A common practice in today’s e-commerce environment is to use email marketing campaigns to launch advertising initiatives for products and services offered online. Since 2003, CAN-SPAM laws have been enacted to protect consumers from abusive spammers and exploited vulnerabilities in email marketing. Once again, email campaigns are a viable marketing tool in the world of eCommerce.
As with most things related to the Internet, you should be careful and use common sense when purchasing goods and services over the Internet. Unlike traditional business transactions, you rarely meet face to face or even have a phone conversation with Internet sellers. This makes it more difficult for buyers to assess the validity of performance claims made on a seller’s website. So if you’re considering using email marketing to promote your product or service, practice the following four techniques for choosing a provider.
1. Make sure the provider is CAN-SPAM compliant.
Even if you are using a third party to distribute your email campaign, you are still legally liable if your provider violates CAN-SPAM laws. Reputable providers will prominently advertise on their website if they are CAN-SPAM compliant. If they do not promote or declare their compliance, you should stay away from their services.
2. Ask for references.
Only deal with email marketers who are willing to give you referrals. I recommend at least 5 references with company names and contact information. Ideally, you’ll be able to ask for and get a referral to a user who targeted the same or similar type of prospect you’re targeting. Either way, apply for a diversity of companies and ask that referrals come from organizations outside of the email marketing industry.
Be sure to follow up and call references. You can expect these referral sources to be some of your best clients who should be able to give you accurate response results from your email marketing campaigns. You can also expect these results to be on the high end of your realistic results, so set your expectations accordingly. Also be sure to ask how helpful, flexible, and responsive the email marketing company is to special needs and complaints. This will help you decide if they are a good fit for your business needs.
3. Find companies that offer email lists for your target market.
In some cases, sending email advertising to tens of millions of general prospects would make sense; however, many products and services are aimed at particular markets, so it is important that you use a provider that can provide precisely targeted email lists. Targeted lists cost a little more money, but as with most things, you get what you pay for. In my experience, I’ve had better return rates paying $500 for 100,000 highly targeted emails instead of paying $199 for 3,000,000 emails sent to a broader audience.
There is no exact formula to calculate how much to spend per email. Businesses will spend 25 cents or more per email for highly targeted lists. Ultimately, you need to consider your total cost versus your expected sales conversion rate to determine if a particular targeted email campaign makes sense for your product or service. Start with a small, targeted list to test the effectiveness of your email campaign. While the smallest starting list will cost more per email address, it could save you hundreds or thousands of dollars if you find that your campaign message isn’t achieving the success rate you need to make your campaign profitable.
The most reputable email marketers spend a considerable amount of time and effort (and money) to make sure their email lists contain high-quality leads. Be sure to ask for the expected “open” and “response” or “click-through” rates so you can calculate your projected ROI. If they claim a response rate greater than 5% or give you a broad range like “100-1,000 visits per 100,000,” be very skeptical. The only possible exception is for very specific campaigns.
4. Check the provider’s complaint history.
You can check to see if others have had a problem with a company by checking with the Better Business Bureau. Providers who are BBB members will advertise this on their website and are often your best bet. Even with BBB members, you still need to check your complaint history.
Above all, use good business sense. Avoid providers who make claims or offer prices that seem too good to be true. Read their satisfaction guarantees in detail. A company may claim satisfaction guaranteed, however it is their responsibility to ensure that this guarantee is in writing and that they offer you an adequate level of comfort with their service. Following these practices will help you choose the best provider for your email marketing campaign.