When I conduct business online, I want reassurance that my requests or purchases are going to be followed up and not just sent into some black hole in the far corners of the universe.  With more and more customers conducting all sorts of transactions online, it is increasingly important for marketers to acknowledge their customers with some type of communication.  However, too few marketers are leveraging the power of email as a customer service tool and this can essentially damage customer relationships.

According to a report conducted by JupiterResearch, of the 92% of websites offering email as a customer-support option, only 41% acknowledge receipt of customer’s messages with an automated email response.  The report also found that there have been significant decreases in the amount of auto-acknowledgement response performance across several verticals including finance and travel. 

“Our research highlights a continued struggle among companies to master the email touch point,” said Zachary McGeary, analyst at JupiterResearch speaking on the findings of the report entitled “US Customer Service & Support Metrics.”  “This growing segment of unresponsive companies is damaging customer loyalty and retention.”

Jupiter also found that the number of sites meeting a 24-hour threshold for email response continues to decline, with only 45% of sites resolving email inquiries within 24 hours.  The most significant trend, however, was that 39% of sites took three days or longer to reply – or do not respond at all.  And that number has continued to grow since December 2003.

The report attributes the lack of response to the continued rise in email volume coupled with the failure of contact centers to invest in email technology capable of handling large volumes of email.  This results in more consumers contacting customer call centers when emails go unanswered.  Ultimately, the failure to properly use email is costing companies money.

“Failure to resolve requests via email is driving continued use of cost-intensive telephone work, negating any potential cost savings from handling inquires via email,” says David Schatsky, senior VP of research. 

Marketers hoping to maintain strong customer relationships should consider implementing an email program that can manage their customers across every stage of the sales cycle.  From an instant purchase receipt to a rapid customer service response, email not only saves money, but it builds trust and adds loyalty to your customer relationships.

To learn more how to leverage these techniques in your email, contact us at 212.704.9781 or visit datranmedia.com

NEWSBYTE

The number of links on which consumers click once they open the email has gone up, according to an article published by Internet Retailer.  The story cites a report that the ratio of opens-to-clicks, which is open rate divided by click-through rate and which declines as the click rate goes up, declined from 6.6% in the 1st quarter of 2005 to 5.4% in 4th quarter. 

The higher clicks are a result of email marketers doing a better job of designing their emails to drive click activity.  A greater focus on sender and subject lines has helped customers feel comfortable with the marketer, and ultimately determines if they are going to engage in relationship with that particular sender. 
These findings provide even more evidence of the importance to tailor your email marketing messages appropriately. 

Ask a Datran Media Expert

Q: I’ve been using direct mail for quite some time and have seen some great results in the past 15 years.  But increasingly, my customers are expressing a desire to be contacted about our new products through email.  Can I get the same response by applying my DM strategy to email marketing? 

A: There’s no question about it - email marketing can deliver great results, and at a fraction of the cost of traditional direct marketing.  In fact, JupiterResearch states that targeted email marketing campaigns can generate nine times more revenue than broadcast mailings.  That being said, email marketing is a unique medium and what works in DM may not cross over into email.  There are certain things you may want to apply before launching an email marketing program.

First off, email marketing allows you to be much more selective in terms of whom you are trying to reach.  Instead of mailing to one master list, you can customize your message to reach certain demographics or psychographics within a list.  Therefore, instead of creating a single theme around your promotion like you may be used to in DM; you can customize that message in email.  Essentially, you have a much more targeted message that increases the chances that your customers will convert.

Traditional direct mail is frequently wordy.  You will often have several pieces of information including a pitch letter, an insert, and a BRC in a single mailing.  With email, you do not have a lot of time to capture the interest of your customer.  You must grab them right away.  Create copy that is informative, yet concise and to the point.  Remember, with email, you don’t have to convince the reader to call a number, return anything by mail or go on the computer and visit a site.  You can convert right there and then.  Make sure to place a link that the customer can easily read and understand so they are more willing to purchase your product or service.  The less hassle you make for the customer, the greater chance you will see results.

Finally, make sure you format your email to be read by users who block /images.  You may be used to using powerful /images to convey your message in DM, but a lot of email clients are blocking /images.  Make sure your copy is understandable and the call-to-action is still easily read. 

If you adopt some of these guidelines, as well as follow other important email marketing strategies, there is no question that you will see a substantial return on investment.

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