Reaching out to clients; spam concerns linger
Permission-based e-mail is a new catchphrase in the marketing and advertising world. Instead of conducting a snail-mail marketing campaign, businesses can stay in constant contact with their customers through e-mail.
Dave Marquis, president of ChemArt, a collectibles manufacturer in Lincoln, said between 25 and 30 percent of the company’s $250,000 marketing budget is dedicated to e-mail communication. ChemArt started sending out a monthly newsletter two years ago that helps get information out and encourages feedback from clients, said Marquis.
As opposed to a direct-mail marketing campaign, e-mail messages can be tailored to a specific market segment, said Marquis.
Dr. Robert Leonard, of Leonard Hair Transplant Associates in Cranston, said since he started using e-mail to stay in touch with customers, his e-mail list has grown from about 650 to nearly 1,000 people.
Leonard is a familiar face in radio, television and print ads, but he said the use of e-mail provides “another tool to educate the patient population.”
He sends out a monthly newsletter that helps spark interest and develop relationships with patients, he said. All prospective clients are asked to provide an e-mail address when they contact the office. He has spent about $2,500 developing the campaign.
“The future is being able to sell products and services online,” said Leonard.
Researchers report that in 2004 the e-mail marketing industry revenue topped $1 billion a year.
DoubleClick, an advertising and e-mail solutions firm in New York, reported in its 2004 Consumer E-mail Study that the average consumer receives 308 e-mails per week.
April Williams, an executive at North Star Marketing in North Kingstown, said e-mail is an important step in building relationships with customers, but cannot be successful as the sole form of advertising.
It is important that when looking to start e-mail marketing that a company work with a marketer knowledgeable in that area, she said. The new CAN-SPAM act could leave an unsuspecting company open to fines or leave their company blacklisted, Williams added.
Blair Fish, vice president of O’Connell & Associates, an advertising firm in East Greenwich, said via e-mail that e-mail blasts are more effective when sent to a list of people who have given you their e-mail address. E-mail is also very timely, he said, noting that the majority of Americans check their e-mail multiple times a day.
Constance Mussells, president of the Providence Creative Group, an advertising agency in Providence, said using e-mail is a different way to promote a business because there is not a predictable rate of return on the message.
E-mail allows a company to send out their message numerous times, said Mussells, noting that it can take seeing a message up to five times for it to resonate with a consumer.
The DoubleClick survey reported 73 percent of consumers have redeemed an online coupon during an online purchase. The survey also said 32 percent made a purchase immediately after receiving an e-mail while 34 percent returned later to make a purchase.
The Direct Marketing Association reported that overall response for direct mail was about 4 percent.
Robert Burko, president of Eliteweb.cc, an Internet por tal and online community based in Toronto, said until recently the technology for e-mail marketing was not available to small businesses.
Now e-mail provides a level playing field that helps companies engage customers and build relationships in an “incredibly easy” way, said Burko.
“If someone can turn on a computer they can make an (e-mail) campaign,” he said.
Companies can send e-mail messages for less than a cent per person, said Burko. E-mail software can also track who opened the message and who clicked on a link, he said.
