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Rainmaker Partners
Leaders in Targeted, Interactive Business (B2B) Lead Generation Programs |
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Revised: 04/03/2008
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B2B e-Mail Marketing FAQS
We at Rainmaker Partners feel we offer a very unique, compelling and value based approach to helping B2B companies drive leads, build pipelines and close revenue.
However, the world of B2B e-Mail marketing is very confusing for potential customers. Although confusing, after sorting through vendor core competencies most vendors capabilities fall in one of three buckets; pure Creative Agencies, "Interactive List Brokers" and Database Marketing firms. In an effort to diffuse some of this confusion, we submit the following dialogue of questions and answers about each approach as well as comparing and contrasting the Rainmaker approach.
Top Level View
Questions about Search Engine Marketing What is an "Interactive List Broker"? What is a Database Marketing firm? What is the Rainmaker Partners' Difference? What does the CAN SPAM Act Mean to Me?
Rainmaker Partners
Is Rainmaker Partners a List Broker? What differentiates Rainmaker Partners from List Brokers? What differentiates Rainmaker Partners from Database Marketing companies? How does Rainmaker Partners database segmentation process work? Rainmaker sounds unique, how did it get started? How does Rainmaker Partners build its eSegment Database? How often does Rainmaker update its database? How does Rainmaker prepare a segment for a customer? How are the addresses validated? Does Rainmaker use Business or Personal addresses? What is Rainmaker Partners Privacy Policy. How does Rainmaker price its eSegment customized databases? How does Rainmaker Partners price it's eDesign Services? Where is Rainmaker Partners located
List Brokers
If List Brokers don't own the lists, where do they get my prospect names from? How do List Brokers and List Owners get paid? Who are some of the more prominent e-mail campaign List Brokers? Are List Brokers focused on B2B or B2C campaigns? If I rent from a List Broker, what do I get? I am a B2B Marketer, what do I gain launching a campaign through a List Broker? How do I do telemarketing follow-up after a List Broker campaign? Does a B2B company need to have marketing generate the leads or can the sales team do it themselves? Are most firms that label themselves as Interactive Marketing agencies really List Brokers?
Database Marketing Firms
What is a Database Marketing firm? Who are some of the prominent Database Marketing firms? What's the difference between List Brokers and Database Marketing companies? Do Database Marketing firms collect and sell e-mail addresses?
What's is an "Interactive List Broker".
A list broker represents a list owner in selling the use of the list (not the list itself) to a client who wishes to market their products to the people or companies on the list. List brokers have been around for decades dealing in direct mail campaigns. Interactive list brokers only differ in that they broker lists for e-mail campaigns rather than US Mail based campaigns. List brokers and Interactive List Brokers work essentially the same way. For their efforts, the broker receives a commission on the transaction. B2B lists with e-mail addresses are typically rented for approximately $400 per thousand records per campaign The more records the Interactive List Broker "sells" the more commission they make.
So Interactive List Brokers don't own the "lists" they represent?
No they don't. Most often the lists are owned by companies (usually online and off-line merchants or publications) that individuals, usually acting as consumers, not business decision makers have registered their purchases with or have registered to receive a publication.
Many owners place stipulations on the broker in terms of under what circumstances they may sell the use of their list. Some are stringent, some are not and many place no stipulation at all. All rely on the Interactive List Broker to enforce their usage policy vis-à-vis allowing the fox to watch the hen house.
What compensation do the list owners and brokers receive?
The List Owners receive a predetermined percentage of the price the broker rents the list for usually 30-70% of the purchase price depending on the quality of the list and the negotiating strength of the owner. The remainder is the broker's commission for the marketing of the list and the actual execution of the marketing campaign be it e-mail or direct mail.
Who are some Interactive List Brokers whose names I may recognize?
Some of the larger Interactive List Brokers that specialize in e-mail based marketing campaigns are DoubleClick, InfoUSA and 24/7 Mail. There are a variety of Interactive List Brokers that offer direct mail but no e-mail capabilities.
Are Interactive List Brokers Focused on B2B or B2C campaigns?
Although most Interactive List Brokers will say they do both types they will also admit that the vast majority of their experience as well as the addresses in the lists that they broker are B2C in nature. There are several reasons for this notwithstanding the fact they are limited in their B2B delivery capabilities and to their credit, B2B marketers have recognized that blind email campaigns to brokered lists with no follow-up capabilities are virtually worthless.
I think I understand now. When I go to a Interactive List Broker I can't really "buy" a list for my marketing purposes, I can only "rent" it. So let's say I rent it, what do I get?
Typically a Interactive List Broker will work with you to segment the list for your needs, keeping in mind the larger the list, the more money they make. List's can be segmented by a variety of factors but it's predicated on the data that the list owner collects and the associated validity of that data. In most cases, you can certainly segment the database by geography as this data is typically collected and declared by the consumer correctly. Some lists offer a wide variety of selection parameters such as household income, other products owned etc. but the validity of this supporting data is suspect and in many cases non-existent as they are not required fields from the owners on-line or off-line data collection forms.
As such, although the Interactive List Broker advertises a seemingly endless opportunity to segment the database in many cases the data to do so is non-existent.
After the selection is made and you pay the broker in full and up front the broker will executed the campaign for you, you never need to deal with it.
Sounds easy? At face value yes it is and it makes some sense if you are selling $25 widgets to consumers. However, the value is highly questionable for B2B marketers.
Household Income, and $25 widgets don't apply to me. My company sells products that cost several thousand dollars and up, to businesses not consumers. As a B2B marketer, what benefit can I gain by launching an e-mail campaign through a Interactive List Broker?
It depends on many factors including the compelling nature of your product offering promotion, pricing etc. as well as the quality of the actual creative. On the later you will be responsible for the final production although the broker will put it in it's final physical format for you before they execute the campaign. These are things that you can control.
The other major factor in determining the success of a campaign through a Interactive List Broker is the quality of the list. This you don't control. The problem is the broker can't control it either...they don't own it
Sure it sounds like Interactive List Brokering has some drawbacks but I just want out get the word out and have our telemarketing people and sales people take it from there. I mean lets face it, I'm not going to sell my $25,000 ACME whiz-bang widget or a $100,000 services engagement to a busy corporate decision maker from one e-mail campaign. We need sales people to close deals, we in marketing are just supposed to fill the pipeline!
We agree, it is true that e-mail campaigns alone probably will not sell products with these price tags. However, research does show they can very effectively serve the purpose of prospective generating leads and building pipelines. This assumes that you also know who the campaign went to and you can performing telemarketing follow up. The problem with Interactive List Brokering for B2B companies such as yours is that although you rented a list of 5,000 prospects:
You can turn to a broker and rent a list whose owner is a publication focused on marketing professionals. You've done about as well as you can in terms of segmentation through a Interactive List Broker. Problem is that everyone from the marketing intern to the CMO subscribes to it. As you know, there are at least 10x the number of marketing people who want to be CMO as there are CMO's
Then the broker will deliver the campaign to 5,000 people of which arguably only 500 (or less) of which are actual decision makers. Will you ever get to know who the campaign went to? Who these 5,000 marketing people were, who the 500 decision makers were. The answer to both is no, unless of course a recipient responds.
Now lets assume a 2% response rate which is fantastic for a customer acquisition campaign. A 5,000 person campaign will yield 100 respondents. How many people do you think will be CMO's and how many will be CMO and management wannabes?
Mostly the later don't you think? Oh by the way, you may get aggregated statistics at the end of the e-mail campaign, such as how recipients opened the mail, how many clicked through, how many bounced and so on which is good data for evaluating the quality of your subject line and content. Good info yes, but did it build a pipeline. The answer is once again regretfully no.
In summary, you just spent money to deliver your message and value proposition to an unknown group of 5,000 people only a small fraction of which are your target decision makers. If you are upset by the lack of response and the number of bounces, good luck, you probably paid for the list up front.
With the economy the way it is, we have pared back our marketing budget dramatically. E-mail was something we could fit into what's left due to it's much lower cost. But if it is sketchy at best whether it will help sell more product, maybe we'll forgo the expenditure and let the sales people drive their own leads and pipeline? After all they claim it's all in the relationship and the leads we generate are worthless.
In this economy, this is a frustrating quandary for B2B marketers. Regretfully but with exception, "closer" B2B sales people are not terribly effective in generating new leads at net, new customers. Further, for a company to be successful in these uncertain times, it must be have an integrated sales and marketing plan with both parties "singing from the same hymnal". Please see the headline article in our February 4th, edition of "B2B Interactive" for more guidance.
Marketing must drive leads and hold sales accountable for their progression through the pipeline to closure. To allow individual salespeople to assume responsibility for lead generation and pipeline development under the premise of "relationship selling" is a recipe for missed numbers, lost jobs and ultimate demise. Conversely, sales when provided with the basic information in a compatible format for tracking within the company's Sales Force Automation must be responsible and accountable for lead follow-up and funnel progression.
In B2B selling "relationship" may indeed be the singular most important factor in closing the sale. Closing the deal is the art of one-to-one selling. However, building pipelines involves the art of one-to-many selling. The most effective way to do this is to create many impressions. Here relationship selling is clearly not scalable and B2B marketers traditionally have looked at mass media, direct mail, trade shows, etc. as the mechanism to fill pipelines. Due to the difficulty inherent in targeting and tracking these vehicles, the quality of the "leads" have been suspect, increasing the divide between the marketing and sales departments within companies.
At the risk of making a marketer cringe, we cite the following quotes from the movie "Glengarry, Glen Ross"
"It's the leads, the whole thing is the leads."
and "Just give me some leads that don't come out of a phone book"
Although selling in a B2C market, the cast of this movie cite the all to often complaint of B2B sales people. "We need 'good' leads from marketing, where are they for all the money we spend?"
So, here we have a dilemma. We have cut budgets which have drastically curtailed our ability to generate leads through the conventional B2B lead generating mechanisms cited above, albeit questionable in the minds of the sales force to begin with. What to do?
There are lower cost alternatives such as e-mail campaigns through Interactive List Brokers. However, they offer us no capacity to drive and qualify a pipeline of prospects through the sales funnel. Is there another way?
Yes, Rainmaker Partners has developed fundamentally simple, straight-forward and inexpensive approaches to B2B customer acquisition and cross/up selling that when properly executed and managed by it's clients will produce demonstrated results and ROI/IROR far surpassing traditional promotional vehicles.
Are most firms that label themselves as interactive marketing agencies really Interactive List Brokers?
Many are. They may do many other things as well such as DoubleClick, however to the extent they launch interactive e-mail campaigns for clients they function as a Interactive List Broker.
Some firms label them selves as such but really do not get into list selection or executing, tending to stay on the content and creative side.
What is a Database Marketing Firm.
A Database Marketing firm is a company that tracks data regarding consumers and or businesses and sells the information. Unlike Interactive List Brokers, the Database Marketing firm owns the data and is able to sell it to customers usually for marketing and financial evaluation purposes. A customer of a Database Marketing company actually receives the data that they can use for direct mail programs and telemarketing programs vs. a Interactive List Broker customer who never sees the prospect data.
Who are some of the prominent Database Marketing Firms.
There are two camps. In the B2B world, Dun and Bradstreet is the most venerable and well known but there are a number of others with InfoUSA, Harris InfoSource, One Source, Hoovers and HarteHanks comprising the lion's share of the market along with D&B. It is fair to point out that all of these vendors provide data for more than marketing purposes and each have special niches where they excel. D&B and Hoovers for example are widely used to examine the financial strength of companies but also used for marketing purposes as well.
In the B2C world, the leaders are TransUnion, Equifax and Experian. Historically, These companies primary business was to assist lenders assess credit worthiness, however they have successfully leveraged their vast consumer databases to provide B2C marketing services as well.
What are the primary differences between Interactive List Brokers and database marketing firms.
It boils down to this, Interactive List Brokers do not own the lists they use, but provide limited creative and campaign execution services.
Database Marketing firms own their data, sell it for a variety of purposes and typically do not engage in creative services or campaign design and execution.
Do Database Marketing firms collect and sell e-mail addresses?
No. At this time, no major database marketing firm including those mentioned above collects and sells e-mail addresses as a part of its database marketing offerings?
How is Rainmaker Partners different? Are they an Interactive List Broker or a Database Marketing company?
Neither, we're actually a hybrid. Rainmaker Partners is a full service Interactive Database Marketing agency servicing the needs of B2B marketing professionals. We OWN our own eSegment database of several million B2B decision makers with over 2,500,000 records completely populated with e-mail addresses. This provides us with the capability to sell licenses which allow clients to utilize customized segments of our database for their own marketing purposes throughout the year. Although Rainmaker typically assumes the administrative burden of executing campaigns for clients, we provide detailed discrete contact details for your timely telemarketing and sales follow-up. We also offer the telemarketing services for companies on an outsourced basis
Through the power of 56 we can help you target the right decision makers within your target market, utilizing eFollow for telemarketing and qualifying leads thus driving pipeline development.
Our eDesign services can develop targeted creatives and content for your web-site, e-mail and fax campaigns, newsletters and announcements.
Our eMail Campaigns are less expensive than direct mail or mass media with three times the readership rate and all of the interaction and follow up capabilities that direct mail cannot provide.
Rainmaker’s eOpt solution allows you to outsource the sometimes daunting challenge of opt-in/opt-out database management.
eNrich provides you with solutions to enrich your customer and prospect databases with new contacts and fields to further enhance your ability to penetrate, cross sell and up sell within new and existing accounts.
Rainmaker eReach solution set empowers you to drive pipeline development and immediate revenue growth
What is the primary factor that differentiates Rainmaker from the Interactive List Brokers?
Simple, we own our database, they don't. As such this gives us the flexibility that they cannot offer.
In addition we provide full service Interactive Marketing capabilities from campaign design, content and creative development, execution and 360° aggregate and discrete analytical feedback on the success of client campaigns. Broker's creative and analytical abilities vary, but none can offer discrete contact level click through and readership analysis as ell as providing clients with the means for intelligent telemarketing follow-up.
What is the primary difference between Rainmaker Partners and Database Marketing Firms?
Rainmaker Partners, like Database Marketing firms, owns its own database so we can sell not just rent the use of our lists for marketing purposes. The difference is twofold. First we are unique in owning a database of over 750,000 B2B decision maker e-mail addresses which is growing monthly. At this time, we are unaware of any Database Marketing firm that collects and verifies B2B functional decision maker addresses.
In addition, we provide full service Interactive Marketing capabilities from campaign design, content and creative development, execution and 360° aggregate and discrete analytical feedback on the success of client campaigns.
How does Rainmaker Partner's database segmentation process work?
Through the power of our eSegment methodology we can help you target the exact decision makers within your target market from our email database of over 2,500,000 B2B decision makers ("C" level, VP, Director and managerial executives) within North America, utilizing eFollow for telemarketing and qualifying leads thus driving pipeline development.
Our consultants will work with you utilizing all of your available demographic data to define your market by Industry, SIC code, functional buyers such as CEO, VP of Sales, VP of Engineering, and CFO, geographies such as state, province or region. Upon completion we will draw upon our database sources and generate the appropriate segmented database complete with e-mail address, telephone number, fax number, company address, contact information and much more.
Unlike other conventional marketing firms we provide you with the contact information to integrate with your CRM or Sales Force Automation system for your telemarketing follow up.
Rainmaker sounds unique, what was the genesis of
it's concepts? The genesis of the eSegment concept came from the founders of Rainmaker who are B2B high-technology industry veterans with over 40 years of successful senior sales and marketing management experience. Frustrated by the ineffectiveness and cost of conventional lead generation vehicles while attempting to balance the needs of their own marketing and sales department goals they developed and successfully implemented the concept at B2B technology companies before founding Rainmaker Partners in 2002.
How does Rainmaker Partners build it's eSegment database?
Rainmaker aggregates data from both public domain sources such as websites and public filings, etc. as well as data it purchases from commercially available sources. Although available from individual sources, the aggregated data often has little value without manipulation and interpretation. The especially holds true in the area of e-mail addresses since very few quality sources exist for B2B executive level contact information complete with e-mail addresses. As such, Rainmaker has developed several proprietary techniques of list matching and predictive modeling which allows us to build a unified view of data that can be segmented and readily used by B2B marketers for e-mail, direct mail and fax campaigns.
Of critical importance to B2B marketers, Rainmaker provides clients with the capacity for timely and targeted telemarketing follow-up.
How often does Rainmaker update its database?
Updates are collected each month from individual sites and published quarterly, typically in April, July, October and January.
How does Rainmaker prepare a segment for a customer?
At the time of contract, Rainmaker extracts the customer specified segmentation specifically for the customer’s unique requirements. In order to prevent customers from paying for old or no longer active addresses, Rainmaker re-validates each address in the segmentation prior to delivery to a customer. During this process, we enter a field into each record denoting that it tested as a valid address.
When we provide a quotation to a customer, we typically only charge a customer for 70% of the record count we have in the desired segmentation. Inevitably, no matter how recently a database is updated hard bounces (bad addresses) do occur resulting from employee turnover etc.
Our conservative estimating procedure is designed to prevent the customer from paying for records which have e-mail addresses that are no longer valid. If 80 or 90% of the addresses prove valid after verification (which is often the case), the customer will still only pay for the price originally quoted and Rainmaker will provide the customer with the entire validated record set. If less than 70% of the addresses are valid then Rainmaker will provide a pro-rata adjustment in the final installment.
How are the addresses validated?
Rainmaker utilizes technology that validates the contact’s address at their domain’s designated SMTP server without delivering an e-mail to the given contact.
Does Rainmaker use an executive’s personal e-mail address to deliver campaigns to?
No. Studies have shown that recipients are more often to view business mail sent to their personal e-mail box or vice versa as an intrusion.
Therefore all of the addresses Rainmaker provides to clients are “corporate domain addresses” For example:
If John Doe is CFO at XYZ Corp. then our address for john would look something like John.Doe@xyzcorp.com rather than jdoe1234@hotmail.com.
What is Rainmaker Partners' Privacy Policy?
Rainmaker Partners believes
strongly in permission-based B2B interactive marketing .
How does Rainmaker Partners price its eSegment customized databases?
Much like a Database Marketing firm on a per record charge which decreases as the record volume purchased increases. You can purchase a database for single use or an unlimited usage license for a one-year period.
You will find our prices quite competitive with Database Marketing firms with the added benefit of our unique ability to provide e-mail addresses which they cannot do.
Likewise our prices are quite competitive with Interactive List Brokers with the added Rainmaker benefit of receiving a full telemarketing database with discrete name open and click through reports for your intuitive telemarketing follow-up Interactive List Brokers do not provide these vital links to generating leads, building pipelines and driving incremental B2B revenue. Only Rainmaker can.
How does Rainmaker Partners price its eDesign and eMail service offerings?
All of Rainmaker's services with the exception of the eSegment database segmentations are charged based upon billable hours incurred. Rainmaker's professional services are billed at market competitive rates.
Rainmaker Partners conducts business throughout North America from it's headquarters in Lowell, Massachusetts, the birthplace of the Industrial Revolution.
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Copyright © 2008 Rainmaker Partners, Inc.