A Reality Check on e-Marketing

An ASTECH InterMedia Reference Article

by Tom Ratkovich and Rick Matsumoto

Despite the hype generated in its relatively short history, e-marketing has been as cursed as it has been heralded. The learning attributable to deficient business models, questionable execution and fundamental inexperience far outweighs that gained through flawless planning and implementation.

Much like the dot-com industry overall, e-marketing is also going through a "reality check." Concepts that gained popularity initially are now being weeded out in favor of concepts that actually work.

	Banner advertising, once thought to be the perfect pay-for-performance advertising vehicle, has migrated from a business model based on click-thrus to one based on impressions. This should sound familiar to newspaper people … you're responsible for delivering eyes, not the viability of the offer.
	Privacy concerns have rendered the concept of "profiling," in which consumer behavior is tracked across the web to uncover and predict future behavior – a precarious practice.
	Dynamic content and data mining are intuitively appealing but to date have proven to be time-consuming, resource-intensive and unprofitable.

So, where is the "killer app?"

We believe it's in e-CRM — leveraging the Internet to introduce or enhance the process of Customer Relationship Management.

e-CRM is the Real Thing

The Internet represents an unrivaled instrument for customer interaction. It is a resource for enhancing customer knowledge as well as an efficient channel for leveraging that knowledge into relevant, profitable customer communications.

Consider this: newspapers spend huge sums of money on renewal notices, billing, upgrade offers and other customer exchanges that are essential to business operations. What if a large percentage of such exchanges could be executed at zero or negligible cost? What if the customer response to an upgrade offer automatically triggered a confirmation notice, a thank-you or a revised offer — again at no cost? What if retention programs could be seamlessly implemented and customized to individual characteristics and preferences? What if…

Certainly, there are near-term impediments to such scenarios. For example, unlike web-based businesses that capture email addresses in the normal course of operations, newspaper companies maintain few such addresses on their customers. This must – and will – change.

The use of email as a newspaper marketing tool – whether it be in circulation marketing, advertiser communications or editorial research – will radically alter the profit model for many companies.

But e-CRM is a pipe dream without email addresses. The quality of your data determines the quality of your marketing, whether there's an "e" in front of it or not. Here are some things to do today:

	Create your own opt-in email marketing list by leveraging every consumer interaction to solicit an email address. Ideally, you will be able to link that email address to a residential address through an account number or name. This will facilitate integrated communication initiatives.
	Request permission to communicate relevant information about your product and those of your advertisers.
	Publish a privacy statement. Be absolutely clear about how their information will be used.
	Give people a reason to opt-in by reinforcing convenience and delivering value.

And here are some things to avoid:

	Abusing the permission to send relevant email by mailing too much or sending information with little or no value.
	Sending messages with rich content to customers with slow dial-up connections.
	Sending html messages to people who can only read text.
	Bungling or even ignoring requests to unsubscribe.

For newspapers, the Internet offers infinite opportunities and challenges. None of those opportunities is more tangible or more significant than the CRM applications of disciplined, timely email marketing.

Reproduced here from IDEAS Magazine, the publication of the International Newspaper Marketing Association (INMA), February 2001. Tom Ratkovich is the president and founder of ASTECH InterMedia. He can be reached at 303.296.9966 x111.

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