Marketing Martha by e-mail - Internet marketing - Column

Somewhere, between the tornado of hype that the Internet is the ultimate form of communication and the apprehensive murmurs that it's still unproven and unpredictable, lies the true potential of the Web as a direct marketing tool.

The first thing to remember about marketing on the Web is that it's still a learning process. Internet household penetration is currently at just 20 percent, but is estimated to grow to 67 percent by the year 2000. Direct marketing on the Web is expected to grow proportionally. The consensus is that, over the long haul, the Internet will prove itself a useful marketing tool.

The bad news is that this technology is so new it's difficult for direct marketers to see the medium as reliable. A strategy that works well for one company could fail spectacularly for another. In addition, companies often disagree about how to measure "success." That's why so many businesses are banding together to agree on consistent standards for e-commerce.

The good news, however, is that the technology is so new, it's easier to take risks -- and also to recover from mistakes. Most marketers on the Web are either making mistakes or have already made them. We're all beginners, so use what you know and then bend the rules according to your responses. If you're serious about your site, though, you won't forget that it's an extension of your business and ultimately needs to answer to the bottom line.

You should also have specific goals in mind when measuring the success of your efforts -- and everyone involved should agree on how to gauge your success. Not every corporate officer understands what a "hit" refers to, or what a "unique user" is. How will you measure "traffic"? Is it the number of registered users you've gathered? Are you trying to drive people to your Web site merely to create awareness, or are you trying to persuade them to subscribe? Life will be a lot easier if you have everybody on the same page.

Martha in cyberspace

We're fortunate at Martha Stewart Living Omnimedia because driving traffic to our site (www.marthastewart.com) is easier through cross-promotions from our daily television and radio shows and from ads in Martha Stewart Living. So far, we've registered more than six million visits from people Searching for our online program guide, a Supplement to our television show that gives information on a recent broadcast -- for instance, how to sharpen a knife or make a pillow out of old blankets. We've tried hard to provide people with benefits for coming to our Web site and then returning. These benefits are "good things" -- simple, useful and informative -- such as recipes a user can print out or e-mail to friends. We've found that it's not just refreshing the content that keeps people coming back, it's the incentives that motivate them to log on repeatedly.

We've developed our site to supplement each facet of our business and increase our overall revenue -- and not merely to establish a presence. By putting our program guide on the Web, we're betting that nonsubscribers will find it easier to sign up (since the offer is only a mouse-click away). Also, when Martha shows how to press flowers using a plant press on television, we link the program guide for that segment with the actual product sold in the Martha By Mail Web store. Distribution for our Web store is more wide-ranging than the catalog, since we're not limited by the amount of paper we buy or what lists we choose. It also removes the Postal Service from the equation.

Another key to good marketing on the Internet is to get people to give up their anonymity. Most companies do this by requiring people to register on the site. We encourage our netizens to sign a guest book by giving them the chance to join discussion groups, enter sweepstakes, and receive e-mail bulletins. In order to enter in the sweepstakes, they must first register as a guest, answer a few questions outlining who they are, their interests, and their Web experience so that we can better target our marketing efforts. As a sweepstakes prize, we give away things like $500 worth of merchandise from the Gap (one of our Web sponsors), or a one-year subscription. With that information and the consumers' permission to market to them, you can use direct mailing efforts, e-mail or both.

Even though I'm optimistic about online direct marketing, I firmly believe in marketing by mail. It's hard to mimic the look of a vellum envelope, the feel of a brochure, or the appeal of a magalog through e-mail. Still though, e-mail gets the info out quickly and inexpensively -- there are no stamps to lick, no paper-price increases, and no postal strikes. And more important, you're able to "personalize" a mass marketing piece by using the registration information.

There's no doubt that the potential for Web marketing is enormous. It's a medium with the ability to reach a new type of consumer. However, don't be swayed by either the hyperbole or doom-sayers. Find out what works for your company by basing your strategy on a few fundamentals, and don't be afraid to experiment.

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