One-on-One Targeting

Consumer communication management tactics recommend using the one-on-one marketing concept pioneered by Peppers and Rogers rather than the batch-and-blast approach where all recipients receive the same message. Currently, most firms still use batch-and-blast. However, they need to go beyond stock messages because one-size-fits-all simply does not work. Companies need to develop relationships with customers by first gaining trust (privacy policy, relevant mailings, reasonable frequency, etc.), gradually gaining the knowledge that enables them to segment email lists. With more accurate segmenting, messages can be more targeted, and recipients are more likely to respond, increasing the return on investment.

Segmentation and Targeting: The more information customers provide when signing up for email lists, the more targeted the email message, and the more effective it will be. Yet, the more details a company asks for, the less signups they will get. A TRUSTe and TNS 2004 survey found that 43% of Internet users trust companies to safeguard their personal information but 33% do not. So it is a balancing act for email marketers. They need enough information to usefully segment a list, but they don't want to ask for too much or the customer will bail.

Best practices suggest asking for age, gender and zip code only. This will get the relationship started. Over time, as the customer responds to various messages, new information becomes available. Marketers can also appeal for more data as the relationship matures. Be aware that self-report is unreliable and that people change over time. Thus, customer information must be updated regularly or it becomes stale.

When building a list, consider the five suggestions below, suggested in an Email Labs white paper.

• Use double opt-in
• Don't pre-check the signup box
• Deliver on promises made at signup
• Collect just enough data to segment and personalize without driving prospects away
• Segment prospects into several groups that allow you to deliver relevant, targeted, personal messages

The latest email trends are: (1) relevance, sending unique messages based on personal interests and (2) building relationships. Email marketers are beginning to recognize email's value in building person-to-person relationships.