Retailers use (cheaper) e-mail to send shoppers coupons

by Theresa Howard
USAToday.com

E-marketing sounds so passé, but this year, retailers are checking their e-mail lists twice to try to juice up holiday sales.

Sure, Web videos are cool, but direct marketing can be loaded with incentives that actually get people into stores or onto websites to buy something. In today's rocky retail climate, that's more important than ever. The National Retail Federation projects that sales will be up just 2.2%, the lowest growth since 2003, and industry estimates see store traffic actually declining by as much as 9%.

What's the appeal of e-mail pitches? They're cheaper and quicker than print inserts or direct mail for reaching millions of shoppers. E-mail messages' average cost is about $7 per consumer response, vs. $48 per response for traditional direct mail. And retailers can craft and send a promotion in about half the time it would take to print and distribute traditional messages.

"In this economic crisis, e-mail is replacing a lot of the more traditional tried-and-true and more expensive media channels like direct mail and TV," says Carey Isom, director of digital direct marketing for agency Arc Worldwide. "I'm seeing a lot more promotions, and a lot of coupons that are giving consumers options for free shipping or to get them in the store."

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