The document outlines tips for successfully executing a permission based email marketing program in 3 steps: 1) Decide on a program that provides value for both the marketer and their audience. 2) Acquire email permissions by offering a compelling reason for people to opt-in and respecting legislation around permission marketing. 3) Improve email marketing efforts through testing, differentiating content using profiling, and focusing on the target audience and their needs. Following these tips can help marketers get started on a successful permission based email marketing program.

1. How to setup and successfully
execute a permission based email
marketing program
• Michael Leander Nielsen
• CEO, Fokus Integrated
• mln@fokusintegrated.com
(c) Michael Leander Nielsen, 2008 1

2. Presented by Michael Leander at the Baltic
Direct Marketing Conference in Riga, Latvia
on 26th. November 2008
(c) Michael Leander Nielsen, 2008 2

3. Michael Leander
• 10 years on the business side
- CEO, midsize companies, IT software
- VP sales/marketing, 2 * public companies
- VP sales/marketing, 1* midsize
10 years on the agency/consulting side
- Advertising agency, consultant
- CEO, marketing consulting + ESP
Contact details:
Email: mln@fokusintegrated.com
Newsletter:
http://www.fokusintegrated.com/meemoo2/
(c) Michael Leander Nielsen, 2008 3

4. The agenda
Why permission based email marketing?
The email marketing evolution
unCase studies
How to get started with an email marketing program
Deciding on a program that brings value to you and your audience
Acquiring email permissions
Tips to improve your email marketing efforts (get all tips at free web-seminar
in January 2009)
Email marketing trends, articles & insights. Free newsletter
http://www.fokusintegrated.com/meemoo2/
(c) Michael Leander Nielsen, 2008 4

5. 1. Why permission based email marketing?
What is it and why is it important?
Permission and why permission based email
marketing
Various stages of permission marketing
Mastering permission marketing as one step
towards engaging integrated marketing
Legislation you must not ignore
(c) Michael Leander Nielsen, 2008 5

6. What is permission based email
marketing?
Email newsletters Transactional emails Customer, product surveys
E-mail marketing can be used for any
purpose, targeted at anybody, anytime
(c) Michael Leander Nielsen, 2008 6

7. CMO Trends 2009 – ongoing survey
(c) Michael Leander Nielsen, 2008 7

8. CMO Trends 2009 – ongoing survey
(c) Michael Leander Nielsen, 2008 8

9. Why e-mail marketing?
Cost
savings
Why not?
Demand vs EVP?
(Email Value Proposition)
Retention
Quick
response
Critical mass?
cycles
Revenue
Popular
media
Alternatives?
Why? Resources?
Reach
Measurable
Systems?
Builds
relationships Commitment?
Targetable
(c) Michael Leander Nielsen, 2008 9

10. E-mail seems the logical choice
Faster Cheaper Targeted
Response time Pr. contact/reach Reel time
1-4 weeks USD 10 Behavioral data
New messages/activities based on..
• Opened
• Click-response
• Transactions
• Opened – no
USD 1,50 transaction
0 - 3 days
• Click-response to
pre-defined website
URLs
Direct Mail Email Direct Mail Email
(c) Michael Leander Nielsen, 2008 10
Sources: Forrester, DMA, Gartner Group

11. Media channel effectiveness, simplified
DIRECT & Cost per Cost per Convert to Actions Cost per
OUTBOUND contact thousand action (sale) action
Canvas call by 1.400,- 1.400.000,- 20% 200 8.325,-
sales rep.
Telemarketing 100,- 100.000,- 5% 50 2.000,-
Direct mail 50,- 50.000,- 2% 20 2.500,-
E-mail 10,- 10.000,- 0,75% 7,5 1.333,-
SMS/MMS 7,- 7.000,- 0,15% 1,5 4.667,-
• Test to find your optimal mix
• Decide: sender control or recipient control
• Combinations are often most effective in terms of ROMI

12. 2. The email marketing evolution
(c) Michael Leander Nielsen, 2008 12

13. e-mail marketing Generations
Where are you?
3rd. generation
Value Precision Marketing:
• Highly relevant
• Customized
• “Mail Worth Opening”
2nd.generation • “Mail Worth Acting On”
Permission Marketing: • Develop relationship
• Responsible communication. • Loads of referrals
1st. generation • Poor segmentation • Great ROMI
Broadcast, “SPAM”: • Minimal personalization • Trigger based initiated
• high volume, low cost • Not yet fully committed • Integrated with surveys
• “Send and forget” • Referrals start coming • Life cycle automation
• Often irrelevant to receiver • ROMI improving • Interactive
80%
(c) Michael Leander Nielsen, 2008
19% 1% Time/
Commitment
13

14. 3 Generations. From email marketing to
customer lifecycle marketing automation
• Attract
G1: • Connect
Email
Permission
• Engage
marketing • Convert
Attract • Retain
Engage, G2:
Automate/
•
•
•
Connect
Engage
Convert
Convert, Integrate
Dialogue
•
•
•
Retain
Interact
Grow
Retain & G3:
•
•
Connect
Engage
Grow Customer
lifecycle
marketing
•
•
Convert
Retain
automation • Interact
• Grow
(c) Michael Leander Nielsen, 2008

15. The goal for any marketer in 1997, 2009?
Relevant offer A B C D
Target
Effective channel
Right timing Nov
26
(c) Michael Leander Nielsen, 2008 15

16. 3rd. Generation prospect/customer Wheel
Differentiated approach addresses different needs
SMS/Email
6 Travel &
experience
Excursions
Car rental
7 Comming 5 Arrival 1.
home
Recommend destination
to friends
Transactional
8 Evaluation Example 4
Departure Behavioral
& Reliving
Travel Targeted
3 Past Sale Insurance
Pre Departure Car rental
1 2
Pre Sale Sale
9 Next
Pre Sale
Profiling and knowledge of where the customer is in the ”wheel”
opens up for a coordinated and relevant dialogue before sale,
during and after

17. 2. Uncase studies
Learn from the mistakes of others
• 95% of all email marketing programs are unsuccessful
- 98% of them are managed without any clear objective
- Very few email marketers care about the needs of the individual
customers
• The successful ones does
(c) Michael Leander Nielsen, 2008 17

18. An abundance of ignorance
Don’t send me Dubai offers,
when I am already in Dubai ..
Don’t offer me savings
if you do not deliver outside
United Kingdom.
(c) Michael Leander Nielsen, 2008 18

19. Attention-Deficit Hyperactivity Disorder
(ADHD) Someone please help Bob Poole
from FastPitch
(c) Michael Leander Nielsen, 2008 19

20. Offline instrumentation – no exception
unCase study
1. Unaddressed letter
with 8 different items
at min. cost of € 10
2. They have my
permission to email
3. I am a customer
already
4. Complex sale – lots
of prerequisites
5. Sender name not
personal
6. Not a word on their
website
(c) Michael Leander Nielsen, 2008 20

21. 3. How to get started with an email marketing
program
Rules that apply to everyone
Ask five economists and
you'll get five different
answers - six if one
went to Harvard.
Edgar R. Fiedler
(c) Michael Leander Nielsen, 2008 21

22. ROMI
Return on Marketing Investment
Also known as MROI – Marketing ROI.
PS: Feel free to call it ”commonsense”

23. Your strategic objectives for email
permission marketing
• Build relationship Success defined by
• Sell more stuff (cross-sell/upsell)
• Profile customers Repeat
Customers Sales
• Expand touchpoints with customers Business
• Initiate and build relationship
Success defined by
• Customer acquisition
• Profile prospects
Convert to
Prospects • Survey prospects customer
CTR
• Create referral mechanisms
• Re-activate lost customers (win- Success defined by
back activities)
? # referrals Win-back
(c) Michael Leander Nielsen, 2008 23

24. Why – what is it all for?
(c) Michael Leander Nielsen, 2008 24

25. What is your value proposition? What are
you offering that might interest me?
• Outside in
• ”Subscribe to our newsletter” isn’t a very strong USP
(Unique Selling Proposition)
• Be the first to learn more about
new Pîrâgi recipes made with
Kimmel beer – not milk or water
(c) Michael Leander Nielsen, 2008 25

26. 3. Acquiring (email) permissions
Legislation
When people sign-up to receive news from you,
they buy into the promise you’ve made.
Your obligation is to keep your promise.
(c) Michael Leander Nielsen, 2008 26

27. The EU permission legislation
• Opt-in legislation
• You must receive permission to send e-mails/SMS/MMS containing sales/marketing
related content
• You must respect the opt-out/”no thank you”
• The penalty for not being in compliance is severe
• Large fines imposed on any company in breach
• Largest fine in Denmark so far was in excess of USD 800.000
• Lot’s of grey areas
• Remember that consumers/business buyers define spammers – many marketers
are perceived as spammers – even if they are in legal compliance
• It is outrageously easy for consumers to blacklist a marketer (ask your email
marketing service provider about this)
(c) Michael Leander Nielsen, 2008 27

28. Prioritize: Whom are your Most Wanted
Permissions Fan / Partner
Advocate
Customer
Trial Buyer
Prospect
Suspect
Loyalty
Dissatisfied
Terrorist
(c) Michael Leander Nielsen, 2008 28

29. Acquiring permission across all points of
interaction
Integrated permission acquisition in all channels
• Website
• Campaign websites
• Emails (signature)
• Point of sale
• Direct mail
• Telemarketing
• Customer service (inbound)
• TV/Radio etc
• Print advertising
• Which channel is most effective for you?
• Which channel deliver the most dedicated
subscribers?
• Be careful what you ask for !
(c) Michael Leander Nielsen, 2008 29

30. Acquisition – mind sets
Generation 1 Advantages
- More sign-ups
- Better conversion
Disadvantages rate
- More work
- Irrelevant /
not personal messages
(c) Michael Leander Nielsen, 2008 30

31. Disadvantages
- Less sign-ups
- More content, more work 
Acquistion mindsets
Advantages
- Qualifying Information
- Relevant Messaging
Generation 2 - 3
-” Geo-tagging”
- Lead ownership
- Targeted content
(c) Michael Leander Nielsen, 2008 31

32. Example – Denmarks largest furniture
retailer chain
• First implemented in 2005
• Outperforms all other
signup forms
• 99% of all profiles are
complete
- The text
Sex
Birth year
Win 1.000 each month Children at
Tell us about yourself and home
get a chance to win the Type of housing
prize.
You participate for as long
as you are a subscriber.
(c) Michael Leander Nielsen, 2008 32

33. 4. Tips to improve your email marketing
efforts
Let’s see how many we can do
More tips at free web-seminar in January 2009
(c) Michael Leander Nielsen, 2008 33

34. Let me explain…. or not?
(c) Michael Leander Nielsen, 2008 34

35. The ”motor people” approach
• Relentless focus on the target group
and the need of the individual
• Focus on content – relevant content
• Sales process aligned with the
buying process
• Experimental mind – test, test, test •Offer/message first, then creativity
• Return on Marketing Investment • Differentiated communication
• Flowcharts to document activities • Creative to support the end-result, not
creative for the sake of creativity
• Combine on/offline activity for
maximum effect • The Managing Director is not an influencer
To make the motor run
smoooth and with great effect,
nothing is left to chance

36. Tip : Your MWRs Most Wanted Responses
What are you
trying to
accomplish?
What is your most
important MWR?
MOST WANTED
RESPONSES?

37. Tip #3: Getting the attention you deserve
From – never Subject – oh,
change the sender very important
address/name
Preview pane: Be sure that
your compelling reason to open is at
the very top

38. Tip : Test test test
• Test and measure
• Measure and test
• Constantly check
how you are doing and ask
yourself how you can improve
your results.

39. Tip # 4: Differentiate your messages
(content) with profiling
39

40. Tangible increase in your results
What is profiling?
A process of meeting customers needs by collecting
information about them. This information can be obtained
with volunteered/declared information from the customer
or collected passively (observing the customer’s
behavior patterns).
Marketers actively applying profiling get better results
• Open rate by 10 – 30%
• Click-through rate by 20-40%
• Conversion to buy ratio by as much as 80-90%
• Lifetime of a subscriber increases dramatically
• Decrease of opt-out rate
(c) Michael Leander Nielsen, 2008 40

41. First + last Name
My B2B profile Email
My B2C profile
Position? Mobile #
Influence? Male
39-45 yrs. Old
Married (wife)
Size of company Kids (#, sex, age)
Budget for X
Annual use of Y Income (no)
Assets
Bying process Property
When, how
CFO’s
Lifestyle
Soft data Preferences
Preferential Status of X
information
Basic
Demographics
Basic A press photo conceptualized by Affluent
demographics a German creative who spent too much neighbourhood?
time in Berlin….
(c) Michael Leander Nielsen, 2008 41

42. Targeted content – example B2B
Decision Influencer Technical Other parties
maker dude
Finance offer X X
New competitor
X X
benchmark
Company news
X X X X
and stuff
If
Executive White If clicked X or
clicked No If clicked Y
Paper Y
X
Product news with
X
a techie angle
Do not underestimate the power of good content, nor the
work involved in creating good content
42
(c) Michael Leander Nielsen, 2008

43. These 10 tips will get you off
to a good start
1. Start with the development of your permission marketing strategy
2. Ensure that you are offering a compelling reason for people to opt-in
3. Create a certain amount of relevant and unique content
4. Calculate your expected ROMI
5. Build your permission database by utilizing all possible channels
6. Ensure that you have systems in place to handle opt-in, opt-out,
measurement, individualizing and preferably integrated with your
CRM/ERP system
7. Combine media-channels for optimal effect and performance
8. Work with your content, timing and creative
9. Expect quick results quick - and improved results over time
10. Consult an expert if in doubt
(c) Michael Leander Nielsen, 2008 43

44. No more miracles?
Advice:
Successful permission marketing
doesn’t happen over night. Planning
and a long term perspective is required
(c) Michael Leander Nielsen, 2008 44

45. Thank you for being the
perfect listener
• Good luck with permission based e-mail
marketing in the future
• Questions or comments – drop me a line at
mln@fokusintegrated.com
• Sign-up to the Meemoo2 Marketingboss
Newsletter here: http://tinyurl.com/63gjd7
(c) Michael Leander Nielsen, 2008 45