1. Creating Customer Acquisition and Retention by means of Permission Based Email Marketing

2. www.exacttarget.com Clients

3. www.exacttarget.com Agenda 1) Why Email Marketing? 2) Email Is the Best Medium For... -Permission Marketing -Retention Marketing -Database Marketing 3) Email Marketing Advanced Concepts -Personalization & Targeting -Testing & Optimization -Tracking Results -SPAM & Email Deliverability 4) Q & A

4. www.exacttarget.com The Days of “Dumb Email” Are Over!

5. www.exacttarget.com Email Marketing Is Growing Quickly Source: Forrester Research, 2002

6. www.exacttarget.com Consumers Trust Email Newsletters

7. www.exacttarget.com Email Versus Phone In you were without e-mail service or phone service for five days, which would cause the greatest difficulty?

8. www.exacttarget.com Email Marketing Works Compared to traditional media, email is… -fast -cost effective -personal -interactive -and measurable! McKinsey – “Harnessing the Power of Email” reports that email… -drives responses of 15% vs. 1% for direct mail -costs 3-10 cents per email vs. $2 for direct mail -generates 80% of responses within 48 hours

9. www.exacttarget.com Permission Marketing Anticipated – people look forward to hearing from you Personal – message is directly related to the individual Relevant – content is something they are interested in “Permission Marketing encourages clients to participate in a long-term interactive marketing campaign in which they are rewarded in some way for paying attention to increasingly relevant messages.”

10. www.exacttarget.com Retention Marketing Email is most effective for retention!

11. www.exacttarget.com Retention Marketing

12. www.exacttarget.com Retention vs. Acquisition ($12) $34 New Customer 3rd Year Customer Monthly Revenue

13. www.exacttarget.com Retention vs. Acquisition 80% of your business comes from 20% of your customers It is significantly more difficult and expensive to recruit a new customer vs. retaining an existing customer On average, US small businesses lose 50% or more of their customers each year Every company suffers from defections Most of them don’t monetize these losses If a valuable piece of physical inventory were missing, we would turn the place upside-down looking for it

14. www.exacttarget.com Retention vs. Acquisition

15. www.exacttarget.com Retention vs. Acquisition Sanders Cleaners South Meridian Store Facts: In 1998 there were three competitors within 3 miles. Today there are 11 New customers down by 40%* Loyal % increased from 11% to 39% Store revenue has grown 40%

16. www.exacttarget.com Database Marketing: True One to One

17. www.exacttarget.com Smarter Marketing Email enables… marketers and business owners to deliver on the promise of true one-to-one marketing.

18. www.exacttarget.com Personalization & Targeting How can you break through the Increasing Inbox Competition?

19. www.exacttarget.com Personalization & Targeting Personalize for Increased Response Email Response Rates by Number of Personalization Elements

20. www.exacttarget.com Personalization & Targeting – First Stage

21. www.exacttarget.com Personalization & Targeting – Second Stage

22. www.exacttarget.com Personalization & Targeting – Third Stage

23. www.exacttarget.com Indianapolis Colts Example

24. www.exacttarget.com Home Depot Example

25. www.exacttarget.com Testing & Optimization Leverage the Three T’s of Email Marketing Testing -Test one element at a time -Each email is a chance to learn

26. www.exacttarget.com Lower Price Point - Test! Test! Test!

27. www.exacttarget.com Lower Price Point - Mail Best Offer to Entire List

28. www.exacttarget.com Testing & Optimization Leverage the Three T’s of Email Marketing Testing -Test one element at a time -Each email is a chance to learn Timing -When is your audience receptive?

29. www.exacttarget.com Testing & Optimization – Timing of Delivery When is your audience most receptive?

30. www.exacttarget.com Testing & Optimization Leverage the Three T’s of Email Marketing Testing -Test one element at a time -Each email is a chance to learn Timing -When is your audience receptive? -How often is appropriate?

31. www.exacttarget.com Testing & Optimization Leverage the Three T’s of Email Marketing Testing -Test one element at a time -Each email is a chance to learn Timing -When is your audience receptive? -How often is appropriate? Tracking -What metrics are most important? -How do you react to the data? -Test, fire, adjust!

32. www.exacttarget.com Tracking Results

33. www.exacttarget.com Tracking Results - Surveys

34. www.exacttarget.com Tracking Results - Surveys

35. www.exacttarget.com Email Metrics – Open Rates Open Rates: Average Range is 40 – 60% To Increase Open Rates: -Reduce Frequency -Improve Permission (Evaluate Name Capture) -Improve Subject Lines -Evaluate “Preview Window” Look and Feel -Evaluate Content vs. Expectations -Modify Content to Reduce Impact of Spam Filtering

36. www.exacttarget.com Email Metrics – Click-Through Rates Click-through Rates: Average Range is 5 – 15% What if Click-through rates are low? -Evaluate “Preview Window” Look and Feel -Evaluate “Call to Action” -Test Offers -Provide Incentives -Relevant Descriptions

37. www.exacttarget.com SPAM & Email Deliverability Increase in Spam Filtering

38. www.exacttarget.com Opportunity: Help Clients Maximize Delivery Help them Understand: - Content Filtering - Volume Filtering - IP Filtering (Blacklisting & Whitelisting) - List Quality Filtering SPAM & Email Deliverability

39. www.exacttarget.com SPAM & Email Deliverability

40. www.exacttarget.com How To Get Started? Step 1: Determine your objective A. Sell Product –often B to C and B to B lower cost products, low touch. B. Educate, Generate Leads & Enhance Credibility –often B to B product and service solutions or B to C higher margin products or services, high touch.

41. www.exacttarget.com How To Get Started? Step 2: Build your list A.Start with your customer database -export out of contact database -call clients to fill in email address B. Capture email addresses through web site -offer incentives for sign-up -use other media to drive people to sign-up page C. Leverage forward to friend to grow list -reward your advocates -send great content: humor, articles, case studies, etc

42. www.exacttarget.com How To Get Started? Step 3: Test and adjust A. Objective: To Sell Product -how much did you sell, does the ROI work? B. Objective: Educate, Generate Leads & Enhance Credibility –what business or service offerings are generating most interest, track individual activity, etc