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The Power of Permission -- by Chip House All of you know the 80/20 Rule: 80% of your business comes from 20% of your customers. Studies have shown that increasing your existing customer's spending by even 5% can translate into a 25% to 95% increase in your company's profitability. This type of focus on your existing customer base is often referred to as retention marketing - also known as loyalty marketing, customer relationship marketing or database marketing. Regardless of the term, building stronger relationships with your most valuable asset - your existing customers - is simply good business. With the advent of email, a new field of marketing has exploded on the scene - it's called Permission Based Marketing. Permission Based Marketing is simple It's the concept of marketing to customers who have given you their permission to receive promotional messages and other information targeted to their interests. This is a very different approach than traditional marketing that is commonly designed to interrupt the consumer in hopes of gaining their attention. In today's age of information overload, we're all inundated with unwelcome marketing messages. Now, compare these experiences with the arrival of a favorite magazine or newsletter in which you've invited the communication. What a difference! Using Email, Permission Based Marketing enables you to affordably deliver welcome messages to your customers. What a great deal! Here are some of the many benefits of implementing this type of email marketing within your business:
Your message reaches an audience that wants to hear from you. - Low Cost Compared to other forms of direct marketing, e-mail marketing is significantly less expensive. Because of its low cost, emails can be sent with the frequency needed to make an impact. Permission marketing guru Seth Godin states, "Given the choice between reach and frequency, many unseasoned marketers make the mistake of going for reach instead. They argue that touching one hundred people with a brilliant ad or newsletter is more effective than reaching twenty-five people four times each. This approach seems encouraging, but research has shown it to be wrong. Reach alone can't build a brand, sell a product, or establish trust." - Fast and Efficient Traditional direct marketing programs can take weeks or months to create and implement. Then, you wait another couple months to analyze the results in order to determine its success. Permission Based Emails can be executed in minutes with real-time results - thus, giving you immediate feedback. - High Response Rates Typically, permission email campaigns result in better response rates than traditional direct marketing. From our experience with small businesses, many are achieving better than 10% response rates to promotional offers. - Promotes Two Way Communication Email offers a huge advantage in that it promotes customer feedback. With just the click of a reply key, your customers can communicate directly with you. This may come in the form of compliments, questions or even problems. Either way, when they start communicating, you have a tremendous opportunity to build a loyal customer. |
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