1. ã 2002 L-Soft Advanced e-Mail Marketing Strategies eMarketing Association Conference Redondo Beach, California September 5, 2002 Gabriela Linares L-Soft international, Inc. www.lsoft.com Info@lsoft.com 301-731-0440 800-399-5449

2. ã 2002 L-Soft Steps for an e-Mail Marketing Plan  Defining e-Mail Marketing Objectives  Determining Effective Strategies  Reaching your Target Audience  Designing e-Mail Content  Evaluating Results  Selecting a Solution

3. ã 2002 L-Soft Common e-Mail Marketing Objectives  Build brand awareness  Acquire new leads/ registrants/ customers/ clients  Drive immediate sales  Enhance customer retention  Build stronger relationships with existing customers/clients  Provide company or product information  Increase revenues by up-selling to existing customers/clients  Post-order targeted e-mails  As part of an integrated marketing strategy Defining e-Mail Marketing Objectives

4. ã 2002 L-Soft e-Mail marketing campaign response rates by campaign objective Source: IMT Strategies, September 2001

5. ã 2002 L-Soft Conversion Costs for Retention and Acquisition Goals AcquisitionRetention E-mail$57.10$2.50 Direct Mail$25.00$60.00 Banner ads$140.00N/A Source: IMT Strategies, September 2001 Acquisition versus retention AcquisitionRetention Search engine positioning94%6% Banner ads91%9% Referral/viral programs85%15% Affiliate programs/ sponsorships75%25% Incentive programs51%49% E-Mail Marketing37%63%

6. ã 2002 L-Soft Popular e-Mail models  Sales Promotions  Transaction confirmations  Account status e-mails  Recommendations from friends (viral marketing)  Scheduled corporate newsletters  Customizable information updates  Time-based reminders  Rewards program  E-mail discussion groups  Product updates of interest  Independent media newsletters  Entertainment (humor, film clips)  E-Mail education series  Contests for address Determining Effective Strategies

7. ã 2002 L-Soft E-mail overload: Number of e-mail marketing e-mail sent in the US Source: Forrester Research, August 2001 Reaching your Target Audience

8. ã 2002 L-Soft Response to permission e-mail versus unknown senders

9. ã 2002 L-Soft Opt-in, opt-out, double opt-in, spam: Preferred e-mail marketing methods Source: Opt-In News, May 2002

10. ã 2002 L-Soft CTR and Conversion rate of US e-mail marketing campaigns – for permission based lists Source: IMT Strategies, Sept. 2001

11. ã 2002 L-Soft US Consumers’ Privacy concerns Source: Harris Interactive, February 2002

12. ã 2002 L-Soft US E-Mail users’ preferred e-mail marketing privacy and customer-support practices  Unsubscribe option in all e-mails  Explicit no-share-address policy  48-hour e-mail support answers  Editable personal preferences page  Provide phone numbers in e-mail  Explicit privacy policy  Double opt-in confirmation  Unchecked default opt-in box  Third-party privacy seal in e-mail

13. ã 2002 L-Soft Most Important e-Mail Marketing trust- building factors among US users  Secure sign-up form  Trustworthy reputation  Loyal customer  Well-known brand  Friend recommendation  Trusted site referral  Relevant offers

14. ã 2002 L-Soft Why customers would give personal info  Guarantee that the information will not be misused  Eligibility to win a prize in a sweepstakes  Regular e-mail updates on products they are interested in  Access to more or better content or information  Affinity points  Receive targeted ads they’re likely to be interested in

15. ã 2002 L-Soft Building Customer Intelligence  Harness your Customer Database  Effective personalization and targeting  Common Segmentation Factors:  Purchase history  Location/zip code  Demographics  Lifestyle/hobbies/interests

16. ã 2002 L-Soft Building your lists  Subscriber form on web site  Sponsor lists of sites with a similar demographic  Send to a friend button – viral marketing  Ask for permission to customer base  Maintain list hygiene  E-mail appending…

17. ã 2002 L-Soft E-Mail Message Content  Subject Line – getting recipients to open mail is half the battle  Creativity  Personality and dynamic content  Keep it short and use links to draw reader to your web site  Keep it fresh – don’t re-use the same content  Relevance – the more you understand your customers, the more targeted and relevant messages will be  Frequency  Test messages Creating the Content

18. ã 2002 L-Soft Email users’ preferred e-mail marketing personalization models  Communication Control  Self-select content  Name recognition  Personal events & reminders  Geography  Account History  Lifestyle  Purchasing Behavior

19. ã 2002 L-Soft How to measure the effectiveness of e- mail marketing campaigns  Click-through rates  unique and sum of events & comparisons  Unsubscribe rates  Open rates  Conversion rates (website tracking)  Click-stream analyses  E-mail pass along rates –viral marketing  Coupon codes  Unanimous tracking to respect privacy Evaluating results

20. ã 2002 L-Soft Response time and cost per unit, e-mail vs. direct mail  Be prepared to handle responses E-MailDirect Mail Response Time 3 days3-6 weeks Cost per unit$0.25$1.25 Source: DMA, Forrester Research, Gartner Group, 2002

21. ã 2002 L-Soft Maintain your server  Hardware/computer network  Dedicated Internet Connection  Software for e-mail management and delivery  Best for large loads and those with experience  More cost-effective  Flexibility to create campaigns on the fly Outsource your list hosting  Reliability and experience  Redundant servers and delivery capacity  Flexibility to maintain company Internet presence  Ability to move from hosting to in-house when ready  More expensive  Rely on company’s schedule To Outsource or not to Outsource

22. ã 2002 L-Soft Evaluate Options  Evaluate software product or hosting service before purchasing  Determine if solution provides appropriate features  Decide what reporting features you need  online real-time reporting, compatibility with other software you employ  Differentiating levels of privacy tracking  Campaign manager to organize jobs  Integration with your database and other applications  Handle bounces