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TomAllinder
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I am the President of InBoundMarketingPR.com. We are a full service digital PR/IR company. I have 12 years experience with investor relations and have found new methods and means to reach the investment community through inbound marketing. I have 15 years experience in the stock market trading... More
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  • Investor Relations-The Email Marketing Alternative 0 comments
    Mar 19, 2010 11:47 AM
    With regard to investor relations efforts, why is email marketing failing?
     
    Over the last six months I have received quite a few calls from promotional entities and individuals wanting to know if I had a “good email list”. The pace of the calls and the emails regarding email lists (so they can send spam) has picked up recently.
     
    It looks like they are going to ride the “email horse” right into the grave. In their minds its seems that rather than find an alternative, keep doing what you’re doing even if it doesn’t work because it is easily understood. Hitting the nail hard enough or long enough is not going to work this time. Email marketing for things like stocks, drugs and other product and company promotions has run its course.
    I have wasted a certain amount of time explaining the alternatives but for the explainee, it is too much work and it takes too much time to see results. Until someone invents the next mousetrap that can reach as many as email does in a short period of time, we are stuck figuring out how to reach people.
     
    Short-Term Solution
    Email, by nature is a short-term solution that provides immediate feedback with regard to results. Could it be that the reliance on email is a product of the thinking in business these days? In other words, in our immediate gratification society (which has taken a big hit over the last couple of years) is email dependence just a symptom of a bigger problem?
     
    Also, email in the case of stock promotion is stock focused. Sure, company developments are included as part of the email campaign but the email has one purpose only: Move the STOCK by getting people to read a persuasive email and get them to buy.
     
    Short-term Promotion Equals Short-term Shareholders
    There are two groups of people that love the big email campaigns: Traders and those taking short positions. The trader can get in and out and will do so. They are not investors; they could give a damn about the company, its products or services. The people going short on these stocks know that they will go up quickly in price and will always go back to whence they came even quicker. In the meantime the less experienced that believed the contents of the email and bought in are left holding the bag.
     
    Email Observations and Conversations
    Based on my conversations with quite a few email marketers and those that hire email marketers, good email lists are getting harder and harder to find. Refreshing email lists is getting expensive too.
    One individual I spoke to said he was spending $20-30 THOUSAND a WEEK on email lists that were, by in large, ineffective. So I asked him if he was interested in trying inbound marketing. His response was “It takes too long to work.” But, did he think it would work? “Sure, it makes sense to me… but taking 2-4 months to provide results is just too long!”
     
    So let’s do the math… $5-10K per month for an organic campaign that is focused on the company, its products and services or, a one month campaign of email that is going to cost the third party paying for the campaigns tens of thousands or over a hundred thousand dollars and the email guy over $100K per month to refresh his list. Once the email campaign is over with, that’s it; company promotion through search engine marketing, content marketing and social media is still there. Once marketing of this type is done, the material is there for years, it does not go into a spam box.
     
    Having said all this, what type of company does an organic search engine marketing/social media marketing benefit the most? Answer: A real company with real products/services and a desire to grow the company first. Now how many companies at the micro cap level fit the bill?
     
    Not many…
     
    So who will come up with the next short-term gimmick to replace email when not most, but ALL of them find their way to the spam box?


    Disclosure: no positions
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