What is Opt in e-mail ?

Opt in e-mail is a term used when someone is given the option to receive "bulk" e-mail, that is, e-mail that is sent to many people at the same time. Typically, this is some sort of mailing list, newsletter, or advertising. Obtaining permission before sending e-mail is critical because without it, the e-mail is Unsolicited Bulk Email, better known as spam.

There are several common forms of opt-in e-mail:

Unconfirmed opt-in
A new subscriber first gives his/her address to the list software (for instance, on a Web page), but no steps are taken to make sure that this address actually belongs to the person. This can cause e-mail from the mailing list to be considered spam because simple typos of the email address can cause the email to be sent to someone else. Malicious subscriptions are also possible, as are subscriptions that are due to spammers forging email addresses that are sent to the e-mail address used to subscribe to the mailing list.

Confirmed opt-in (COI)
A new subscriber asks to be subscribed to the mailing list, but unlike unconfirmed opt-in, a confirmation e-mail is sent to verify it was really them. Many believe the person must not be added to the mailing list unless an explicit step is taken, such as clicking a special web link or sending back a reply e-mail. This ensures that no person can subscribe someone else out of malice or error. Mail system administrators and non-spam mailing list operators refer to this as confirmed subscription or closed-loop opt-in.

Some marketers call closed loop opt-in "double opt-in."

The term double opt-in was coined by marketers in the late 90s to differentiate it from what they call single opt-in, where a new subscriber to an e-mail list gets a confirmation e-mail telling them they will begin to receive e-mails if they take no action. This is compared to double opt-in where the new subscriber must respond to the confirmation e-mail to be added to the list.

Some marketers contend that double opt-in is like asking for permission twice and that it constitutes unnecessary interference with someone who has already said they want to hear from the marketer.

The term double opt-in has also been co-opted by spammers, diluting its value.

Opt-out
Instead of giving people the option to be put in the list, they are automatically put in and have the option to be taken out.

E-mail Authentication
E-mail authentication is a technique for validating that a person claiming to possess a particular email address actually does so. This is normally done by sending an email containing a token to the address, and requiring that the party being authenticated supply that token before the authentication proceeds. The email containing the token is usually worded so as to explain the situation to the recipient and discourage them from supplying the nonce (often via visiting a URL) unless they in fact were attempting to authenticate.

For example, suppose that one party, Alice, operates a website on which visitors can make accounts to participate or gain access to content. Another party, Bob, comes to that website and makes an account. Bob supplies an email address at which he can be contacted, but Alice does not yet know that Bob is being truthful (consciously or not) about the address. Alice sends a token to Bob's email address for an authentication request, asking Bob to click on a particular URL if and only if the recipient of the mail was making an account on Alice's website. Bob receives the mail and clicks the URL, demonstrating to Alice that he controls the email address he claimed to have. If instead a hostile party, Chuck, were to visit Alice's website attempting to masquerade as Bob, he would be unable to register for an account because the confirmation would be sent to Bob's email address, which Chuck does not control.

This degree of email authentication is considered by many anti-spam advocates to be the minimum degree necessary for any opt-in email advertising or other ongoing email communication.

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What is Click Through Rate ?

Click-through rate or CTR is a way of measuring the success of an online advertising campaign. A CTR is obtained by dividing the number of users who clicked on an ad on a web page by the number of times the ad was delivered (impressions). For example, if your banner ad was delivered 100 times (impressions delivered) and one person clicked on it (clicks recorded), then the resulting CTR would be 1 percent.

Banner ad click-through rates have fallen over time, often measuring significantly less than 1 percent. By selecting an appropriate advertising site with high affinity (e.g. a movie magazine for a movie advertisement), the same banner can achieve a substantially higher click-through rate. Personalized ads, unusual formats, and more obtrusive ads typically have higher click-through rates than standard banner ads.

CTR is most commonly defined as number of clicks divided by number of impressions and generally not in terms of number of persons who clicked. This is an important difference because if one person clicks 10 times on the same advertisement instead of once then the CTR would increase in the earlier definition but would stay the same in term of later definition.

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What is Bounce message ?

A bounce message, or Delivery Status Notification (DSN) message, aka Non-Delivery Report/Receipt (NDR), Non-Delivery Notification (NDN), or simply a bounce is an automated electronic mail message from a mail system informing the sender of another message about a delivery problem. The original message is said to have bounced.

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What is Autoresponder ?

An autoresponder is a computer program that automatically answers e-mail sent to it. They can be very simple or quite complex.

The first autoresponders were created within mail transfer agents that found they could not deliver an e-mail to a given address. These create bounce messages such as "your e-mail could not be delivered because..." type responses. Today's autoresponders need to be careful to not generate e-mail backscatter, which can result in the autoresponses being considered E-mail spam.

Autoresponders are often used as e-mail marketing tools, to immediately provide information to their prospective customers and then follow-up with them at preset time intervals.

Such follow-up autoresponders can be divided into two categories:
* Outsourced ASP model — these autoresponders operate on the provider's infrastructure and are usually configurable via a web-based control panel. The customer pays a monthly usage fee. This is easiest to implement for the end-user.

* Server-side — enables users to install the autoresponder system on their own server. This requires technical skills.

Autoresponders are also incorporated into electronic mailing list software, to confirm subscriptions, unsubscriptions, posts, and other list activities.

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What is Spam?

Spamming is the abuse of electronic messaging systems to indiscriminately send unsolicited bulk messages. While the most widely recognized form of spam is e-mail spam, the term is applied to similar abuses in other media: instant messaging spam, Usenet newsgroup spam, Web search engine spam, spam in blogs, wiki spam, mobile phone messaging spam, Internet forum spam and junk fax transmissions.
Spamming remains economically viable because advertisers have no operating costs beyond the management of their mailing lists, and it is difficult to hold senders accountable for their mass mailings. Because the barrier to entry is so low, spammers are numerous, and the volume of unsolicited mail has become very high. The costs, such as lost productivity and fraud, are borne by the public and by Internet service providers, which have been forced to add extra capacity to cope with the deluge. Spamming is widely reviled, and has been the subject of legislation in many jurisdictions

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Loyalty business model

The loyalty business model is a business model used in strategic management in which company resources are employed so as to increase the loyalty of customers and other stakeholders in the expectation that corporate objectives will be met or surpassed. A typical example of this type of model is: quality of product or service leads to customer satisfaction, which leads to customer loyalty, which leads to profitability.

Contents

* 1 The service quality model
* 2 Expanded models
* 3 Data collection
* 4 Loyalty and Egoism
* 5 See also
* 6 References

The service quality model
A model by Kay Storbacka, Tore Strandvik, and Christian Gronroos (1994), the service quality model, is more detailed than the basic loyalty business model but arrives at the same conclusion. In it, customer satisfaction is first based on a recent experience of the product or service. This assessment depends on prior expectations of overall quality compared to the actual performance received. If the recent experience exceeds prior expectations, customer satisfaction is likely to be high. Customer satisfaction can also be high even with mediocre performance quality if the customer's expectations are low, or if the performance provides value (that is, it is priced low to reflect the mediocre quality). Likewise, a customer can be dissatisfied with the service encounter and still perceive the overall quality to be good. This occurs when a quality service is priced very high and the transaction provides little value.

This model then looks at the strength of the business relationship; it proposes that this strength is determined by the level of satisfaction with recent experience, overall perceptions of quality, customer commitment to the relationship, and bonds between the parties. Customers are said to have a "zone of tolerance" corresponding to a range of service quality between "barely adequate" and "exceptional." A single disappointing experience may not significantly reduce the strength of the business relationship if the customer's overall perception of quality remains high, if switching costs are high, if there are few satisfactory alternatives, if they are committed to the relationship, and if there are bonds keeping them in the relationship. The existence of these bonds acts as an exit barrier. There are several types of bonds, including: legal bonds (contracts), technological bonds (shared technology), economic bonds (dependence), knowledge bonds, social bonds, cultural or ethnic bonds, ideological bonds, psychological bonds, geographical bonds, time bonds, and planning bonds.

This model then examines the link between relationship strength and customer loyalty. Customer loyalty is determined by three factors: relationship strength, perceived alternatives and critical episodes. The relationship can terminate if: 1) the customer moves away from the company's service area, 2) the customer no longer has a need for the company's products or services, 3) more suitable alternative providers become available, 4) the relationship strength has weakened, or 5) the company handles a critical episode poorly, 5) unexplainable change of price of the service provided.

The final link in the model is the effect of customer loyalty on profitability. The fundamental assumption of all the loyalty models is that keeping existing customers is less expensive than acquiring new ones. It is claimed by Reichheld and Sasser (1990) that a 5% improvement in customer retention can cause an increase in profitability between 25% and 85% (in terms of net present value) depending upon the industry. However, Carrol and Reichheld (1992) dispute these calculations, claiming that they result from faulty cross-sectional analysis.

According to Buchanan and Gilles (1990), the increased profitability associated with customer retention efforts occurs because:

* The cost of acquisition occurs only at the beginning of a relationship: the longer the relationship, the lower the amortized cost.

* Account maintenance costs decline as a percentage of total costs (or as a percentage of revenue).

* Long term customers tend to be less inclined to switch and also tend to be less price sensitive. This can result in stable unit sales volume and increases in dollar-sales volume.

* Long term customers may initiate free word of mouth promotions and referrals.

* Long term customers are more likely to purchase ancillary products and high-margin supplemental products.

* Long term customers tend to be satisfied with their relationship with the company and are less likely to switch to competitors, making market entry or competitors' market share gains difficult.

* Regular customers tend to be less expensive to service because they are familiar with the processes involved, require less "education," and are consistent in their order placement.

* Increased customer retention and loyalty makes the employees' jobs easier and more satisfying. In turn, happy employees feed back into higher customer satisfaction in a virtuous circle.

For this final link to hold, the relationship must be profitable. Striving to maintain the loyalty of unprofitable customers is not a viable business model. That is why it is important for marketers to assess the profitability of each of its clients (or types of clients), and terminate those relationships that are not profitable. In order to do this, each customer's "relationship costs" are compared to their "relationship revenue." A useful calculation for this is the patronage concentration ratio. This calculation is hindered by the difficulty in allocating costs to individual relationships and the ambiguity regarding relationship cost drivers.

Expanded models
Schlesinger and Heskett (1991) added employee loyalty to the basic customer loyalty model. They developed the concepts of "cycle of success" and "cycle of failure". In the cycle of success, an investment in your employees’ ability to provide superior service to customers can be seen as a virtuous circle. Effort spent in selecting and training employees and creating a corporate culture in which they are empowered can lead to increased employee satisfaction and employee competence. This will likely result in superior service delivery and customer satisfaction. This in turn will create customer loyalty, improved sales levels, and higher profit margins. Some of these profits can be reinvested in employee development thereby initiating another iteration of a virtuous cycle.

Fredrick Reichheld (1996) expanded the loyalty business model beyond customers and employees. He looked at the benefits of obtaining the loyalty of suppliers, employees, bankers, customers, distributors, shareholders, and the board of directors.

Data collection
Typically, loyalty data is being collected by multi-item measurement scales administered in questionnaires. However, other approaches sometimes seem more viable if managers want to know the extent of loyalty for an entire data warehouse. This approach is described in Buckinx, Verstraeten & Van den Poel (2006).

Another approach to building customer loyalty through data is described in Scoring points, a book about the Tesco clubcard. This was produced by a company called [Dunnhumby] who gathered the data on household purchases on an opt-in permission basis. Once they had this data they then allowed households to accumulate loyalty points which could be used for subsequent purchases. They subsequently added to the value of customer loyalty by sending out targeted offers from grocery producers to the people whose behavior said they had a use for the offer. The data gathered in this way allowed customer loyalty to be assessed on both an individual and an aggregate basis.

Whilst less common than the questionnaires, loyalty card data is more complete and does not suffer from the arbitrational misreporting bias that is common to most forms of market research. It has been credited with the phenomenal success of the Tesco chain as well as with significant improvements by several other large retailers.

Loyalty and Egoism
The loyalty business model assumes the philosophical validity of pursuit of self-interest. However, much work in ethics assumes the validity of altruism (seeking the best interest of others). "Clearing Up the Egoist Difficulty with Loyalty" (Stieb 2006), attempts to show that when interests are shared there becomes no difference between seeking one's interest and that of others. This is also called the "Aristotelian" model based on Aristotle's related analysis of friendship in his Nicomachean Ethics.

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Electronic Mail or E-Mail

E-mail, short for electronic mail and often abbreviated to e-mail, email or simply mail, is a store and forward method of composing, sending, receiving and storing messages over electronic communication systems. The term "e-mail" (as a noun or verb) applies both to the Internet e-mail system based on the Simple Mail Transfer Protocol (SMTP) and to X.400 systems, and to intranet systems allowing users within one organization to e-mail each other. Intranets may use the Internet protocols or X.400 protocols for internal e-mail service supporting workgroup collaboration. E-mail is often used to deliver bulk unsolicited messages, or "spam", but filter programs exist which can automatically delete some or most of these, depending on the situation.

Origin
E-mail predates the inception of the Internet, and was in fact a crucial tool in creating the Internet. MIT first demonstrated the Compatible Time-Sharing System (CTSS) in 1961.[38] It allowed multiple users to log into the IBM 7094 from remote dial-up terminals, and to store files online on disk. This new ability encouraged users to share information in new ways. E-mail started in 1965 as a way for multiple users of a time-sharing mainframe computer to communicate. Although the exact history is murky, among the first systems to have such a facility were SDC's Q32 and MIT's CTSS.

E-mail was quickly extended to become network e-mail, allowing users to pass messages between different computers by at least 1966 (it is possible the SAGE system had something similar some time before).

The ARPANET computer network made a large contribution to the development of e-mail. There is one report that indicates experimental inter-system e-mail transfers on it shortly after its creation in 1969. Ray Tomlinson initiated the use of the @ sign to separate the names of the user and their machine in 1971. The ARPANET significantly increased the popularity of e-mail, and it became the killer app of the ARPANET.

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Direct Marketing

Direct marketing is a sub-discipline and type of marketing. There are two main definitional characteristics which distinguish it from other types of marketing or advertising. The first is that it attempts to send its messages directly to consumers, without the use of intervening media. This involves unsolicited commercial communication (spam, junk mail, etc.) with consumers or businesses. The second characteristic is that it is focused on driving purchases that can be attributed to a specific "call-to-action." This aspect of direct marketing involves an emphasis on tractable, measurable positive (but not negative) responses from consumers (known simply as "response" in the industry) regardless of medium.

If the advert in the medium asks the prospect to take a specific action, for instance call a free phone number or visit a website, then the effort is considered to be direct response advertising.

Contents

* 1 History
* 2 Benefits and drawbacks
* 3 Channels
   o 3.1 Direct Marketing v Mainstream Marketing
   o 3.2 Direct mail
   o 3.3 Telemarketing
   o 3.4 Email Marketing
   o 3.5 Broadcast faxing
   o 3.6 Couponing
   o 3.7 Direct response television marketing
   o 3.8 Direct selling
* 4 See also
* 5 References
* 6 External links

History

The term direct marketing is believed to have been first used in 1961 in a speech by Lester Wunderman, who pioneered direct marketing techniques with brands such as American Express and Columbia Records.[citation needed] The term junk mail, referring to unsolicited commercial ads delivered via post office or directly deposited in consumers' mail boxes, can be traced back to 1954. The term spam, meaning "unsolicited commercial email", can be traced back to March 31, 1993, although in its first few months it merely referred to inadvertently posting a message so many times on UseNet that the repetitions effectively drowned out the normal flow of conversation.

Although Wunderman may have been the first to use the term direct marketing, the practice of mail order selling (direct marketing via mail) essentially began in the U.S. upon invention of the typewriter in 1867.[citation needed]

The first mail-order catalog was produced by Aaron Montgomery Ward in 1872.[citation needed] The Direct Mail Advertising Association, predecessor of the present-day Direct Marketing Association, was first established in 1917.[citation needed] Third class bulk mail postage rates were established in 1928.[citation needed]

Direct marketing's history in Europe can be traced to the 15th century. Upon Gutenberg's invention of movable type, the first trade catalogs from printer-publishers appeared sometime around 1450.[citation needed]

Benefits and drawbacks

Direct marketing is attractive to many marketers, because in many cases its positive effect (but not negative results) can be measured directly. For example, if a marketer sends out one million solicitations by mail, and ten thousand customers can be tracked as having responded to the promotion, the marketer can say with some confidence that the campaign led directly to the responses. The number of recipients who are offended by the junk mail/spam, however, is not easily measured. By contrast, measurement of other media must often be indirect, since there is no direct response from a consumer. Measurement of results, a fundamental element in successful direct marketing, is explored in greater detail elsewhere in this article. Yet since the start of the Internet-age the challenges of Chief Marketing Executives (CMOs) are tracking direct marketing responses and measuring results.[citation needed]

While many marketers like this form of marketing, some direct marketing efforts using particular media have been criticized for generating unwanted solicitations. For example, direct mail that is irrelevant to the recipient is considered junk mail, and unwanted email messages are considered spam. Consumers are demanding an end to direct marketing,[citation needed] which some advertising agencies are able to provide by using variable data printing and targeted mailing lists.

Channels

Direct marketers also use media such as door hangers, package inserts, magazines, newspapers, radio, television, email, internet banner ads, pay-per-click ads, billboards, transit ads. And according to Ad Age, "In 2005, U.S. agencies generated more revenue from marketing services than from traditional advertising and media."[citation needed]

Direct Marketing v Mainstream Marketing

Why Marketers need to be Different to be Direct By Clint Bratton, Director Plus Marketing, Sydney Australia.

Marketers are under intense pressure to drive sales results from marketing activity. To deliver the result, marketers are turning to direct marketing, a variation on their core trade. But do the skills of traditional marketers translate into Direct Marketing success? I believe the answer is a resounding no. What’s more, the discipline of Direct Marketing is, unfortunately, suffering at the hands of the uneducated. The reason lies behind a formulaic approach to targeting and segmentation, frequency of message and a failure to explore the creative boundaries and personalization that only direct marketing can offer.

TARGETING & SEGMENTATION

Introductory marketing teaches us to make several assumptions and generalizations on the market. Top on that list, it is vital for a brand to narrow its target audience down to a set of demographic qualities based on age, sex, income etc. Even a brand like Coca-Cola, which has near universal appeal, targets their product toward youth. Beyond the target market there will be a number of market segments, again defined by geo-demographic characteristics. In traditional marketing, defining a market and its segments will build a picture of an audience which impacts on both the creative employed and the media buying strategy.

Do these methods of targeting and segmentation translate into Direct Marketing? In fact, they’re surprisingly unimportant. What’s important is that communications are relevant and are therefore based on real customer knowledge rather than generalizations. A unique creative approach for each customer tends to be cost-prohibitive and unrealistic (yes, in some niche business-to-business exercises it may be feasible). Some broad segmentation should be applied to drive the bulk of the creative outcome. These segments must work alongside copy change-outs to complete the communication. But this is a secondary concern.

Even the act of segmentation is different in Direct Marketing because it is developed from hard customer information rather than market research. To segment a database, data-mining techniques that account for combinations of every possible information variable are used (including transactional data), rather than a broad geo-demographic profile. But the segmentation is just the beginning, the driver for the message platform and tone & manner.

PERSONALISATION & RELEVANCE

Direct Marketing talks to individuals, not markets. This is where traditional targeting methods fail when they’re bolted on to Direct Marketing. Instead of broad segmentation it is critical we appreciate that each customer is unique. So we must utilize every piece of information to make the message more relevant and effective.

For a start, it is proven that simple personalization (such as prominent placement of name and address), will significantly increase response rates. Using transactional data and linking your message with a customer’s known behavior is more powerful again – it shows you understand the customer and that you’re adapting your product or service offering for their needs.

Building a tailored approach makes for multiple copy versions within a single segment execution. But the additional effort and expense is worthwhile for its immediate impact and response, as well as the long-term benefit to the brand.

Using the available data to better personalize and add relevance to the communication should be a key distinction in personalized marketing efforts versus mass market communications. It will also make for better targeting as there will be situations where a relevant link cannot be made and some customer groups may be eliminated from the distribution. It makes the customer feel like you’re delivering them a service. While all direct communications make a noise, those that communicate service are the messages people absorb. They make the recipient feel like more than just another customer. The communication has considered the individual and they feel privileged to receive your message. Just as important, the restricted and more responsive audience will result in decreased costs, improved ROI and protection of the brand.

ADVERTISING VERSUS CUSTOMER SERVICE

Customer service is what finally differentiates direct communications from Traditional Advertising. In direct, the media is the property of the recipient so it’s important there’s something in it for them. An ‘ad in an envelope’ (or worse still, an ad in an email or text message) becomes an annoyance. If you address something specifically to an individual, they expect that communication is about them rather than some irrelevant chest-thumping about your product or brand. Far too often the traditional marketer’s view of integration is to put a stamp on their ad. Or thoughtlessly email or SMS the body copy to all their customers.
This hurts the entire Direct Marketing medium because consumers become tired of irrelevant messages intruding into their private space.

The best customer service messages hit customers at the right time in their relationship. By contrast, traditional advertisers bring a ‘campaign mentality’ to Direct Marketing. Following this thinking, all customers receive communications at the same time. The truth is relevance is more easily created with triggered messages driven by customer behavior. Reputable direct marketers are acutely aware of this and explore database activities that promote a new product or service while also delivering a service message to customers.

Electronic communications that are activity driven are particularly useful for time-sensitive service messages. It can actually add to customer convenience to receive email or text messages. And for the marketer the business opportunities are endless. Imagine if your insurance company could text message you in advance of a localized flood warning, or if your bank could email you to advise your credit card was approaching its credit limit. Customers are thankful for these communications; they provide a tangible benefit for engaging and opting to receive electronic communications.

Nothing compares to direct for delivering this information. Particularly in an electronic format because they are both directed to an individual and are time-critical. These newly formed channels supplement the existing communications mix and exist for the customer’s benefit. They are not simply substitutes for traditional messages in an effort to save marketing costs with no thought for what the customer would prefer.

CREATIVE EXECUTIONS The creative boundaries within Direct Marketing are yet to be reached and the majority of executions fail to explore the possibilities of the medium. This is a hangover from the frequency principle employed in traditional advertising and the false notion that direct executions are about the brand first and the message second.

With Direct Marketing the customer owns the message and will actively choose whether they take it in. The execution needs to immediately show the recipient that it’s a completely new message and to this end, the communication should be clearly distinct from previous contact. The message should retain consistency to the degree that it is obvious who it’s from, but the message must scream above the corporate branding. A template approach is often employed, meaning that visually the messages blur together with a degree of sameness rather than being received with impact. But designers are not Direct Marketers.

No other medium offers the creative freedom of direct mail. Yet most direct mail fails to engage the senses and is lost in a sea of white window DL envelopes. Customers receive mail from a number of places and to engage an audience the execution needs to stand apart. Mail offers unparalleled flexibility in terms of format - there are practically no size or shape constraints. Perhaps it’s because Traditional Advertisers and designers are used to fitting into standards dictated by a medium (press, billboard, TV) that they treat direct mail the same way. They see an A4 letter and a DLE insert as a starting canvas whereas the reality is an open book.

Creative freedom also suffers where marketers are guilty of trying to get their message to as many people as possible rather than improve the targeting. We all know Pareto’s Law or the 80/20 rule, yet too often the entire database is treated as equal. By focusing on just the top customers or prospects and delivering a stronger, non-standard creative execution the message can be made more compelling and results magnified. A smaller, targeted audience will result in more to spend on those that count. An improved per-unit budget allows things to be done differently, ensuring the communication is not just read but also remembered and acted on.

CONCLUSION Direct Marketing is not simply about creating awareness, it’s about delivering results, creating new customers and selling more to them. As shareholders and CEO’s demand a return on investment, it’s understandable that marketers are turning to Direct Marketing for answers. It’s here that they need to pause and note that Direct Marketing is a unique craft and counter-intuitive to Traditional Advertising thought processes. Until they rethink, the credibility of Direct Marketing will suffer through poor executions.

The potential of Direct Marketing is clear. Despite traditional thinking leading to sub-optimal planning and executions, many businesses have still generated positive returns from their Direct Marketing. But they have merely scratched the surface of what can be achieved. With the right assistance there remains potential to unlock increased returns and improve long-term customer satisfaction.

To make Direct Marketing work, marketers need to grasp the unique complexities of the media. The explosive growth and competition for the customer’s time will challenge marketers, demanding stronger executions to break through the clutter. All businesses looking to maximize a return from marketing should elicit the help of a true Direct Marketing specialist. Do this and these businesses will not only improve their success, they may profit where they had previously failed. Direct Marketing does work… in the right hands.

Direct mail

The most common form of direct marketing is direct mail,[citation needed] commonly called junk mail, send paper mail to all postal customers in an area or all customers on a list.
Typical junk mail.
Typical junk mail.

Any medium that can be used to deliver a communication to a customer can be employed in direct marketing. Probably the most commonly used medium for direct marketing is junk mail, in which marketing communications are sent to customers using the postal service. The term direct mail is used in the direct marketing industry to refer to junk mail, which may also be referred to as ad mail and may involve bulk mail.

Junk mail includes advertising circulars, catalogs, free trial CDs, pre-approved credit card applications, and other unsolicited merchandising invitations delivered by mail or to homes and businesses, or delivered to consumers' mailboxes by delivery services other than the Post Office. Bulk mailings are a particularly popular method of promotion for businesses operating in the financial services, home computer, and travel and tourism industries.

In many developed countries, direct mail represents such a significant amount of the total volume of mail that special rate classes have been established. In the United States and United Kingdom, for example, there are bulk mail rates that enable marketers to send mail at rates that are substantially lower than regular first-class rates. In order to qualify for these rates, marketers must format and sort the mail in particular ways - which reduces the handling (and therefore costs) required by the postal service.

Advertisers often refine direct mail practices into targeted mailing, in which mail is sent out following database analysis to select recipients considered most likely to respond positively. For example a person who has demonstrated an interest in golf may receive direct mail for golf related products or perhaps for goods and services that are appropriate for golfers. This use of database analysis is a type of database marketing. The United States Postal Service calls this form of mail "advertising mail" (ad mail for short).

Telemarketing

The second most common form of direct marketing is telemarketing,{[fact}} in which marketers contact consumers by phone. The unpopularity of cold call telemarketing (in which the consumer does not expect or invite the sales call) has led some US states and the US federal government to create "no-call lists" and legislation including heavy fines. Marketers call telephone numbers. This process may be outsourced to specialist call centers. The agents sit at computerized work-stations and try to sell the products of the clients.

In the US, a national do-not-call list went into effect on October 1, 2003. Under the law, it is illegal for telemarketers to call anyone who has registered themselves on the list. After the list had operated for one year, over 62 million people had signed up. telemarketing industry opposed the creation of the list, but most telemarketers have complied with the law and refrained from calling people who are on the list.[citation needed]

Canada has passed legislation to create a similar Do Not Call List. In other countries it is voluntary, such as the New Zealand Name Removal Service.

Email Marketing

Email Marketing may have passed telemarketing in frequency at this point,[citation needed] and is a third type of direct marketing. A major concern is spam.

Broadcast faxing
A fourth type of direct marketing, broadcast faxing, is now less common than the other forms.[citation needed] This is partly due to laws in the United States and elsewhere which make it illegal.[citation needed]

Couponing
Couponing is used in print media to elicit a response from the reader. An example is a coupon which the reader cuts out and presents to a super-store check-out counter to avail of a discount. Coupons in newspapers and magazines cannot be considered direct marketing, since the marketer incurs the cost of supporting a third-party medium (the newspaper or magazine); direct marketing aims to circumvent that balance, paring the costs down to solely delivering their unsolicited sales message to the consumer, without supporting the newspaper that the consumer seeks and welcomes.

Direct response television marketing
A related form of marketing is infomercials. They are typically called direct response marketing rather than direct marketing because they try to achieve a direct response via broadcast on a third party's medium, but viewers respond directly via telephone or internet.
TV-response marketing--i.e. infomercials--can be considered a form of direct marketing, since responses are in the form of calls to telephone numbers given on-air. This both allows marketers to reasonably conclude that the calls are due to a particular campaign, and allows the marketers to obtain customers' phone numbers as targets for telemarketing. Under the Federal Do-Not-Call List rules in the US, if the caller buys anything, the marketer would be exempt from Do-Not-Call List restrictions for a period of time due to having a prior business relationship with the caller. Major players are firms like QVC, Thane Direct, and Interwood Marketing Group then cross-sell, and up-sell to these respondents.

Direct selling
Direct selling is the sale of products by face-to-face contact with the customer, either by having salespeople approach potential customers in person, through indirect means such as Tupperware parties.

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E-mail open rate

The email open rate is a measure primarily used by marketers as an indication of how many people "view" or "open" the commercial electronic mail they send out. One of the earliest metrics applied in email marketing, its continued use is controversial due to conflicting views on its usefulness.

Open rates are typically measured using an HTML IMG tag embedded in outgoing emails, calling for a small, transparent tracking image. When the client or browser used to display the email requests that image, then an "open" is recorded for that email by the image's host server.

The open rate for an email sent to multiple recipients is then most often calculated as the total number of "opened" emails, expressed as a percentage of the total number of emails sent or -- more usually -- delivered. The number delivered is itself measured as the number of emails sent out minus the number of bounces generated by those emails.

This method leads to problems with interpretation, since the request for the tracking image gives no indication of whether the email's recipient actually viewed or read the email or its contents.

In addition, many webmail services and email clients block images by default, or the recipient may elect to receive text-only versions of an email. In both cases, no image call can ever be made, further reducing the accuracy of the open rate measure.

As a result, open rates are broadly rejected as an absolute measure of a commercial email's performance. However, many marketers use open rates as a relative measure, for example to compare the performances of emails sent to similar recipient groups, but at different times or with different subject headers.

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Email marketing Introduction

Email marketing is a form of direct marketing which uses electronic mail as a means of communicating commercial or fundraising messages to an audience. In its broadest sense, every email sent to a potential or current customer could be considered email marketing. However, the term is usually used to refer to:

* Sending emails with the purpose of enhancing the relationship of a merchant with its current or old customers and to encourage customer loyalty and repeat business.

* Sending emails with the purpose of acquiring new customers or convincing old customers to buy something immediately.

* Adding advertisements in emails sent by other companies to their customers.

* Emails that are being sent on the Internet (Email did and does exist outside the Internet, Network Email, FIDO etc.)

Researchers estimate that US firms alone spent $400 million on email marketing in 2006.
Contents
* 1 Advantages
* 2 Disadvantages
* 3 CAN-SPAM compliance
* 4 Opt-in email advertising
* 5 Terms
* 6 See also
* 7 References

Advantages

Email marketing (on the Internet) is popular with companies because:

* The advantage of a mailing list is clearly the ability to distribute information to a wide range of specific, potential customers at a relatively low cost.

* Compared to other media investments such as direct mail or printed newsletters, it is less expensive.

* An exact Return on investment can be tracked ("track to basket") and has proven to be high when done properly. Email marketing is often reported as second only to search marketing as the most effective online marketing tactic.

* It is instant, as opposed to a mailed advertisement, an email arrives in a few seconds or minutes.

* It lets the advertiser "push" the message to its audience, as opposed to a website that waits for customers to come in.

* It is easy to track. An advertiser can track users via web bugs, bounce messages, un-subscribes, read-receipts, click-through, etc. These can be used to measure open rates, positive or negative responses, correlate sales with marketing.

* Advertisers generate repeat business affordably and automatically

* Advertisers can reach substantial numbers of email subscribers who have opted in (consented) to receive email communications on subjects of interest to them

* Over half of Internet users check or send email on a typical day.

* Specific types of interaction with messages can trigger other messages to be automatically delivered.

* Specific types of interaction with messages can trigger other events such as updating the profile of the recipient to indicate a specific interest category.

* Green - email marketing is paper-free

Disadvantages

Many companies use email marketing to communicate with existing customers, but many other companies send unsolicited bulk email, also known as spam.

Internet system administrators have always considered themselves responsible for dealing with "abuse of the net", but not "abuse on the net". That is, they will act quite vigorously against spam, but will leave issues like libel or trademark infringement to the courts. Most administrators passionately hate spam, which they define as any unsolicited email.

 

Draconian measures — such as taking down a corporate website with or without warning — are an entirely normal response to spamming. Typically, the "Terms of Service" in Internet companies' contracts allow this, so the spammer has no recourse.

Illicit email marketing antedates legitimate email marketing, since on the early Internet (see Arpanet) it was not permitted to use the medium for commercial purposes. As a result, marketers attempting to establish themselves as legitimate businesses in email marketing have had an uphill battle, hampered also by criminal spam operations billing themselves as legitimate.

It is frequently difficult for observers to distinguish between legitimate and spam email marketing. First off, spammers attempt to represent themselves as legitimate operators, obfuscating the issue. Second, direct-marketing political groups such as the U.S. Direct Marketing Association (DMA) have pressured legislatures to legalize activities which many Internet operators consider to be spamming, such as the sending of "opt-out" unsolicited commercial email. Third, the sheer volume of spam email has led some users to mistake legitimate commercial email (for instance, a mailing list to which the user subscribed) for spam — especially when the two have a similar appearance, as when messages include HTML and flashy graphics.

Due to the volume of spam email on the Internet, spam filters are essential to most users. Some marketers report that legitimate commercial emails frequently get caught by filters, and hidden; however, it is somewhat less common for email users to complain that spam filters block legitimate mail.

Companies considering an email marketing program must make sure that their program does not violate spam laws such as the United States' CAN-SPAM Act (Controlling the Assault of Non-Solicited Pornography and Marketing Act), the European Privacy & Electronic Communications Regulations 2003 or their Internet provider's acceptable use policy. Even if a company follows the law, if Internet mail administrators find that it is sending spam it is likely to be listed in blacklists such as SPEWS.

CAN-SPAM compliance

Because the CAN-SPAM Act of 2003 authorizes a USD 11,000 penalty per violation for spamming each individual recipient, many commercial email marketers within the United States utilize a service or special software that helps ensure compliance with the Act. A variety of older systems exist which do not ensure compliance with the Act. To comply with the Act's regulation of commercial email, services typically: require users to authenticate their return address and include a valid physical address, provide a one-click unsubscribe feature, and prohibit importing lists of purchased addresses which may not have given valid permission.

In addition to satisfying legal requirements, service providers stepped in to help customers to set up and manage their own email marketing campaigns. The services provide email templates, automatically handle subscriptions and removals, and generate statistics on how many messages were received and opened, and whether the recipients clicked on any links within the messages.

Opt-in email advertising

Opt-in email advertising or permission marketing is a method of advertising via electronic mail whereby the recipient of the advertisement has consented to receive it. It is one of several ways developed by marketers to eliminate the disadvantages of email marketing.
Email has become a very popular mode of communication across the world. It has also become extremely popular to advertise through. Some of the many advantages of advertising through email are the direct contact with the consumer and is “inexpensive, flexible, and simple to implement” (Fairhead, 2003). There are also disadvantages attached to email advertising such as, alienating the consumer because of overload to messages or the advertisement getting deleted without getting read.

Permission email marketing may evolve into a technology that uses a handshake protocol between sender and receiver (Fairhaed, 2003). This system is intended to eventually result in a high degree of satisfaction between consumers and marketers. If opt-in email advertising is used, the material that is emailed to consumers will be “anticipated.” It is assumed that the consumer wants to receive it, which makes it unlike unsolicited advertisements sent to the consumer (often referred to as spam). Ideally, opt-in email advertisements will be more personal and relevant to the consumer than untargeted advertisements.

A common example of permission marketing is a newsletter sent to a firm’s customers. Newsletters like this are a way to let customers know about upcoming events or promotions, or new products. In this type of advertising, a company that wants to send a newsletter to their customers may ask them at the point of purchase if they would like to receive this newsletter.

With a foundation of opted-in contact information stored in a database, marketers can automatically send out promotional materials. The marketers can also segment their promotions to specific market segments.

Terms

There are number of terms used in email marketing, marketers in this space have to be familiar with, to name a few: auto-responder, bounce message, click-through rate, double opt-in or opt-in, open rate and spam for example.

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