Here's a hunch: Twitter, Facebook, and other social networks are forcing
email marketers to change their ways - and consumers and businesses stand to
benefit.
At the Email Evolution Conference (EEC) in Miami, email marketers explained
how they are striving to improve campaign performance, from pruning email
subscriber lists to reevaluating success goals and the metrics they track.
Motivating the marketers? They want to improve return on investment, adhere
to best practices, and ostensibly avoid the unemployment line. It's no
coincidence this push comes as people spend more time on social networks
connecting with friends, family, and others.
Here are three ways that social media is changing email marketing:
Email Will Play Nice With Social
Email complements social media in referral campaigns and incentive-based
promotions to acquire new customers, say email marketing practitioners.
Consider these examples, including the first two that were discussed during
the
Email Evolution Conference :
- Mint.com acquired 8,000 users from one social email referral
program at a 50 cent CPA, said
Kristin
Hersant, StrongMail's director of corporate marketing. In that
campaign, Mint.com tested three messages with customers; customers were
all asked to enlist three friends to sign up but the rewards varied.
Some customers were offered the chance to win an iPod Nano; some were
given "exclusive access" to Mint.com's beta testing program; and
participants in a control group didn't receive an incentive. Of those
that received the "exclusive access" offer, 48 percent opened the email
and shared the invitation, on average, with five friends each. Those
invitations had a 61 percent click-through rate. Every 2.6 clicks on the
invitation led to one friend becoming a Mint.com user.
- Souplantation and Sweet Tomatoes, a 112-restaurant chain, averages
about 40,000 new email subscribers a month thanks to its email and
social initiatives, said
Pilar Bower,
optimization and email strategist at Red Door Interactive. In January,
Souplantation and Red Door worked with BlueHornet, an email service
provider, to manage a campaign that encouraged subscribers to refer a
friend to sign up for the restaurant's "Club Veg" email. Of 70,000 new
subscribers last month, 17,000 were attributed to the refer-a-friend
campaign.

click to enlarge
- And, ASPCA, an animal-rights organization, is building its donor
base using email, social networks, and online display advertising. In
the first step, it ran display ads, courtesy of lead-generation firm
Pontiflex, on CookingClub.com, GardeningClub.com, and PlanningFamily.com
that invited pet owners and animal-rights advocates to sign up for
ASPCA's email. One ad, for instance, read: "Does Your Cat Keep You
Awake At Night? The ASPCA Twitter group has real-time tips on caring for
animals. Sign up now to learn about the many ways you can support the
ASPCA." ASPCA then sent an email inviting those people to become a
fan on
Facebook or follow
@aspca on
Twitter.

click to enlarge
"Email is only one way to engage your member, donor, and advocate,"
said Debbie
Swider, e-marketing manager at ASPCA. "When we combine all three
(Facebook, Twitter and email), we capture a bigger audience."
People, Not Lists, Will Matter
Email marketers will need to segment and personalize
email campaigns if
they want messages to resonate with customers and prospects. Marketers must
compete with personalized messages shared among friends and followers -
typically trusted sources - on social networks.
There's a silver lining for email marketers. "The real advantage email has
over social is data," said
Jay Baer, president of Convince & Convert, a social media strategy
consultancy, in an email interview with me. "Email knows who you are, what
you've bought, what you click on, what time you open. Twitter knows that you are
@somecustomer, and what you Tweet about, and maybe your geography. It's no
contest."
While a potential treasure trove, that data tends to be more valuable if it
is integrated, accurate, and easily analyzed. Case in point: the
InterContinental Hotels Group is undertaking a massive information technology
and business project to better understand its customers. The initiative calls
for integrating its transactional records, loyalty member data, Web analytics,
email metrics, and guest data.
"By consolidating this data, we are able to view all aspects of a customer's
profile in one location, which allows our marketing to be more agile," said
Ryan Sagan, marketing
automation manager at InterContinental Hotels Group, in an email interview.
Still, he cautions that integrating data is only the first step in an ongoing
process to better understand what customers want.
New Metrics Will Matter, Too
A focus on customers - instead of a "list" - requires marketers to reassess
the metrics they collect and analyze. Today, measuring a campaign's open rates,
click-through rates, and best days and times to send email do not tell the full
story about a customer and the likelihood they will do business with a brand.
Instead, the objective becomes building relationships with customers and
prospects over time rather than obsessing over the percentage of people who
opened an email from a particular campaign.
"We said we're going to get out of the campaign management business and get
into the customer management business," said Sal Tripi, senior director of
operations and compliance at Publishers Clearing House, a direct marketing
company best known for its $10 million sweepstakes. It sells magazine
subscriptions and merchandise.
Publishers Clearing House also slashed the number of subscribers from its
email lists, removing some names as soon as 15 days after some signed up for a
promotion. "By whittling it [the list] down, we were able to deliver a smaller
list but much more highly engaged," Tripi said.
The Bottom Line
Convince & Convert's Baer recommends that companies coordinate their email
and social communications. "Today, most companies have separate email marketing
and social media departments, and they need to merge (or at least cooperate
fully) to eliminate the unfocused, tone-deaf message conflicts that are
all-too-common today," he said.