Wednesday, August 15, 2012

Email Marketing - Cross Channels in an Omni-Channel Retail Experience

E-mail marketing is no longer a stand-alone activity. It is now part of a broader conversation with retail consumers who respond well to an omni-channel experience.   Interactive marketing strategies aimed at individual customers are now possible with a Campaign which coordinates SMS opt-in calls to action, with social media follow-up between the customers first visit and subsequent visits to your store.  As a matter or perspective, consider the following:

Time it took devices and media to reach an audience of 50 million people
  • Radio: 50 years
  • TV: 30 years
  • Internet: 4 years
  • iPod: 3 years
  • Twitter: 2 years
  • Tomorrow: a matter of days?

Many retail businesses have adopted many different approaches to acquiring an email from a customer.  With a 20-30% annual churn rate being typical of in-house email lists, even among loyal customers, brands today must focus on proven strategies for organically leveraging and growing their email lists to remain competitive in this channel. 

Currently 75 percent of email marketers rate “growing a bigger opt-in list” as a top priority1.  Why? The answer is simple.  Active opt-in email addresses acquired with express permission (or “affirmative consent”) generate higher response rates, conversion rates, and revenue than emails acquired without it.  Many companies are even able to quantify the value of an opt-in email address to the organization.  Assuming an average of $5 to $50 per email, a database with 200,000 addresses can be considered a precious company asset worth between $1 million and $10 million.

The stakes are high and retailers are continually refining their "pitch" to their customers in order to organically grow their email opt-in data base.  It should be noted similar considerations apply to SMS opt-in best practices.  There are several "speed bumps" that cannot be ignored regarding email opt-in subscription lists and using them.  FTC rules governing unsolicited emails simply cannot be ignored and must be baked into any effective strategy.

The Rules:

In late 2005, the Email Sender & Provider Coalition (ESPC) established a requirement
stating that commercial email must not be sent to an individual unless prior “affirmative
consent” from the individual has been obtained. The CAN-SPAM Act defines “affirmative
consent” as the recipient’s express consent “to receive the message, either in response to
a clear and conspicuous request for such consent or at the recipient’s own initiative.”
Further, the acceptable use policy of most email service providers (ESPs) and Internet
service providers (ISPs) prohibits unsolicited commercial email. In practice, this means
that:  "As a responsible permission-based marketer, you must not send commercial email to an individual unless you have already received the individual’s express permission to do so."  The CAN-SPAM Act also states that, if and when consent is obtained, an individual must be given “clear and conspicuous notice” that his or her email address could be shared
with third parties, if applicable.

The First Goal:  Organic Growth of Your Email List.

Organic growth — capturing email addresses directly through everyday online, phone,
mail, and in-person customer interactions — has proven to be the most effective way to
grow your brand's in-house list.  Savvy marketing teams are leveraging a combination of channels (in-store, events like sweepstakes, SMS campaigns, discount coupon offerings) as a means to establish the business relationship first.  Next is the process of gaining permission to email or to SMS text to the new opt-in person.

In 2012 with Smart Phones now in the hands of over 65% of the population, the time is ripe to use this tool to  grow your email list.  New opportunities now exist to combine an in-store customer request for an email by using an SMS text call to action in the store on a Smart Poster and even at the check out register.  Consider the following call to action on a Smart Poster:

"We appreciate our customers so much we want to save you money on your visit today.  Text AMPM1SUBSCRIBE to 68398 and we will enroll you in our VIP club.  You will receive a coupon via email for 10% off your purchase today.  That's just for opting-in and joining and giving us your email.  2-3 messages per seek. Text and data rates may apply."

Try it right now to see how it works.  If you are not able to do so at this time, this is what is received back from the initial opt-in text.

Next, when that customer clicks on the email link inside the text, in this case: "icemobilenetwork@gmail.com" and then includes COUPON1 in the subject line of the email to icemobilenetwork@gmail.com and then sends it, that customer receives back an auto response with a coupon number which they can take to the register and redeem for a discount.  The whole process takes less than a minute.  Will they do it for a 10% discount.  Numerous studies have demonstrated they have and will do so.

Functionality at the Register.

The coupon number could be replaced or supplemented by a UPC-A code or a QR Code which can be scanned by most POS camera scanners at the register.

A Second Opportunity.

If the customer missed the Smart Poster during their journey through the store, the following dialogue might be used by the personnel at the register where a small version of the Smart Poster is placed at the counter. 

“Thanks for shopping with us today.  We hope you enjoyed our store. Did you know about our VIP Club?  If you get a weekly sign-up chance to win a $100 gift card.  You have to be entered in our email list and you can join by texting __________ to __________.” The visitor texts in, responds with their email address to be entered into the drawing, and is instantly emailed a listing of the next month’s coupons or SMS opt-in text offers.

Summary.

The primary goal for retailers in the mobile world of Smart Phones is to take advantage of every customer interaction and touch point in the in-store sales interaction cycle.

The secondary goal , and more valued goal. is to get their permission to interact with each customer after they leave the store.  This must be reasonable and must meet their expectations or they will UNSUBSCRIBE in a hurry.   Use the email list and SMS text list only within the "permissions granted" in order to provide new values to your customers.

It goes without saying that asking for the email at the point of sale is a new art-form in the retail space and must be handled professionally and diplomatically.  Customers are reluctant to give it to a brand, unless your brand offers and delivers them something of value first.  This must be considered carefully, because it will govern what that customer is interested in for future offers made using your email channel and/or your SMS channel.





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