SoWINE 2 June 14, 2011

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1 SoWINE 2 June 14, 2011

2 2 Introduction Industry Trends Key Considerations Strategy List Development Content Development Deployment Program Analysis Optimization Deliverability CAN-SPAM Compliances Q&A

3 3 Founded May 01 Office in Redmond, WA campaigns per year Strategy Content creation Deployment Managing partner Terry Miller o Founder and EVP Mercata.com Responsible for marketing, merchandising, site content & design, operations and customer service for this pioneering group buying site o VP of Sales SuperCede, Asymetrix, SoftBank o Senior Direct Response Positions Gupta, Broderbund o Founder and General Manager Triton Products Company

4 4

5 5 Fast Response Time Cost Effective Cost Per Unit Highly Targeted Behavioral Data 3-6 weeks 3 days $1.25 $0.25 Target based on: Opened Clicked Forwarded Transacted Opened but didn t transact Direct Mail Direct Mail

6 6 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% To drive traffic to our website 72.4% To find new customers 57.3% To keep our existing customers informed about new products and services To enable our customers to maintain their records (self service) To enable customers to place orders (transactional elements) To support our CRM / customer service database Our product or service is delivered by Other 14.3% 26.8% 26.3% 11.1% 9.2% 83.1% Source: MarketingProfs

7 7 $50.00 $40.00 $43.62 $30.00 $20.00 $10.00 $0.00 $21.85 $15.22 $7.28 Print catalogs Non-catalog direct Search Source: DMA Power of Direct Marketing Study 2010

8 Too much Receive too many offers and end up deleting them without reading them Spam Eroding trust in Deliverability Filtering, particularly in the B2B space reduces delivery rates Delivering on the promise of relevance Opt-in willingness Lack of budget 8

9 9 Strategy List Development Content Development Deployment Program Analysis Optimization Deliverability CAN-SPAM compliance

10 10 Marketing Plan Focus Plan Development Optimization - Not just tactical - Integrate with overall marketing strategy - Acquisition - Retention - Sales - Traffic generation - Audience(s) - Budget - Forecasts - Vehicles - Messaging - Offers/CTAs - Testing - Schedule - Track achievement - Adjust as needed

11 11 Strategy List Development Content Development Deployment Program Analysis Optimization Deliverability CAN-SPAM compliance

12 12 Web site registration Newsletter registration Online order confirmation Client s to customer service Client calls to customer service Sweepstakes offer Off-line source List rental Product warranty registration 33% 33% 30% 22% 14% 13% 7% 61% 57% 0% 20% 40% 60% 80% 100% Source: Jupiter Research Executive survey

13 70% of website visitors gave their address voluntarily to receive information from that company via 49% of website visitors gave their address to access content they value great location 13

14 14 Reinforce benefits Keep bar relatively low Birthday presents marketing options

15 15 Strategy List Development Content Development Deployment Program Analysis Optimization Deliverability CAN-SPAM compliance

16 16 Objectives Audience Vehicle Offer Frequency

17 17

18 Content is key Brand supportive Less is more Have fun 18

19 19 Success factors Highly qualified audience Compelling content B-to-C Newsletter Open Rates 50% 40% B-to-C Newsletter Click Rates 30% 20% 10% 0% Average 35% 30% 25% 20% 15% Penner-Ash 10% 5% 0% Average Penner-Ash

20 Prominent offer Viewable from the preview window Doesn t require scrolling Multiple calls-to-action 20

21 Promote event Include all the pertinent information Easy to RSVP 21

22 22

23 Keep subject lines less than 50 characters and mention benefits Include a sense of urgency with your offer Create a specific landing page Reinforce your brand Personalize Add site navigation QA for main clients 23

24 24

25 25

26 26

27 Stay away from incorporating copy into images 27

28 28 Design for the preview pane Create buttons as HTML, not an image

29 29 Strategy List Development Content Development Deployment Program Analysis Optimization Deliverability CAN-SPAM compliance

30 30 Import lists Bounce and unsubscribe management Build Lists Create and Deploy Campaigns Text and HTML Preview and test features Delivery Real time analysis Opens, clicks, bounces, unsubscribes Track Results

31 31 Strategy List Development Content Development Deployment Program Analysis Optimization Deliverability CAN-SPAM compliance

32 Track: Sent Delivered Opens Clicks Bounces Opt-outs More 32

33 33 Open Rates Click Rates 25% 8% 20% 15% 10% 5% 6% 4% 2% 0% Editorial Marketing 0% Editorial Marketing Source: Epsilon Q Benchmark Report

34 34 Free Offers Sales Offers 35% 35% 30% 30% 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% <1% 1-2% 2-4% 4-6% 6-11% >11% 0% <1% 1-2% 2-4% 4-6% 6-11% >11% B2B B2C Source: Marketing Sherpa, Sept 2008

35 35 Open Rate Click Rate s Yearly 47% 20% 3,694 31% 6% 87 Transactional Commercial Transactional Commercial Transactional Commercial Sources: Jupiter Research, Merkle, Harris Interactive, Forrester Research

36 36 Strategy List Development Content Development Deployment Program Analysis Optimization Deliverability CAN-SPAM compliance

37 37 Developing your testing strategy Develop your control Limit the amount of items you are testing Choose the right test size to ensure valid results o Size of test cells o Size of universe Test Modify Analyze

38 38 Test Variables Subject line Call to action placement Offer From line Landing page copy Image placement Type of image Landing page formatting Landing page image Other 5% 25% 22% 21% 20% 19% 35% 45% 43% 71% Source: Marketing Profs

39 39 Day of the Week for Delivery 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Sun Mon Tue Wed Thu Fri Sat No Set Day Source: Marketing Profs

40 40 Strategy List Development Content Development Deployment Program Analysis Optimization Deliverability CAN-SPAM compliance

41 41 Unsubscribe opt-outs in a timely manner Automatically unsubscribe hard bounces Whitelist IP addresses with ISPs Regularly check potential blacklist status Subscribe to feedback loops Create SPF records and update DNS records of all domains used to send bulk Check content against a SPAM filter prior to deployment

42 42

43 43 Strategy List Development Content Development Deployment Program Analysis Optimization Deliverability CAN-SPAM compliance

44 Type of Commercial electronic Relationship/transactional List Source Permission-based Opt-out options Automatic link link Mail option Deceptive From address or Subject line Physical address included 44

45 45

46 46

47 Thank you for your time. Terry Miller Managing Partner CRM Group

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