How Email is Revolutionising Performance Marketing

Mark Ash

Director, Teradata Interactive UK&I

@TeradataMark

October 2014

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About Teradata Interactive

• Global email network and ESP delivering over 10 billion emails/quarter

• Specialists in multi-channel marketing, email marketing and lead generation

• Pioneers of big data marketing and marketing automation technology

Vision

To enable our customers to collect and use data to improve their customer

experience and create a competitive advantage

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Email: a turbulent history

First email sent

‘email’ first

mentioned

The word

‘spam added

to OED

MS Outlook

released

Hotmail – 1st

webmail

service

Launch of the

first IPhone

First

multimedia

email

SPF and AOL

feedback loop

established

Gmail

launched in

beta

Data

Protection Act.

Can-Spam

follows in 2003

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How effective really is email?

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ROI PER DOLLAR SPENT, BY CHANNEL (2011)

Email $40.56 Search $22.24 Display Ads $19.72

Mobile $10.51 Catalogs $7.30

Source: Magill Report, 2011

ROI Per £ SPENT (2014)

Email £24.93 (+16% vs. 2013)

Source: DMA, National Client Email Report, 2014

“Marketers still rate email as the best channel for return on investment after SEO” (econsultancy.com, email

marketing census, 2013)

“Email is the workhorse of digital marketing” – Gartner

“There’s a reason your inbox always seems jam-packed:

e-mail marketing works” - McKinsey, Jan 2014

MarketingSherpa,

2013

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Email is dead, long live social media?

• Total no. of email accounts expected to increase from 3.9 billion (2013)

to over 4.9 billion by 2017 (The Radicati Group "Email Statistics Report 2013-2017“)

• 91% of all consumers still reporting daily email use (McKinsey iConsumer survey“)

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• 78% of consumers check email on their mobile phone. “Always Connected”, IDC

and Facebook - (2013)

• Email is the most popular activity on a smartphone. 79% uses their

smartphone more for reading email than for making calls. “2013 Digital

Publishing Report, econsultancy.com”

• Mobile purchasing decisions are most influenced by commercial emails

(71%) only surpassed by the influence of friends (87%). “2013 Digital Publishing

Report: Retail, econsultancy.com”

Email is mobile

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“E-mail remains a significantly more effective way to acquire customers

than social media—nearly 40 times that of Facebook and Twitter

combined..” McKinsey, Jan 2014, ‘Why marketers should keep sending you emails”

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• 95 percent of teens who fan companies on Facebook also

subscribe to the firm’s email list

• Gen Y would be more reluctant to give up email than social media (PMN/Pace University Oct 2009“)

Gen Y still use email

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Why email is perfect for influencing purchase decision

Unique format capabilities

The largest digital ad format

Always on

unfettered attention of the user

Multiple calls to action

Easily shared

Time-sensitive delivery

Localised and highly targeted

1-2-1 personalisation capability

A long-lasting impact

• 38% of respondents keep emails for at least a week

• 45% of consumers bear the info in mind for later use

• 53% save the email to refer to at a later date

• 56% go to the company’s website but do not click

“DMA national client email report, 2012”

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Email is an essential tool for CRM but vastly under-used

for acquisition… Why?

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Siloed marketing practice &

technology

• Email undervalued by last click wins. Over 50% of it’s value is not tracked.

• It’s impact across customer journey is misunderstood

• Email is perceived as ‘easy’ – the value of targeting and creativity is overlooked

leading to poor results.

• Lack of expertise in acquisition teams, usually managed by CRM teams

• Siloed org structures limited it’s integration across other channels

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What does the future hold for email…

14 Teradata Confidential

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4

Digital disruption is creating

a marketing revolution

CRM & Advertising worlds collide

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• Number of digital touch points increasing

• Disruption of customer loyalty from new

competitors

• Marketing being driven by contextual

personalisation

• Customers still expect synchronicity and

relevance

Internet of Things is changing how we market to our

customers

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Business transformation is a certainty

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• The rejection of ‘Silo-ism’.

• Re-organisation around customer experiences

• Sales attribution centralised

• Replacement of channel KPIs with omni-channel

success metrics

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Programmatic & email: a meeting of minds

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So how will email revolutionise

performance marketing…

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Email becomes the driver of ‘demand creation’

1. Programmatic driven by lead generation profiling and prospect identification

2. Guaranteed driver of incremental sales

3. Nurture – lead generation creates a continuous dialogue with prospects throughout the buying process

4. Email delivers contextual personalisation and channel synchronisation

5. Once registered you no longer have to advertise

“One way to sell a

consumer something in

the future is to get their

attention in advance”

Seth Godin

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• Email is the ‘omni-channel passport’

• Single connector between digital touchpoints.

• Enable event-driven communication across all channels

Email will be the catalyst for an omni-channel reality

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5 Examples of customer-centric multi-channel email

E-receipts Email-to-display

retargeting

Data on-boarding

Social lead

generation

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Display PPC Social

RTIM: Real-timed dynamic media

planning & channel synchronisation

Email DM Call Centre In-store

Browsing Mobile

Live email

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The threat from data leakage

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Safeguard your commercial advantage

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Mark Ash Director UK&I, Teradata Interactive

mark.ash@teradata.com

@TeradataMark

Stand 16

Thanks for listening

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