For many years, direct mail was considered a very effective sales tool. Us digi-savvy folks now laugh at the thought, but for many businesses it still works like a charm. I still regularly receive little booklets full of discount vouchers from major retailers and department stores in my post box.

Thing is, I’m getting nearly as many in my inbox. While email has developed into a very strong CRM channel, ideal for building brand awareness and engagement, it hasn’t lost power as a sales tool. Think of all those Groupon daily deal emails, and the legendary Kulula and Mango flight specials announced via email – they’ve proven to be very successful. 

Retailers have, in email marketing, found an effective advertising channel. It’s not just for eCommerce retailers either: eMarketer reports that 57% of people say they’re more likely to make a purchase in-store after receiving an email. (Online does indeed affect offline purchase behaviour...)

In fact, 37% actually voted for email as their preferred channel to receive retail promotions.

So, what are retailers doing right with their email campaigns? Why do shoppers subscribe to these emails?

Valuable content that puts you in-the-know:  Product announcements

You know how pushy sales people annoy you? Well, the same goes for hard-sell emails that push too hard. Yes, we all like a good deal, but we appreciate it even more when we feel we’re getting value out of what we’re paying for. Certain retail brands have managed to position their emails to alert shoppers to new trends – that also now happen to be in stock and for sale. Yes, it’s still selling, but with the added value of a trend alert. I like.

Local retailer Truworths has also set the stage for South African apparel retailers to promote new stock via email:

Setting up successful subscriber relationships: Welcome emails

Welcome emails are highly effective emails. They attain high open rates, get you inbox approval in intuitive priority inboxes when opened and set the tone for your subscriber relationship. Surprisingly few email marketers implement welcome emails while it seems that retailers have realised the power of the welcome. 

Below are examples sent out by Crate & Barrel and Banana Republic. Part of the Gap group, Banana Republic is known for putting a lot of thought and effort into their email campaigns. Their welcome email announces free shipping to subscribers.

Targeted communications: Cart-abandonment emails

For eCommerce sites, cart abandonment emails are a great follow-up. You already know someone was interested in buying your product, even though they didn’t complete the purchase. Following up with an email that offers them a discount or more information on the product, could be just that last little push they need to complete the sale. Ka-ching!

Below are two examples – one from ProFlowers, who offered their customer a discount if they completed the purchase, and one from Cooking.com simply prompting their customer to return and complete their purchase. (Examples found here.)

Retail emails grow in popularity year-on-year. Responsys’ Email Year-End Trends for 2010 Report collated some insightful stats:

•    Retailers send out more emails during November and December than during any other time of year. 
•    Tuesdays and Fridays outrank other days of the week as the most popular send days.
•    Saturdays and Sundays are the least popular days to send out retail marketing emails.
•    During 2010 American retailers sent an average of 2.9 emails per week to subscribers.
•    The total volume of retail emails sent during 2010 increased by 16% from the number sent during 2009.

Bonus fact:
In the United States, marketers have coined two marketing terms: Black Friday and Cyber Monday. Black Friday refers to the Friday after Thanksgiving (which is traditionally on a Thursday) and Cyber Monday to the Monday after that long weekend. These days are well-known for the seasonal sales and specials released. In 2010 Cyber Monday was, for the fourth year running, the most popular day to send promotional emails. (In fact, Responsys’ cites Cyber Monday 2010 as the day with the highest email volume in their history.)

For a well-collated resource of retail email marketing emails, trends and practices, check out the Retail Email blog.
  

Also check out:

• Site of Note: Seamless shopping with Abercrombie & Fitch
• Friday Fact Box - Email Marketing 2.0
• Email marketing made (kinda) easy