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Latest Updates: marketing RSS

    Email marketing results measured in basis points, and it’s all our fault

  • Alex Neihaus 11:02 am on June 26, 2009 | 0 Permalink | Reply
    Tags: email, marketing,

    no_stupid_people

    This is post is for all my colleagues in the marketing biz. I want to tell you that we collectively destroyed email.

    What did we do that was truly stupid?

    Simple: we have so overdone email that now it’s useless for all of us. Have you noticed that no matter what you do — text or HTML, links at the top or bottom, a great discount offer or the promise of everlasting life — your response rates have gone down? Have you noticed that no matter what “marketing automation” system you track email with that since 2005 your response rates have declined from whole percentage points to basis points today? (A basis point is 1/100th of a percentage point. They’re used to track minute changes in bond rates.)

    Marketing programs that decline this precipitously this quickly do so only because we have completely overwhelmed consumers and they can’t take it any more. They’re the ultimate marketing failure: one hand clapping in an empty auditorium.

    We don’t seem to remember how resistant we all were at first. We didn’t believe you could sell lumps of coal via email blasts. “Our audience doesn’t have email…and won’t ever get email.” Remember that? But, of course, that 55-year-old CFO and that aircraft mechanic and that Mom at home with stinky diapers all got email. So, what did we do?

    First, those of us in big companies spent too much on email (because you can’t help yourself and you were afraid of missing the boat), driving CPMs out of reach. Next, we “institutionalized” email…added people whose only job is to generate email blasts. We linked it to our CRM systems…we became “email experts.”

    Because we’d spent real money on people and systems, we needed to measure what we were doing. So, of course, we needed “infrastructure” like Eloqua, Vertical Response and Constant Contact to manage it all. And the (physical) direct mail industry needed a place to go because we had previously crapped up direct mail, so guess where they went…with all their “direct marketing science” and purportedly effective techniques.

    Having built a hugely expensive house of cards around email, we forgot one thing: anyone can send email because the Internet made it essentially free. While we were adding cost to email and being profligate to boot, the spammers discovered that basis points of response can impact US dollar flows into Nigeria. We encouraged the spammers, actually gave them the idea, while they laughed at us for “systematizing” it and making it a “core marketing practice.” Any fool can write a good email and find 10K people to send it to. Between us and the spammers, there’s not an iota of tolerance left in anyone for more email pitches.

    Worse, the customer service people decided email — along with out-sourcing call centers to India — would be the ideal way to reduce costs (and, incidentally, ensure that artificial measurements of responsiveness replace actually talking to customers).

    Now, we have all the people, tools and expense…and it’s all worthless. Pay-per-click and search-engine-optimization are now nearly ruined as marketing programs as well. (Is anyone paying less per conversion?) And that same weak, lemming-herding instinct is all over social media (which already has enough corporate Twitter feeds to tempt a new generation of spammers).

    Creativity still counts. Someone will think of something clever soon…and then have to stand back and watch the masses of marketing experts foul it up as well.

     
  • With Alli, my lunch is in my pants

  • Alex Neihaus 9:55 pm on June 19, 2007 | 5 Permalink | Reply
    Tags: , lose weight, marketing, oily stools, weight loss

    Alli might help you lose weight, as long as you don’t mind oily stools

    (Photo courtesy of J. Star, licensed under Creative Commons Attribution-NonCommercial-ShareAlike)

    OK, so I know that what you blog about is a more-or-less semi-permanent record of you. Plus, I have clients who read this blog. And I might be just a little more over the top than usual with this post, but there’s a real marketing problem with a new product and I think the marketer’s response to that problem is…uh…interesting.

    Have you heard of Alli, the new over-the-counter medication for weight loss? It’s a low-dose version of orlistat, a drug that prevents the absorption of fat. That can lead to weight loss for those taking the drug.

    The problem with orlistat is that fat that doesn’t get absorbed…it…uh…passes, if you know what I mean. This can potentially create an oily mess.

    Imagine being the marketing people for Alli: you want to sell this thing in big, big numbers, but it has this indelicate side effect. And you have to disclose it.

    What’s the solution? To them it must have seemed easy: make a helpful recommendation about how to deal with the heartbreak of panty-rear oily streaks.

    On http://www.myalli.com, there’s a “treatment effects” page with this chirpy sounding suggestion for working people on Alli:

    Until you have a sense of any treatment effects, it’s probably a smart idea to wear dark pants, and bring a change of clothes with you to work

    Now, I have to tell you that any product that pretty much insures users will need to cover up the product’s nasty effects with dark clothes or even keep a supply of adult diapers nearby has a serious marketing problem. And this kind of copy makes it even worse.

    Anybody who reads about Alli in the newspaper or looks at the packaging is sure to hear about this side-effect. Why make it worse with a “helpful” suggestion? Isn’t Alli targeted at adults, who presumably know what the implications of this side effect are?

    To my ears, this over-the-top effort to be helpful backfires, and does so badly. Far from being useful, it just simply makes the product sound so revolting that I suspect millions will be put off.

    This is a simple case of the marketing people just saying too much and overreaching to be “helpful”.