Yesmail.com(Harvard case).

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How should yestmail go about recruiting new members?

What benefits does yesmail.com provide to its members? How will you maintain/enhance yesmail's value to members?

Shat does yesmail provide to its clients? What do you think of yesmail's pricing policy?

What do you see as the future for permission email?

Group Written Assignment Case

YesMail.com

Executive Summary

I.Background Analysis

II.Decisions

III.Recommendations

I. Background Analysis

The internet marketing has played important roles in the marketing segments since the dotcom period has begun. YesMail (permission email) presented internet marketers with a compelling alternative to ordinary direct mail. YesMail offers clients the services that was far more effective, faster, and cheaper than the direct mail. In additional, there was some distinct technical advantages of email services over direct mail.

1) Effectiveness:

YesMail is proven to be effective with average response rate of 5%-15% compared with only 1%-2% for direct mail. YesMail enable the client to be able to get their advertisements to their customers easier and therefore more chances for closing their sales. With its software called "eTarget", clients can navigate through YesMail databases to find the information of their potential customers that matches their market target. eTarget includes a capability to recommend further potential audience segments, in view of those already selected. Furthermore, YesMail specialists would work with clients to create messages that most customized and matched to the various types of members. In additional, the YesMail's quality control team would review the clients messages to ensure that the contents matched the permission given by the chosen members. They also make sure that no clients messages has been left out

2) Quickness:

YesMail enable clients to be able to send out their message to their customers and get 75% response within three days, compared with three to five weeks for direct mail. With interface tool, called "eTrack", clients could see at any point in time, how many consumers had responded to the email (i.e., opened the email and clicked through to reach the promoted webpage). Further behavior on the promoted webpage (e.g., browsing on client X's site, reviewing information on the conditions of the offer, adding products in a shopping cart) was also tracked.

3) Inexpensiveness:

YesMail offer only 25 cents per message, compared with an average cost of $1.25 for direct mail. YesMail also compared favorably against banner advertising, which in 1999 averaged click-through of only 0.5%-1% at an average cost of $30 per thousand exposures. In other words, YesMail is inexpensive compared to direct mail and banner advertising. In addition, the eTrack software can set up a display calculation of the implied cost per action.

4) Distinct Technical Advantages:

Email can easily detect the erroneous or outdated address. Also, the domain of an email address could be used as an indication of whether the address was likely to be an active mailbox. The emergence of HTML messages allowed YesMail to track their member's propensity to open emails.

II. Decisions

A.Recruiting Members

According to the information provided from the article, we have two ways to recruit new members. The first option is to build a network of partner websites. By doing this it might potentially faster to execute, and expenses are low that they only have to hire twelve people to deal with the partnerships. Also the founders of YesMail have no prejudice on this against this idea. However, this will hurt its margin by sharing 50% revenue to the partner websites. It is also risky that those partner websites might not be able to exist over a period of time, or the quality of their content is not easy to control thus makes a bad impression on YesMail.

The second option is to build a proprietary network. It will leave YesMail with 100%...
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