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EMAIL MARKETING: Channels Get The Hang Of It
 
Email blasting is a catching trend of today's channel business. The encouraging feedback shows that adopters of this trend are satisfied with it.
 
Faiz Askari
 
Tuesday, January 18, 2005

 

Email blasting or email shooting is an emerging trend among channel partners. By a single click, they can reach the desktop of any prospective customer. The encouraging feedback shows that adopters of this trend are satisfied using this alternative marketing strategy.

There is a new emerging marketing trend in the channel community, be it a small distributor, system integrator or reseller. It is used to promote the brand, spread awareness, remain in close touch with the customer and check the customer database timely - Email Blasting is one new trend that is attracting this community.

The trend of email shooting is considered as a modern day handy tool to attract the target segment. There are some vital reasons why this trend is gaining acceptance in the channel community at such a rapid pace. Irrespective of the city you reside in, customers are getting emails from channel partners.

So far so good
Explaining the driving forces of the acceptance rate of this drift, Anil Sachdeva, MD of Kadam Marketing explains, "Email happens to be the cheapest medium of communication. Being of low cost and also because of no use of paper and ink, there are additional advantages for our kind of businesses." Apart from this, other advantages include its faster reach, as it can be copied and sent to multiple customers with just a click of a button. Comfort to the customer is another plus point, as he can access and store the information desired at his ease and time. Email blasting scores over other mediums as it can be recorded and kept for future
references.

Channel partners of bigger towns like Delhi and Mumbai are getting mature in this trend. However, the trend is yet to achieve an impactful visibility in places like Hyderabad and other B- and C- class cities. But companies have already started their efforts to follow this marketing trend.

Attractions

  • Effortless penetration of the market. 

  • ROI is huge due to extremely low cost. 

  • Easy maintenance of customer database. 

  • 25% average increase in busines. 

Hyderabad's Dipender Singh, MD of Royal Computers stated, "We would start email blasts from next month and have specially appointed a person for this job. The costs that would go into this approach would be around 5,000 per month." He also added that with the person in place, they foresee an increase of 20% of customer base. Highlighting the cost factor, he explained that when fax machines were introduced, there was a drastic reduction in the telephone bills drastically. Now with emails, even the fax bills are reduced largely. Whether the email is sent to one customer or thousands, it doesn't cost the proprietor dearly.

Hyderabad-based Ajay Kumar of Intex Technologies however said, "We haven't yet opted for this technique. But plans to implement this in the near future are on the way. We would not outsource this work, rather will do it internally by employing manpower specially for this purpose." The company expects an increase of 20%­25% increase in the customer base with email blasting. It intended to employ one person initially with an investment of approximately Rs 6,000 per month.

In New Delhi, channel partners spend Rs 10,000 per month on the person recruited for email blasting. Confirming this, Ajaya Kumar, Director of Park Electronik informed that the company has hired an individual for this job, who it pays the said amount.

As Utility tool
There are several areas in which email blasting can help immensely. Sudarsan Ranganathan, CEO, Veeras Infotek of Chennai benefited too. He said, "We have adopted this technique to send virus alerts to our customers, with precautions that are needed to be carried out in case of a virus outbreak." They also inform of important changes, technology advancements that would be of interest to IT managers, through email blasts. Apart from this, customer satisfaction surveys are carried out by sending emails to customers. Moreover, it is an important tool to convey special promotions and offers to tentative customers.

“Email shooting should be focused and carried out with authentic standards for sending specific customers”

Anil Daryani, MD, Kunhar Peripherals

However, adding a new dimension of utility to this tool, Anil Daryani, Director, Marketing of Mumbai-based Kunhar Peripherals said, "Since we promote our own brand, the e-mail gives us brand awareness. Sales have been increasing step-by-step, as we are already working on this trend."

Success Rate
On an average, partners expect around 20%-25% growth in their business from email blasting. There are slight differences in the outlook of channel partners depending on their geographical positions.

Mumbai-based Satish A Villait of Bitsy Computers explained, "Our experience says that we have been successful in informing people about anything new that is happening. On a scale of 1-10, I would rate our service at three." Having a similar experience is Chennai's Girish Madhavan of Quadsel Systems. His business too grew by 30% after adopting the email blasting technique.

But Anil Daryani has a different opinion. He said, "It is difficult to judge the success vis-a-vis other marketing initiatives and quantify in terms of figures or percentage. This is because people see an e-mail n delete it. Also, if the overall economy does well, then e-mail marketing will do well, and thus is tough to quantify in figures or percentage."

Bringing another aspect into light, New Delhi-based Kadam Marketing's Sachdeva said, "This is undoubtedly a very productive tool for business. It works as a customer keeps a record of information with himself and calls back when he requires information. It is thus beneficial for customers as well as us." To maintain the correct database one thing that is to be worked upon. The expected results may not be yielded if the database remains unchecked for longer periods of time.

Pros and Cons
Although different from New Delhi and Mumbai, in Hyderabad, this trend is at a nascent stage. Companies are closely looking at the results of this technique though they have not implemented it. Commenting on his expectations from this, Royal Computers' Singh said, "We would be able to reach a large number of customers in a short period. The turn around time will be reduced. Customers who respond to our emails would be followed up immediately." With growing customers, the company would expand the marketing team to address the augmented customer base.

“This technique scores over other mediums, records can be maintained and kept for future references”

Anil Sachdeva, MD, Kadam Marketing

Kumar of Intex Technologies has pinned his hopes from this concept and believes that this has many positive points as compared to other unconventional marketing techniques. He said, "When tele callers came into existence, the traditional concept of direct marketing was put on shelves to some extent. The marketing executive would visit his customer with an approved time given by the customer, that's fixed by the tele caller." Likewise, email blasting is an evolving concept. It is being observed that email marketing is used to educate customers about products and solutions. Ajay remarked that it is premature to talk about the success of this tool, as it is at a nascent stage. He expects the tool to be much more efficient with the features it has.

Bringing another facet into light, Anil also added, "The implementation of email shooting should be focused and carried out with authentic standards. In other words, partners should send mailers for a specific set of target customers, the content of which should also hit their perspectives."

The only threat ahead of this trend is the fear of getting misused.

Future
Taking a critical look at today's scenario, email shooting sure is very tempting for the channel community. In general people are getting good returns from this, and planning to stick with this for at least one or two years down the line.

Mumbai's Satish Villait believes, "The future prospects greatly depend on the growth of PC penetration. As PC users increase, email marketing will be the best way to reach out to people." As per Ajaya Kumar, of Park the future prospects will be clear once the technique matures. Describing the potential that this trend has, Sudarsan Ranganathan, Chennai said, "IT industry is a knowledge-based industry. Information is the key differentiator and value proposition increases perception value with your customers." The mailer obviously needs to be backed with commitment, service orientation and a passion to make a difference to customers. Thus, the basic requirement for email blasting to succees is a clear focus and dedication. A partner using this should make sure that it is not getting
misused.

Making a conclusion on the basis of the feedback from the channel community's stakeholders, this trend is showing a positive ray of hope for partners. Its salient aspects are speed, easy penetration and low cost. Being misused is the only visible threat this tool has. To sustain and enhance its market acceptance, all that is required is a cautious approach of selecting the customer database.

Going by the initial industry reactions to this trend, email blasting sure has a bright way ahead.

FAIZ ASKARI with inputs from DQCI team

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