Do you understand what goes on "behind the scenes" at your email service provider (ESP)? Many marketers do not, and this can prevent them from optimizing returns and avoiding potential disasters.
This article outlines some of the key issues we have encountered while providing strategic consulting to Fortune 500 companies. When your ESP promises they can handle the following tasks, it's time to investigate further to ensure they can actually deliver.
In the beginning, email service providers were simply that -- service providers. Scores of small companies were content to provide the technological backbone and knowledge required to support simple email programs. As email increased in importance, marketers began to demand more of their email programs, and providers saw an opportunity to expand their offerings. Now the top ESPs claim to provide one-stop services for all email needs, but is this really the case? Here's what they won't tell you, and what you should make sure to ask about when determining the right ESP for your needs.
1. Strategy: Most ESPs are good at maximizing your email-specific marketing goals. However, single channel strategies are no longer sufficient. Many ESPs do not have the experience to develop holistic customer strategies that integrate effectively across channels.
2. Analytics: For many ESPs, analytics means campaign reporting. While this is important, high performance email programs require more advanced analytics. Many ESPs cannot execute complicated analyses or build models that predict customer behavior.
3. Test design: Simple subject lines are a necessity in today's email strategy -- and most ESPs can handle that process. However, when we move beyond ad hoc tests, ESPs generally have limited expertise in sophisticated test design, particularly for tests involving multiple factors.
4. Test execution: Email touches are at a premium, and most programs struggle to devote adequate circulation to testing. Complex experimental designs (DOE) can resolve this issue by efficiently testing multiple variables. Unfortunately, many providers struggle to execute complex test designs.
5. Hold-out groups: Control groups (hold-outs, or business-as-usual controls) are a critical component for any testing program. Most ESPs can select control groups, but they often lack processes and procedures for ensuring that control groups are re-integrated into the program when the test ends.
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