Changing Cross-Currents in E-Mail Marketing

Many marketers find it one of the easiest marketing tactics to execute … but also one of the least effective in terms of results.

In the realm of digital marketing, e-mail marketing has to be one of the most mature choices of tactics these days. It’s been around for a long time, and its relatively small hard-dollar costs make it one a natural “go-to” marketing tactic for many companies.

But today, a declining percentage of marketers see e-mail as one of their most effective tactics in the digital marketing arsenal.

So, what’s the problem?  Many companies have the technology and skills in place to perform e-mail programs using in-house resources. That’s the good news.

The not-so-good news is that more companies are seeing their e-mail programs becoming less effective — for a variety of reasons. Among them are these:

  • E-mail filtering technology is making it more difficult to land e-mails into inboxes.
  • Privacy regulations are becoming more stringent.
  • Overuse of this marketing tactic means more e-mail messages than ever from more companies are being deployed – and with that, more of them are being ignored by recipients.
  • While e-mail used to be the only digital direct marketing game in town, today there are a bigger variety of ways to engage with customers and prospects.
  • Building a high-performing e-mail list that also conforms to regulatory stipulations is more challenging than ever.

This last point is particularly nettlesome for marketers: Data quality and data management are considered among the most difficult challenges for marketers – and also among the least effective in terms of their success.

So, in some ways the factors affecting the use of e-mail marketing are working at cross-purposes. E-mail marketing is easier to execute than other digital marketing endeavors … but as for its effectiveness, many marketers rate other tactics higher, including content marketing and search engine optimization.

In the coming years, it will be interesting to see how attitudes and behaviors regarding e-mail continue to evolve. Will this time-honored tactic decline in importance, or find new life?  Stay tuned …

Does “generational marketing” really matter in the B-to-B world?

For marketers working in certain industries, an interesting question is to what degree generational “dynamics” enter into the B-to-B buying decision-making process.

Traditionally, B-to-B market segmentation has been done along the lines of the size of the target company, its industry, where the company’s headquarters and offices are located, plus the job function or title of the most important audience targets within these other selection criteria.

By contrast, something like generational segmenting was deemed a far less significant factor in the B-to-B world.

But according to marketing and copywriting guru Bob Bly, things have changed with the growing importance of the millennial generation in B-to-B companies.

These are the people working in industrial/commercial enterprises who were born between 1980 and 2000, which places them roughly between the ages of 20 and 40 right now.

There are a lot of them. In fact, Google reports that there are more millennial-generation B-to-B buyers than any other single age group; they make up more than 45% of the overall employee base at these companies.

Even more significantly, one third of millennials working inside B-to-B firms represent the sole decision-makers for their company’s B-to-B purchases, while nearly three-fourths are involved in purchase decision-making or influencing to some degree.

But even with these shifts in employee makeup, is it really true that millennials in the B-to-B world go about evaluating and purchasing goods and services all that differently from their older counterparts?

Well, consider these common characteristics of millennials which set them apart:

  • Millennials consider relationships to be more important than the organization itself.
  • Millennials want to have a say in how work gets done.
  • Millennials value open, authentic and real-time information.

This last point in particular goes a long way towards explaining the rise in content marketing and why those types of promotional initiatives are often more effective than traditional advertising.

On the other hand … don’t let millennials’ stated preferences for text messaging over e-mail communications lead you down the wrong path. E-mail marketing continues to deliver one of the highest ROIs of any MarComm tactic – and it’s often the highest by a long stretch.

Underscoring this point, last year the Data & Marketing Association [aka Direct Marketing Association] published the results of a comparative analysis showing that e-mail marketing ROI outstripped social media and search engine marketing (SEM) ROI by a factor of 4-to-1.

So … it’s smart to be continually cognizant of changing trends and preferences. But never forget the famous French saying: Plus ça change, plus c’est la même chose

Consumers continue to grapple with what to do about spam e-mail.

Over the past decade or so, consumers have been faced with basically two options regarding unwanted e-mail that comes into their often-groaning inboxes. And neither one seems particularly effective.

One option is to unsubscribe to unwanted e-mails. But many experts caution against doing this, claiming that it risks getting even more spam e-mail instead of stopping the delivery of unwanted mail.  Or it could be even worse, in that clicking on the unsubscribe box might risk something even more nefarious happening on their computer.

On the other hand, ignoring junk e-mail or sending it to the spam folder doesn’t seem to be a very effective response, either. Both Google and Microsoft are famously ineffective in determining which e-mails actually constitute “spam.”  It isn’t uncommon that e-mail replies to the personal who originated the discussion get sent to the spam folder.

How can that be? Google and Microsoft might not even know the answer (and even if they did, they’re not saying a whole lot about how those determinations are made).

Even more irritating – at least for me personally – are finding that far too many e-mails from colleagues in my own company are being sent to spam – and the e-mails in question don’t even contain attachments.

How are consumers handling the crossed signals being telegraphed about how to handle spam e-mail? A recent survey conducted by digital marketing firm Adestra has found that nearly three-fourths of consumers are using the unsubscribe button – and that figure has increased from two-thirds of respondents in the 2016 survey.

What this result tells us is that the unsubscribe button may be working more times than not. If that means that the unwanted e-mails stop arriving, then that’s a small victory for the consumer.

[To access the a summary report of Adestra’s 2017 field research, click here.]

What’s been your personal experience with employing “ignore” versus “unsubscribe” strategies? Please share your thoughts with other readers.

Employee churn rates underscore the volatile nature of e-mail contact databases.

Most marketers are well-familiar with the challenges of e-mail list maintenance. In the business-to-business world in particular, e-mail databases can become pretty stale pretty quickly, due to the horizontal and vertical movement of employees inside organizations as well as jumping to other companies.

Whether they’re moving up or out, often they’re no longer good prospects.

Based on my experience, my personal rule of thumb has been that approximately one-fifth of any given list of B-to-B names will “churn” within a 12-month period, meaning that any such contact database will rapidly lose its effectiveness unless assiduously maintained.

And now we have a new report from Salesforce Research that confirms this basic rule of thumb.

Salesforce looked to LinkedIn, exploring this social platform’s data from more than 7 million records over a 48-month period to gauge the lifecycle of the typical “persona.”

The research considered not only changes that result in the deactivation of an e-mail address, but also circumstances where individuals may keep the same e-mail address but still should be removed as a target because a horizontal or vertical change within the same organization places them in a different employee function.

What the new research found was that the average annual B-to-B churn rate for such “personas” is ~17%.

That figure turns out to be fairly close to my basic rule of thumb based on years of observing not only e-mail contact databases, but also the postal mail databases we’ve worked with in my company or with our clients.

Beyond the broad average, there are some small but meaningful differences in the B-to-B churn rate depending on the product focus and on the type of employee function.

In high-tech fields, the average annual churn rate is higher than the average. And it’s across the board, too:  23% churn in marketing … 20% in sales and in HR personnel … 19% in IT, and 18% in finance.

People employed in the retail and consumer products industries also clock in at or higher than the overall churn average, but the annual churn rate is a tad lower in the medical and transportation fields.

Another interesting finding from the Salesforce evaluation is that annual churn rates are somewhat lower than the average for personnel at director levels and higher in companies (around 15%). For managers, the churn rate matches the overall average, while “worker bees” have a higher churn rate averaging around 20%.

Considering the critical importance of e-mail marketing efforts in the B-to-B environment, Salesforce’s finding that it takes only 4.2 years for an e-mail database to churn completely means that the value of these marketing assets will decline dramatically unless cultivated and maintained on an ongoing basis.

The volatile nature of e-mail contact databases also helps explain why so many companies have adopted a multi-channel approach to marketing, including interacting on social media platforms. Yes, those platforms do have their place in the B-to-B world …

The full report of the Salesforce findings can be downloaded here.

In copywriting, it’s the KISS approach on steroids today.

… and it means “Keep It Short, Stupid” as much as it does “Keep It Simple, Stupid.”

Regardless of the era, most successful copywriters and ad specialists have always known that short copy is generally better-read than long.

And now, as smaller screens essentially take over the digital world, the days of copious copy flowing across a generous preview pane area are gone.

More fundamentally, people don’t have the screen size – let along the patience – to wade through long copy. These days, the “sweet spot” in copy runs between 50 and 150 words.

Speaking of which … when it comes to e-mail subject lines, the ideal length keeps getting shorter and shorter. Research performed by SendGrid suggests that it’s now down to an average length of about seven words for the subject line.

And the subject lines that get the best engagement levels are a mere three or four words.

So it’s KISS on steroids: keeping it short as well as simple.

Note: The article copy above comes in at under 150 words …!