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Equilibrix
Delivers E-mail Results
by Jeffery D. Zbar
Special to the Sun-Sentinel
Posted December 10, 2001
Ace Educational Supplies recently held a sidewalk sale.
But instead of marketing solely through direct mail
fliers targeting the local community, Ace executives
tried something different. Using e-mail announcements,
Ace contacted around 2,000 existing or prospective customers
who had registered their names and e-mail addresses
in the company database.
"We did less advertising dollar-wise and got a better
response," said Rick Ludwig, vice president with the
Davie-based retailer.
First, there was advertising. Then came direct mail
and telemarketing. Now, customer-focused e-mail is turning
prospects into customers, and customers into repeat
visitors.
Equilibrix is a permission-based e-mail marketing system
that delivers offers to customers who ask to be notified.
Participating companies share customer e-mail databases
with each other, which enlarges the network among complementary,
non-competing businesses, said Myriam Cohen, founder
and CEO of Equilibrix. Those recipients then receive
special offers and other promotions.
"We are helping business owners leverage their network
of clients and prospects," she said.
Many companies have turned to e-mail marketing to target
new customers, and the market is growing. By 2003, permission-based
e-mail marketing could top 150 billion messages annually,
notes eMarketer.com, an online marketing firm. While
"opt-in" -- or lists composed of recipients who have
elected to receive the information -- is important,
targeting existing customers can lead to even greater
success, according to IMT Strategies, an online market
research company.
In a September study, 77 percent of e-mail users delete
unsolicited commercial e-mail without reading it, but
48 percent of respondents said they read those e-mail
for which they gave permission. The study also found
that e-mail delivers better customer retention at a
lower cost than direct mail and banner advertisements.
Here's how a permission-based service like Equilibrix
works: A company posts a subscription box on its Web
site asking visitors if they would be interested in
receiving special offers. And customers at a retail
location can enter their e-mail addresses into a wireless
data collector near the checkout counter.
The data is transmitted to Equilibrix's central database.
Cohen and her staff then design full-color e-mail promotions
and announcements featuring store coupons and special
offers, each containing a link to the client's Web site.
Clients can send a full-color and animated flier to
their existing customers, or they can team up with other
Equilibrix businesses in their area to send a flier
to a combined list of customers. The e-mail and fliers
are sent out twice a month.
This is a way to gain new customers who already frequent
businesses in the participant's area and have personally
signed up to receive the e-mail promotions, Cohen said.
To date, more than half of Equilibrix customers note
that recipients report they open and view their Equilibrix
e-mails, and participating businesses are receiving
incremental sales from the online promotions, Cohen
said. Equilibrix clients include Contour Day Spa, Quizno's
subs, Karen's Tack, University Car Wash and Twin Lakes
Pool & BBQ.
To gather names for Ace Educational Supplies, Equilibrix
installed a Motorola two-way pager near Ace's cash register.
Shoppers enter their names, e-mail, ZIP code and phone
number, and the information is sent to Equilibrix's
database for use only in Ace marketing efforts, Cohen
said.
Ludwig knows the service works. Some 85 percent of his
recipients opened his last message to view the ad, and
ad codes that shoppers mention at check-out tell him
that customers heard about the sale from the e-mail.
While the direct mail industry standard is less than
2 percent response, 12 percent clicked on the e-mail
link to visit his Web site. And Ludwig likes the cost:
around $250 a month, compared with a single 2,000-piece
direct mail promotion that will run almost $1,000 to
print and mail.
"A 1 to 2 percent direct mail response is considered
good," he said. "But when you e-mail 2,000 people and
you get 85 percent to open up and view your ad, that's
phenomenal."
Jeffery D. Zbar is a freelance writer. He can be reached
at jeff@goinsoho.com
Copyright © 2001, South Florida Sun-Sentinel
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2001-2002 Equilibrix, Inc. All rights reserved. Email webmaster
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