Direct E-mail Marketing for Cellular Retailers

Relevance and Frequency
Research shows that that 40% of subscribers of permission-based e-mails from companies to which they feel loyal make more purchases and spend more than those customers who do not feel the same loyalty.⁶ To enhance customer loyalty through e-mail marketing, the e-mail messages must contain relevant information. For example, an e- mail containing special incentives for customers who have had their phone service for over a year will not be useful to recipients who just activated their phone service. As described in the following sections, knowing who the customers are, and segmenting customers based on relevant e-mail content factors are key factors for an effective e-mail marketing campaign.

Cellular retailers also need to understand the importance of the proper frequency for sending e-mails to customers. Frequency will vary based on the content. For example, retailers may send out monthly newsletters to a wide variety of customers detailing the latest products and services, but they may send out e-mails to specific customers nearing the end of their service contract that go into more detail about special pricing on new phones or plans. Another e-mail may be sent to customers who have a specific phone, detailing certain tips and tricks that will enhance their experience. Theoretically, one customer could be bombarded with several e-mails from the same retailer on the same day. Even though the e-mail messages are relevant, the customer will undoubtedly not appreciate receiving several messages at the same time.

By using properly configured CRM software (complete with organizational tools and alerts) cellular retailers can avoid the many headaches that manually tracking the various levels of e-mail marketing can cause, without the danger of crossing the frequency threshold.

Building a Customer E-mail List
Since cellular retailers regularly process detailed customer information during activations, they are step ahead of many other industries at acquiring data vital to building a customer e-mail list. With the proper cellular point-of-sale software system in place, they can easily port information into a CRM database for future use in marketing campaigns.

Cellular retailers should promote their e-mail program every time an interaction occurs with their organization, including in-store opt-in forms, on their web site, on order or registration forms, and any correspondence. By not limiting potential e-mail targets to existing customers, retailers can gain vital information on future prospects.

It is vital to the integrity of an e-mail campaign to obtain permission before using customer information. For all contacts, retailers should keep a record detailing how the contact information was obtained and whether the contact agreed to opt-into the e-mail program.

Since cellular retailers require a large amount of detailed customer information as a condition for obtaining cell phone activation, the customer's readiness to provide private information is enhanced. This gives cellular retailers an opportunity to segue into a "would you like us to contact you with any special offers" request for an e-mail address and permission.

The minimum information retailers should request for a solid e-mail campaign includes name, e-mail address, and any other information that can help to enhance the effectiveness of the campaign. Requiring that the customer provide information that does not relate directly to the customer's cellular needs or other services provided by the retailer will cause many customers to refuse permission. Limiting the amount of information requested will increase the likelihood that customers will opt-in. It will also help to convey a certain amount of trust.

Personalization - Knowing Your Customers
The best way to tailor a direct e-mail marketing program to existing customers is to get to know the existing customers. With the vital data recorded daily in the cellular POS system, cellular retailers have most of the required information to create effective and personalized e-mail advertising and customer service programs.

Only 4% of marketers use personalized direct e-mail marketing messages. Of marketers who do personalize their e-mail messages, 76% use five data points or less in the personalization process.⁷ That means that by gathering and using only five data points (such as name, e-mail address, phone, street address, purchase history, or various preferences) e-mail marketers are capable of reaping the full rewards of e-mail marketing.

Cellular retailers usually have much more detailed customer information available, which, when used correctly, can provide an added advantage when personalizing e-mail messages. With the right CRM software, these retailers can easily run reports and analyses quickly to determine customer needs, desires, and trends.

Customers will not only appreciate the personalized messages based on their actual needs, they will also appreciate not receiving e-mail messages that do not provide relevant content.

The tracking of customer behavior (including purchase history, customer service inquiries, or responses to past marketing campaigns) provides further insight, allowing cellular retailers to create better-focused email marketing. Retailers can use this information to ensure each recipient receives e-mail messages with the most relevant content. Customer behavior data is especially valuable if the customer did not choose to provide detailed personal information to the retailer.