I'm online all day, every day. Well, it seems like it anyway. Between my Blackberry (I now lust after an iPhone when my current contract is up because my husband, children and colleagues lord their apps over me) and computers, it's 24/7. Not everyone is, but nearly. In the home medical equipment industry, email marketing campaigns directed by manufacturers to providers are commonplace. As an HME provider, you know what you like to receive, how often and what you don't like. The same goes for your customers.
Consumers, referral sources, subcontractors, media contacts, contract liaisons and employees — everyone is sending and receiving email. (Meanwhile, teens are texting and social-networking up a storm, and their email usage is declining; hence, enter mobile apps.) In fact, email use by the over-65 audience is the fastest-growing, now up to 45 percent of that age group. They have some catching up to do (they'll never catch up to use by 25- to 55-year-olds), but email continues to be a part of their everyday communications.
What Is Email Marketing?
Email marketing is not just sending email text messages; enewsletters and text emails have been around for awhile. Today, email marketing is visually vibrant and content-rich online communication.
Email marketing service providers (ESPs) have put affordable, easy tools into the hands of small businesses. No longer do you need to know HTML to put out a brand-rich, professional-looking custom communication — whether it be a newsletter, announcement or sales promotion — to target interested audiences. These emails contain information that is relevant, valuable and beneficial to the recipient. And a marketing campaign can now be strategically scheduled and subsequently monitored and measured for ROI (return on investment).
Emails have come a long way from text only. Think about your email behavior. Typically, you view emails on a smartphone or your computer. You might quickly view just a few items: the From line, the Subject line and maybe six words to a sentence from the message. You don't open an image or click on a link unless you know the sender. You make your decision within seconds about whether to open or delete. When you receive a text-based email from someone you don't know, you immediately send it to spam.
Most email accounts and Internet service providers (ISPs) limit the number emails you can send at one time, but ESPs are approved as bulk mailers. When using an ESP, your email list is being sent from you through the ESP's server, which is recognized by ISPs.
How Does Email Marketing Fit into Your Strategy?
Relationships drive HME business or any small business. In most cases, the objectives of using email marketing are to build and extend the relationship with a customer or potential customer.
Generally, it takes five to 10 communication touches to make an impact or get the attention of a new prospect. It's six to seven times more costly to get a new customer than retain a customer. And the hard and fast monetary facts are that current customers spend 67 percent more. Plus, your current customers are your referral engines; after 10 purchases, that customer has referred seven customers to you.
So, your objectives are typically two- pronged: Get new customers, and provide the right services and products for current customers to refer and/or buy more. Pretty simple.
Email marketing is not the only tool you use, of course, although for some businesses it can be the primary tool in establishing a relationship with a new prospect or deepening current customer relationships. Most firms integrate their email marketing campaigns with other customer education and promotional efforts. Emails can announce programs that are also advertised and detailed through in-store activities, in-services, coupons and speaker events.
One HME provider uses email marketing to target referral sources and consumers separately, with different newsletters designed for each audience. For referral sources, educational content, in-services, new technologies, pertinent legislative and regulatory issues and company information are featured. The consumer newsletter includes informative content about "how to buy" certain product categories, a question of the month and coupon specials.
You can set up separate lists with an email service provider by target type, such as referral sources by office location, consumers by retail location, employees and friends of business such as manufacturers and subcontractors.
Here's how to get going.
Step 1: Build a Permission-Based Email List
If you are not building email address lists now, get started. Be sure to ask for specific permission to obtain the email address (and get a signed release). Email addresses are a standard part of an individual's address. Request the email address of the patient or caregiver at intake. Specifically explain what the email address will be used for and the frequency of contact (monthly, every two weeks, etc.).
In some retail stores you will see a sign-in book for customers to receive their enewsletter and new product updates. Many offer an incentive — for example, a monthly drawing for a $10 gift certificate — for people to sign up.
Your list is your conduit to build a relationship and additional sales. Do not use any lists for which you have not received direct and explicit permission to email. If you were to receive an email from a company that you did not recognize, you would likely delete it without reading.
Step 2: Select an Email Marketing Service
An ESP has a specific role. The service can provide ready-to-use HTML templates that require no technical skills for email newsletters, announcements, press releases or events. ESPs are also the means for safe hosting of your contact lists (email addresses). They can provide the method to manage, segment, schedule, send out and monitor a marketing campaign.
The ramp-up time to learn how to use the ESP can be only a matter of hours. Most services provide excellent online training webinars to help. Most also offer the flexibility of sending customized HTML emails or contracting with the ESP for customization.
Using an ESP enables you to organize and send out hundreds, or perhaps thousands, of emails, as you have agreed to permission-based list collection. Spam or unsolicited commercial email that is purchased or shared from other organizations (where you have no direct relationship or permission) is dangerous and ill-advised. Just don't do it.
Without an ESP, if you sent a large quantity of emails, the odds are your message would be caught in spam filters. Standard email accounts such as Outlook, Eudora, Hotmail and Yahoo are not set up to send mass text or HTML messages to your list.
But ESPs participate in the CAN-SPAM Act. This means that by using an ESP, you have agreed to include an "unsubscribe" or a one-click "opt-out" line, and unsubscribes are immediately handled.
Additionally, for the best response to an email, state how you know the recipient: "You are receiving this email as you signed up at the Sequoia County Health Fair," or "You are receiving this email because you are a valued customer and signed up for info from ABC Medical Equipment."
ESPs vary in services and pricing. Many offer free 30- or 60-day trials so that you can learn how to use the templates, load email addresses into the contacts database, schedule and send out emails. Some services are free to non-profit organizations with an email contact list of 500 addresses and under. Others range from $15 to $30 a month for as many emails as you want to send to a list under 500 addresses, with price increases based on the total number of addresses.
Several popular, easy-to-use email marketing services are:
- Constant Contact (www.constantcontact.com);
- Mailchimp (www.mailchimp.com);
- Vertical Response (www.verticalresponse.com); and
- MyEmma (www.myemma.com).
(You can see a comparison listing at TopTenReviews.com.)
Some websites now have the added feature of providing an email marketing service built within the site services. This allows you to design, send, monitor "opens" and, ultimately, track online purchases from your email campaign. However, the ease of use and functionality for those not trained in HTML could be a challenge.
Step 3: Build an Email with Informative Content
No one wants to open an email that doesn't have something especially for them. Why should they care? Content is the name of the game. Put yourself in the readers' shoes. What is of interest to them? What will engage them with your company? What will encourage them to ask questions, buy or stop in? What are important notifications that the recipient should be aware of that impact business? What special offers and information do consumers need to make a decision about products or problems?
Note that while developing your email template takes time, pulling together the right content can take more. That's because you want the information to be well-written, valuable and compelling. You want the reader to take specific actions.
For instance, an HME provider used the company's enewsletter to inform referral sources about legislative issues and regulatory changes such as oxygen re-certification, changes in health plans, new services, updates on competitive bidding and portable oxygen developments. The newsletter was used for multiple marketing purposes, including as a handout by referral sales, a briefing document for employees and an information piece for new referral prospects.
The company followed up with announcements on important changes like the PECOS deadlines. The content was written by employees and consultants, obtained from national HME association information and pulled from trade publications, manufacturer materials and university education resources.
The same company used an email announcement to inform referral sources, consumers and employees about an upcoming Respiratory Experts Day. The email again served multiple purposes: as a referral sales detail piece, an in-store handout, a bag stuffer and as the basis for posters.
Similarly, another HME provider's consumer enewsletter featured articles on "How to Select and Buy a Lift Chair," FAQs from consumers on life-change issues, how to make the bathroom safe and new bed products. Additionally, this newsletter included a coupon for a discount on a retail item and mentioned the company's latest monthly retail promotion.
When you're thinking about content, don't forget that manufacturers can be valuable sources. Your vendors should be able to provide informative articles and video about conditions, diseases, products, consumer decisions, legislation and more. Additional sources of content for your emails include customer and vendor testimonials, surveys, regulatory requirements, facts, guidance and votes, among others.
Step 4: Monitor the Measurable Results
Email marketing is personal communication. ESPs send specifically to one email address at a time. It is a cost-effective medium; for the same response in a direct mail campaign, you would spend 20 times more. But email is only cost-effective if you are using it to meet specific marketing objectives.
ESPs provide valuable reporting and campaign information that is easy to understand and act upon. You can quickly review the campaign metrics such as number of opens, click-throughs on specific topics, comparison performance to other like campaigns, specific content that was reviewed in depth, number of purchases, bounces, unsubscribes, forwards to a friend and more. These metrics will help you assess the impact and results of your campaign and provide guidance on how to improve the next one.
It may take a little time to get going, but email marketing is a successful way to solidify existing relationships, initiate new ones and convert one-time visitors. It is an important way to communicate with your audiences. Find an email service that helps make your life easier and breathes new energy and visual richness into your communications, then design your emails with must-open content.
You'll have fun doing the campaigns, your customers will enjoy the valuable information and you will see the impact on sales.
The Value of a Customer
- You've already paid for them
It's six to seven times more expensive to gain a customer than to retain a customer.1
- They spend more
Repeat customers spend 67 percent more.2
- They are your referral engine
After 10 purchases, a customer has already referred up to seven people.2
Source: 1. Harvard Business Review 2. Bain and Co., 2002
Why Email as a Marketing Tool?
- It's cost-effective.
- For the same response, direct mail costs 20 times as much as email.1
- Email ROI is the highest when compared to other Internet marketing mediums.2
Source: 1. Forrester Research; 2. Direct Marketing Association
Email Marketing Can Help You:
- Develop ongoing relationships
- Promote brand awareness
- Announce events
- Keep your company top-of-mind with contacts
- Promote specific offers
- Boost repeat business
- Enable cost-effective targeted communications
Ways to Build Your Email Lists
- Events, fairs, meetings
- Referral sales calls (Show a sample newsletter and request the email address.)
- A link in your email signature ("Sign up for ABC Medical's newsletter here.")
- Sign-up guest book or sheet at the retail desk
- On your firm's Facebook page or LinkedIn
- On your website sign-up ("Join our email list.")
Colette Weil is managing director of Summit Marketing, Mill Valley, Calif., a consulting firm specializing in strategic marketing and program development. You can reach her at cweil@summitmktg.com or 415/388-5303.
