1. ã 2002 L-Soft Industry Analysis  Target Market  Market trends & needs  Effective E-Mail Strategies  L-Soft Customers  Industries  Survey & feedback  Competitors  Product comparisons  Classification of e-mail services  U.S. Legislation  Spam and Privacy

2. ã 2002 L-Soft Weekly Online Activities of US Home Internet User, 2001 Source: Yankee Group, October 2001

3. ã 2002 L-Soft Top Five Activities of Americans Online, 2001 Source: US Department of Commerce, February 2001

4. ã 2002 L-Soft Defining an e-Mail Marketing Plan 1.Defining e-Mail Marketing Objectives 2.Determining Effective Strategies 3.Reaching your Target Audience 4.Designing e-Mail Content 5.Evaluating Results 6.Selecting a Solution

5. ã 2002 L-Soft 1.Defining e-Mail Marketing Objectives

6. 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

7. ã 2002 L-Soft E-Mail Marketing Objectives among US Marketers Source: DoubleClick, June 2002 N=190, multiple responses allowed

8. ã 2002 L-Soft Primary E-Mail Marketing Goals for US Marketers Source: e-Dialog, April 2002 N=302

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

10. ã 2002 L-Soft Effectiveness of acquisition versus retention AcquisitionRetention Search engine positioning94%6% Banner ads91%9% Referral/viral programs85%15% Affiliate programs/ sponsorships 75%25% Incentive programs51%49% E-Mail Marketing37%63% Source: DMA- April, 2002 N=247

11. 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

12. ã 2002 L-Soft 2. Determining Effective Strategies

13. 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

14. ã 2002 L-Soft Types of e-Mail Marketing Campaign Models Used by US Marketers Source: IMT Strategies, September 2001

15. ã 2002 L-Soft Types of E-Mail Campaigns used by US Marketers Source: e-Dialog, April 2002

16. ã 2002 L-Soft Average CTR for B2C and B2B e-mail newsletters Source: Opt-in News, May 2002

17. ã 2002 L-Soft Top Interest Areas for Permission e- Mail Users in the US  Specials/offers from online merchants  Specials/offers from local retailers or restaurants  Household tips/recipes/crafts  Humor  Travel  Entertainment  Weather  Local news  Tech/business news  Finance/stock information  Sports

18. ã 2002 L-Soft Top Interest Areas for Permission e- Mail Users in the US Source: DoubleClick/ NFO WorldGroup, October 2001

19. ã 2002 L-Soft How US internet users learn about new web sites Source: Forrester Research, June 2000

20. ã 2002 L-Soft Types of messages that are forwarded  Merchandise deals and promotions  Social/political message and petitions  Warnings and advisories  Relevant  Funny  Work related  Informative  Cool  New Technology  Prize/coupon/reward

21. ã 2002 L-Soft 3. Reaching your Target Audience

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

23. ã 2002 L-Soft US Internet User Attitude towards e- Mail Volume, 2001 Source: IMT Strategies, September 2001

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

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

26. ã 2002 L-Soft Permission e-mail marketing vs. direct mail retention costs Cost per thousand (CPM) Click- Through Rates (CTR) Conversion Rate Cost per sale E-mail to in-house list $515%3.7%$1 Direct Mail to in- house list $761N/A3.9%$20 Source: Forrester Research, August 2001

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

28. ã 2002 L-Soft US Internet Users’ Level of Concern Regarding Online Privacy Source: UCLA Center for Communication Policy, November 2001

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

30. 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

31. 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

32. ã 2002 L-Soft Top reasons why US Internet users respond to e-mail offers  Know and trust brand  Relevant information  Good prices  Friend has recommended  Price/coupon/reward  Timely  Compelling subject  Entertaining

33. ã 2002 L-Soft Top Reason Why US Internet Users respond to e-Mail Offers Source: IMT Strategies, September 2001

34. 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

35. 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

36. 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…

37. ã 2002 L-Soft E-mail appending Source: Opt-In News, May 2002

38. ã 2002 L-Soft 4. Evaluating results

39. 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)  Direct revenue  Click-stream analyses  E-mail pass along rates –viral marketing  Coupon codes  Unanimous tracking to respect privacy

40. 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

41. ã 2002 L-Soft 5. Creating the Content

42. 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

43. 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

44. ã 2002 L-Soft US e-Mail Users’ Preferred Personalization Models Source: IMT Strategies, September 2001 5-point scale rating, “1” as “strongly dislike” and “5” as “strongly like”

45. ã 2002 L-Soft Preferred e-mail advertisement formats worldwide, Q1 2002 Source: Opt-IN News, May 2002

46. ã 2002 L-Soft Response rates per format Source: IMT Strategies, Sept. 2001

47. ã 2002 L-Soft 6. Selecting a Solution: To Outsource or not to Outsource

48. 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

49. ã 2002 L-Soft Outsourced e-Mail Marketing Campaigns Source: Forrester Research, August 2001

50. 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

51. ã 2002 L-Soft Questions? Gabriela Linares L-Soft international, Inc. www.lsoft.com Info@lsoft.com 301-731-0440 800-399-5449 Presentation for Sales Team, September 2002