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Increase referrals Increase pro ts The advent of email has given marketers a tremendously valuable new communication channel that will revolutionize database marketing. The one-to-one communications that we talked about in the 1990s are being carried out in the new century. From now on, anyone who is not using emails will lose out in the competitive race to build customer loyalty.
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Communication with customers through direct mail and email Capturing email names with permission to use them Creating Web sites where customers and fans can register their support of artists and products Online focus groups Real-time reports on the results of email communications Getting customers to ll out personal pro les online Personalizing emails and Web sites Testing emails on small groups to get the right email address and subject
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Email blasts to unknown (and angry) people to get them to buy legitimate products. Direct mail promoting low-margin products. Database marketing for packaged goods. Customer communications programs without the use of a control group. You cannot prove that they have done any good. Trying to get your name eliminated from unsolicited email commercials.
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1. What was the breakthrough solution in the Verizon case study a. Building a warehouse b. Segmenting the data c. Cooperation between IT and Marketing d. Building a data mart e. Sending mail rst class 2. Figure the cost per response for an email campaign that costs $0.05 per email and gets a response rate of 1.16 percent. 3. A bank tried two communications programs. One was to mutual funds customers and was aimed at getting them to buy more mutual funds. The second was to those who did not have a home equity loan, asking them to apply for one. Which was likely to get the larger response rate and why a. Home equity loan offer. It is easy to qualify for one. b. Mutual fund offer. It is easier to get people to do more of what they are doing than it is to get them to do something else. 4. If RFM can double the response rate in direct-mail campaigns, why would it not be equally valuable for email campaigns a. RFM does not work with email. b. There is no control group. c. Domain names are unavailable. d. Emails are so inexpensive you can concentrate on maximizing pro ts. e. None of the above. 5. Propose a budget for your company for an online focus group. List the two things that you would most like to get out of the focus group. 6. Make a chart for a warranty expiration program, comparing the costs of email warranty noti cation with telemarketing at a cost of $5 per call. Assume that the emails cost $0.06 each. What was the cost per order of each, assuming that the telemarketers got 8 orders out of 100 and the email program got 3 orders out of 100 What was the return on investment Which method would you choose
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7. List the four most important things to capture on a customer pro le completed through the Web. 8. What one factor, if it had been left out of the lighting manufacturer s test, would have ruined the program a. The customer rep b. The lighting expert c. The test group d. The control group e. None of the above 9. In the case of the restaurant chain with the frequent diner card, what did the program cost the chain over the 13 weeks 10. Which is the most important item in an email promotion program a. The offer b. The timing c. The copy d. The subject line e. The domain
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