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The Kelsey Report® Advisory

Giving E-Mail Marketing a Serious Look
Charles Laughlin , 10/14/2002

Issue: E-Mail-Based Loyalty Programs Can Fill a Void at Local Level

News: Directory publishers have struggled to find a product outside their core print offerings that provides an opportunity to gain more share of the small and medium-sized enterprise's (SME's) wallet as investment in the printed directory levels off or declines. To date, most solutions that the directory community has offered SMEs have either failed to present a clear and comprehensible value story or have failed at the execution level.

SMEs are struggling in many instances to compete with national and regional chains with access to far more sophisticated business intelligence resources. Most SMEs do not have a formal customer retention or loyalty program, either because they lack the "know-how" or perceive they lack the resources to execute such efforts.

The Kelsey Group (TKG) believes e-mail marketing has a great deal of potential in the SME space. E-mail marketing does not necessarily require significant investment or behavioral change among SMEs or their customers in order to achieve positive results. However, the concept remains untested with a majority of small businesses. Only when a larger percentage of SMEs are actively using e-mail marketing to acquire and retain customers will its relative effectiveness be proved.

For directory publishers, the right e-mail solution offers a chance to gain share of wallet at the expense of a leading inter-media competitor direct mail while diversifying the product mix to include a potentially viable non-print offering.

Copyright � 2005 The Kelsey Group. All Rights Reserved.
This published material is for internal client use only. It may not be duplicated or distributed in any manner not permitted by contract. Any unauthorized distribution could result in termination of the client relationship, fines and other civil or criminal penalties under Federal law. The Kelsey Group disclaims all warranties regarding the accuracy of the information herein and similarly disclaims any liability for direct, indirect or consequential damages that may result from the use or interpretation of this information.

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