Does Email Marketing Really Work?

Direct Marketing and Email Design 

Email marketing is expected to be the main form of promotional activity according to Dr. Debra Zahay and Dr. Mary Roberts, marketing professors at Universities across the country. With 58% of consumers starting their day with their emails, marketers have upped their email marketing budget to target the large percentage of consumers (Roberts & Zahay). 

This blog will look into the email design that goes into a promotional email from companies, specifically Nike. All three companies that I have been following (Nike, UnderArmor, and lululemon) follow good direct marketing and email design. I feel that Nike goes further in the area of personalization and customization, the two highest levels in the hierarchy of customer-focused marketing strategies as shown in the graphic below. This blog will also see if these emails are compliant with the CAN-SPAM act, and see if Nike is using email marketing to their full advantage.

Customization is the highest level of customer focused marketing. At this level, marketers have learned and gathered information from their customers to create and/or push products they believe will resonate most with a particular customer. Our book points out that Nike has excelled in this area by creating NikeID, a site where customers can customize products made by Nike. As a NikeID member, I have customized items through their site and had them delivered to my door. Their site is easy to use and encourages me to buy products that are similar to those I have customized. In addition to on-site promotions, Nike has acquired my email address in order to send me promotional emails as well. Below are images from a particular email I received from Nike and show how Nike follows good email marketing design and principles (Roberts & Zahay).

The first thing to look at when analyzing Nike's email practices is how it appears in the viewer's email inbox. When I first see the email from Nike, I can see that the subject line clearly states what they are promoting: the Women's Holiday Gift Guide. The "From" line reads: Nike and the "Reply To" line reads: Nike Customer Services. These aspects all appeal to transparency and align with the CAN-SPAM act discussed later in this post.

The first image is the initial picture that I see when I open the email. The image shows a man and woman wearing Nike gear, with the title "The Nike Holiday Gift Guide 2015". This title is linked to the Nike gift guide webpage, and when clicked a customer is sent to a "Gifts for Athletes" page. From here, I can easily access the women's attire and shop those products by clicking the bottom right "shop women's" hyperlink. You can also easily access the items that you can customize along the top bar. 

The next image shows children wearing Nike products and has two links to the boys' shop and the girls' shop. You can also access the guide from this page by clicking the "explore the guides" button which brings you directly to the shopping site for the guide! 

Next, the email shows a NikeID section titled "Customize with Nike ID" with a hyperlink to the NikeID site. Easy access to customized sites encourage consumers to make purchases because they can edit products to their exact liking.

Finally, at the very bottom of the email is a graphic that highlights the services they offer for their products, or in this case gifts. Again Nike promotes NikeID as a way for buyers to customize their gift. They also emphasize their free shipping and free returns. By clicking on any of the linked images, the viewer is directed to more information on each of these services. This image also has the "unsubscribe" option and Nike address that must be visible on all promotional emails to follow the CAN-SPAM act.

*All images were screenshots from a promotional email I received from Nike.

What is CAN-SPAM and its Requirements?

CAN-SPAM is an Act established in 2003 by the U.S. Congress to combat phishing, unsolicited, and offensive emails and is monitored by the Federal Trade Commission. The act promotes transparency from marketers by setting rules they must abide by. This act has the following provisions:

• It bans false or misleading header information - this means that a marketer must be truthful in their "To" and "From" lines in order to identify who the marketer is. The Nike email I received adheres to this provision.
• It prohibits deceptive subject lines - this also prevents marketers from luring consumers into traps. By having clear subject lines, consumers should be able to know exactly what the promoted product is. Nike's subject line clearly stated that they were promoting the Women's Holiday Gift Guide.
• It requires that an email offers an opt-out method - although at the bottom of the email, Nike did have the unsubscribe option in smaller print than the rest of the email.
• It requires that commercial email be identified as an advertisement and include the sender's valid physical postal address - Again, at the very bottom of Nike's email in small type, Nike's address can be found (Roberts & Zahay). 

Nike's promotional emails are in accordance to the CAN-SPAM act and because of that, are more appealing to customers. I do not have to worry about being spammed by Nike or clicking on an email that may promote something other than its subject line. As a consumer, it makes me trust Nike more and encourages me to be a repeat buyer. 

So Does Nike Successfully use Email Marketing?

I think that Nike's email marketing is successful. I usually browse through the emails they send me. One area I think Nike could use A/B testing is on their layout. Currently, the email's pictures are organized vertically and the customer must scroll quite a bit to see all the pictures. I think they could test their current design against another in which the picture are aligned horizontally, in panels that fit on the screen without having to scroll. They could measure the test site by conversions. 

I also think that Nike successfully uses the four internet "I"s to their full advantage.

• Interactive - Nike sends specific offers to customers based on their prior purchases and tastes
• Information driven - Nike sends emails that inform customers of current deals and popular items. It also allows Nike to gather more information on customers based on their conversions and open rates.
• Immediate - Nike offers a link at the bottom of their emails for questions and concerns. When clicked, a customer can enter their problem into an email and will get a reply within 24 hours.
• Involving - This is an area where Nike's website and promotional emails could be improved. Nike's emails are mainly composed of pictures, not interactive videos. Their website has videos and commercials that come up on the screen occasionally and has changing images that promote current trends (Roberts & Zahay). 

Overall, I think that Nike's email marketing strategy is successful. Their emails highlight specific products that are often catered to a customer's taste. Ultimately, a company's goal is to retain customers and increase value. As a repeat customer of Nike and NikeID, I think that Nike has accomplished this. With their transparent emails and level of customization, Nike has set themselves apart from other sport-apparel companies. 

R   Roberts, M., & Zahay, D. (2013). Business Models and Strategies. In Internet marketing: Integrating online and offline strategies (3rd ed., pp. 60-            79). Mason, Ohio: South-Western Cengage Learning.