E-mail faces big challenges in a new, opt-in world

July 5, 1999

BY MICHAEL KRAUSS

This is one of an ongoing series of articles on interactive marketing leaders who are doing things other marketers could learn from. They are not yet household names. The executives we profile are laboring in the trenches today and will be in the headlines tomorrow. They're the emerging leaders of an emerging marketing discipline.

Name, rank and serial number: Larry Jones, 46, president and CEO, MessageMedia Inc., Boulder, Colo.

CV.: Spent 10 years learning technology at Wang Laboratories, becoming a division CEO. Joined ADP to learn the service-bureau business and rose to senior VP. Spent the '90's in direct marketing as president and CEO of Neodata, selling the company to EDS. Earned a computer science degree from Worcester Polytech in Worcester, Mass. in 1975.

Mantra: "Keep customers informed. Treat them fairly. Respond quickly. Be permission-based. No spam."

The e-mail opportunity: "There's a huge opportunity to deliver content, sell goods and services and build customer relationships via e-mail."

The e-mail challenge: "Industrial strength (high volume) e-mail marketing is complex. The content, mailing lists, scheduling and ability to respond to unique customers must come together in a program. The program has to work, not just the technology."

Be customer-conscious: "With traditional direct marketing, you worry about the orderly flow of goods to the customer. With e-mail, you need to be even more worried about the communications back from the customer. If that customer wants to be 'unsubscribed,' you'd better honor that commitment."

Beware the communications flood: "Companies have offered customers the opportunity to communicate. Floodgates have opened up, and the volume exceeds anything companies anticipate. E-mail-based customers have a low tolerance for lack of response."

Advice to marketers: "You lose more ticking off your customer with bad service than you would gain by sending customers something good. If you receive an online coupon from Amazon.com or Barnesandnoble.com, and you're not there to accept the coupon, then all that good will is out the window."

Positioning your opt-in or opt-out check box: "Make sure it's not buried in your e-mail. Make sure it's right up front." n

Michael Krauss is a partner with Diamond Technology Partners in Chicago.
He can be reached at news@ama.org.