PROPRIETARY AND CONFIDENTIAL

Best-in-Class Email Marketing with SAP CRMNovember 10, 2010

Ryan Deutsch, VP of Strategic Services

PROPRIETARY AND CONFIDENTIAL

Who is StrongMail?• Leading provider of online marketing solutions

for email and social media.

• We enable our clients to boost the effectiveness of their marketing campaigns, while saving a significant amount of money.

• Our products and services provide an end-to-end solution for some of the world’s biggest brands.

Over 500 Customers

Proprietary and Confidential |

» CRM and the Email Channel » Why Integrate?» What is Integration?

» Trends Impacting Email Marketing

» Examples of CRM Powered Best-In-Class Email

» Q & A

Agenda

Email Marketers to us: HELP!

…and it is the Enterprise asking!

Only 20% “Say” they are dynamic…

Lets “Geek Out!”

Email Messaging Effectiveness Index

SAP CRM + StrongMail = Integration drives Campaign Execution

Enterprise Messaging Made Easy:

• Minimized data transfer time

• Single source of program data for campaign analysis and further segmentation

• Full-featured dynamic content

• Response tracking

• Email send, delivery and bouncemanagement

1. Ad Avoidance 2. Sophistication GAP3. Unstructured Data / Social CRM4. Engagement5. Increasing Investment in Channel6. Email Alternatives Growing7. Integrated Marketing

Trends Impacting CRM & The Email Channel

Trend #1: Ad Avoidance Why CRM integration is so critical

• Consumers continue to “tune-out” as Inbox clutter continues» Open Rates: 77% of all email not read

- Travel and Hospitality based open rates, 2009» Click Rates for Travel and Hospitality: 5%

- How much of your list is “inactive” – 30%, 40%, 50%• List fatigue & churn increase

» Industry average is 33% annually according to EEC

Trend #2. Sophistication Gap WidensCRM application enhances customer expectations

Consider changes to Forrester's EMR (July, 2010)»Considered globalization as part of business process governance. »Created new business criteria to evaluate program strategy. »Expanded analytics business criteria to include advanced

measurement. »Replaced customer with user in the customer experience

evaluation. »Included social media in what makes users value emails. »Created a user criterion for mobile presentation.

EMR Analytics Scoring MethodologyEmail programs are scored based on CRM integration

Meet Seth

Social Graph:

Facebook: 523 FriendsLikes: Omaha Steaks, Edible, Bing Cashback

MySpacePlaxo

Photo Bucket

Insights:

Young, engaged, price sensitive.

Invite to Facebook page.

Long-Term Opportunity:

Product Upgrade +$1,200 LTV

Increase frequency: +$1,500 LTV

Tap into social graph: +$6,000 LTV

Loyalty Profile:

Born 2/80Cincinnati, OH

DIYHeavy User: 4/5

Experience Analyst

Loyalty Activity:

105 CreditsCommunity Post: 4/27

Survey: 3/9Rated Products: 5

Email/Social Activity:

Newsletter: 7/9Rebate: 4/12Contest: 4/6

Retail Offer: 1/3

Trend #3: Unstructured Data, SCRM

“An understanding of and participation in the common passion that connects our best customers to our brands, their communities and social web as a whole”

Trend #3: Unstructured Data, SCRM

Trend #4: Engagement Comes Into Focus

Customer Relationship Metrics are Changing

Measurement is evolving to include “engagement” –This engagement must be tracked in the CRM System

Trend #5: Email Marketing Investment Increasing Despite Lower CPM Rates

Increased adoption of targeting & analytic-driven approaches

»New Data Sources (CRM Integration)»Data Analysis/Analytics»Content/Program Development»Personnel & Expertise

Trend #6: Email Alternatives Growing

• Generation M or Y – The Internet Generation Takes Over (8-18 year olds take control)• Mobile• Social• Group Buying (Groupon)• Flash Sales (Rue La La, HauteLook)

• Proliferation of devices creates new challenges in terms of relevancy and rendering

• Offer choices – what they want when they want it, how they want it

Trend #7: Integrated Marketing

a) Centralization/decentralization struggle continues. Buying power still decentralized

b) Data knowledge & access remains an issue

c) Complexities Increase• Automation & integration• Data reconciliation

Examples of CRM-PoweredBest-in-Class Email Marketing

Proprietary and Confidential |

Messaging Based on a Shared Passion

CRM Powers Personas = Segments

• Prime “real estate” used to call attention to preferences

• Stressing Customer-Centric Approach

Preference Management

Preferences Inform Email and Other Channels

CRM Data Powers Relevance

• Acknowledged loyalty & created added benefits» Timely, personalized» Thanks you for business» Offers a valuable

discount

• Increased Personalization» Subject Line» Body

• Enhanced/Streamline Ordering to Improve Conversion

Advanced Personalization» Progress Towards Rewards» Mileage Balance» Targeted Offers» Triggered Communications» Loyalty Focus» Subscription Management

CRM Data Powers Relevance

CRM Data Powers Relevance

Email & CRM Data 101

• Design»Crisp & Clean

• CRM Triggered»At Subscription»At Sales Event

• Delivers»Up-sell»Education»Support

Email & CRM Data 101

A few months later…

in between…

Email & CRM Data 101

What Would Have Been Nice To See…

• Automated Welcome

• Communication Stream»Welcome»Applications Sales»Education»Support

• AND CONTENT BASED ON MY NEEDS!!!

• Recommendations• Loyalty• Save Favorites,

Update My Shockwave

• Solicit UGC• Store in Profile

Email & CRM Data 101

DeliveryRate

Unique Open Rate

Unique Click-Thru Rate

CTO Rate

95.8% 15.9% 3.1% 19.1%

DeliveryRate

Unique Open Rate

Unique Click-Thru Rate

CTO Rate

95.6% 59.6% 22.3% 37.3%

Email & CRM Data 101

Questions?• Visit www.strongmail.com• Whitepapers• Case studies• Webinars• Blogs

Ryan DeutschVP of Strategic ServicesStrongMail(650) 421-7124rdeutsch@strongmail.comTwitter: @rdeutsch