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Case study 2 Improving E-mail marketing response

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IMPROVING EMAIL MARKETING

Your Name (First M. Last)

School or Institution Name (University at Place or Town, State)

Case study 2: Improving E-mail Marketing Response

Email marketing is an exciting and influential way to connect withpeople for all sorts of purposes. Almost every online user has ane-mail account. Nearly everyone receives at least a couple of HTMLemails every week. Ever since the World Wide Web has emerged, emailhas been a huge part of our life. Email marketing has also been a bigtool to conduct online businesses. It is also a very private and safeway of reaching out to the target customers. Emails work great whenthey are personalized. Email can be personalized according tocustomer so that every message is relevant to the customer’sinterest. Around 2.5 billion users are currently using email, soemail marketing virtually has endless possibilities (Groves, 2012).In this paper, we will look at a company, which is trying toimplement e-mail marketing into their business model.

The Design of Experiment

The Design of experiments (DOE) is a great tool that can be used ina wide range of situations. DOE allows several input factors to beused for determining their effects on an output that we desire. Bymanipulating various inputs together at the same time, DOE can findimportant connections and statistics that might have been missed whentrying out a single factor at a time. This method can eitherinvestigate all the possible combinations or only a small portion ofthe probable combinations (Groves, 2012). These are called Fullfactorial and Fictional factorial methods. We will only discuss thefull factorial method to conduct a design of experiment on the givencompany.

In this case, we will calculate the effects of four factors on theresponse rate. The Heading, state of email (open or closed),replication and body. We will calculate the effect of a factor byaveraging the data collected at the low level and deducting it fromthe average of the data collected at the high level.

The company will review two types of heading for improving theiremail response rate. They are: Generic and Detailed. As a result, theeffect of heading on response rate will be:{(34+68+22+19+38+80+32+33)/2} – {(46+56+25+21+38+59+27+23)/2} =163-147.5= 15.5. So, the effect of heading on response rate is 15.5.

The company considers the state of the email. Either it is closed oropen. The effect of email open on response rate will be:{(56+68+21+19+59+80+23+33)/2} – {(46+34+25+22+38+38+27+32)/2}=179.5-131 = 48.5. Therefore, the effect of email open on responserate is 48.5.

The company considers two types of body when calculating theresponse rate. Text and HTML. The effect of body type on responserate will be: {(46+34+56+68+38+38+59+80)/2} –{(25+22+21+19+27+32+23+33)/2} = 209.5 – 101 = 108.5. Consequently,the effect of body type on response rate is 108.5.

The company is also considering two types of replicates (single anddouble) in order to calculate the response rate. The effect of thereplicate on the response rate is: {(46+34+56+68+25+22+21+19)/2} –{(38+38+59+80+27+32+23+33)/2} = 165- 145.5 = 19.5. Here, we ca seethat the effect of replicate on response rate is 19.5.

The Graphical Representation of the DOE

The result of the conducted DOE is shown in the pie chart below. Piecharts are easy to visualize, and in our case the pie chart canclearly present the difference of effects among the factors. That isthe reason we chose pie chart rather than any other graphical tool todisplay our analysis.

Chart 1. Results of the DOE analysis.

After conducting the design of experiments, we can see that thebody type affects the response rate the most and the heading typeaffects the response rate the least.

Recommendations for Increasing Response Rate

Short and Relevant

In orderto maintain a higher rate of response, businesses need to send briefmessages to their target customers as soon as possible. Online userstend to be lazy. They do not usually prefer reading long emails. So,messages must be short, simple yet effective. It must get to thepoint quickly so that user can understand easily what the email istalking about. Emails should be kept within 200 words. If messagesare long or filled with hard vocabularies, users will get the ideathat it is not important and they do not want to waste their time onit (Hartemo, 2016).

Knowing the Target Customers

Targeting the group, you want to reach results in higherresponse rates. Targeting enables businesses to modify their messageand send it to a more specific audience. For example, a stock brokerwon’t be interested in reading emails about a new online businessscheme. Or, teenaged users won’t be interested in emails aboutonline job portals. In this regard, Hartemo (2016) said that messagesmust be targeted to the right audience otherwise, it will not berelevant.

Building a Relationship

The users who are receiving the emails must be allowed to know thecompany or institution better. Emails should include links to thecompany website, profile, blog, Facebook, Twitter or LinkedInaccounts. Building trust is very important here. People usually buymore from people they know or trust.

Proofread

Emails must be checked thoroughly before sending.Unprofessional emails result in low response rates. Emails withspelling mistakes, poor grammar, or irrelevant words can irritate theusers and they will delete it as soon as they do not find it pleasing(Talarico, 2016). These errors often oblige a user to think that theemail might be fraudulent or fake. Spelling or grammar errors alwayslook unprofessional.

Proposed Business Model

There could be several approaches is designing a proper businessmodel for email marketing. First of all, having an email marketingsoftware or subscribing to an email marketing service is necessary.It helps to monitor the marketing campaigns for clients, to storedifferent client email lists, and send specific messages to theclients in the email lists. These applications or services help tocreate design templates for emails and track response rates fromcustomers. The company must maintain a website or pages on severalsocial medias in order to make their email marketing campaign moreeffective (Talarico, 2016). As we have said before, gaining customertrust is essential. The business model should consider advertisingvia social medias, websites, as well as emails. The email itselfshould maintain a certain template. Different templates for differentmails is not good for email marketing. The customers must get asimple idea about the company through these emails. Theadministrators must keep a track of goods that are sold to thecustomers via email (Hartemo, 2016). Also, a quick response team isvery necessary for an email advertising company. Customers wantfeedback and they want it quick (Groves, 2012). So, the company mustmaintain a quick response team to receive and give feedbacks as soonas possible. Keeping these ideas in the business model will help acompany make a good impression in the field of email marketing.

Conclusion

Emailmarketing is a very effective tool in advertising. Businesses can bepromoted in any manner. They can target many different groups ofcustomers. As the business world is changing, email marketing can bea very proficient way of attracting specific customers within a shorttime.

References

Groves, E. (2012). The Constant Contact guide to email marketing(1st ed.). Hoboken, N.J.: Wiley.

Hartemo, M. (2016). Email marketing in the era of the empoweredconsumer. Journal of Research In Interactive Marketing, 10(3),212-230. http://dx.doi.org/10.1108/jrim-06-2015-0040

Talarico, D. (2016). From inbox to enroll: Email marketing tips.Recruiting &amp Retaining Adult Learners, 18(11), 1-3.http://dx.doi.org/10.1002/nsr.30171