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By
Jon-Mikel Bailey, Owner and Director of Business Development, Wood
Street, Inc.
(Published October 11, 2004)
Well, if you have made it this far, our point is made. . . People
read email! Are you using your email to its fullest potential? Emails
can be used to sell products, promote ideas or provide useful information
or they can be used to promote events.
Statistics show that email is strong and growing stronger everyday.
Take a look at the facts
Around 65 percent of marketers say they
plan to increase their use of email newsletters
Almost two-thirds of B2B marketers and more than one-half of B2C
marketers also claim that they plan to increase their use of email
newsletter sponsorship. (Aug 2002, Intermarket Group)
Spending on email marketing will increase
Forrester forecasts that spending on email marketing will grow from
$1.3 billion in 2001 to $6.8 billion in 2006. Jupiter Media Metrix
is more optimistic, forecasting growth from $1 billion in 2001 to
$9.4 billion in 2006. (May 2002, ZDNet)
Email marketing increases sales
T wo thirds of US companies report increased sales in 2001 as a
result of using email marketing. (April 2002, DM News quoted in
Nua)
US consumers online
Survey of 57,000 households in the United States shows nearly half
of the US population use email (45.2 percent, up from 35.4 percent
in 2000). (Feb 2002, US Department of Commerce)
Over 100 million American adults now
use the Internet:
77 percent of all users send e-mails weekly. The average user sends
6.4 e-mails per day.
Source: e-marketer
Internet direct marketing is estimated
to be 60-65 percent cheaper than traditional direct marketing.
Source: Yankee Group
Direct marketing cost-per-piece comparison:
$.01-$.25 per e-mail versus $1.00-$2.00 for traditional mail.
Banner ads have a response rate between .005 to 1%. Direct mail
programs typically generate an average 1 to 2%. Opt-in e-mail campaigns
produce and average response rate of 5 to 15%. The rapid response
rates for email marketing programs (which average 80% return within
48 hours vs. 6 to 8 weeks for traditional direct marketing methods),
is building the huge surge in demand for outsourced volume email
solutions.
Source: Jupiter Communications
E-mail accounts for 91% of online usage.
Source: Yahoo/Jupiter Communications/USA Today
Marketers that outsource the delivery
and list management of their email have more than 400% higher purchase
rates than those that keep email operations in-house (6%
versus 1.4%) HTML email will become the central
point of customer contact as it delivers not just marketing, but
also transactional and customer service. Both the infrastructure
and skills required to personalize, deliver, and analyze such sophisticated
email campaigns will force firms to turn to outside experts. Among
50 retail marketers which Forrester surveyed, 64% outsourced at
least part of their e-mail operations. A well known hotel recently
sent an email message to about 8,000 customers who had opted-in
to their mailing list. Their offer for discounted hotel rooms received
a 45% response and resulted in the selling of 2,000 rooms.
Source: Boldfish Inc.
65% of home and work Internet users
have a college degree and their median household annual income is
$67,000.
Of the items for which Internet shoppers browse online, they complete
the transaction 15% of the time online, but 43% of the time offline,
that's a 3:1 ratio in favor of buying offline. When survey respondents
were asked about receiving a personalized email newsletter with
only product information that matches their profile, 50% of the
people said they'd appreciate receiving it, and 25% said they want
to receive an email news letter from a merchant once a week.
Source: Clickz.com
The number of email users has hit 122.6
million.
Source: Nielsen/NetRatings
65% of the dollars spent on e-mail direct
marketing will be used to retain customers, as opposed to acquiring
them.
Source: S.G. Cowen
Email is for more than just sending a quick
note...or sending an attachment. Email can be used to reach a large
audience in an effective way. Are you utilizing this very strong
marketing tool that you see every day? Still don't believe us? Why
are you still reading?
With backgrounds in both fine arts and business development Jon
has an interesting perspective about getting the word out. He has
developed marketing campaigns for clients locally, nationally and
internationally. Throughout all of Wood Street's projects the focus
remains consistent - what's the message and who cares? For Jon it
is all about making some noise, so to speak. If you feel like you
are not being heard, you might want to contact Jon at jbailey@woodst.com.
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