E-Mail Ads That Produce Results
Launched in 2007 as a small jewelry company selling beads on e-Bay, Ana Silver Company grew quickly, ultimately specializing in selling jewelry made from the finest sterling silver and semiprecious stones. Today, Ana Silver is the top seller of jewelry on e-Bay, stocking more than 100,000 pieces of unique silver jewelry, including bracelets, earrings, necklaces, pendants, and rings. Within two years, sales had grown to $1 million, but co-owner George Liang believed that the company could accelerate its sales growth dramatically by connecting more closely with its customers. “We didn’t really communicate with our customers after their purchases,” he says. “E-bay sent an automatic newsletter to our customers, but we didn’t have any ongoing outreach.”
Liang wanted a low-cost, effective way to drive customers to Ana Silver’s e-Bay store and to inform them about new products and special sales. He saw e-mail marketing as the ideal solution, one that would allow the company to create efficient, personalized ad campaigns targeting its base of 50,000 customers. Not wanting to overwhelm customers with too many messages, Ana Silver settled on sending one e-mail ad to them each week, but customers can (and many do) opt in to receive more frequent messages from the company. “Every time we send out an e-mail, 60 to 80 customers make a purchase,” says Liang. “We may sell several hundred items from one e-mail.” One recent e-mail ad went out at 6 a.m., and by that afternoon, Ana Silver had received 50 orders and sold more than 200 pieces of jewelry. Just one year after launching its e-mail advertising campaign, Ana Silver’s annual sales reached $10 million.
Businesses spend $1.7 billion a year on e-mail marketing campaigns, and experts expect that number to grow to $2.5 billion by 2016. What makes e-mail marketing appealing, especially to entrepreneurs such as George Liang, is that it is inexpensive, it is measurable, and it works. Studies by the Direct Marketing Association suggest that every $1 that companies spend on e-mail marketing produces a return of $44. In addition, according to ExactTarget’s Channel Preference Survey, 77 percent of Internet users of all ages say that their preferred method of receiving permission-based promotional messages is e-mail. (The second most preferred method is direct mail at just 9 percent.) Entrepreneurs who want to reproduce the success that Ana Silver has created using an e-mail advertising campaign should consider the following tips from the Street-Smart Entrepreneur:
Make a concerted effort to collect customers’ (and potential customers’) e-mail addresses. Every contact that anyone in your company has with a customer presents an opportunity to collect another e-mail address. Seize them! Ensure that everyone in the company understands the importance of building an accurate and reliable e-mail list because that’s where e-mail marketing success starts.
Recognize the power of simplicity. Ads that generate the highest response rates focus on a single call to action, which allows the advertiser to keep the message simple and focused. Don’t try to accomplish too much in an e-mail advertisement. The best place to put your call to action is in the e-mail’s second (short) paragraph; the first paragraph should explain the benefits that your company’s product or service can provide the recipient.
Make sure the e-mail’s subject line emphasizes your company’s USP. Without the right subject line, e-mail recipients may never open the e-mail. The most effective subject line messages are short; however, one study of more than 1.2 billion e-mail marketing messages by MailerMailer concludes that the highest click-through rates occur when the subject line included fewer than 40 characters, including spaces. The best subject lines suggest the product’s or service’s USP (refer to Chapter 9). For example, “Fresh lunch FAST—just $5.99!” in the subject line of an e-mail expresses several product features to potential customers. Other subject line words that produce responses include “new,” “sale,” “save,” “you,” “instant,” “newsletter,” “news,” and “free.” Including links in the e-mail also increases a message’s click-through rate; the more links you include, the more likely the recipient is to click through on at least one of them.
Make sure your e-mails’ look and feel are consistent with your company’s overall image. Every component of a company’s advertising campaign should have a look and feel that is consistent with its brand, even though the ads may appear in many diverse media. The design of a company’s e-mail ads should rely on the same colors, themes, slogans, and look as its ads in other media.
Send e-mails when customers are most likely to make their purchases. Proper timing of e-mail ads can improve customer response rates dramatically. Messages sent on Sunday produce the highest click-through rates. January, July, August, and December are the months in which customers are least likely to pay attention to e-mail ads (although there are exceptions). E-mail messages sent between 4 p.m. and 8 a.m. yield the highest click-through rates, and those sent in the middle of the day produce the lowest response rates. Companies must time their e-mail ads to correspond to their customers’ demand for their products and services.
rite copy that produces the results you seek. Start by concentrating on one idea. Before writing any copy, develop a mental picture of your target customer. Give him or her a name and try to envision how your company’s product or service can benefit him or her. This will help you keep your ad copy focused on the USP you put in the subject line of the e-mail. When appropriate, consider including an endorsement from an existing customer (perhaps with a photo) to add credibility to your claims. Be sure to provide clearly visible links to your company’s Web site at several places in the e-mail ad, including at the top and the bottom of the page. Always include a prominent call to action: How do you want the customer to respond?
Incorporate social networking links and video into e-mails.
Incorporate social networking links and video into e-mails. Adding “Like us on Facebook” or “Follow us on Twitter” links to e-mails encourages customers to engage your company in other media and to promote it to their friends. The E-Mail Marketing Trends Survey reports that 53.8 percent of small business owners say that including video in e-mails increases their company’s click-through and open rates. Buttons that allow customers to download videos, forward them to friends, or post them on their Facebook pages encourage the viral nature of the Web to expand their advertising efforts many times over.
Use value-added items to increase your campaign’s response rate. In the typical in-box, there are dozens (if not more) of messages competing for the person’s attention. One way to boost your campaign’s response rate is to offer recipients something of value—for example, a coupon, a newsletter, or a white paper. Betsy Harper, CEO of Sales and Marketing Search, an executive search firm that specializes in sales and marketing positions, says that publishing a monthly e-mail newsletter that includes hiring trends and tips has improved her company’s visibility, reputation, and sales. Recently, says Harper, “within two minutes (literally!) of sending our e-mail newsletter, I got an e-mail from a fellow in New York. He asked me to call him right away about filling a senior sales position. We talked, signed an agreement to work together the very next day, and started the search. We finished the search in record time and received a $22,000 fee.”
Always comply with the CAN-SPAM Act. The CAN-SPAM Act, a law that sets the rules for commercial e-mail, establishes requirements for commercial messages, gives recipients the right to opt out of e-mails, and spells out tough penalties for violators.
Never stop testing. Successful e-mail advertisers never stop experimenting with variations on their ads, testing to see which products, pitches, subject lines, timing, and other elements produce the highest response rates.
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