10 Email marketing glossary terms for the marketer

October 10, 2013

The world of marketing is scary when you’re first starting out. When I first began working in email marketing, I remember feeling lost in a sea of acronyms and terms I didn't understand. For that reason, I’ve put together a list of 10 email marketing glossary terms that I believe will be beneficial to anyone starting out in marketing and a nice review for those well-seasoned marketers.

Above-the-fold - the part of a web page or email that is visible without scrolling. It’s generally more desirable placement because of its visibility and the diminished propensity of someone to scroll down.

Acceptable Spam Report Rate - the rate at which you can be reported as SPAM without harming your sender reputation. Anything over 0.1% (1 report per 1000 emails) will get a warning.

Churn Rate – refers to the proportion of contractual customers or subscribers who leave a supplier during a given time period. It’s a possible indicator of customer dissatisfaction, cheaper and/or better offers from the competition, more successful sales and/or marketing by the competition, or reasons having to do with the customer life cycle.

Conversion Rate - the percentage of recipients who respond to your call-to-action in an email marketing campaign or promotion. This is one measure of your email campaign’s success.

Customer Lifetime Value (CLV) - is a prediction of the net profit attributed to the entire future relationship with a customer. The prediction model can have varying levels of sophistication and accuracy, ranging from crude investigative to the use of complex predictive analytics techniques. We’ll talk about predictive analytics at the end of this post. It can also be defined as the dollar value of a customer relationship, based on the present value of the projected future cash flows from the customer relationship. Customer lifetime value encourages firms to shift their focus from quarterly profits to the long-term health of their customer relationships.

Emotional Branding - refers to the practice of building brands that appeal directly to a consumer's emotional state, needs and aspirations. Emotional branding is successful when it triggers an emotional response in the consumer, meaning, a desire for the advertised brand or product, which cannot fully be rationalized. Today's most successful companies are said to have built relationships with consumers by engaging them in a personal dialogue that responds to their needs. Marketers who've broken through the clutter have done so by connecting with consumers and, thereby, have created strong emotional bonds through their brands.

IP Warmup - sending a progressively increasing number of emails out from a specific IP address in order to build the IP's reputation as trustworthy.

List Segmentation - list segmentation means a more targeted and relevant email campaign, thus a higher response rate and less unsubscribes and spam reports. Selecting a target audience or group of customer for whom your email message is relevant.

Personalization – adding elements to your email that are personalized based on information you have collected about them in the past. It could refer to addressing the recipient by name and their company’s name, referencing past purchases, or other content unique to each individual.

Predictive Analytics - encompasses a variety of techniques from statistics, modeling, machine learning, and data mining that analyze current and historical facts about a consumer to make predictions about their future propensity to buy, churn, or become inactive. Aside from identifying prospects, predictive analytics can also help you identify the most effective combination of product versions, marketing material, communication channels and timing that should be used to target a given consumer.

Why predictive analytics is important to you

Businesses tend to respond to customer attrition on a reactive basis, acting only after the customer has initiated the process to terminate service. At this stage, the chance of changing the customer's decision is almost impossible.

Proper application of predictive analytics can lead to a more proactive retention strategy. By a frequent examination of a customer’s past service usage, service performance, spending and other behavior patterns, predictive models can determine the likelihood of a customer terminating service sometime soon. An intervention with lucrative offers can increase the chance of retaining the customer.

AgilOne does predictive analytics and marketing to the T. If your company offers multiple products, AgilOne can help analyze customers' spending, usage and other behavior, leading to efficient cross sales, or selling additional products to current customers. This directly leads to higher profitability per customer and stronger customer relationships.

Contact AgilOne.