E-MAIL MARKETING:
Direct or Indirect approach?

The worst rap in the online world is to be called a spammer, someone who shoots off unsolicited bulk e-mail to unqualified lists, annoying and irritating recipients, violating netiquette protocol. Last week, about 90 marketers gathered at the Time-Life building for a half day seminar held by the DMA’s Electronic Media & TV Marketing Council to hear e-mail entrepreneurs reveal what works.

Steve Douty, VP of Marketing & Sales at Hotmail, a free web-based e-mail service, described a five-prong approach that he recommends. Instead of an outright solicitation, Douty uses a survey mechanism to find the profile of the advertiser’s target audience. A link to a sell page appears in ads and banners on the Hotmail screen many more users, who match the survey profile, see when they log to check their e-mail. Once users arrive on the sell page, they are asked to sign up for more e-mail from the advertiser. Only after "dialoguing by email," can you now "transact" with prospects. "It’s about building a relationship," Douty emphasized. "The allure of the big hit from blasting e-mail to long lists is tantalizing but is not a good long term strategy."

Rosalind Resnick of NetCreations (see MWT, March, 1997) said she disagreed with everything Douty said. With opt-in e-mail lists, which Resnick’s company develops, there’s no need to go through all those steps. Resnick gave some results of different campaigns: a mailing to 14,000 web designers brought in $50,000 worth of new business within five hours; an Internet billing company saw its sales soar by 1,000 per cent in just twelve months using e-mail marketing.

Bob Cherins of Juno Online Services (See MWT 8/95), another free mail service that uses proprietary software, presented stats that showed why Juno’s system worked better than the usual web site. The click through rate is only 1-2 percent for a banner on a web site, whereas, Juno users have a 10 percent click through rate and a four percent response rate to different offers.

MWT Analysis: Direct marketers are rightfully cautious about getting their feet wet in this elusive market place. E-mail is not like postal mail. Because of its speed, easy distribution and interactivity, e-mail marketers should realize they are reaching a community of people that can hoot and howl back instantly. If e-mail users still hate spam now as they did in the early days of the Net, even after the online demographics have shifted, it may be that direct marketing does not belong in e-mail boxes. If so, it’s best to see e-mail as a lead generating venue, keep the offers light and steep them with freebie benefits.

(Contact: Steve Douty, Hotmail, 408-222-7007, e-mail sdouty@hotmail.com; Rosalind Resnick, NetCreations, 718-522-1531; Bob Cherins, Juno Online, 212-597-9236)