 By Nicholas Einstein,
Nicholas has over ten years of email marketing experience and specializes in email and CRM strategy. He has spent his entire career helping companies of all kinds leverage online channels to communicate more effectively with their customers and prospects. Nicholas has significant agency experience, and at one time ran RealNetwork's worldwide email operations. He has served a variety of high profile clients ranging from Accenture, Bank of America and NBC Universal to Graco, Rolling Stone and Sony, and has helped each drive incremental revenue and customer lifetime value. Nicholas currently serves as Datran Media's Director of Strategic & Analytic Services. Reach him at:
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It is now abundantly clear that the economic malaise we currently find ourselves in is affecting everyone, and for many businesses, small and large, it is proving catastrophic. The financial realities of the time are driving steep increases in unemployment and correlated decreases in consumer confidence and spending. We are in the worst economic climate since the great depression – and I am afraid that Rudolph will not be able to save the holiday season this year.
For the many marketers, both online and off, that rely heavily on holiday revenue, Santa will certainly not be nearly as generous as in years past. Consumers are still spending this season, but they are definitely spending less. We are catering to an increasingly price sensitive consumer, with less access to credit, who is understandably uncomfortable about what the future holds. It is now time to face the facts and leverage strategies appropriate to an economic climate that we may find ourselves in for a very long time.
Allocate Additional Resources to Email Marketing
In this economic climate ROI is king, and no marketing channel can deliver the return on investment that a well run email program can – an average of well over $40 for every dollar invested according to the Direct Marketing Association. Good email, however, is not cheap (contrary to popular opinion). Sophisticated email programs require investment, and now is the time to allocate resources to the channel that can help you drive the greatest ROI.
Leverage Free Shipping Offers
A favorite offer for all direct marketers, free shipping has long been relied upon to fuel online sales, especially around the holidays. Now it is mandatory. If you are not playing the free shipping card, you have already seen many of your online sales diverted to brick and mortar alternatives or to other sites that are shipping for free. Offer free shipping now, and continue to use it liberally throughout early-mid 2009.
Seek out Quality CPA Deals
Marketing budgets are being slashed across the board, but marketers who can efficiently drive ROI positive leads will likely be able to marshal additional resources. Performance based deals have always made good sense, and make especially good sense in an environment where every dollar counts. As always, ensure that you work with quality vendors in the space.
Embrace Social Media
Many marketers have had a difficult time monetizing social audiences this year and are cutting back on efforts in the space as a result. This is a huge mistake. Audiences will continue flocking to social sites throughout 2009 and any brand not taking part in those conversations will be missing out on tremendous opportunities. Social initiatives can often be launched with virtually no incremental budget, and when implemented appropriately, can pay measurable dividends – don’t wait until it’s convenient to integrate social media, the time is now.
Focus on Retention & eCRM
It’s no secret that the best prospects for future sales are often current and former customers. In this challenging environment, it’s imperative to utilize data intelligence to cross-sell and up-sell customers with highly relevant, laser targeted offers. Focus on the low-hanging fruit first and develop programs that cater to loyal customers and drive customer lifetime value.
The weeks and months ahead will undoubtedly be rocky, and while Santa may very well be coal-laden this holiday season, focusing on the above strategies will best position marketers for the holidays and beyond.
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