eMail marketing

MBA 563Week 6

Overview:

• eMail marketing • The new Canadian anti-spam legislation (CASL)

EMAIL MARKETING

eMail usage by organizations

• Inbound – part of CRM– Firms need clear policies for provision of email

addresses to customers– Clear processes for ensuring that inbound email is

dealt with fully and promptly– eMail is a key part of customer service

• Outbound – part of IMC– Many advantages as a direct marketing medium– Increasingly problematic for marketers to manage

Source: eMarketing eXcellence. 2012. Smith &Chaffey

Direct marketing using eMail - Advantages

– Push medium – it appears in customer’s email inbox– Good for retaining customers and maintaining

relationships– Direct response - deep link to website landing page

(url need not be memorized or copied)– Easy to quantify effectiveness– Cheaper to send than print– Lower creative costs than print– Fast execution time– Fast response time

Source: eMarketing eXcellence. 2012. Smith &Chaffey

Disadvantages of eMail

– Bad reputation – SPAM (90%+)– Deliverability – eMail filters (both personal and

mailbox provider)– Very poor for acquiring new customers

(requires opt-in for success)– Must compete with lots of clutter in in-box– Bad list data - multiple eMail addresses and

churn

Source: eMarketing eXcellence. 2012. Smith &Chaffey

eMail metrics – methods of measuring effectiveness

• Delivery rate / bounce rate

• Open rate – for html messages only– How do we know whether the email has been

opened?– Problems?

• Preview pane• Image blocking

• Click rate

Source: eMarketing eXcellence. 2012. Smith &Chaffey

SPAM• Traditional definition of SPAM

– Unsolicited commercial email sent in bulk(UCE)• New Canadian Anti-Spam legislation (CASL)

broadens the definition to:– Spamming: “the sending of unsolicited

commercial electronic messages (“CEMs”) whether in the form of e-mail, text messages, social media or other means of telecommunication”

– Email does not have to be sent in bulk to fall under this legislation

How much SPAM is there?

• Marketers have abused and misused email

• The Spamhaus Project estimates that 90% of incoming email traffic is spam in North America, Europe or Australasia. By June 2008 96.5% of e-mail received by businesses was spam (at VIU it is around 98%).

Why does SPAM continue?• Cost to sender is minimal • Very low response rate required to make SPAM

profitable. Spammers are turning a profit despite only getting one response for every 12.5m e-mails they send.

• Nature of the worldwide global network enables SPAM • Spamhaus project (spamhaus.org)

• Legal penalties difficult to enforce – US law – the “Can Spam” Act – came into force on Jan 1, 2004

• Requirements for commercial emailers– Canada introduced comprehensive anti-spam legislation (CASL)

– July 2014

So what does the law say?• CASL (Canada’s Anti-Spam Legislation)

– Passed December 2010 (after many years in development)– Sections covering “commercial electronic messages” came

into force July 1, 2014– January 15, 2015, sections of the Act related to the

unsolicited installation of computer programs or software come into force.

• This is very comprehensive and stringent legislation• Penalties: up to $1,000,000 per violation for

individuals and up to $10,000,000 for corporations• Private rights of action after 1 July 2017 – ie. recipients

can suehttp://fightspam.gc.ca/eic/site/030.nsf/eng/h_00039.html

CASL generally prohibits:• sending of commercial electronic messages without the recipient's

consent (permission), including messages to email addresses and social networking accounts, and text messages sent to a cell phone;

• alteration of transmission data in an electronic message which results in the message being delivered to a different destination without express consent;

• installation of computer programs without the express consent of the owner of the computer system or its agent, such as an authorized employee;

• use of false or misleading representations online in the promotion of products or services;

• collection of electronic addresses by the use of computer programs or the use of such addresses, without permission (address harvesting).

http://fightspam.gc.ca/eic/site/030.nsf/eng/h_00039.html

What is a “commercial electronic message”?

• A commercial electronic message (CEM) is defined as– a digital message sent to any electronic address (i.e.

email address, social media account, text message) – that promotes or advertises a product, person, event,

investment, or business. • So if there is any commercial activity tied to the

message it would be considered a CEM under CASL.• This applies to individual messages as well as bulk

messages (very different from typical anti-spam legislation)

What’s an electronic address?• “A typical advertisement placed on a website or blog post

would not be captured.”• “Whether communication using social media fits the definition

of "electronic address," must be determined on a case-by-case basis, depending upon, for example, how the specific social media platform in question functions and is used.“– “For example, a Facebook wall post would not be captured.”– “However, messages sent to other users using a social media

messaging system (e.g., Facebook messaging and LinkedIn messaging), would qualify as sending messages to "electronic addresses."

– “Websites, blogs and micro-blogging would typically not be considered to be electronic addresses."

http://www.mondaq.com/canada/x/319300/Social+Media/Canadas+AntiSpam+Law+And+Social+Media+Marketers+Advised+To+Proceed+With+Caution

Consent is really important• You can legally send CEMs only with the full

CONSENT of the recipient– Express consent: Direct, positive opt-in (absolutely no

pre-checked boxes) - remains in force until the customer opts out

– Implied consent – exists where there is a previous business relationship – BUT expires after 2 years – then Express consent is needed to continue sending messages

• 3 things to think about when sending electronic messages (Infographic from Gov’t of Canada)

How ethical marketers manage in the SPAM era

• Permission marketing (opt-in versus opt-out direct marketing) – applies particularly to email marketing

1. Ask people what they are interested in

2. Ask permission to send them information

3. Then do it in an entertaining, educational, or interesting manner

Source: eMarketing eXcellence. 2012. Smith &Chaffey

eMail marketing challenges

• Even with permission marketing and opt-in, there are considerable challenges in:– Getting email addresses (NEVER buy a list from a

third-party firm)

– Getting your email to the recipient (spam filters etc)

– Getting them to open it when they get it

Source: eMarketing eXcellence. 2012. Smith &Chaffey

Some tactics to help get your email delivered and opened

• Comply with the law– Use “affirmative consent” – ideally use the double opt-in

subscription process– No pre-checked boxes– Include physical address, link to privacy policy

• Include a visible “update email preferences” link (and make sure it is compliant with CASL!)

• Make sure the email is expected• A recognized, consistent sender name • “Branded” subject lines and subject line content• Consistency between subject line and content

Based on DMA “eMail Delivery Best Practices”

Some tactics to help get your email delivered and opened (cont’d)

• Be aware of how content (spam) filtering works • Message proofing and pre-testing• Think about images instead of text (downside!)• Manage user expectations• Select appropriate send time

• DMA Chart showing what to look for in a commercial eMail (use this for your project to make sure that your sample emails comply)

Based on DMA “eMail Delivery Best Practices”

eMail marketing success factors: CRITICAL

• Creative – design, colours, images etc• Relevance – does it meet my needs?• Incentive (or offer) – Benefit? What’s in it for me?• Targeting and timing – is it tailored just for me and my

interests. Does it arrive at a useful time? Related to any other event?

• Integration (with other campaigns) – does it fit? Consistent brand and message?

• Copy – structure style and explanation of the offer, including location of hyperlinks

• Attributes (of the email) – subject line, text or html?• Landing page (or microsite) – appropriate, engaging?

Source: eMarketing eXcellence. 2012. Smith &Chaffey

Software for managing eMail – a couple of examples

• Mailchimp – offers software to help create, track, and analyze email for businesses and organizations

• ConstantContact• Salesforce.com – part of their CRM software

suite