The VP, marketing and strategy for Premiere Global Services explains how to apply the 40/40/20 rule to email marketing.

Email marketing is one of the most cost-effective ways to communicate with customers and prospects-- when done correctly. The question is, has anyone successfully identified what works? Savvy marketers acknowledge that many traditional direct marketing principles also apply to email. Among the most fundamental is the 40/40/20 rule.

Back in Marketing 101, we learned that offering our target audience what they want, when they want it is the key to success. The 40/40/20 rule says the bulk of response opportunity in any direct marketing campaign comes from the list (40 percent) and the offer (40 percent), with only 20 percent attributed to creative quality.

40 percent: the list
A solid list of prospects who have opted to receive offers from you is the foundation of a viable email campaign. Lists can be built using service bureaus and brokers as in traditional direct marketing, as well as your own sources (which I highly recommend) such as websites, point-of-sale terminals and direct mail responses. If you are still trying to pinpoint how to grow your list try a few of the following steps:

Make the opt-in visible. The first step is to make sure an opt-in to your company's e-newsletter or other e-communication is located in a highly visible place on your website, such as your homepage. You may even consider adding an encouragement to opt-in on every page of your website. This works brilliantly for retailers.

Make content informational. Inboxes are inundated with emails. Make sure your subscribers look forward to receiving your emails. Providing informational or industry relevant content like tips and tricks will encourage subscribers to remain interested and might also lead a subscriber to share the message with others. And this leads to the next step.

Promote viral forwards. Promoting readers' ability to forward the original email message to a colleague is a way to spur acquisition and drive response rates. Be sure to display the forward-to-a-friend option in a prominent area. Once the message is forwarded, provide the new recipient the ability to subscribe in the forwarded email.

Utilize lists from different divisions. The best lists always come from your customers. Just make sure to ask permission. In-house lists are also a good bet because your recipients are already interested in your product and know your company.

Partner with other businesses. Partnering with an affiliate will provide email users the opportunity to opt-in to your email communications while subscribing to their other favorite industry sites.

40 percent: the offer
According to Jupiter Communications, 68 percent of consumers who opt in to email marketing want promotions and offers; perfecting them to drive response, however, is an ongoing endeavor. Consider these points:

• Be relevant. Send customers what they want by using analytics to weed out offers that don't apply.
• Set deadlines. Reward customers who "act now."
• Be timely. Take advantage of seasonality.
• Value related offers. Make special "email" only offers available to your subscribers and track the response with your software's reporting tools.
• Stay on schedule. Customers should expect your email when it arrives. Pick a day every week or every other week and stick to it. If sending daily, pick a time and stick to it.

20 percent: creative
As tempting as it may be, spending more than 20 percent of your resources on creative for email marketing will not generate the return you need. It is important, however, to optimize the medium by remembering these factors:

HTML or text? Today, more consumers are able to read HTML messages than ever before. HTML capability has become commonplace and marketers are taking advantage of it. But remember that text or HTML formats are appropriate for different audiences and serve different purposes. Does your offer need to be seen to be understood?

Use rich media. Rich media is ideal for products people feel passionate about, such as designer clothes, movies, music, et cetera. It's also an excellent way to add a viral element to your campaign. However, stay away from Flash. Agencies can tell you to insert Flash into the body of your email, and you can, but your recipient won't receive it.

Get personal. Make customers feel special with messages that sound like they were written just for them.

Write a strong subject line. This teaser should be friendly and inviting. Avoid "!!!!," "$$$$," and the word "free."

100 percent: results
As email marketing continues its rise in strategic marketing importance, so does the clutter filling your customers' inboxes. Use the 40/40/20 rule to cut through the chaos and deliver relevant offers that not only meet customer needs, but also maximize your time and resources.  

Tricia Robinson is VP, marketing and strategy for Premiere Global Services. Read full bio here.