MarketingSherpa Blog

A quick look at the calendar shows that tomorrow is the deadline for entering your campaign into our 6th Annual Email Marketing Awards. To those who haven’t entered yet — enter here! Thank you to all those who have entered — and please don’t forget that multiple entries are accepted.

I’ve spent a lot of time recently trying to wrap my hands around the concept of Inbound Marketing. While it’s clear that content development and SEO are inbound tactics, there are many tactics that are not so clearly included.

Email marketing is one of these tactics. People can read your email newsletter referenced in other blogs. They can see your email promotions featured in social media networks. These are clearly inbound marketing concepts. But when you email an audience, can that really attract more customers?

When Emails Are Like Billboards

I recently spoke with Mike Volpe, VP, Inbound Marketing, HubSpot, who shared his insights on this issue. Volpe will also be presenting a case study titled “The Role of Email Marketing in an Inbound Marketing World” at our Email Summit in January. Whether an email program uses an outbound or inbound strategy depends mostly on how the marketer acquired the email addresses, he says.

“Some people will go off and purchase a list of people who have never heard of their company, and they’ll add them to their email newsletter or they’ll put them into some sort of drip email program… To me, that’s a very outbound-centric strategy,” Volpe says.

The key here is that the people receiving the email never expressed an interest in the company. This approach is similar to billboard advertising in that it reaches people who did not give an indication of wanting to be reached.

Shared Emails Can Grow an Audience

On the other hand, sending high-quality emails to an opt-in list reaches a relevant audience. This audience can secondarily attract more relevant people to your site. Here are two examples how:

Example #1. Your team emails a two-for-one promotion to your list. Subscribers click the social sharing buttons in your email and send the offer to friends on Facebook and Twitter. This pulls more relevant prospects to your website.

Example #2. A blogger writes a post referencing an article featured in your newsletter. The reference drives more relevant prospects to your site.

The prospective customers in these examples are interested in your industry. They’ve expressed that through their social networking and blog reading. By emailing valuable content and making it easy to share, you’re encouraging subscribers to extend your reach to like-minded people.

The concept is very similar to blogging. Regularly generating high-quality content attracts a relevant audience. But in this case the platform is not a blog — it’s an email.

Is this a bit of a stretch? Probably. But Volpe’s opinion has settled the case for me. Email marketing has potential as an inbound marketing tactic. Do you agree? Feel free to let us know in the comments.

Related Resources

Call for Entries: MarketingSherpa’s 6th Annual Email Awards

Agenda Release: Email Marketing Summit 2010

New Chart: Chief Challenges to Email Marketing

(Editor’s Note: In a recent MarketingSherpa webinar, Top Email Tactics to Improve Relevancy & Deliverability,we received more questions from the audience than we could possibly answer in that 60-minute window. So Tom Sather, Director, Professional Services, Return Path, was kind enough to review all the unanswered questions and provide some additional information)

Q: Doesn’t the effectiveness of having a dedicated IP address depend on the amount of volume the sender is sending out? Aren’t some senders who send low volumes of e-mail actually better off on pooled IPs with a well-groomed stable of senders to help keep complaint rates down?

– Alex, email marketing support specialist in Chicago

A: During the MarketingSherpa webinar, we highlighted the use of dedicated IP addresses as one of the most effective, yet least used tactics to improve deliverability.

Because your deliverability is only as strong as your weakest sender, your mailing reputation and deliverability is at the mercy of other marketers. Can you imagine handing the keys to your marketing program over to a complete stranger? Me neither! That’s why I recommend using a dedicated IP address whenever possible.

However, you make a good point. There are some instances when using a shared IP address can actually work in your favor. If your mailing volume is somewhere between one and 20,000 subscribers, and your domain distribution consists mainly of the top four B2C domains (Hotmail, Yahoo, Gmail and AOL) and with a long tail of smaller domains, you may want to consider using a shared IP address. The benefits in this case are that you have a less volatile complaint rate, and ISPs and e-mail providers have an easier time assigning a reputation to higher-volume mailers.

If you do decide to go with an E-mail Service Provider (ESP) that uses shared IP addresses, here are some things to consider:

1. Ask for the shared IP addresses and look at their sending reputation. If they have a score of 80 or above, it’s safe to move to the next check. If the IP address has a reputation between 60 and 80, there’s some risk that you may run into deliverability issues. If the Sender Scores are below 60, forget about it. You’ll probably have a difficult time reaching the inbox, and there won’t be a lot you can do to fix that.
2. Did the ESP ask you to fill out a vetting document asking you about your sending practices? If not, then your ESP is probably letting any sender with a credit card on their network. That also means they don’t care about running a clean e-mail network.
3. Does the ESP handle feedback loop reporting and opt-out complaints per sender on the shared IP pool? If not, don’t consider using the shared IP. This means that the ESP doesn’t have ongoing monitoring of its senders to ensure they abide by their acceptable use policy. In this case, there is a very high potential of reputation and deliverability issues, now or in the future.

Most ESPs offer dedicated IP addresses for clients, but may charge a slightly higher premium because of the initial set up that‘s required. If you’re on a shared IP address, ask your ESP about moving to a dedicated one.

Q: How can you determine whether an e-mail makes it into an inbox (as opposed to a junk mail folder)  from a technical perspective?

– Denise, sole proprietor in San Francisco

Q: How do I know that e-mail got into Junk? If e-mail gets into Junk, is it considered undelivered mail?

– Elmira, marketing specialist in Toronto

A: The only way to determine your inbox placement rate is through a seed list-based monitoring system. A seed list is a list of custom e-mail addresses that is representative of the domains that make up your subscriber database. They should be included with every campaign deployment or segments so you can see if your e-mails are delivered to the inbox, spam folder, or if they’re missing (which usually means your mail is being blocked).

Unfortunately, most senders rely on the assumption that their undelivered file tells them what their inbox placement rate is. This is false because messages delivered to the spam folder, which is a folder that most subscribers never check, are reported as delivered messages. For example, you could have a 98 percent delivered rate, but a 30 percent inbox placement rate. This means that 70percent of your delivered mail is probably never seen by your subscribers, which is revenue you’ll never realize.

You can use a seed list either in-house or through a third-party vendor like Return Path. Doing it in-house can be time consuming as it requires you to sign up for e-mail accounts at all the ISPs. And you would have to pay for an account with those ISPs if you’d like more than just the data from the free webmail providers. You’ll also need to manually log into each of those accounts when you send a campaign to determine where it was delivered. Sounds like a lot of work, right? Using a third-party service like Return Path requires no effort on your end, allows you access to paid e-mail accounts (like Comcast for example), and gives you a real-time reporting interface on your inbox placement rate at all ISPs in a quick glance.

Q: I have a question about removing people based on their lack of opening e-mails. What if they are reading the e-mails in a text-only format, and therefore can’t have their open rates tracked?

– Karen, director of programs in Sacramento

A: If you’re sending a text-only campaign where reporting on open rates isn’t possible, you’ll have to rely on data such as  tracked links, conversions and website activity. You’ll also still be able to sign up for feedback loops from the e-mail providers, so that every time one of your subscribers marks your messages as spam, you can receive a copy of that message with the subscriber’s e-mail address.

You can use that data to help determine a good time to send a win-back and re-activation campaign to your subscribers. For example, a recent analysis I did for a major retailer showed that complaints were low until subscribers approached their one-year subscription anniversary. This indicated a perfect time for them to send a win-back campaign to their subscribers, which they did with very positive results. Even better, it’s not dependent on what format you send your e-mails in.

Related Resources

Call for Entries: MarketingSherpa’s 6th Annual Email Marketing Awards

Webinar Replay: Top Email Tactics to Improve Relevancy & Deliverability

Social Media Marketing…Or is it Email Marketing? The New Facebook Messages

Ten Numbers Every Email Marketer Should Commit to Memory

Few things in life worth having come without risk and hard work — and marketing is no different.

Social media marketing can give your brand a stronger, more personal connection with customers. This is accomplished by spending time interacting (hard work) in a public arena (which heightens risk).

Old Spice made its brand relevant to a new generation of consumers through a bold multi-channel viral video marketing campaign. “Bold” is nearly synonymous with “risky,” and the jaw dropping rate at which this team churned out videos must have been exhausting.

In a final example, MarketingSherpa published a case study today describing how the Indianapolis Symphony Orchestra’s marketing team systematically asked email subscribers to re-opt into its newsletters. Those who opted out or did not reply were removed from the database (see case study for details).

The initial result was an email database approximately 4.1% of its original size.

“It was small, but the beautiful thing was that it gave us a really strong foundation to build from,” says Mark Newman, VP, Marketing and Communications, Indianapolis Symphony Orchestra. “We were now getting people who really wanted to get emails from us. These are engaged people.”

Newman described the effort as “a scary thing we were embarking on” but knew that it was the correct approach to establish a valuable email marketing program.

“Early on, I felt we were trying to prove the theory right. And I feel good about where we are because we’re seeing our list grow,” he says.

And grow it has. As you’ll see in the case study, Newman’s team grew the list by more than 500% from this low point. It is now a powerful channel for improving sales. By accepting some risk and hard work, the team achieved great results.

If your team ran a fantastic email marketing campaign this year — send it into MarketingSherpa’s 2011 Email Awards. We want to see how your team took risks, rolled up its sleeves and achieved great results. Deadline for submissions is Friday, Dec. 3 — so hurry!

Earlier this month I led my ninth full-day Email Marketing Essentials Workshop Training for MarketingSherpa. One of the most popular parts of the day is the on-the-spot critiques of email creative. They are gentle critiques – attendees send samples and as a group we talk about how they follow standards and best practices and what the marketer might test to improve performance. I’ve had people tell me that the critiques of their pieces alone were worth the cost of admission, but I digress.

Creative is nice, but quantitative data is where the rubber meets the road for me. So I often ask attendees about the performance of the creative we’re viewing. What’s your abandon rate on that email sign-up page? How was the click-through rate on this email? Why do you send this every month – does the ROI justify it?

And it surprises me how many marketers don’t know these numbers off the top of their heads.

Now, I admit it; I’ve always had a head for figures. When I check-in to a hotel my room number always imprints on my mind right away. Early in my career I was a fixture at upper level meetings, because my bosses knew that I’d be able to answer, off the top of my head, just about any quantitative query that arose.

But still…

In my perfect world, here are the ten numbers that every email marketer would have committed to memory (join us in Miami or Los Angeles and impress me!):

1. Percentage of New Website Visitors that Sign-up for Email

New, rather than returning, Website visitors are a key audience for email acquisition. Anyone who visits your Website and likes what they see is someone you want on your email list. That way you have the ability to begin a relationship with them via email – and sell them, over time, on your company and your offerings.

There’s no “magic number” for this type of conversion. But there’s also no reason that you shouldn’t always be trying to improve it. I’ve seen new visitor conversion rates from 0% to 25%. They key is to know what your conversion rate is and to always be looking for ways to improve it.

2. Abandon Rate on Your Online Sign-up Process

How many people that start your sign-up process bail out before they are finished? This is important because if you can figure out why they left and address the issue, you have an instant boost in your list growth.

There’s no golden rule for what your abandon rate should be, except the lower the better. I’ve seen abandon rates as high as 90%, meaning that 9 out of 10 people that thought they wanted an email relationship changed their mind during sign-up. If you’ve got 50% or more of the folks abandoning your sign-up process, you have plenty of room for improvement. And even if it’s only 25%, making changes to get it to 20% would provide a nice lift in list growth.

3. List Size

Everyone should know how many email addresses they have on their email list. This is a basic and most people do have this information close at hand, I’ll admit. But be sure you get monthly updates.

As with some of the other figures, there’s no perfect size for a list. I’d rather work with a client that has a small but responsive list than a large list that’s unresponsive. It’s usually more difficult to do any statistically significant testing with a list of less than 40,000 email addresses. The key here is to know the universe of your target audience and work to get as many of them as possible to sign-up for your email program.

4. Monthly List Growth Rate

How much is your list growing, or declining, each month? It’s an important question to be able to answer since it goes directly to the long-term viability of your email marketing program.

MarketingSherpa’s 2010 Email Marketing Benchmark Report reported that lists that were growing did so at an average rate of 19.2% every six months. Those with declining lists reported a 10.3% decline over the same six-month period.

If you do the math, that’s an average monthly list growth of 3.2% for those with lists that are increasing. If your list is growing more quickly than this, great – but you still want to be thinking about how you can boost acquisition performance.

5. Bounce Rate

Bounces shouldn’t be a large part of your email send – but you should know this figure cold. If it’s higher than the industry average, then you may have serious issues with your list, list management and/or with being blacklisted (since some, but not all blacklists return a bounce message).

The Epsilon Q2 2010 Email Trends and Benchmarks Study reported an average bounce rate of 5.2%. If yours is higher, it’s worth some analysis to figure out why.

6. Open Rate

What percentage of your email audience is opening your missives? Opening is the first step to action, so this figure directly impacts your overall campaign performance. Open rates are somewhat controversial, but if you look at them as a relative, rather than an absolute, metric, they are still very useful.

Open rates are running from 16.4% to 31.5%, depending on industry, according to the Epsilon Q2 2010 Email Trends and Benchmarks Study. The average across all industries is 22.1%. If your open rates are below this it gives you something to shoot for. If you’re exceeding these metrics, there’s still always room to do better.

7. Click-through Rate

Click-through rate, calculated by dividing unique clicks by the quantity assumed delivered (send quantity minus bounces), is an important figure. Don’t get it confused with your click-to-open rate (sometimes referred to as the “engagement rate”) – which is useful but very different.

The Epsilon Q2 2010 Email Trends and Benchmarks Study is reporting an average open rate of 5.3%; the range across industries is 3.2% to 10.1%. As with opens, you should always know where you are in relation to industry benchmarks – and always be striving to improve your performance.

8. Conversion Rate

There are many different types of conversion rates, but the one I’m speaking of here is related to the bottom line goal of your email. If you’re looking to generate leads, then it’s the number of leads you generated divided by the quantity of email messages assumed delivered (quantity sent minus bounces). If you’re going for direct sales, then substitute direct sales for leads generated. If your email has some other goal, like driving traffic to a brick and mortar location, then substitute that.

Conversion rates are all over the board. Much depends on what your goal is and how much effort and/or commitment is required from the respondent to achieve it. I’ve seen conversion rates as high as 40% (and this conversion required a purchase!) – and as low as 0%. As with many of the other metrics, there’s no hard and fast measure of success here – but you always want to do better.

9. Return on Investment

Return on investment is calculated as how much revenue you generate for each dollar you spend on your email program. Some email marketers I’ve met shy away from even trying to calculate ROI because either (a) they have no way to track revenue associated with email or (b) they don’t feel they have a clear way to delineate the costs of their email program. While it’s great to have an absolutely accurate ROI, even an estimate can be useful. As long as you use the same formula to calculate ROI send-over-send and month-over-month, you can get a relative read on whether it’s improving or not.

The Direct Marketing Association projected that email will return $42.08 for each dollar spent on it in 2010. That figure is somewhat controversial, many feel it’s too high, but remember that it’s not a measure of success or failure. If your email marketing is profitable, returning more than $1 for each dollar you spend, it’s a success. And if you are making more than $42 for each dollar you spend, then your goal should be $50.

10. Dollar Value of an Email Address

What is an email address worth to your company? This is another figure which few marketers know, but it’s critical to the success of your acquisition efforts. The easiest way to calculate it is to divide the overall revenue generated from your in-house email efforts by the average number of people on your house list. When you know how much revenue you can expect from an email address, then you know how much you can spend on acquisition.

There’s no right or wrong answer here, and no industry benchmarks which would be valuable to gauge against. But that shouldn’t stop you from generating a quantitative figure. And as with the other metrics, you should strive to be sure that the value of each email address goes up, not down, with time.

Editor’s Note: Jeanne Jennings is teaching MarketingSherpa’s Email Essentials Workshop Training in 12 locations across North America this year; the next one takes place in Miami on November 9th. She’ll be blogging about the course material and her experiences during the tour. We’re excited to have her on board and contributing to the blog.

Related resources

MarketingSherpa Email Awards 2011

MarketingSherpa Email Summit 2011

MarketingSherpa Email Marketing Essentials Workshop Training

Sales, marketing and customer services teams can each have slightly different views of customers. In large organizations, differences in perception can coexist within the same department.

For example, a search marketing team can perceive customers’ interests differently than an email marketing team. A customer service team can perceive customers’ needs differently than the sales team. In both cases, the two teams connect with customers through different platforms and analyze their behavior through different data.

“Siloed” departments that have teams separated from one another can prevent organizations from understanding and communicating with customers effectively, says Dave Lewis, CMO, Message Systems, a messaging management solutions vendor.

As the number of marketing channels continues to expand with the growth of mobile and social media marketing, Lewis sees opportunities, but also the potential for additional channels to deepen the problem.

“You’re only furthering the fragmentation that gets in the way of understanding your customers on a holistic basis and being able to communicate with them on that basis,” Lewis says

That’s why Lewis says more teams need to pursue marketing integration (Lisa Arthur, CMO, Aprimo, expressed a similar sentiment in our post last week). By having a central platform from which to communicate with customers and monitor their behavior, teams can get a more well-rounded understanding of their customers and how best to reach them.

Several months ago, Lewis’ team launched a new solution called Mobile Momentum, to help marketers avoid further fragmenting their customer data and messaging. The software combines email and SMS messaging into a single platform that can track customers’ delivery preferences and provide reports on the channels’ performance jointly and separately.

Lewis anticipates incorporating more messaging services into the platform, such as MMS and social media. His team started by combining email and SMS because of the tremendous volume of SMS messages consumers send per day, and because more marketers can benefit from SMS than are currently, he says.

“My view is that the overlooked opportunity associated with text (messaging) is in using it to strengthen the customer relationship over time,” Lewis says.

By offering a platform that combines email and SMS, Lewis’ team is helping marketers better understand their audiences, better meet their needs and provide a better experience. Marketers who feel pulled in too many directions should take note that combining several marketing channels into a single platform may provide more insight into how best to reach customers.

If you are new to email marketing this post should provide a framework to build on, and if you’re an experienced pro it never hurts to think about the basics every once in a while.

Let me tell you what this blog post – and optimization in general – is not about: it’s not about a set of “best practices” rules that you follow time and time again to achieve the best possible outcome. What this blog post is about is taking a look at the basic series of priorities in email marketing that are critical to optimizing any campaign, and how to better understand the psychology of your target audience in order to make continuing improvements to any email marketing efforts.

As a new reporter at MarketingSherpa, I’m currently taking the online certification and training courses offered by our sister company, MarketingExperiments. The first course I’m taking is about email marketing optimization. Here are a few beginner tips I’ve noticed…

Why should I give you my email address?

What are the basic priorities in email marketing? MarketingExperiments has developed a simple heuristic that puts the four critical optimization categories in order of importance:


The order of importance is probably pretty obvious – if you don’t capture an email address there’s no message to be opened. If the message isn’t opened there’s no possibility of clickthrough, and if there’s no clickthrough then the landing page won’t get visited.

All of this leads to the single biggest issue in email marketing right now – email capture has become very difficult. The people in front of the other computer screen have become very wary about spam and privacy, and very reluctantly give out their email address.

I know this. In fact I have more than one free Web-based email address, and I bet you are no different. The same goes for the people we’re trying to reach.

The value prop of an email capture form

MarketingExperiments has developed a second heuristic that is applied to each of the four categories listed above:

Don’t be put off by the possibly complex-looking formula. This heuristic is the key to understanding the psychology of your target audience. Since email capture has become something of an email marketing problem, and is the most important step in any campaign, let’s look at this formula through the email capture lens, but keep in mind it should be applied to all four critical categories.

For effective email capture (eme in this example) your audience needs to see two kinds of relevance – the offer and the incentive. The offer simply answers the “why” question, as in, “Why should I give my email address to this person/company/website?,” and is the value you promise in exchange for the address. The incentive is just what it sounds like – an appealing element in the process that helps you get an email capture. Both offer relevance and incentive relevance, done correctly, are working for you.

On the other side of the ledger, and working against your success, are friction and anxiety. Friction is psychological resistance in your audience and anxiety is psychological concern. You want to remove any concern your audience might have about providing their email addresses, but friction is a little different because you need to have some friction.

Just asking for an email address is an element of friction, and if you don’t ask for it, it’s going to be pretty tough to get that address. What you want to do is minimize the resistance in your audience and remove any concern they might have.

When you look at email marketing optimization in terms of four critical categories that can be broken down into a handful of elements shared by each category, it’s obvious that no singular set of best practices rules will give you optimal results. But thinking about each element in each category, and repeating that process on a regular basis, will help you achieve continuing improvement. Now that’s optimization.

Related resources

MarketingExperiments Online Training and Certification Courses

MarketingExperiments Email Marketing Course

Email Marketing: “I am not dead yet”

I always love attending MarketingSherpa events – the presentations are not only enlightening but also entertaining and the networking between sessions rocks! This year’s B2B Marketing Summit in San Francisco was fabulous — and for those of you who missed it, we’re doing an encore performance in Boston October 25th and 26th 2010 .

My contribution to the event was a one-hour session on effective B2B drip campaigns which was very well received. It included seven case studies of successful B2B drip campaigns from my consulting work for clients and the MarketingSherpa archives. While I don’t have space to give you all the details here (join us in Boston if you need to know!) I wanted to share some of the keys to success.

But first: are you currently doing drip email campaigns? How many of you don’t even know what a drip campaign is? About a quarter of the audience responded affirmatively to the first question – and another quarter raised their hands when I asked the latter question. So, just to get us all on the same page…

Drip campaigns take their name from drip irrigation, which saves resources by allowing water and fertilizer to be consistently delivered directly to the roots of plants. There’s less waste than with sprinklers and topical fertilizer application; drip irrigation also provides a consistent level of moisture to the soil, rather than the “soak and dry” experience that sprinklers provide.

Drip marketing campaigns are most commonly delivered via the email channel because of its short turn-around, quick delivery time and cost-effective nature. A drip campaign involves a series of messages that are sent or “dripped” in a predefined order at a predefined interval. Each message in the campaign stands on its own but also builds on the missives that have come before it. A drip campaign is a response to a specific behavior or status of the recipient – and it encourages a specific action.

Drip campaigns are most commonly used to nurture leads – they often use education, testimonials and other tactics to move prospects through the early part of the sales cycle and take them from “less than hot” to “hot,” or at least “very warm.” As with drip irrigation, drip marketing campaigns are a resource-efficient way to serve a large group of constituents.

I shared seven case studies with the audience in San Francisco – here are the key takeaways:

1. Define your Goal(s): Know what you’re trying to achieve going in – and go further to define what specific action(s) you want the recipients of your drip campaign to take.

2. Understand that Content is King: When people contact me about drip campaigns, they usually want to talk about the timing and frequency of efforts. But those factors have much less impact than the content of your program. And once you’ve fleshed out the content, the timing and frequency fall in line naturally.

3. Develop a Message Map: The first cut of this should be a brainstorming session to determine the key messages which need to be conveyed to get recipients to take the action desired. The second cut is to figure out what real-life examples you can use to illustrate these key messages.

4. Bucket your Content: After your message map is done, it’s time to separate this information into a series of efforts. There should be some content that appears in every message; but each individual email needs to focus and go into detail on some aspect of your message map. It’s not a drip campaign if you send the same information over and over again. This exercise will determine how many efforts or individual sends are in your drip campaign.

5. Decide on Your Email Format(s): Although the majority of drip campaigns utilize letter-style email messages, but newsletter, short-form editorial and other formats can be just as effective. Don’t limit yourself to one – make the format support the content.

6. Utilize Design Strategically: Typically the copy is front and center in drip campaigns; design and images should be used to support, but not overshadow, the copy. Video and other interactive media can be effective as well, but only if they support the business goals.

7. Adding Segmentation to a Drip Campaign can Increase Its Effectiveness: Creating sub-campaigns which are based on lead quality, behavior or other actions increases the relevancy of your efforts and will increase overall campaign performance when done properly.

8. Detail Your Efforts in Advance: Developing a decision tree and/or flow chart of your drip campaign provides a blueprint for implementation and will help keep you in line with your business goals.

9. Use Social Media to Drive Acquisition: Social media allows you to communicate a single message to a large group – use it to entice people to opt-in to your drip campaign so you can deliver more relevant, targeted content to specific segments of your audience.

10. Look at Overall Campaign Performance: Obviously you’ll look at standard metrics like opens, clicks and conversions by effort and then look at the average of all efforts. But be sure to take the next step and evaluate the cumulative unique campaign metrics. A key link in a recent campaign garnered an average 25% increase in unique opens send-over-send. The unique clicks on the key link increased by more than 100% after the second send; after the sixth and final send, nearly five times as many unique recipients had clicked and visited this key landing page.

News of email marketing’s demise has been around for years.

Cases in point:

• I’ve been on many panels where the topic is “Email is Dead; Long Live <Fill in the Blank>” where “the blank” is Blogs, RSS, MySpace, Facebook, LinkedIn, Twitter, YouTube – you name it. Typically it’s a point-counterpoint format, where I’m alone on one side of the stage and there are at least three “experts” on the other side dissing on email.
• News sources, from About.com to iMedia Connection to the Wall Street Journal have run articles about  all the latest online marketing tactics – and how they will displace email in a matter of months or years.
• I recently did an audit of a large organization’s email program, from acquisition through creative development and into conversions and overall performance. At a presentation to the field reps, it only took a few slides for an attendee to raise his hand and ask why we were bothering, since no one used email anymore (even though their members are career professionals in their early 20s through retirement age).
• Ever since I started my email marketing consultancy, over nine years ago, people have asked me what I was going to do when email died. Confidence in my career choice was not high.

All that said, email is NOT dead yet. Nor is it dying.

Each year, the Direct Marketing Association ranks marketing channels by the ROI generated. Email has led their rankings for a number of years; in 2010 they project that email marketing will return an average of $42 for each dollar spent, down from more than $43 in 2009. Email is the leader by more than a nose; the #2 channel was Internet search advertising, which returned just under $22 per dollar spent in 2009.

Forrester also weighed in on email earlier this year, projecting that U.S. spending on email marketing will increase by a compound annual rate of 11% until at least 2014, when it will reach $2 billion.

A recent MarketingSherpa survey found that email was one of only two tactics where more organizations increased budgets than decreased them in 2009. Nearly 50% of companies reported that their email budget increased, compared to 14% who said it decreased (the balance said that their email marketing budget stayed constant). The only other tactic where more budgets increased than decreased? Social networks and blogs, where 48% of companies increased budgets and 20% decreased them.

The latest report that supports the life left in email marketing comes from Yahoo! Hotjobs, which recently  published an article on six new careers they felt were “coming of age.” Number five? You guessed it – Email Marketing Manager. Yahoo! reports it delivers an average salary of $69,000 and encourages those interested in moving into email marketing management to pursue an MBA.

My experience in the trenches supports the health of email marketing. My email marketing consultancy has been busier than ever in the past few years. I continue to grow my client base and just brought on a new employee to help me meet the demand.

So the next time someone suggests to you that email is dying, smile and just hum the tune to Monty Python’s “He’s Not Dead Yet.” Then go back to the office and continue to hone your skills to succeed in this exciting industry which is very much alive.

Editor’s Note: Jeanne Jennings is teaching MarketingSherpa’s Email Essentials Workshop Training in 12 locations across North America this year; the next one takes place in Toronto on October 19th. She’ll be blogging about the course material and her experiences during the tour. We’re excited to have her on board and contributing to the blog.

Related Resources

Master the Essentials of Email Marketing in One Day with MarketingSherpa Email Trainer Jeanne Jennings

Email marketing Case Studies, How To Articles and Interviews

Email Marketing Awards Gallery 2010: Winning Campaign Details and Creative Samples

A new report from ExactTarget and CoTweet reveals interesting differences in consumers’ motivations and habits when connecting with brands via email and social media. Take a look to find out more about why your customers are listening to you.

The report (you’ll be asked for an email address and phone number) is the result of three types of focus groups conducted with 44 people, and a 1,506-person survey (see methodology). It is loaded with interesting stats, such as:
o 38% of U.S. online consumers are fans of a brand on Facebook
o 5% follow at least one brand on Twitter
o 93% receive at least one permission-based email per day

The report offers plenty of other great metrics, and touches on useful topics, such as the motivational differences between consumers who first check email in the morning and consumers who first check Facebook. Check out the report for more.

The report also offers great best-practice advice for communicating with customers via social channels. However, there was one piece of advice I want to offer a different opinion on.

The report suggests that marketers avoid promoting exclusive, channel-specific offers in social media, and that “tone and content should be the primary differentiators in our channel strategies, not promotions.”

In general, this is sound advice. Integrating campaigns through multiple channels always drives stronger performance. And you do not want to condition followers to receiving special deals.

However, I feel like marketers should throw their social media followers an occasional treat. They are often truly fans of your brand. I do not think it could hurt to make them feel special, say, once every six months.

The “treat” does not have to be a discount or offer, either. For example, it could be a hint of a product launch sent to the audience two days before a press release is issued. And if it is a deal, it does not have to be exclusive to social media followers. Maybe, just once, they receive a coupon code a few days before your email subscribers.

How do you feel about occasionally giving social followers and fans special treatment? Waste of time? Vital display of gratitude? Let us know…

Not every marketer’s audience is waiting on Facebook or Twitter, especially marketers in B2B manufacturing. Tim Madel, Manger, Global Ebusiness, Kennametal, is one of these marketers, and his team experiments with social channels anyway.

“We know our current customers might not be using Twitter and Facebook, but we know that the next generation is, and we want to be there and ready for it,” he says.

One way Madel’s team is preparing for a new generation of metal workers is by using Lyris to add buttons to Kennametal’s emails to share content on social bookmarking sites and networks. Although the quick, low-cost tactic does not drive much traffic to Kennametal’s site (referrals from social networks are below 1%), the team hopes the buttons:

– Bring content to correct customers

Many of the team’s email subscribers are purchasing officers, who’re not their target audience. The team adds the buttons so emails can more easily reach people who use Kennametal’s tools.

– Help current and future customers

Customers who prefer to bookmark using Delicious or iGoogle have the option. And if more customers start moving to Twitter, the team will be comfortable sharing its content on the network having experimented. Other buttons the team includes are for:
o Digg
o Reddit
o Newsvine
o LinkedIn
o StumbleUpon

In a sample of two emails, the buttons captured between 40 and 50 clicks each in each email. This is a very low percentage of all emails sent, but the team is undaunted.

“You’re not looking at high percentages, but in our world, that’s a great number to start with,” says Jennifer Altimore, Site Content Manager, Global E-Customer, Kennametal.