Forrester just released their Email Service Provider report for Q4 (Forrester Wave™). The report is a comprehensive evaluation of 15 top-tier vendors, and analyzes products and services across over 70+ criteria and three dimensions, including “Current Offering,” “Strategy,” and “Market Presence.”

The leaders of the pack with robust and highly-integrated solutions were ExactTarget and Responsys. Liberty Interactive Marketing has been a long-time user and advocate for ExactTarget given a customers complex needs with regard to segmentation, dynamic content, and integrating with other marketing channels like social and mobile.

While clearly the 70+ points of criteria knocked out a lot of smaller solutions like Campaign Monitor and Blue Sky Factory, it doesn’t mean medium-sized businesses should discount these. Before selecting an appropriate email service provider, sit down and determine what your needs are, from customer database integration to segmentation. What assets are you working with and what shape are they in?

And if you thought email was a passe marketing tactic for 2010 and beyond, you’ll be surprised to know that 68% of those surveyed by Forrester said that they anticipate that email marketing’s effectiveness will increase in the next three years.

The main focus for marketers will be to understand who their customers are and how to market to them personally and with relevance.

To stay ahead of the pack or just catch up I highly recommend downloading this email marketing report from Forrester compliments of ExactTarget.

From 1992 to 2007, eCommerce has transformed from a $35.3 billion per year industry to nearly a $200 billion per year industry according to the U.S. Census Bureau. That’s more than a 500 percent increase total and an average of a 33 percent increase each year!

Email marketing ties in well with eCommerce, and is a popular online marketing channel used to drive sales. However, eCommerce companies need to be aware that gaining and retaining a loyal customer base is a key component to the bottom line, and if you’re customers aren’t happy, expect to see that bottom line plummet.

Here is my experience with one eCommerce company and their email marketing campaign. I was less than pleased with the over-all experience, and will share the pros and cons as they relate to both email marketing best practices and overall customer experience.

The Good

• This company did well in quickly shipping the item I purchased. I had the package in my hands in about two days.
• They were also helpful in recommending what size I should choose, the item of clothing fit just right.

Email Marketing: Room for Improvement

• A promotional email was sent to me for 20% off but never stated when the promotion expired. Tip: Always present the user with all offer details – from promo code to expiration date to any hidden terms.
• I received an error when I went to make my purchase saying the code was invalid. I had to contact the company in order for them to temporarily reactivate the code. Tip: Make sure that Marketing is communicating with Operations. Most customers don’t have the patience to pick up the phone. Online chat is an optional tool to handle these types of requests, but make sure they are trained appropriately.

Web site Usability: Room for Improvement

• Product information was incomplete on the site. They did not have photos showing the complete product I wanted to order. I had to contact them and ask them to add an additional picture to the website. Tip: Always ensure you have photos of every item you are selling on your website. Consumers don’t have the luxury of tangibility online so providing as much information about the product is imperative. Angles shots, videos, and customer reviews are all optimal content assets when selling a product online.
• Part of the fun of ordering online is the anticipation of the package being delivered. Tip: Tie your email marketing in with shipping/operations to create a lifecycle campaign that keeps the customer excited to receive their shipment and notifies them of tracking and delivery.
• Further disappointment came when my package arrived and I discovered I was sent the wrong piece of clothing. I sent it back to the company and received the correct order less than one week later. Tip: Always double-check that you are sending the specific product that the customer ordered. Include easy instructions on how to return the item. Tip: Don’t overlook the details of providing a simple thank you on receipts and shipping invoices. A coupon for their next purchase is also a great way to encourage repeat visits.

While I do love what I ordered, my over-all experience with the eCommerce site left me less-than impressed and I will not be making purchases from them in the future. I hope this first-hand customer experience has given useful insight to new eCommerce businesses looking to engage in email marketing and provide users with a great customer experience. Paying attention to all the details and making sure all departments are working together will ensure you a loyal customer base and an increase in your bottom line.

Almost 80 percent of consumers receive messages from companies (according to a 2008 L-soft whitepaper). Is your company newsletter following email marketing best practices? If not, you risk the chance of having your email deleted from a potential customer’s inbox before they even open the message.

If you’re thinking about implementing email into your marketing plan, or if you’re simply looking for ways to improve upon your current newsletters, I’ve compiled the key factors of email marketing best practices for quick reference.

The Basics:

• Build a permission based list of recipients.
• Manage the list.
• Define relevant content in the proper format.
• Deliver the message.
• Evaluate the results.

The Specifics:

• The message content should be created according to the results you wish to achieve. What is your ultimate goal? Is it to gain sales? Branding? To increase web site traffic?

• Once you’ve determined what your goals are, consider what format your message will be sent in. Do you plan to build it in html or MIME/Multipart? If you decide to build an html newsletter, format the code so that it’s clean and easy to navigate. This will save you a lot of time in the long run because it will help to prevent formatting errors.

• Avoid spam filters by checking your newsletter for content that could be seen as spam. Most email service providers can automatically check your newsletter for any content that could cause it to be placed in the recipients spam folder.

• Having an intriguing subject line is one of the most important elements of email marketing. Lack of an interesting subject line can cause your message to be left unopened completely and most likely deleted. Successful subject lines include an action phrase plus an incentive for the recipient. An example of a weaker subject line is – SFGate Newsletters: Great news and information. This offers no action phrase or incentive for the recipient. An example of a better-crafted subject line is – Save Big on New Arrivals at The Nest Baby Shop. It entices the recipient to open the message in order to discover what the new arrivals are and how much exactly they can expect to save on these products.

• Include relevant links within your email to accomplish your goal. If you want to drive more site traffic, include links to your web site in the copy of the newsletter. Promoting a sale? Give recipients a link to the special offers and sales page of your company web site. Keeping links relevant helps ensure people take action when they click on it.

• Always implement opt-in and opt-out. This means offering an unsubscribe button within your email so that people can decide to stop receiving messages from your company at any time. It also means offering a newsletter sign-up option on your site. To encourage web site visitors to sign up for your newsletter, offer them something they would not otherwise receive without being a subscriber such as discounts and coupons.

• Spell Check! And that doesn’t just mean running spell check on a computer. Actually take the time to sit down and read the copy slowly to yourself. Then have a colleague do the same to double check. Having a misspelled word in your company newsletter comes off as extremely unprofessional.

• Mind the length of your email. Most people don’t have the time to read a long newsletter, so be cautious of how much content you are including. Having a balance of images and copy makes your message more appealing to the eye and easier to read.

• Be aware of the frequency of your emails. Depending on the industry you’re in, set up a schedule that won’t irritate your recipients but will still keep your company in top-of-mind. For example, don’t send 3 emails a week about real estate market updates when once a month will suffice. This is a quick way to lose a lot of subscribers.

• Make sure your company name is clearly identified in the domain name that appears in the sender line.

• Clearly display your contact info in your newsletter.

photo credit: tamaleaver