Tag Archives: email marketing

Case Study: Direct Mail vs. Email Marketing with Video

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Originally posted on the SmartMarket Media Blog

mail-vs-videoHere are some amazing statistics from a client of ours that recently did both a direct mail post card and an online marketing video sent out via email to the exact same client base. They did both methods because they wanted to make sure all of their customers were touched and also because they didn’t have all of their customers email addresses. Due to client confidentiality limitations, we cannot disclose our client’s name.

Business Needs

The business is a service oriented operation with predominantly a business-to-consumer base. They also have a reputation as an environmentally responsible company and try to do what they can to diminish the amount of waste they create. This business was beta testing a new service which would streamline how their customer base would interact with their services. To clarify these changes, answer any questions their customers may have, etc. they needed to reach out to their entire regional customer base of about 16,000 customers. Their objective wasn’t a direct call to action for their customers – but simply to notify and educate them of the new service and to make sure their customers knew who to contact if they had any questions about the service.

Solution

Their internal marketing department had already planned to send out a postcard with a follow up brochure to their entire base of 16,000 customers. They did have over 6400 email addresses for a portion of their client base, so we suggested incorporating an email marketing e-newsletter linking to a short interactive video explaining the changes to the service and including helpful links for more information, download a PDF of the brochure or to contact someone at the company. The postcard was sent out first and the email newsletter with links to the video was sent out two weeks later.

Results

Postcards sent: 16,000

Direct replies & requests for further information: 12 or 0.075%
(responses were entirely phone calls about the program)

Costs: includes design & printing of postcard, ink jet printing of addresses and postage = $5,470*

*if you include the design & printing, ink jet printing of addresses and postage for the brochure as part of this campaign  – the overall cost was $12010.

Emails Sent: 6406

Statistics:

  • Open Rate (OR) – 43.8% or 2804
  • Click-Through Rate (CTR) – 44.7% or 1254

Direct replies & requests for further information: 146 or 2.28%
(responses were entirely email responses about the program).

The email responses varied – many were requesting further information, others were thanking the company for how clearly the email, PDF and video explained the upcoming changes to their services and a handful expressed gratitude for the company keeping their message environmentally friendly by using email with the video.

One respondent when asked about the post card remarked that they “didn’t remember ever seeing it” and assumed that they had “thrown it with the rest of the junk mail in the recycling bin”.

Costs: includes email service provider subscription*, web hosting provider & domain for landing page*, design for email newsletter & landing page to host video, PDF and FAQs about program and the online video production = $4176

* Email Service Provider (ESP), domain registration and web hosting were all yearly billing costs included in the overall budget for this one campaign.

Final thoughts

From the perspective of action the clear winner was email marketing with video which garnered a response rate that was 11x higher than direct mail. While their varied customer demographic will never allow for a completely emailed list, the results from direct responses and the ability to track the emails effectiveness through the email service providers statistical tracking data are obvious.

From a cost perspective on the single campaign its also clear that email marketing with video was obviously not only more effective but far less expensive. This is especially noticeable when you factor in that the email service provider, domain registration and web hosting costs (in the amount of $901) were all for one full year, not just this single campaign.

This brings up another important issue, which is that this service was only launched to a fraction of their customer base as part of a beta test of the program. So if they choose to open the program to a wider selection of their customer base – with direct mail all of their production costs will repeat (with the exception of their initial post card design costs if there are no edits to the content) while with email and video they will absorb a fraction of those email service provider and web hosting yearly fees and they may need to tweak the email content but other than that the second blast of this information using email marketing and video is completely paid for and they have endless distribution.

The company’s program director expressed his thoughts on how the campaign worked out by sharing, “E-mail made it so much easier for our customers to respond because they could simply click to reply to get more information. They also loved the fact that the video so clearly illustrated how the new service would work.”

Increasing Donations Using Video & E-Mail Marketing

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How Stanford University increased alumni donations.

Seeing how I’ve already talked about how integrating video in your email marketing can increase your click throughs by 175% I thought I’d profile another success story I read about online. Much of the information on this is exerpted from a great blog post by Tyler Willis for MediaPost called “When Juggernauts Collide: Email Marketing Meets Video Marketing” Here are the highlights of what I found most interesting from his post.

“Recent grads are far more likely to give a valid email address than a number (93% of the captive population vs. 38%), meaning that email marketing gives Stanford a better and more widespread ability to connect.”

Snail mail and “dialing-for-dollars” are incredibly inefficient ways to connect with new grads. Namely because direct mail is assumed to be junk mail by most recipients and you only get a response of about 2% (if you are lucky). Phone calling on the other hand is incredibly interruptive, who knows what the end user was doing or what you interrupted them from doing. Email is passive and can be opened or read when the end user is ready to read or respond to it.

Scott Jahnke, the Director of Student and Young Alumni Development, explains why he chose to combine email AND video as part of Stanford’s new alumni drive “Technology gives us the ability to do so much more than just text. How then, can we most effectively tell our story to thousands of people and inspire them to give? I believe that a combination of using email AND video to answer our three questions (why are we asking you for a gift, what is going to change if you give, and how will our organization make that change happen) is the so-called ‘secret sauce.”

“At Stanford, the Young Alumni office produced several inspiring videos of students who had directly benefited from alumni contributions and attached a clear call-to-action to the end of each video, delivered via a Flash overlay that asked viewers to donate.”

This was key, by providing this call to action they were able to easily and effectively drive their alumni to take the steps they wanted them to take. Without a call-to-action, online video doesn’t effectively do it’s job.

“Calling out these videos, and providing a direct link to them in four out of five emails sent during Stanford’s fall campaign, helped increase gifts by 23% over the previous year’s fall campaign.”

This is a great first result and if they continue to refine their approach will probably become even more efficient. Couple this with the fact that they probably dramatically reduced their printing and postage costs from their direct mail campaign and/or their costs if they hired current students to do the telemarketing as part of a work study program. How does that affect their operational costs? Does it make their alumni gifts go longer.

If one of the most respected universities in the United States was able to buck the old trend of typical alumni gift campaigns and get these kind of outstanding results, what could combining the online marketing super powers of email marketing and online video do for your business or non-profit?

 

 

Darwin's Theory Applied to Marketing

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tech savvy dodo birdHow Marketing Firms, Designers and Business Owners Must Adapt or Risk Becoming Extinct

I was recently talking to a marketing firm that really doesn’t grasp the changing dynamic of the marketing environment online. They were still convinced that the best way was still the old way and they had little knowledge of email marketing, how to implement it and virtually no knowledge of how to utilize online social media. Which quickly made me realize that they must adapt and learn quickly or they may go the way of the dodo bird. Here’s why:

Think back to 1995…I know…I know it seems like a long time ago. I was just graduating from college with a degree in Visual Design. The college curriculum during the early nineties included very little computer design because…well…there weren’t many programs and most of the professors had no idea how to use the programs themselves.

  • Adobe software programs that are design standards today like Photoshop & Illustrator were in their relative infancy. The majority of our design work and training was still a lot of paste up, photocopying and layout done by hand, not COMPLETELY on the computer as almost all design work is done today.
  • The “home” computer was still relatively new as Windows 95 had not been released yet and most of our computer work was done in on-campus “computer labs” because few students could afford their own computer, much less the expensive software needed for design. The computers we did have in the computer labs were also notoriously slow. If you put a photo into the design you may as well ask the computer to slowly crash and die.
  • The internet was also in it’s infancy for the home user as most web browsers were released to the public in 1995. So there was NO training in web site design. Most web developers at this time coded HTML using text editors. Web site design was not done visually until 1997 with the release of Macromedia’s Dreamweaver program.

All right, enough waxing nostalgic. So what’s your point, is what you are probably saying now. Well I’m getting to that.

14 years ago it was a much different world

After college I learned much of what I know by taking classes, learning on the job and teaching myself in my spare time. So I was able to survive and thrive with my own business doing graphic and website design. That’s not to say I’m the cat’s meow of design. Eric Guerin isn’t walking around talking about himself in the third person. There are many, many designers that are far more talented than I am BUT I can say that a number of people I graduated with and who were in the design field in the mid-nineties are no longer. Why? Because they didn’t change with the times and adapt to the new tools emerging.

Which brings me to today

We are on the precipice of another landslide change in how people are marketed to and how they interact with brands. People want to interact with the companies and brands they are passionate about online. That’s why there are over 70 million blogs worldwide and counting. Email Marketing is one of the simplest and easiest ways to keep in contact with your customers and help promote repeat business. Over 390 million consumers are at least watching video clips and listening to podcasts on a weekly basis. Social Media websites such as LinkedIn, Facebook and Twitter offer the business the ability to have individuals in their company interact with consumers and their brand identity on a 1on1 basis.

So the what is the moral to this story?

These social media tools are developing and growing in popularity at an alarmingly fast rate. If marketing firms, designers and even the individual business owner doesn’t take the time to educate themselves they could find themselves within a relatively short period of time falling victim to advertising natural selection.