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E-mail marketing: Not a Lamborghini ride for a Pinto price
by Nicole Barker
April 28, 2008

ARTICLE TOOLS
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When considering e-mail direct marketing, don’t do it for the cost, speed or ease of use. If I told you that I could sell you a Lamborghini that seats five comfortably for $5,000, would you believe me? A car like that would be inexpensive and, yet, fast. That’s a car you could convince your spouse to buy.

No deal.

The same is true for e-mail marketing to your players. Don’t expect that your ability to drop an e-mail at the last minute to your player database will serve as the family sports car, or the answer to all your direct marketing desires.

If you don’t invest in building a database of e-mail addresses and then commit to replenishing them, you don’t have a solid vehicle for communication.

A street address has a shelf life of a Twinkie compared to how fast an e-mail address expires. You can count on throwing out half your e-mail addresses in just about the same time as your milk goes sour. Any report from an e-mail service provider will showcase this fact. First, there’s the soft bounce. Perhaps the recipient’s mail box was full or an out-of-office message appeared. And then, the dreaded hard bounce appears: no response whatsoever At that point, an e-mail address has expired.

Here are some items to consider before establishing an e-mail marketing program:

• Budget appropriately

When budgeting to include e-mail alongside your direct marketing efforts, do not immediately pencil in the cost that the e-mail service provider gives you. It may cost five cents to send an e-mail. That’s a juicy enticement as opposed to a direct mail piece that is subject to printing and postage fees. Stop salivating. Make allowances for the acquisition costs associated with building, and then maintaining your database of e-mail addresses.

• Collect responsibly

First, you have to invest in your method of data collection. Are there standards for your data entry people at your club kiosks or other points of data entry? How can you ensure that the e-mail was collected and entered correctly? If you have online applications, has the player been asked to type in his or her address twice in order to avoid any typos? Bad e-mail addresses help no one.

One property wisely set up an e-mail acquisition program predicated upon collecting valid e-mail addresses. The $5 free play reward for providing an e-mail address was delivered via e-mail to the player’s account. Bad address? No reward.\

• Collect perpetually

Be explicit about what you intend to offer via e-mail. Will you send out offers in advance? Will there be last-minute deals available? Will breaking casino news be shared? This is a message that you need to continually refresh with your existing database. Post entreaties to join your e-mail program on as many forms of communication as you can.

Tell your players about the advantages of providing their e-mail address. Employees should also benefit from collecting e-mail addresses as part of their data entry process. Build incentives for them to take the time to ask and record e-mail addresses. Arm them with helpful phrases that extol the benefits of providing an e-mail address. 

An e-mail acquisition program doesn’t have a start and a finish. There should be ongoing rewards for signing up and real rewards for those who continue to receive e-mails. Experiment with different incentives for signing up. Hold events that are exclusive to e-mail address holders. Their friends who haven’t signed up will hear about it.

• Opt-in twice

Secondly, have you devised a means for a player to commit to your e-mail program? When signing up for a card, a player may provide an e-mail address. That is a primary form of opting-in. Many content providers who use e-mail lists are now angling for a second opt-in. A confirmation e-mail is sent to the player. It’s a welcome and thank you message for signing up to receive e-mail communications. The player must click on the link provided in the e-mail to confirm their interest. The link takes the player to a confirmation page on the host’s Web site. To the player, this says that we value your information and commit to sending you offers and information. To the marketer, this means that this is a valid e-mail address from a player who will more likely respond to your e-mailed communications.

• Follow the rules

If you haven’t heard of the CAN-SPAM act, then don’t even think of sending out e-mail communications. It’s not about cured meat. It’s the law that imposes strict penalties on those who use this medium irresponsibly. For more information, go to www.ftc.gov/bcp/conline/pubs/buspubs/canspam.shtm.

• Send exceptional offers

An e-mail subscriber wants to feel extra special. They have elevated their relationship with you to a higher level of intimacy. They are willing to receive communications from you at all hours of the night and in the stolen moments during the day. An e-mail from a trusted friend quickly becomes junk when a compelling offer is not presented along with the e-mail communication.

Always present an offer that is timely. Always present an offer that exceeds that of regular offers or precedes access to an offer before the rest of the public. Increase the drama associated with an actionable item.

There are some unspoken expectations about e-mail communications. Fast delivery denotes a sense of urgency. The valid dates for your e-mail communication should be for a limited time with a definite point of expiry.

Personalized delivery also means that this offer has only been sent to a limited audience. Underline in your message that only e-mail subscribers have access to this special offer.

• Quick delivery, immediate response

Be prepared for the onslaught of response to a hot offer. This is true of any communication that you send out. Your call centers and other points of response should be ready and knowledgeable of what is being offered. E-mail has a predictable delivery and open window. This should help your team plan to respond effectively to your outgoing message.

• Track wisely

Not all player tracking systems have the capability of managing an e-mail database effectively. As your e-mail acquisition engine steams forward, you need to have the ability to record the names and player numbers of those who have opted-out, those who have told you that they will never have nor never subscribe to e-mail communications, and those who continue to supply bad addresses. Whittle down your list of people to ask for e-mail addresses. There is no sense in mailing offers or calling VIP players who will never be interested in an e-mail program.

When used in conjunction with other forms of direct marketing, e-mail is an incredible tool. Its use will boost your overall response rates and cut your costs. It’s not a panacea. It’s not a Lamborghini for a Pinto price. Make room in your budget for reinvestment in building your database, and then be sure to sustain its utility with responsible use and an ongoing acquisition strategy.

Nicole Barker specializes in writing letter copy for casinos looking to optimize their segmentation and better their direct marketing returns. She is president and founder of Raving Writing powered by Barker Enterprises, Inc. For more information, contact her at nbarker@barkerenterprisesinc.com or visit her website at www.barkerenterprisesinc.com.


Nicole Barker
nbarker@barkerenterprisesinc.com

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