Wednesday, March 04, 2009

Retail Loves Email

This crisis is affecting a lot marketing strategies. Indeed, one of the first move for corporation while they see the risk of stagnation is to cut marketing budgets, which drives marketing departments to reallocate their expenses.

In this cruse for better ROI, marketers seems to have found in the Internet the perfect place. Emarketing has 3 main specificities that makes it unique:
  • Cheap: Internet marketing remains cheaper than TV advertising or some other kind of media. With couple of bucks you can reach a large number of people.
  • Targeted: You can target your audience by their location, what they are looking for and/or who they are. You are not massively spreading a message hoping it will be received by the right person, which actually increases the ROI.
  • Measurable: It is easy to analyze the results of a marketing campaign, wether it is via emails or search engine optimization. You know precisely how much money you spent, how many people received your message or saw your ad on the search engine, and how many people cliked on it.
Hence, online retails seem to affect especially emailing campaigns. That is what an emarketer study shows up.

Actually, this study made me think about something else. Indeed, traditional retails are experts in flyers and print mailing edition. They spend tons of money sending brochures from mailbox to mailbox in order to promote their discounts. But I don't understand why they haven't switched yet to emailings. That would probably gives a better idea of what their customer's really care about, and also limit their marketing budget. It would have a triple advantage:

  • It will cut most of promotional costs. Advertising is one of the top budgets of marketing departments of retails.
  • It will gives clearer data to improve their bid. Depending on what customers are interested in, you could find out what kind of promotions would be more profitable and makes people come to your store. You could do that by having an emailing feature allowing the customers to rank the offer, or to declare their interest in a specific section of the store for instance.
  • It will improve the sustainable development image of the company. It will help these companies to better their green image, and be more respectful of their stakeholders.
What do you think about it? Do you have example of companies like Tesco in England, Wal mart in the US, or Carrefour in France that uses emailings to replace or complete their flyers campaign?