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THIS MONTH:
“The Most Important Email Marketing Tactic of All”

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THE SOFTWARE MARKETER'S TOOLKIT

Volume I, Issue 9, December 2006

Dear Software Marketer,

This month let’s get back to the “nitty gritty”.

As marketers, we often get hung up on the latest “technique” designed to hook an audience. In reality, however, direct marketing still comes down to a few basics. One of these is: test, test, test!

Testing really delivers. In fact, a Jupiter Research survey of 600 email marketers found that marketers who test are nearly twice as likely to attain conversion rates of 3 percent or better. Despite this compelling argument in favor of testing, only about 40 percent of marketers use this easy and simple tactic.

What can you test?

According to a Marketing Sherpa survey of more than 2,000 email marketers, the following are most often tested:

  • Landing pages, 74%
  • Subject lines, 74%
  • HTML vs. text, 70%
  • Personalization with name, 63%
  • Long vs. short copy, 31%

Other things that can be tested are your offer, frequency, design, time of day the message is sent, message layout, day of the week the message is sent and the duration of time before follow-up.

How to Test

  1. Split your list: divide your list into two or more groups and change one characteristic for each group. Make sure that you divide your list randomly so as not to introduce any bias into your test.
     
  2. Conduct tests at the same time: time is a variable. Sending test email A in the morning and test email B in the afternoon can yield very different results. So send test emails out on the same day and as near to the same time as possible.
     
  3. Make sure results are statistically relevant: a good rule of thumb is at least 50-100 responses for each test before you can draw conclusions from the results. Consult with a statistician or market research expert, if unsure. What’s a significant result? Experts say that you should have at least a three times larger result (e.g. average click-through rate vs. test result) in order to be able to declare a clear winner.
     
  4. Maintain a control group: a control group is a random sample of your list that is excluded from the change you are testing. The purpose of maintaining such a group is to be able to test the control group against the test group.

You can make email campaign testing as simple or as complicated (using complex statistics, analytics and modeling) as you like. The point is to start testing today because, as we know, even a small “tweak” can dramatically change results. Perhaps the real power of email is not how easy and cheap it is to send, but rather its malleability: you can easily evaluate and adapt your emails to improve results.

That's it for this issue of "The Software Marketer's Toolkit". If you have any questions, comments or an issue that you'd like to see covered, please send me an email: paul@paularinaga.com.

To your software success,

Paul Arinaga 

paul@paularinaga.com
www.paularinaga.com
Tel: +32 2 782 0207

Next month: “Should web copy always be short?”

 

 
 

  

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