner" and then "Partner" once I've referred them or they have me.

The Nature Of Your Relationships Defined, Here's The Other Characteristics You Should Consider

Clients or Prospects, Met or not, Potential Partner or Partner: these are all categories that define the nature of your relationship with your contacts.

But it's also really useful to know a little more. If your clients are businesses, that's particularly easy to define. for example:

- What sector are they in? Lawyer? Accountant? Manufacturing?

- How many people do they employ?

You may have a product or service which is exclusive for a particular sector and being able to talk just to those clients about it is pretty handy.

More often though, you may want to adapt the content of the message. For example, your product or service may be pretty much the same from your perspective, but your message can highlight why it's relevant to someone from a particular sector, or of a particular size.

We have alot of lawyers as clients. We know how to work as an intermediary between them and specialist legal software suppiers. So a message to legal-sector clients reminding them of our experience in this area will be far more relevant.

Putting It Into Practice

I'll focus on setting up your contacts and categories in Outlook.

The same principles apply whatever you use, so if you have another preference for storing your contacts, please adapt the next bit accordingly (I would say though that most social networking sites and online email services can import Outlook contacts pretty easily, and you can do the same in the other direction too.)

So if you open Outlook, click on Contacts, and then choose "New", you will get a blank contact record.

At the bottom right of this screen is a button called categories. Here's what it looks like:



These are the default categories Outlook supplies. I'd recommend you delete most of these, because you want an easy-to-use and shorter list.

Ideally, you don't want hundreds of categories. You want a few that can make life simpler. To add a new category, simply choose the "Master Category List" button. So I'd recommend adding the following as a minimum:

- Relationship - Client (or Customer - your terminolgy!)

- Relationship - Prospect

- Relationship - Met

- Relationship - Potential Partner

- Relationship - Partner

Did you notice something with that list? I repeated myself a little, pre-fixing all of the categories with "Relationship".

Doing this, you are grouping types of categories together in an easy-to-use and alphabetical order. This makes it quicker when profiling your contacts.

Now you need to add in any other characteristics you feel will help you communicate with your clients. The best way to do this is to imagine what you want to say, and think about why that message would change for different people.

For me, an important one is their business sector. For you, it may be their interests. To give you an idea, here's mine:

Type - Accountant
Type - Architect
Type - Bank
Type - Catering / Restaurant / Food
Type - Charity
Type - Coaching / Fitness / Health / Mind
Type - Consultant General
Type - Distribution / Wholesale / Warehousing
Type - Engineering / Structural / Security
Type - Estate Agent / Property-Related
Type - Finance / Advice / Services
Type - Hotel
Type - Insurance Broker
Type - IT & Telecoms
Type - Marketing / PR / Web / Creative
Type - Media / Newspapers
Type - Membership Organisation
Type - Public Sector
Type - Rare
Type - Recruitment
Type - Solicitor
Type - Trades
Type - Training
Type - Transporation / Logisitics / Shipping / Couriers etc

Tip: Create a category for competitors. And don't store their email address in the contact record! You don't want to accidentally include them on a mailing. Equally though, if you were sending out a mailing, you'd want to be able to exclude them!

You can import your contacts from most other applications (please hit comment below if you want to ask me how). Or enter them for scratch. For the adventurous, why not buy a business card scanner and convert the cards you have received into Outlook records?

Whichever way you do this, it will be an incredibly worthwhile investment. I'll talk later in the series about email-merging.

Once you have a message to send, it takes just minutes to get it out to either everyone, or selections with different verisons of the same message.

Next Article: E-Mail Marketing: Tuning Yourself To The Right Station

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9 comments:

CatherineL said...

Creating a category is an excellent idea Ian. I made the mistake of not doing that when I made my first Rainbow mailing list.

Then I realised I was going to wind up sending the same letter to insurers, pet owners, people with kids etc etc.

I must admit, I still need to get better at actually collecting email addresses, as sending everything via snail mail is pricey.

I just wish you could add addresses you've collected to Aweber. It would make life so much easier.

Ian Denny said...

I think Aweber needs alot more functionality to be truly useful.

I agree with spam the spamming limitations Aweber has - e.g. difficult to import people who have already given permission to receive emails form you - you have to get people to go through the verification process - which people don't like doing twice.

Back in the real-world, I do recommend gaining skills in manipulating and cetegorising client data.

It gives you so much flexibility.

You could for example send an email to everyone who has a favourite colour of blue because you've just brought out a blue product.

With Aweber, you have to cross subscribe etc and don't have the easy flexibility.

I could be wrong because I wouldn't call myself expert in Aweber, but I'd still prefer a little more control over our own client data.

There's also the element of 3rd party control - I've read a few horror stories about emailing applications where they have arbitrarily blocked emails which refer to former clients of theirs in links.

I get nervous handing over our client details to 3rd parties, and at least want my own copy at all times which is regularly updated.

CatherineL said...

Hi Ian - one of the massive problems with Aweber is that they keep your names.

I changed my bank account - they tried to take out the money when i was on holiday. They did email me - but I didn't get it, so they closed my account. And that was every single name on my list gone. They couldn't get them back for me.

And as you mentioned - the double subscribe thing is a pain, because a lot of people either don't realise they're meant to do it, or they can't be bothered.

I wish a system would come out where the customer details were stored on our computers, but you could still get past the spam filters like you can with Aweber.

See - there's another thing for you lot to invent.

Ian Denny said...

Cath,

I agree. I appreciate legislation and systems which control really poor quality and poorly targeted messages.

The bottom line with email marketing is the results. How much do people give up for the personal benefit of automation?

It all depends upon return on investment. By spending more time on getting your data correct, adapting the message to suit the audience, the results can justify it exponentially.

Getting 1% responses, and 50% conversion to sales from every campaign may be worthwhile.

Changing those percentages just fractionally though, makes more money.

Here's the equation to work it out:

Number sent (after bounces) x Percentage (positive) responses x Conversion rate to sales x Average margin after costs of the product/service = How much you make.

Say you make £100 per sale after production costs. I'll assume because this is aimed at people doing it for themselves that there is only the opportunity cost of your time in preparing, writing and dealing with the responses.

That means:

100 x 2% x 50% x £100 = £100

So you make £100 for every 100 emails you send in a campaign.

Change the response rate because you've improved the relevance of the message, targeted people more carefully, personalised etc.

If the response rate improves to 5%, the equation becomes:

100 x 5% x 50% x £100 = £250

Now if you've taken your time building a database of 1000 names, this is what difference it makes:

Before - you made £1000
After - you made £2500

Is the extra £1500 worth your time? Using the tips and tools in this series, I'll show you how to do this arguably only slightly longer than it would take to do an Aweber campaign to your list, with full control.

CatherineL said...

These are good points Ian - but the only problem still is the spam filters. You know - mine quite happily eats emails from friends even. And god help anyone who mentions money or accounts in the title - it just doesn't get through.

Your way would definitely be worth it if the emails were all guaranteed to get through, but many bulk emails just don't, unless you're sending them through an opt in service like Aweber. I wish someone would invent a way round this.

But as you say - if fewer emails get through and you get a higher response rate - you could still be onto a winner anyway.

And profit margins are much better if you're not paying for postage.

I will start collecting these email addresses.

Barbara said...

Ian,

This is a great tutorial. Have you thought about putting it into a pdf or e-book type of format?

I can see many using these techniques on a regular basis. You even supply the wording for them for emails. Doesn't get any easier than that.

Is this a service you offer your clients at Multi Solutions? If not, maybe it should be. If I used (or wanted to use) email marketing, I would gladly pay someone to come in and get me started.

Ian Denny said...

Cath,

I know! I'm really tempted to start talking copy-writing. I'm not an expert by any means, and alot of the stuff I do breaks convention but works.

There are ways to get through spam filters to people you know. But it's counter-intuitive.

You see subconsciously, you find yourself selling even when you try NOT to.

Often it's because you want people to remember you, perhaps come back, or do whatever.

And your writing accidentally includes "selling" words that spam filters jump upon.

The trick is valuing the email address of someone you know, who wants to hear from you, and getting it into a system which allows you to talk to them. Personally.

Barriers are created.

"It takes time".

"They won't want to give it in case we spam them."

They're just two examples of many that you (sorry!) or others will often create.

Now, try turning those sentences upside down. For example:

"It only takes 30 seconds to write down an email address (and check the spelling - important)"

"They want to give us their email address because there is a very good reason to do so."

Your business and your follow-up process can answer and adapt those questions accordingly.

And find the opposite questions to any barriers.

Why?

Because you'll make exponentially more money. And that isn't an idle boast.

Mailings are good and shouldn't be dropped. Emailing is free once you have those "gold dust" addresses.

Half of nothing is still nothing. 30 seconds to gather is still not alot of effort. It takes longer to gather a postal address.

When people think "it takes time", I agree. You hav to double those 30 seconds to 60 when you consider it takes time to create an Outlook or database record with the address too.

And we're all busy so we say to ourselves "email isn't free, it takes time and effort".

I agree with that too.

But flip it again. What if we really mean "I don't like spamming" and that's how our mind deals with it and email marketing (even just to clients) is dismissed because of it?

NOW flip it once more. How long does it take to data-enter a postal address?

How much does postage cost?

How long does it take to print even just a 1 page letter to every customer?

How much time do you lose because your printer is churning away and you can't print off your invoice?

How much ink are you using?

How many pieces of paper, and how much does that cost?

Or how much are you paying for someone to design and print for you?

Do you include a brochure?

How much is a brochure per item mailed?

How much time do you spend stuffing the envelope?

How far away is the nearest post box?

Does it cost in petrol or lost time just walking to the post box?

etc.

Going back a step or two, how long did it take again to get the email address?

It takes the same amount of time thinking of words and copy regardless of whether it's email or post.

But it takes just a few minutes to send 1 email or 1000 or more.

When it's mailed, it takes an awfully lot more. And there's the additional costs I suggested above.

I really, really, really apologise for that answer!

Sorry! I've got alot of passion about this series and the stuff I've written or is still in my head bursting to get out has just done so.

I don't care in some ways. The same amount of passion people have against spam, I have in abundance because the grandfater of the internet age, email, has been spoiled for many by the evil spammers.

If spammers hadn't arrived, I speculate that many of the media and rules that have proliferated since would not (yet) have started.

The rules in social bookmarking etc are built because of the fast-buck merchants.

Some of us just want to talk, politely, to people we like (customers or otherwise) without barrier.

And the idiots have spoilt it for us.

That's why we're still stuffing envelopes with paper, petrol, energy in printers and our own legs. And therefore ruining the planet when a small business just wants to talk to its customers.

How dreadful is that?

Ian Denny said...

Barbara,

I have thought about it! Too much.

I can't get this across in any other way than just saying it.

Since June 2006, I've got it wrong.

I started the blog as a resource for people who wanted to avoid the mistakes I made.

And I really, really mean this. I didn't have money-making as part of my remit.

The initial energy sprang from a desire to stop this happening to other people.

As time has gone one, I've had money-making thoughts from this blog - but that's changed of late.

I just enjoy it.

And I really, really want it to help anyone who has even a sniff of the same sitaution I was faced with and find a way out of it because of it - with or without comments!

And every small business can turn things. Even if the situation is NOT desparate.

The NO cost or LOW cost school of thought is fine. Why let your business suffer because it costs you more to speak to your clients?

I'm not bothered at all if semi-sucessful business find this and apply some of the experiences.

I'm sorry Barbara, I'm rambling now.

Yes, I'd love to write a PDF summarising everything.

And I could feasibly offer a service for getting people started but only to a few. I have to make sure the employees and future staff of the resurgent business are secured as a first priority.

This may come across as slightly arrogant. And I apologise if it does. But I write good copy. I break conventions that other e-marketers would cringe at.

But I'd really recommend someone like Walt. He is the consumate pro.

His challenge is that many think he's offering a service which will open them up to accusations of spamming.

I know enough to know he won't.

He's got the same problem as many, but from what I've read, he'll take extraordinary care of anyone who needs to know they can grow their business without being a spammer.

All I am saying as an enthusasiatic amateur is USE EMAIL MARKETING.

Multisolutions don't offer this service.

I will for just you or Cath. For free because I'd get more than you would out of it because of the thrill of simply seeing the results.

And I'd hate you to deny me that privelege.

But I would strongly recommend a copy-writer like Walt.

There is a huge difference between copy-writing for bogs, social bookmarking etc and email marketing.

I can help you (time-zones allowing) with getting things set-up.

And Walt is an honourable guy, so he won't pitch you on this I'm sure, but he can coach/do/help you get a strategy together too.

Feeling guilty with my liberal and almost telepathic theories on Walt, I'd better shut up.

But because I'm effectivey talkign to Cath, Barbara and Walt who are all in my estimation worthy people, why don;t we think of some way of wrking together - for free - in return for a bit of interesting material which we could all use?

1+1=3

1+1+1+1=107 (unless I got my math wrong).

CatherineL said...

Hi Ian - Barbara's idea of an ebook is a good one. If you don't want to write one you could even put this series into an ebook and give it away. In fact, give it to other bloggers to give away, but put in links to this site(and maybe some affiliate links.

I will give some of them away for you and I know many others will.

As for the spam - I see what you're saying, but many things go in the spam folder just because they're sent in bulk - that is the problem.

What I used to do - before Aweber was to send no more than ten at a time, to ensure they got through. It can take a while if you're sending to a big list, but at least they get there. I used to send thousands this way - every Friday years ago, from my Disney site.

Probably it would be best to outsource it.

I hate the way the spammers have screwed it up for all of us tho.

Life would be so much easier if they didn't get to spam the Internet and we didn't have to learn how to write blogs to please the search engines or emails to get round spam catchers.