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Email marketing loses its edge


Envelope flying into mailbox on computer screenOnce upon a time direct mail ruled.

You bought a carefully selected list; segmented it by geography or job title; crafted appropriate letters; packed them in an envelope together with a generic piece of collateral and posted them out to your target audience, safe in the knowledge that you would, by the law of averages, get a 0.5% response rate.  It was expensive, but if you did it right you knew you would get the results which were measurable and traceable.

Then email came along and life changed beyond all recognition.  Suddenly you could send out as many messages as you liked ‘for free’, hitting your database with more and more frequency.  Open rates were 33%+ and the sales team was happy because they could tell potential clients about the ‘millions of hits’ in your advertising campaign.

But things aren’t looking quite so rosy these days.  While event organisers and marketers maintain their love affair with electronic mail, the recipients are less enamoured.  Faced with a barrage of messages on an hourly basis, potential visitors and delegates are learning to use the tools on their mail programmes to create rules that send messages from certain senders direct to their junk folder, or to flag them as spam so that they never even make it as far as the inbox at all.

Opening rates continue to fall, with an average marketing campaign now looking at figure of approximately 25%.  From these the average click through rate is somewhere in the region of 4%, which means that for a mailing of 1000 people you can expect 10 to go through to your site, a response rate of 1%.

On the face of it, this still looks better than the 0.5% we expect from traditional DM, but this is not so.  In the conference or event market the DM figure refers to actual bookings or registrations whereas the email click-through rate refers to clicks on any link in an email to any document or web-page.  If we then assume that only 1 in 10, which is still very optimistic either books or registers then the actual response rate for an email campaign is only 0.1%.

Coupled with the fact that every time a database is mailed, it encourages individuals to junk or block the sender, a campaign that is poorly targetted and irritatingly frequent can actually create a double negative of failing to deliver response while actively turning potential customers away from the event.

Does this mean that there should be a return to DM?  Not really.  But it is time to reflect on a more holistic approach to marketing.  Using social networking techniques and creating communities that are engaged rather than annoyed.

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2 Comments on Email marketing loses its edge

  1. Real Print // October 6, 2010 at 15:56 // Reply

    Good blog. I’m of the opinion that email’s image is getting tainted because of spam and DM will make a comeback, provided it reshapes itself to meet the requirements of the modern world.
    I’ve created a product in the UK which I believe will help. Take a look and maybe let me know your thoughts: http://www.real-print.com Regards David

    Like

    • Over the last few months I have been giving this an awful lot of thought. I think that in the future we are going to find ourselves looking both backwards and forwards in marketing terms.
      Social media has changed the advertising spectrum, email marketing has made organisations forget about the need for investment both in creating good marketing campaigns and good copy and in good data. Cleverly created direct mail together with good PR will form the basis of the new marketing order.

      Like

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