For years, I have read the works of Seth Godin and others and bought into the whole ‘permission marketing’ paradigm when it comes to email marketing [especially].
It makes sense, builds trust and creates relationships. Believe me, I am on board.
But.
As much as these guys say that the old rules won’t and don’t work, I can’t help thinking that it’s restricting thinking – especially at a time when [arguably] small businesses need to be more aggressive with sales.
Yes, there is the ethical debate, and I agree wholeheartedly with privacy, etc. but I also see companies selling data lists, and Direct Mail (electronic and otherwise) still being appropriated in my direction from harvested lists.
So. I thought I’d experiment.
A couple of years ago we bought a database of companies in Hampshire for £150 and it’s been kicking around. What would happen if I just sent a blanket email to the database selling a small business web design proposition?
Is this even spam in the very grey world of email marketing ethics where business is concerned?
I managed to get 4,862 addresses together from the database and sent out a plain text email, stating where the data had come from and what the proposition was (see email text below). These are the results (so far):
- 907 bounces
- 184 unsubscribes
- 6 spam complaints
- 2 sarcastic email replies
Here’s the important stats:
- 100 click-throughs to the landing page (2.06% click through rate)
- 7 direct sales leads (7% from landing page / 0.14% from total sent)
That’s not a great result in terms of numbers… or is it?
The total cost for the excercise was approx £188, or just less than £27 per lead for a sales prices of roughly £2-3,000. The whole task took approx 3 hours and if we convert one of the seven leads (even on the lower estimation of £2k), you are looking at an ROI of over 900%.
Call me an arse. Refute my understanding of “the first rule of marketing” as someone stated. But you can not knock the actual result. Brand damage? Maybe a tiny drop in a very large ocean that will soon be washed away. It’s not as if I will continue doing this to the same data – but that would be another experiment in itself, so never say never.
In my many years of using e-mail for marketing I have come to understand that even when you do things ‘right’, someone somewhere will say you are doing it wrong. I still get spam complaints from subscribe only list recipients, so go figure individual logic if you can.
My big learning from this email experiment
Never say something won’t work, however smart you think you may be. And, those old forms of advertising and marketing that people say no longer work… does they really not work anymore? In any given situation? At any given time?
Email Transcript:
Firstly, sorry for the intrusion. Your details were supplied
on the Hampshire Business Directory so we thought our email
may be of relevance, but if we are wrong (and we may well be)
you can unsubscribe here very quickly:
http://www.the-escape.co.uk/small-business/
The Escape is a design and web agency based in Basingstoke and
recently we have refined our small business web design offering.
http://www.the-escape.co.uk/small-business/
Subsequently we have delivered some great websites for some local
companies during January and February.
Quite simply, these guys are already getting sales enquiries
after a very short period of time, and we could all do with that
right now, couldn’t we?
Obviously, we don’t know if you are even looking for a new or
updated website at the moment, but it would be great to think
that maybe we could have a go at putting together a proposal if
you are?
We like to keep things simple when it comes to web design – it’s
all about a nice looking site that attracts relevant visitors
that make enquiries. Sound like something that you are looking for?
It doesn’t need to be expensive – in fact a good website is
probably the most cost-effective form of ongoing marketing for
any small businesses.
As a matter of course, for each project we:
- Design a website that looks good and has “ease-of-use” for the
visitor.
- Find and implement copyright free photography as part of the
cost to enhance the way your site looks.
- Research ‘key phrases’ that your website should use so that
you get found in search engines.
- Write the content for your website – for search engines and,
just as important, to engage people to take action when they find you.
- We put the site live and manage any web hosting issues and also
tell the search engines to come and take a look at your site.
Like I said, these websites are delivering. Why not find out
more? It could be one of the best clicks you ever make?
http://www.the-escape.co.uk/small-business/
Thanks for your time (and sorry for the intrusion)
Having had some success myself recently using a similar model, I would say this is very much an avenue worth looking at for a quick, cheap and easy way to promote yourself in your local market.
The only thing I would question is why, when most likely this was the first most of the recipients would have heard of The Escape, you promoted only your web services when, as a business, you offer so much more? I can’t help thinking 4,000 people were possibly left with the impression you only do websites and with maybe a mentioning of the other services you offer you may have had many more direct sales leads.
Still, a very worth while experiment in self-promotion and I’m sure many people will read this blog and consider this a very viable option for their business in the current climate.
Good luck with the those leads and I hope at the very least Rob gets a chilli jacket out of it!
Hi Craig,
I have to agree with you on this one.
This comment from Tim Coleman in a previous post – You can’t wait for business to come to you – “if you are sitting waiting for work to fall on your desk from the sky, you’ll be waiting a very long time” is very fitting I think.
In this time of (and I hate saying it) ‘economic downturn’ it’s extremely important for businesses to take a proactive approach to acquiring new business.
So what if you received 2 sarcastic email replies or 6 spam complaints. The main point is that you are out there trying new ways to get business and not sat around waiting for business to walk through your front door.
I do agree with the whole ‘permission marketing’ paradigm, but I don’t think it’s relevant all the time.
I say well done and keep up the good work!
Keith
Great bit of research and very cost effective based on the return. Liked the email too.
I’d love to know what Seth would have to say about your fascinating experiment! I have to say that I am also a Seth fan, but of late I have started to question his tendency to completely dismiss all interruption marketing techniques. I think your experiment has proved that interruption can work. Interestingly I still have clients that believe that they more value from Newspaper ads than they do from Google!
Thanks all for the comments and sorry for the slowness in replying (my feedback emails didn’t come through – that is ironic!)
Jason. Agreed that I could have added the design sales message. In retrospect, I would have. I think the thinking was that we should stick to one offering and this was the most accessible.
Good to hear from you James and Keith, I am of the same opinion. I do like the Seth model, but I also think you can’t dismiss 60 years of interruption marketing techniques just to take the moral high ground. Got to try these new approaches.
Andover IT. Thanks for the comment. Glad you weren’t one of the spam complaints
Out of interest how did you manage to send the emails. We’ve often wanted to send out a blanket type email to all those other businesses in our local Chamber of Commerce but could never find any on-line email packages that do anything but Opt-In only lists etc!?
Jason, I did use an opt-in system (cheekily). I wouldn’t make a habit of it though. Have you tried Topica?