The in-depth
interviews
From the point of view of the PR manager at Cabestan,
permission-based e-mails must be highly personalized, not only addressing the
customer by his or her name, but with content that reflects his or her
particular needs. He viewed permission e-mails as a major customer relationship
tool that completes the company Web site. In fact one of the main reasons
customers visit a site is because of effective permission e-mail marketing. The
CEO of E-mail Vision supported this and added, 'E-mail marketing maximizes each
customer's value over time by building long-term relationships and loyalty.' To
an online company, customer loyalty is extremely important.
The companies using permission-based e-mail marketing while
working with an ASP are generally charged on a cost-per-message delivered basis
and this can be very low. The CEO of E-mail Vision estimated that these costs
are 80 per cent lower than those connected with postal direct marketing. The
standard cost of an e-mail managed by E-mail Vision is about 0.03 euros. Also,
companies using e-mail will probably only need the service of a Web graphic
designer rather than a specialized advertising agency to set up their
campaigns.
The CEO of E-mail Vision believed that permission e-mail marketing
is highly effective and produces a good return on investment (ROI), and figures
given to us by the interviewees are similar to those within the literature. The
CEO of Cabestan pointed to companies that they deal with such as Bayard Press
Publishers, France Loisirs and La Redoute, which have all benefited from a
permission-based e-mail campaign that has not only shown a good ROI but has
developed a good base for better customer relationships.
Neither interviewee expressed any doubts about the need to 'spy'
on their customers while they are online. They saw this as a vital aspect of
Internet marketing and believed there was the need for expertise in this area.
They both argued that e-mail service providers can help in this by providing
powerful hardware and software to track customers, and by outsourcing marketing
campaigns to these specialist organizations businesses can take advantage of skills and infrastructure that
they do not possess in-house.
Cabestan explained its approach to permission e-mail marketing
through the 'e-mail customer contact cycle' as shown in Figure 27.1.
The customer acquisition phase constitutes the starting point
where the company hunts and gathers new online customers by identifying its
market, creating the best offers for the business and promoting to its potential
target audience. The company might already have a mailing list but might need
help in building this further. It might turn to an ASP such as a brokerage
service for an 'opt-in' list. The testing phase works on the principle that by
testing the past offers and their outcomes, the company will acquire a better
understanding of what customers expect and therefore improve its e-mail
marketing campaigns. The company then enters the profit-making stage: customer
retention. As the PR manager of Cabestan says, this is where the company 'needs
to build genuine relationships with its customers by marketing to them
individually, personalizing the messages and offering products that fit
exclusively their wants and needs'. The customer service phase completes this
cycle, and consists of keeping customers happy with timely responses to their
messages and actions.
From a company's perspective both interviewees believed that
permission e-mail has improved the performance of the direct marketing function.
The PR manager of Cabestan said that, 'the
amount of time related to the technical implementation of an e-mail campaign is
ridiculously small: as soon as the customer database is available, only a few
hours are required for the compulsory testing phase and, by the next day, 50,000
e-mails per hour can be sent.'
This compares with several weeks or months in other traditional
direct marketing methods such as catalogue marketing. The CEO of E-mail Vision
suggested that an entire e-mail campaign could be designed and executed within
one single week, as the technology provided by an ASP enables companies to start
collecting 'opt-in' names within 48 hours, and test results can be tracked in
real time and conclusions delivered within 72 hours. Companies can even monitor
customer reactions to e-mail campaigns by integrating customer satisfaction
surveys into the message, to interrogate the readers' perceptions of ergonomics
and content, and ask what else they might want.
The ability to measure the effectiveness of an e-mail campaign is
an aspect of this approach that is potentially seductive to companies.
Traditional approaches to direct marketing have required analysis of results
over weeks or months after the campaign is finished, but e-mail campaigns can be
analysed instantly using software tools at any point in the campaign through a
Web browser.
Neither interviewee believed that permission-based e-mail
marketing will replace traditional approaches, and both view it as a
complementary addition to any company's marketing strategy. It is their belief
that paper-based advertising media have a much better visual impact at present,
and not everyone has access to computers.