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Retailers: You're Fired!
› › › E-Mail
Marketing Optimization
BY Al
DiGuido
March 11, 2004
Harsh words made all the more famous by a reality TV series. In real life,
being fired is seldom a surprise. There are signals: a warning; ongoing
performance issues; a sudden management change; or the power of consumers,
stakeholders, or shareholders voicing concerns or dissatisfaction. In most
cases, there's opportunity for change or improvement through a performance plan,
role switching, product improvement, or a change in attitude or approach.
Whatever the situation, the message is simple: Shape up, or ship out.
Recently, my company teamed with NOP World Research/Roper ASW to survey
retailer shoppers and assess consumer perception, satisfaction rate, and
interest around e-mail and retail shopping for the 2003 holiday season. We
looked for signals to further guide and educate clients on their customers'
needs, interests, and satisfaction.
Some signals are clear and direct. The most glaring is over 40 percent of
consumers who purchased at a retailer in the past three months "believed their
retailer could be doing a better job sending more relevant e-mail communications
based on interests and past purchase behavior."
Powerful feedback every retailer should take seriously or risk hearing the
dreaded words: "You're fired." Before I elaborate on the importance of listening
to the consumer, let me share some research highlights. These provide context
for a better understanding of the opportunities and magnitude of the e-mail
medium and the importance of watching for signals.
First, the good news.
E-Mail Subscription Rates and Purchase Behavior
E-mail's alive and well. Despite reports of its demise due to spam, more
consumers than ever are opting in. Approximately one third of all adults (28
percent) and 40 percent of adults with home Internet access subscribe to or
received an e-mail communication based on a request or purchase during the 2003
holiday season. Those who currently subscribe or received an e-mail based on a
request or transaction during the past three months were more likely than the
total population to have purchased from retailers in the past three months,
including the 2003 holiday season:
| Consumers Who Purchased From a Retailer in the Last
Three Months |
| Retailer |
Total Respondents
(%) |
E-Mail Recipients
(%) |
| Wal-Mart |
69 |
73 |
| Sears |
36 |
41 |
| JCPenney |
33 |
39 |
| Gap |
16 |
25 |
| Eddie Bauer |
10 |
17 |
| L.L.Bean |
10 |
20 |
| Total
respondents |
1,019 |
304 |
| Source: Retailer Email Communication:
Summary of Findings, February 2004 | E-mail is a growing influence affects our daily lives. E-mail customers are
your best customers.
The Signals
Shoppers who currently subscribe or have received an e-mail in the past three
months due to a request or purchase expressed general satisfaction (66 percent).
But only half believe the e-mail messages were relevant and targeted to their
needs.
Retailers can do more to build their customer relationships. Forty percent
agree their retailer could do a better job sending more targeted, relevant
offers based on their specific interests and past purchase behavior.
Such sentiments are expressed most strongly among shoppers of older
establishments, such as Sears and JCPenney. These familiar brands' customers
expect more because of their long-term relationships. Approximately 45 percent
of Sears shoppers believe the 118-year-old retailer could do a better job
sending more targeted, contextually relevant offers. JC Penney and Wal-Mart, the
king of real-time inventory management and optimization, follow Sears with 42
and 39 percent, respectively.
What does this mean in an age of clutter and spam? Marketers and retailers
have a great opportunity for change. The opportunity is to reinvent the way they
communicate with shoppers via permission-based e-mail. Dynamically driven,
relevant e-mail is to the customer relationship as real-time inventory
management systems were to inventory delivery and cost optimization in the '90s.
Those who understand it will build competitive advantages in the marketplace and
set the bar for others to follow. Those who don't risk being fired by consumers
who are directly responsible for their long-term success.
The Payoff
E-mail customers are your most valuable stakeholders. They have high
expectations. When we looked at the results by demographic or segment, consumers
typically targeted by income, age, or gender don't compare to the most powerful
customer segment of all: e-mail subscribers/recipients.
In this study's every measurement, those who subscribe or receive e-mail are
more satisfied with their retailer. They're more likely to shop there and
recommend it to others. Marketers spending to attract key segments may need only
to market better to their e-mail subscribers by building contextually relevant
communications that offer value and deliver on promises.
| Statement |
Receive/
Subscribe to Retailer
E-Mail (%) |
Don't Receive/
Subscribe to
Retailer E-Mail (%) |
| You are satisfied with this retailer. |
90 |
83 |
| You are likely to recommend this retailer to
others. |
88 |
81 |
| You are likely to buy more products from this
retailer in the future. |
91 |
84 |
| You are more likely to increase your online shopping
with this retailer in the future. |
56 |
31 |
| Total respondents |
263 |
1,705 |
| Source: Retailer Email Communication:
Summary of Findings, February 2004 | E-mail is a relationship-building tool. Marketing leaders are moving toward
more dynamically driven content in e-mail communications. Will you be one of
them? Or are you be destined to face frustrated customers who demand your
resignation? Who ignore or delete your attempts to communicate? For additional
information on the 2003 Holiday Season Retail Consumer Research results,
including consumers' top e-mail interests areas, drop
me a line.
'Til next time,
Al D.
Al
DiGuido is chief executive officer of Bigfoot Interactive, a provider of
strategic, ROI-focused e-mail marketing services and technology. Previously, he
served as CEO of Expression Engines, executive vice president at Ziff-Davis, and
publisher of Computer Shopper, where he launched ComputerShopper.com, a
groundbreaking direct-to-consumer e-commerce engine. Prior to Ziff-Davis, he was
vice president/advertising director for Sports Inc.
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