Email Marketing for Energy Suppliers

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    Energy Supply & Services: Powering Progress viaEmail Marketing

    Foreword

    Imagination has brought mankind through the dark ages to its present state ofcivilization. Imagination led Columbus to discover America. Imagination led Franklinto discover electricity.- L. Frank Baum

    Regardless of the national economys state and whether financial indicators arepointing up, down or sideways, your clients will continue to turn to the EnergySupply & Services industry for their indispensable requirements. But just because

    the general economy may be in the doldrums, the innate competition within theEnergy Supply & Services sector is not diminished. In order to drive additionalbusiness toward their services and demonstrate that their offerings hold an edgeover the competition, corporate participants in the U.S. Energy Supply & Servicesindustry are gradually realizing that marketing through traditional mediums suchas newspapers, magazines, radio, television and Yellow Page advertisements is nolonger sufficient. These older and more traditional forms of media are no longercost effective due to the online communications options that encompass thepowerful and effective channels of email and social network marketing that arecurrently available and generate a far greater Return on Investment.

    The Direct Marketing Association conducted a comprehensive 2009 survey of emailmarketings return on investment and discovered that each dollar invested in thechannel garnered a remarkable return of $43.62. This rate of return is unmatchedby traditional media forms. The mobile, web-enabled device revolution is takingplace before our very eyes. Millions of people around the globe have adopted asmartphone lifestyle; these individuals have discovered that the latest generationof mobile phones, tablets and netbooks combined with constant access to internetallows them to experience an electronically social lifestyle that improves quality oflife a thought that would have seemed like science fiction only a decade ago.

    This report was designed to assist your Energy Supply & Services business inserving and motivating your customers through information, education andentertainment via the unparalleled power, efficiency and reach of email and socialmedia marketing. Beyond a shadow of a doubt, these are the mediums that allEnergy Supply & Services businesses need to implement now.

    - Curt KellerCEO

    Benchmark Email

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    Introduction

    This report, Energy Supply & Services: Powering Progress via Email Marketing,is an overview of the current condition of email marketingfor the use of EnergySupply & Services promotional directors to refine and focus their online business

    marketing strategy. Determinations within this guide intend to clarify to members ofthe Energy sector how to hone their email marketing efforts by applying these tools:

    How to construct and implement a social media and email promotional campaignappealling to a new clientele while fostering loyalty among existing customersUnderstanding relevant legislation regulating the process of online communicationswith Energy Supply & Services industry sector customers Analyzing and interpretingprimary statistics about strategies employed by other Energy Supply & Servicespromotional managers around North America Activating results-oriented emailmarketing customized for your Energy Supply & Services business to achieve andsustain the maximum benefit

    Online promotional managers of Energy Supply & Servicescompanies across the United States and Canada were surveyedon their marketing practices; the results of these survey statisticsare summarized in this report. Content acquired through thiscompendium can be reviewed in the Energy Supply & Services EmailMarketing Survey section. The goal of this guide is to make clear the questions EnergyServices marketing managers need to ask themselves in order to gain valuable insightinto the current condition of their email and social mediapromotional campaigns.

    BackgroundThere are two distinct primary business models present in the Energy Servicesindustry today: Legally regulated monopolies and more conventional businessescharacterized by competitive marketplace. For the operators of the Energy businessesunprotected by monopoly status, the volatile and competitive market is based onvolume. Energy consumption can vary by consumers within billing cycles, from afew dollars for a tiny urban apartment to millions of dollars for major industries andinstitutional or retail complexes. While infrastructure costs required to satisfy theenergy uses of the smaller consumers can often exceed the price of the energy sold,the situations of larger commercial users is vastly different.

    The Energy Supply & Services industry is exceptionally internally diverse. Someelements of the Energy sector, such as pipeline and transmission grid operators, areentirely invisible to the general public - thus email marketing considerations arestrictly in the field of B2B (Business to Business). Others are public utilities that mayhave a B2C (Business to Consumer) subscription list, numbering in the many millionsof consumers. The complex nature of the Energy Supply & Services sector makesindustry statistics difficult to generalize; however, this guide includes comprehensivedata on the industrys application and results from email and social media marketing.

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    Energy Supply & Services Business Email MarketingStatistics

    Our data was analyzed in conjunction with information garnered from the answers

    from North American Energy Services business owners and managers.

    Energy Supply & Services Businesses that Engage inEmail Marketing

    The results of this survey find that the majority of Energy businesses are currentlyinvolved in email marketing with an Engage in Email Campaigns response level of 62percent; 17 percent of the surveyed report they do not participate in email marketing;21 percent claim they plan to utilitize online marketingin the future. Overall,marketing trends in Energy businesses are revealed to focus on online resources forcommunication and promotions.

    Energy Supply & Services Business Sending Frequency

    Energy businesses strongly rely on frequent email newsletter content, employinga Send Frequency of 68 percent overall. Monthly frequencies are reported at 28percent; bi-monthly, 2 percent, 1 percent quarterly and 1 percent seasonally or yearly.As 96 percent of all Energy businesses engage in at least monthly freqency clientcommunications, and 66 percent report to engage on a more than monthly basis(some as often as twice per week), Energy businesses are keenly aware of the benefitsgenerated by email newsletterand email marketing campaign strategies for effectivepromotion.

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    Energy Supply & Services Business Content Type

    Content Type for Energy companies is: 20 percent informational only; 53 percentinformational plus sales; and 27 percent exclusively sales.

    How Energy Supply & Services Businesses Obtain EmailSubscribers

    Subscriber sources for Energy businesses come predominantly from current consumerbase: 73 percent is sourced from current clients. Two percent comes from promotionalresult subscribers, 18 percent from web derived subscribers, and 1 percent frompurchased and supplied leads. Finally, 6 percent comes from from public promotionalevents.

    Typical Energy Supply & Services Business Email

    Subscriber List SizeThe list size of Energy businesses is relatively smaller than in other major industries,with a majority 54 percent reporting less than 500 entries in their subscription list.Thirty-two percent claimed 500 to 1,000 entries; only 3 reported having 1,000 to3,000, and 6 percent claimed 3,000 to 5,000. Five percent reported more than 5,000subscriber email addresses.

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    Versus Industry Open Rates

    The open rates claimed by the participating Energy business owners and managersare above average. The statistics for industry open rates are: 41 percent for energysupply and services; 37 percent for food; 27 percent for manufacturing; 26 percent for

    Restaurants; 28 percent for retail and 25 percent for all industries.

    Energy Supply & Services Business Subscriber Click-Through Rates

    The number of Energy business owners and managers who are not aware of their click-through rates(CTR) is low. In this sector, fully 87 percent have no idea of their clickrate, but among those who are aware of this critical email metric a less than 5 percentrate is claimed by 4 percent. Five to 10 percent is stated by 1 percent of owners; a 10to 15 percent click-through is stated by 3 percent; and 5 percent claim that their click

    rate is over 15 percent.

    Versus Industry Click-Through Rates

    Industry click-through rates are as follows: 11.3 percent Energy Supply & Services; 7.9percent Food; 4.9 percent Manufacturing; 3.4 percent Restaurant; 5.8 percent Retail;and 4.3 percent All Industries.

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    Energy Supply & Services Industry Discussion

    The Energy industry hosts a broad range of specific requirements for particular stylesof email and social network marketing to suit the customer profiles. These variancesspan the gamut between strictly B2B and broadly horizontal B2C:

    Oil CompaniesOil companies primarily engage in exploration and production of oil, known asupstream activities; the midstream involves oil transportation and refining. Petroleumproduct wholesale and retail distribution is known as the downstream activities. Thelargest multinationals are known as the majors and are vertically integrated with afull spectrum of business operations from international exploration to local gasolinestations. Smaller oil companies, known as independents, are often only involved inlocal scale exploration and production. Some oil companies focus only on midstreamand downstream activities, as they operate refineries to distill crude oil into its

    various commercial petroleum derivatives, like solvents, gasoline, diesel,jet fuel and asphalt. Depending on the scope of the business of the specificoil company a wide range of email stratifications and approaches maybe desirable. The extremes of the industry have obvious impact onthe type of email marketing that each company will choose to engagein. Upstream major companies generally have a very well developedpublic relations component, thus they may have millions of energy andenvironmentally aware individuals and organizations on their emaillist. Independent oil companies may be limited to only strictly B2Bemail marketingto solicit the availability of their services to very narrowly verticallyintegrated sectors of the energy industry.

    Oil Services Suppliers

    Oil services suppliers provide the full range of outsourced operational support to allsizes of oil companies, such as conducting seismic testing; owning and renting outoil rigs; and transporting equipment. The volume of business for these companiesis directly linked to the price of petroleum: when the barrel price increases, oilcompanies increase their drilling in order to sell the petroleum at the highest pricepossible, and slow down when the price plummets. This type of volatility leads to

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    business volume and revenue roller coasters for their oilservice supply contractors. In July 2008 the price for a barrelof oil hit $145, while barely five months later in December thecrude oil spot price fell to just $30. Although little can be doneby oil services suppliers to override these spikes and troughs,

    email marketing can help in the slower times to consolidateequipment, promote services for the busy times and continueto nurture the breadth of B2B relationships necessary to ensurelong term success in the industry.

    Pipeline Operators

    Pipeline operators own and manage untold thousands of miles of petroleum productand natural gas pipelines. Many of these types of companies also operate petroleumintake terminals, engage in a variety of commodities trading and energy marketing,and operate natural gas storage facilities or petroleum refineries. Unlike the majors,

    pipeline operation companies may not be well known household names. The largestcompanies report annual revenues sometimes tallying several billions dollars a sumcomparable to the income of a medium-sized oil company. Pipeline operators areunknown by the general public; therefore, their email marketing requirements arestrictly B2B and essentially similar to those of oil services suppliers.

    Utilities

    Utility in the Energy Supply & Services industry is actually a generic term referring togas utilities and all types of power generation companies such as:government-owned utilities, investor-owned utilities, municipalpower companies and rural electric co-ops, as well as non-utilitygenerators (NUGs) and independent power producers (IPPs).Utilities differ widely in terms of their types of business, as someare no longer in the energy generation business and are primarilydistribution companies with power lines as main assets whileothers may own and operate regulated power plants (they mayalso own NUGs or IPPs). As the electricity market became widelyderegulated and chaotic in the early new millenium, many IPPssold off assets piecemeal to larger utility holding companies or financial institutions.More than almost any other type of Energy industry sector, utilities have the greatest

    requirement for successful B2C email communications, with some having email liststotaling in the millions of individual addresses.

    Transmission Grid OperatorsTransmission grid operators, generally referred to as Regional Transmission Operatorsor Independent System Operators, provide power generation dispatch functions toregional electricity markets. Generally, they do not have an ownership stake in theactual electrical transmission lines, but direct how much, when and where electricityis generated to ensure that supply and demand are balanced at all times. These types

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    of businesses also have little need for B2C email communications and concentratetheir online communications efforts on the B2B side exclusively.

    Equipment Manufacturers

    Equipment manufacturers make pumps, boilers, compressors, turbines, pollutioncontrol devices, software control systems, well drilling and pipeline constructionequipment and industrial batteries. A number of them also supply engineeringservices and construction as well as installation of their equipment. As in the previouscases, their requirements for online communications are almost exclusively B2B.

    Government Agencies

    Government agencies at the federal and state levels legislate the energy marketsand regulate public energy policies as well as the various protections for theenvironment. Federal agencies are primarily located in Washington, D.C., while each

    state has agencies in its state capital. The requirements for government agenciesfor email promotion are consistent: Each agency must have a component of onlinecommunications specifically directed towards businesses throughout the Energyindustry; however, federal agencies have constituents numbering in the hundredsof millions, therefore it is imperative to keep a well developed and refined emailcommunication strategy in place in order to keep citizens informed about energyissues in America.

    Energy Services Firms

    Energy service firms assist individuals and companies in any sector to reduce theiroverall energy costs. The usual operation of an energy service firm is conducting acomprehensive energy audit to determine where energy expenditures arebeing directed (electricity, heat and, in the case of commercial ventures,industrial processes). Then the energy service firm physically implementsenergy-saving measures within the location of the client, whether it be ahome, a commercial building or an industrial facility. These measures caninvolve investments and activities such as upgrading the HVAC systems,replacing incandescent light bulbs with CFL equivalents and placing themon motion sensors, negotiating better rates with the utility suppliers or, inthe cases of large corporate or industrial power consumers, they may be

    able to develop a cogeneration power plant adjacent to the location. In manycases the energy service firm receives payment for these services as a share in the netenergy cost savings that the client enjoys.

    Different energy service firms cater to various markets. A company concentrating onhousehold energy savings would have their email marketing skewed primarily in a B2Cmodel. Firms assisting corporations and industry in the savings of massive energybills (which often tally up to millions of dollars per year) are naturally focused on B2Bemail marketing.

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    Energy Supply & Services Business Email MarketingGoalsIt is critical to note that in order to present the most effective results,

    your email newsletter campaign must be specifically engineered toappeal to every type of Energy Supply & Services client, from the casualcustomers who may only be peripherally aware of your operationsto the fully dedicated energy-driven companies and energy-awareconsumers who avail themselves of your services and have the potentialto evangelize your benefits to a wider online and offline audience. Itis necessary to provide the precise type of information that each customer categoryrequires so that when they require your form of energy services, they will turn to yourcompany first.

    Implementation

    Email marketing for Energy businesses is different from the traditional types ofadvertising placed in the conventional media such as magazines, newspapers, radio,television and Yellow Page ads. One of the most important differences is how federaland state law is generally applied to email marketing as opposed to traditionaladvertising: Email marketing is more severely regulated than conventional mediaformats and the manner by which Energy businesses interact with their emailnewsletter subscribers is precisely legislated.

    Compliance

    Every Energy business collecting business cards or some form of physical signupsheets to collect information about their customers is required to state that direct andunequivocal approval has been obtained from the clients prior to placing their emailaddress onto a list.

    CAN-SPAM Violations Have Severe Consequences

    In the U.S., the primary authority governing all forms of email marketing isadministered under the CAN-SPAM Act, which illustrates criteria on how all emailmarketers must behave when interacting with the public. The legislation is based

    on the facilitation of any subscriber to instantly opt out of your list at their primaryrequest. Violations of the CAN-SPAM Act are considered as a clear infringement offederal regulation and could lead to penalties and even long jail terms.

    Facilitate Unsubscriptions

    As soon as any subscriber informs your Energy business that they want to be taken offof your email newsletter receiver list, federal legislation specifies that they must bedeleted from your list irrevocably and immediately. Your Energy business must makesure that the procedure your customer can follow to be taken off your list is easily

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    locatable in every email you send them and simple to use. Failure to honor demandsfor unsubscriptions constitutes a crime with serious penalties.

    Bouncing Email Management

    When any Energy business sends out an email, be it a personal message, a businessreply or a marketing campaign newsletter, one of three separate things can occur:

    1. It can be delivered correctly.

    2. If your email has bounced you will receive a message from theMailer Daemon informing you of the situation and explainingreasons for the bounce. If the bounce is soft, the conditionoccurred after the message left your computer. In cases of a softbounce it is considered good email practice to attempt to contact the customerthrough an alternative form of communication in order to inform them that the

    emails are being returned.

    3. A hard bounce is a more serious problem, as the fault lies with the sender. If youare repeatedly sending emails to an address that is non-existent or blocked forany reason, the various ISPs that route traffic around the internet will place youamong the lists of criminal spammers. Being placed on this type of blacklisthasserious consequences for your Energy business, as you may find that you will nolonger be able to send out any email marketing missives whatsoever. The boycottmay extend to your personal and business emails as well.

    Privacy PolicySome Energy business owners and managers do little more than clickonto a competitors website and copy their privacy policy in order topaste it verbatim onto their own website pages. Not only does thisaction create a duplicate content that will affect your search engineposition in a negative fashion, but it also leaves your business opento potential legal action. To protect your business, your attorneyshould draft a completely unique and personalized privacy policy thataccurately covers the way you do business online.

    List SegmentationSegmentation of an Energy business email subscription list is by far the best methodto hone your online communications strategy based on the demographic and behaviorfeatures of your subscribers. The application of segmentation techniques developsemail content that precisely fit the wildly differing characteristics of your subscriberbase, so you will be able to offer the types of discounts, offers, products, services,equipment and accessories each is most likely to be interested in to suit their energyneeds and consumption volumes.

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    Experienced email marketers are aware of the requirement that they conduct avigorous and ongoing testing process on their email marketing content. One ofthe most common tests is called an A/B split test which involves identical contentbeing sent to a particular segment of the subscription list with only a single elementchanged, such as the preheader, subject line, image or position of a link. By comparing

    how these different newsletters perform, you can gain valuable insight into whatyour Energy business customers are responding to in order to continue to hone yourcontent through further testing.

    Obtaining Your Customers Personal Information

    Most Energy business customers are hesistant to divulge personal information aboutthemselves. Many email marketers have discovered that motivating surveys or othertypes of incentivized polling forms can be a boon in obtaining personal data to basesegmentation methodologies on.

    Analyze Your Customers Behavior

    The primary method of determining the success of your email marketing campaign isthrough scrutinizing various email metricstatistics. There are some customerson any subscription list who simply will not open your emails atall, and continuing to send to these subscribers is not likely tomodify that type of behavior pattern. These email addressesare best eliminated from your email newsletter list. Othercustomers may open and read your emails but usually fail torespond to the call to action. These subscribers should notbe deleted from the list since they are reading your emails,and that often equates to their eventual response to yourEnergy business in other ways. The most lucrative category iscomprised of the prospects who both read and click through to your landing pages,as these are the customers who are the most responsive from an email marketingperspective, and thus very valuable as online communications recipients.

    Good Email Practices

    It is important to adhere to good email practices to ensure that you will improveclient compliance and maintain the highest level of efficiency while bearing overall

    positive results at your Energy business bottom line. Lines, preheaders and subjectlines should be meticulously crafted; the differing display abilities between PC andmobile browsers must be accounted for, as well as website landing pages featuringthe specific content required to synchronize your A/B split testing efforts andsegmentation methods.

    Email Metrics

    The statistics in this report demonstrate an overwhelming majority of Energy businessowners and managers are unaware of their campaigns click-through rates, while a

    Opens

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    much smaller number were also unaware of their open rates. While44 percent were not able to quote their open rates, 87 percent couldnot state their click-through rates. This failure to comprehendthe impact of these basic email metrics when directing an emailmarketing campaign is a problem that needs to be addressed,

    especially when it is noted that the differential of nearly double inthe rate of open and click-through rate comprehension is a ratiofar beyond most industry standard medians. By not understandingthe most basic email metrics that are obtained by an onlinepromotional campaign, the Energy business manager or ownerdenies themselves the overview into the specific factors that indicatehow their overall email marketing and promotional campaigns are performing.

    Benchmark as Your Energy Supply & ServicesCompanys Email Marketing Concierge

    Quickly & Thoroughly Renew Your Email CampaignStrategy

    Your Energy Supply & Services business can experience solid bottom line resultsfrom a collaboration with the top notch industry professionals at Benchmark Email.Benchmark is universally acknowledged as one of the top email marketing serviceprovidersin the United States and relied upon by over 73,000 satisfied businesscustomers. Established on a foundation of years of expertise in serving the needs ofEnergy businesses both at home and abroad, Benchmark Email now offers an Energy

    Supply & Services Email Marketing Solution that acknowledges every factor in makingsure your integrated email and social media marketing targets and goals are fullyachieved.

    Choose to Have Benchmark Emails Renowned MarketingPros Do It for You

    When it comes to your email marketing campaigns, you may opt for an autopilotstrategy by delegating the breadth of the job to the experienced professionals atBenchmark Email. Your Energy business can be boosted into the next phase of emailmarketing when you take advantage of Benchmark Emails proprietary We Do It for YouFull Service Email Marketing system. This unique and powerful service will engageBenchmark Emails most experienced specialists to execute the functions of yourdirect email and social media marketing as if they were your own in-house staff.

    Industry Standard Features

    Whether you select Benchmark Emails Do It Yourself or the We Do It for You service,your Energy business will gain considerable competitive advantage from the followingpowerful features:

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    Advanced Message Scheduling- Your email communication is scheduled to beissued at any time and date best suited to your subscribers. By utilizing advancedautorespondertechnology, Benchmark Email empowers you to schedule a sequence ofcountdown timers. These timers can be set to particular events such as the date of thefirst subscription, renewal dates, your customers birthday or any other anniversary

    date you desire.

    Comprehensive Video Integration- Benchmark Email offers anexclusive video email facilitation procedure that allows audio-visualproductions of any running time to coincide with your Energybusiness most promotable innovations, discounts, events, products,services, installations or other informational content. The state of theart multimedia integration assures that any format of image or videocan be promptly delivered to your subscribers while minimizing the file size.

    Contact List Management- Benchmarks email list managementabilities can

    segment and streamline your subscription lists to facilitate you in precisely targetingyour customer categories based on a considerable variety of factors includinggeographic, behavior and demographic.

    Delivery Assurance - Benchmark Email is proud of its long history of collaborativerelationships with the major ISPs that control and route much of the internet trafficaround the world. Benchmark Emails reliable delivery assurances are based on acommitment to unwaveringly apply the best practices to be found in the email serviceindustry as well as the implementation of extensive anti-spam features to ensure thatyour Energy business will maintain an absolutely sterling email reputation and avoidthe placement of your IP or domain name on any of the ISP blacklists.

    Expertise & Technology Benchmarks technological infrastructure allows for anytype or format of email including plain text, HTML and video to be efficiently andswiftly delivered to your customers inbox.

    Full Tracking Reports Incorporating Visual Graphs- Benchmark Emailsexhaustive email tracking reports provide a simple, comprehensible graphic display ofyour campaigns overall performance. Each statistical category is also defined in basiclanguage without falling back on complex industry jargon.

    High Volume Plans If your Energy business subscription list consists of morethan 100,000 email addresses, Benchmark Email can implement a series of advancedtechnological functions specifically designed to facilitate your sizeable sendingvolumes.

    Polls & Surveys- Benchmark Email is famed for the effective methodologies it uses todesign a customized variety of client participation poll and survey forms. These formspermit you to make ongoing adjustments to your campaign accurately and swiftly, inaccordance with the data supplied by your Energy companys clientele.

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    Social Media Tools- Benchmark Email can engineer and direct your entire socialmedia strategy by offering comprehensive integration on leading sites such as Twitterand Facebook that will serve to ensure that your marketing messaging will be Likedand shared among the largest possible social circles.

    Templates- The experienced programming, content, graphics and marketingprofessionals at Benchmark Email have engineered hundreds of targetedtemplates to best display your company branding. The talented designersat Benchmark Email can even create a custom tailored template for yourexclusive use.

    Find Out How Your Energy Supply & Services BusinessCan Profit from Benchmark Emails Services

    Benchmark Emails market leading Do It Yourselfpackage of services empowersyour Energy business to directly and meticulously manage every facet of your emailmarketing strategy. If you dont have the time, contract us to provide a uniquefull service We Do It for Youpackage of services. This full service package iscarefully crafted, engineered and directed by Benchmark Emails masterful onlinecommunications experts to fit your specific type of Energy business and increaseyour profitability while boosting customer satisfaction. Professional Energy Supply& Services owners and managers are well aware that the final results are what reallycounts, and they trust the professional email marketing craftsmen and technologicalspecialists at Benchmark Email to provide the types of results that really count - theones on their bottom line!

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    About Benchmark Email

    Take powerful features by the dozen, sophisticated list management, hundreds ofemail templates, ultra-precise reports and dazzling email and video email. Now,package all that together for an extremely affordable price. Sound appealing? Thats

    us.

    Theres a reason or 100 that more than 73,000 users trust us with their emailmarketing campaigns. With a second-to-none feature set, headache-free tools thatmake every campaign a snap and extremely reasonable price plans, were the emailmarketing service for businesses of all shapes and sizes.

    At Benchmark, were more than email marketing experts, were innovators. Our mainaim is to perfect our email marketing service, but we also follow social networking,search engine optimization (SEO) and Web 2.0 just so our 100% Web-based software iscompletely compatible with the ever-changing Internet world.

    No other service gives you this robust, standard range of features for just $9.95 amonth to start. Find out for yourself by enrolling in our free, 30 day trialwww.benchmarkemail.com/register.

    Contact Benchmark Email

    We welcome your feedback and would love to talk with you about your emailmarketing needs. Please contact us at the addresses below.

    Website: http://www.benchmarkemail.com/

    Call: 800.430.4095 / 562.314.3033

    Email: [email protected]

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