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Bulk Email Marketing - Efficiency |
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Bulk Email marketing is increasingly recognised as an effective Internet marketing tool. Our paper reviews the email marketing literature which highlights the importance of obtaining recipients' permission. Email marketing is compared with other forms of direct and Internet marketing, identifying its key advantages. We identify the factors that have been found to increase response rate in direct marketing and direct mail.
Following exploratory qualitative research among industry experts we analysed 30 email marketing campaigns to identify factors associated with higher response rates. We found the following factors were associated with increased response rate: subject line, email length, incentive, number of images. For nine of these campaigns we were able to link demographic and lifestyle data to response. Analysis of these campaigns suggests that recipients who have previously bought on the Internet have higher response rates to bulk email . These finding are used to create an email marketing process model based on the Vriens et al (1998) direct mail process model. |
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Bulk Email Marketing |
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| The advantages of email marketing have been recognised by a number of authors. Jackson and DeCormier (1999) recognised that email provided marketers with communication that permitted relationship building and real-time interaction with customers. Wreden (1999, p3) described email marketing as the 'Internet's killer application' because of the precision with which email can be tailored, targeted and tracked. Low costs and digital processing allows companies to send out huge numbers of emails. The medium is push rather than pull, the consumer does not have to instigate the interaction, and currently response rates are high (Di Ianni 2000; Rosenspan 2000). Peppers and Rodgers (2000, p 4), claim that 'clear benefits, including high response rates and low costs are rapidly turning email marketing into an invaluable tool'. Email marketing can be used for acquisition or retention; this paper focuses on acquisition email marketing, marketing designed to win rather than retain customers. |
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Permission Marketing |
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Godin, (1999, p 43) coined the term 'permission marketing' which is based on consumers giving their consent to receive marketing information. Permission marketing 'offers the consumer an opportunity to volunteer to be marketed to' and it is therefore 'anticipated, personal, and relevant'. The idea of consent is not new; customer permission had been introduced in the context of privacy issues in direct marketing (Milne and Gordon 1993). The key to permission marketing is knowing customer interests and knowing their information needs (Sterne and Priore 2000). It is particularly relevant to Internet marketing because the low marginal cost of messages creates a potential volume problem for both consumers and marketers. Permission marketing improves the targeting and relevance of promotional messages, thus improving response and conversion rates. The interactivity of the Internet facilitates communication of consumer permission and preferences.
A survey by IMT Strategies (1999) found that permission email has a higher response rate than non-permission email; more than half of their respondents felt positive about receiving permission email. Successful permission marketing is about building long-term relationships with customers once the initial permission has been granted. The consent, trust and two-way exchange of information develop the relationship between the consumer and the company.
Hagel and Singer, (1999) discuss the emergence of 'infomediaries' or information brokers who elicit the permission of consumers and preserve their privacy.
Krishnamurthy (2001) presents a model where consumer interest in a permission-marketing program depends on five factors: message relevance; monetary benefit; personal information entry costs; message processing costs, and privacy costs. He also introduces the concept of permission intensity, which he defines as 'the degree to which a consumer empowers a marketer in the context of a communicative relationship'. In addition the permission may be more or less explicit. In-order to obtain as many permission email addresses as possible marketers sometimes provide options that are unclear with a default 'opt-in'. A study by Cyber Dialogue found that 69% of US Internet users did not know they had given their consent to inclusion on email distribution lists (Bellman et al 2001). |
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| Customer Feedback |
 I can never imagine that emails go so quick! Now I know whether an email arrives immediately after I click 'send' button. Thank you providing this helpful software. I will recommend this software to all my friends. ...  |
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