How to Select an E-Mail Marketing Program (Bulk Mailer)

The following is an excerpt from The E-Mail Marketing Handbook (Second Edition), Chapter 9, "Selecting an E-Mail Marketing Program." Each feature included in e-mail marketing programs is discussed in some detail to guide the reader in selecting the e-mail marketing program (bulk mailer) that is best suited to his needs.

Features discussed include: Types of e-mail software, simplicity vs. sophistication, subscription management features, bounce management features, user administration features, database flexibility, database tracking features, data segmentation, conditional messages, and SQL commands, e-mail headers, e-mail formatting features, miscellaneous tools, autoresponder functions, sending features, deliverability, spam law compliance, summary reporting, customer service, hosting infrastructure, integration, and fee structures.

I've delayed discussing the details of e-mail marketing programs until now because I first wanted to lay the groundwork by explaining some of the things you can accomplish with these features. Now it's time to discuss the features one-by-one and put them in perspective. I'll be using the term "bulk e-mail programs" to describe these programs as a whole. I don't see "bulk e-mail" as a pejorative term so long as we're talking about sending opt-in e-mail for which the recipient has given permission.

In this chapter I'll explain each feature included in bulk e-mail programs. Once you understand the features, print out the 99-item questionnaire contained in the Appendix that you can use to take notes on as you examine a particular vendor in detail. Many vendors have already completed this questionnaire, which saves you considerable time.

Types of E-Mail Software

First, let's categorize e-mail marketing software into two types, each with two subtypes:

1. Licensed software. You pay a one-time license fee and install the software on your desktop or webserver. Either way, you are responsible for sending out the e-mails yourself -- and for inbox deliverability of those e-mail messages. The software may be excellent, but you are pretty much on your own to make it work effectively. There are two subgroups of this type of software, which sometimes overlap:
1. Desktop software is installed on your desktop computer and uses your office Internet connection to send out e-mails. As an anti-spam protection, some ISPs limit the number of e-mails per hour you can send out. With a larger list, this can severely slow you down, even if you have a high speed connection.
2. CGI software is installed on your Internet webserver computer and uses your website's constant connection to the Internet to send e-mails -- usually much faster than your desktop computer's Internet connection will allow.
2. ASP Hosted Services, sometimes referred to as EMS (E-mail Marketing Service). You pay a monthly fee, typically based on either (a) the number of e-mails sent, (b) the number of e-mail addresses on your mailing list, or (c) the size of e-mail messages sent. Hosted services are responsible for achieving inbox delivery, thus most have high standards for their customers and build strong relationships with the large ISPs, enabling them to solve delivery problems quickly. I see two subtypes:
1. Self-service. You set up and send your own e-mails through their system using a web interface. They provide some e-mail or phone support to help you when you have a problem.
2. Full-service. Larger companies sometimes outsource their entire e-mail operation to a full-service EMS company that handles segmenting the database, formatting, sending, and tracking. This is the highest out-of-pocket cost but provides the most sophisticated service available.

Simplicity vs. Sophistication

Before we launch an all-out investigation of bulk e-mail program features, we need to weigh the advantages of simplicity vs. sophistication.

A simple program can be a thing of beauty. No, it can't jump triple somersaults, but you don't need it to. What's more, even your most computer-phobic employee can learn to use it after a bit of instruction. If you only need a newsletter management program, don't get a program that can do dynamic database segmentation. It's overkill. One of the simpler ASP programs is Constant Contact (www.wilsonweb.com/afd/constantcontact.htm). While the company has increased its feature set in recent years, it's still simple to use -- and is the most popular program among my small business readers!

A sophisticated program, on the other hand, can be a thing of power, even though it costs more. If you know how to use its features, you can move from good to great with your e-mail campaigns. The downside, of course, is that powerful programs are no longer simple. They require considerable training to be used effectively and may require a database programmer or person who understands SQL commands. I use Gammadyne Mailer for its power, but it's complex to understand all its features.

Don't get the program that has the most bells and whistles. Rather, get the program that will do well what you need done. So long as the program will allow you to export all the fields in your subscriber database (not always a given!), you can move to a more sophisticated vendor when the need arises.

Having offered that caveat, let's explore bulk e-mail program features, beginning with the most basic.

Subscription Management Features

All bulk e-mail programs take care of the housekeeping chores like handing subscriptions and unsubscriptions. This is no small thing. If you've ever tried to manage a mailing list of 100 or more using Microsoft Outlook, you know the hassles of setting up subscriptions, handling confirmed opt-in subscriptions, changing e-mail addresses, etc. Here are the typical functions that you'll find in all bulk e-mail programs:

Multiple lists. You should be able to set up any number of different lists on a single account or software at no extra charge. Sometimes you are allowed one list with different "interest group" options. That's quite acceptable, too.

HTML code for the sign-up form. Usually your program will include the HTML code to sign people up for a mailing list on your site. ASP services offer copy-and-paste code. However, if you are getting licensed software, be sure that you'll get enough information to set up subscription forms on your website.

Confirmed Opt-in (Double Opt-in). Most programs these days offer confirmed opt-in; some ASP services insist upon it. If the program doesn't offer this option, skip it. It is essential to legitimate e-mail marketing in the twenty-first century. A good program should have database fields to record the time and date of the initial subscription and of the confirmation, with the IP address of the subscriber. That way, if you are accused of spamming or need to move to another e-mail vendor in the future, you'll have this information to prove that your list is indeed an opt-in list.

Text or HTML Preference. Your subscribers ought to be able to express a preference between HTML and text messages. While all users can theoretically read HTML messages, some subscribers are behind corporate or government firewalls that strip out all the HTML code to prevent viruses. They would prefer nicely formatted text messages.

Subscriber Profile Interface. Most programs (except for desktop software programs) allow subscribers to change their own e-mail addresses, newsletter formats, etc. with a user-accessible web interface. The best programs have a link in each outgoing newsletter that the subscriber can use to get to the online interface. Requiring subscribers to remember a password for each list they subscribe to is unrealistic, except perhaps for paid newsletters and services. Without a self-serve subscriber interface, you'll spend your precious time responding to e-mails and phone calls requiring routine subscription functions.

Screening of lists and new clients (Hosted ASP only). Ask what policies the company has to screen new clients and validate uploaded e-mail lists. You want a company that is careful to screen out sloppy or spammy e-mailers, since if any of your vendor's clients has a bad reputation with ISPs, it can affect the deliverability of your e-mails, too. On the other hand, you want a vendor who will accept at face value the confirmed opt-in e-mail addresses you may want to upload, without requiring re-confirmation of all addresses, which is overkill -- especially if you can prove that your subscribers have already confirmed their subscriptions.

Bounce Management Features

I read that at least 20% of e-mail addresses become obsolete every year -- and probably more. People move and change ISPs. Some will subscribe to your list with a free, throw-away e-mail address from Yahoo.com. But once they start getting too much spam, they'll stop checking that box and tell their friends about a new e-mail address they're now using. Or they might go on vacation and send auto-replies that they are off fishing in the Gulf until August 11th.

There are two ways a bulk e-mail program detects a bounce:

1. The e-mail is rejected. During the initial "handshake" routine when your program talks to your recipient's mailserver, some e-mail is rejected, especially if it can't find the e-mail user you've sent to.
2. The e-mail is returned. E-mail can be returned for a number of reasons. Not all e-mail programs monitor returned e-mails.

There are two kinds of bounces:

1. Hard bounce is a permanent condition, a "fatal error." The best example of this is "user not found," a cryptic way of saying "Johnny doesn't live here any more." It usually means that your recipient has closed his or her account with this ISP.
2. Soft bounce is a sometimes temporary condition -- vacations or "out of office" messages are a good example. "Mailbox full" or "user has exceeded quota" may mean that the recipient is on vacation or that he has abandoned this e-mail address. "Host not found" usually means that the Internet was temporarily blocked to a particular ISP, but e-mail will probably be delivered later when the blockage is removed. It could mean, however, that your subscriber has misspelled his e-mail address.

You want your e-mail program to distinguish between hard and soft bounces. Ideally, you want the program to handle everything automatically. Some programs will automatically disable a subscriber after the number of bounces you set. Others will allow you to look at a list of e-mail addresses prior to disabling, to make sure a mistake hasn't been made.

Unfortunately, it's difficult to tell how effectively a bulk mail vendor's bounce management system works until you try it. Most work just fine. But hopefully this gives you some background on bounces on in case you experience problems that need diagnosis.

User Administration Features

The larger your company, the more important user administration features will be. One-person shops needn't worry much. Larger companies, however, may have several employees who need access to the e-mail program. It is best to issue each employee a separate password so you can allow multiple levels of access and authority. You don't want a new hire to make a mistake that can ruin a campaign, send out an e-mail accidentally, or delete your e-mail list.

Some larger companies want separate accounts for each department but want to be able to combine tracking across departments for some purposes. One or two vendors offer this feature.

Database Flexibility

The core of a bulk e-mail program is its database. The crudest programs are single ("flat") files with little flexibility. The more sophisticated are relational databases that enable a wide range flexibility in storage and sorting.

Exporting and importing. Some vendors severely limit the number of fields you can import into their databases. They might allow the e-mail address and first name but not the phone number. They might not allow your list of IP addresses and timestamps proving the opt-in nature of the initial subscription and/or confirmation.

Exporting can also be an issue. If you want to move to another vendor, can you get to all the fields for your subscriber records? In particular, can you export the IP address and timestamp so you'll be able to prove to your new vendor the source of your e-mail addresses? Ask these questions before moving your list to a vendor. In general, with most licensed software you will be able to export any fields available, but this is not necessarily true with ASP hosted services.

User customizable fields. Databases commonly have fields for common contact information. But what if you need to store special data about a customer and send e-mails to customers with a particular word or number in one of these customized fields? You might ask prospective vendors if they allow user customizable fields, and if so, if there is an extra charge for this.

ODBC compatibility. By far the majority of bulk e-mail programs, both licensed and ASP, require you to import records into their database structures. But what if you want to access e-mail addresses from existing customer databases, without duplicating records -- and list maintenance headaches -- trying to keep up two databases?

A few of the more sophisticated bulk e-mail programs allow you to both read and write to other databases using a database standard known as ODBC (Open DataBase Connectivity), a standard database access method developed by the SQL Access group in 1992. I constantly use Gammadyne Mailer, a desktop mailer, to access e-mail addresses and names in MS Access and MS Excel databases. With the appropriate driver, I can also remotely access online subscriber databases contained in MySQL databases. Another program with this feature is Arial Software Campaign Enterprise. Pretty cool feature if you need it!

Database Tracking Features

As mentioned in Chapter 6 on "Personalizing, Tracking, Segmenting, and Testing," some of the more sophisticated ASP systems allow advanced tracking of customer activity.

Many bulk e-mail programs provide a send log, telling you the date and time an e-mail was actually sent to the recipient's ISP. Many tell you the overall "open rate," though few will tell you which subscribers actually opened the e-mail. Many programs track click-throughs, either reporting to you a number of subscribers who clicked through on a link, or the actual e-mail addresses of those who clicked-through.

But few of these programs include that click-through information in a customer history linked to the e-mail address. To get the click-through information into your database, you have to upload it as part of a new record -- certainly a clumsy and time-consuming work-around.

But higher end programs now allow tracking actual conversion -- generating a lead, a newsletter subscription, or a sale (and, in case of a sale, transmitting the sales order total). With this information you can segment your database based on sales history, recency, and/or frequency, all good indications of your better customers.

Programs designed for large companies have done this for some time. But in the last year companies aiming at small to medium companies, such as Topica and Got Campaigner Pro, now offer these features. If you're using e-mail to promote products to your customers, now you can identify and target your most responsive customers and track ROI on your e-mail campaigns.

If you're looking for this kind of service, ask exactly what kind of history is kept on each list member -- send log, purchase history, etc. Ask what kinds of tracking points can be used. Here's a technical point: If your vendor sets cookies as part of the tracking process, are these cookies set from your domain (which isn't likely to be blocked) or from your vendor's domain (which might be blocked by anti-spyware programs your subscribers use)?

Data Segmentation, Conditional Messages, and SQL Commands

Database segmentation (also known as "filtering" or "queries") describes the user's ability to select from a large database of addresses a subset of customer or subscriber records that meet certain criteria.

Some low-end programs allow you to sort your data for various factors, but you end up with a new, separate database -- approach. If you were to do this for five different mailings, you'd now have five different databases, each with some overlapping subscribers. When a subscriber's e-mail address bounces or is changed in one of these databases, the other databases won't reflect the change. What a nightmare! But I've seen e-mail programs with just this kind of flaw.

You're looking for a database that can filter or sort for all the subscribers with particular factors -- such as, (1) subscribed in the last 90 days and (2) live in the US -- and still keep them in the same database. The sort is only temporary, for a particular campaign or e-mailing.

Are you with me thus far? Good, because we're about to get more technical yet, so fasten your seat belt.

SQL Commands. Back in the 1970s, a special standardized language was developed so that computer experts could talk to ("query") databases without having to learn a new language for each database. The resulting language was called SQL for Structured Query Language (sometimes pronounced as separate letters and sometimes pronounced SEE-kwell).

It's a powerful language that allows all kinds of IF ... THEN and AND/OR types of sorts, either separate or nested. If you know the language, you can tell a database exactly the information you want from it and it will deliver. The more sophisticated bulk e-mail programs provide query wizards for marketers who don't know SQL, plus the option of inserting the actual SQL command for marketers or their programmers who do know the language. If you've used MS Access queries, then you understand how this might work.

Here are some questions you might ask a prospective vendor:

• Can SQL commands be used to filter/query/segment the database?
• Can the customizable fields be used for filtering/segmentation?
• Can the database be segmented/filtered by conversion frequency, conversion recency, and sales dollar amount?

On this last question, conversion frequency refers to list members who purchase most frequently. Conversion recency refers to list members who have purchased recently.

Conditional Messages. Wouldn't it be nice if you could send out an e-mail sale flier to your customers, featuring ski boots for those who are skiers? Those who had purchased a skiing product in the past would get the ski boot ad first while the rest would get the manager's generic sale item. Some more sophisticated systems allow such conditional messaging:

This isn't an actual command, but shows you the logic. You get the idea. If conditional messaging is important to your business, then ask prospective vendors if this feature is available.

I developed a conditional messages last week for one of my newsletters to display a renewal notice to members within 90 days of expiration but not to other subscribers.

E-Mail Headers

E-mail headers include the "From," "To," and "Subject" fields, plus a number of other usually invisible instructions and routing information. The flexibility of your bulk e-mail program can affect the deliverability of your e-mail message based on both visible and invisible factors. Let me explain.

The "From" field is often scanned by recipients to help them determine whether to open the message, based on whether or not they recognize the sender. Most vendors allow you to set the "From" field for each campaign; a few inflexible ones do not. Look for flexibility here.

The "To" field should be different for each of the e-mails you send out, carrying the e-mail address (and perhaps name) of your recipient. Avoid programs that group all the subscribers from the same domain (such as AOL or EarthLink) into a single message, putting all their addresses in the "To," "CC," or "BCC" field. This is a tell-tale sign of spam software that will most likely get your message rejected by major ISPs.

Some bulk mail programs allow you to put the recipient's name in the "To" field, rendering the e-mail address invisible to the recipient. It's a nice touch, but not a deal breaker, since most people don't scan the "To" field in their inbox.

The "Reply-to" address tells the recipient's program where to send replies (if different from the "From" field). Flexibility is good, but being able to set this feature is less important.

Personalizing the "Subject" line can be quite important. A few bulk mailers don't allow personalizations such as your subscriber's first name in this field. Avoid these.

Sender certification licenses (such as Habeas or Bonded Sender) may require a special invisible header which is recognized by spam filters such as SpamAssassin, allowing you to slip through the filter and be delivered. As a Habeas licensee, this is important to me. However, only a minority of bulk mailers allow for a Habeas or Bonded Sender header. If you need these, make sure your prospective vendor allows special header lines to be inserted.

E-Mail Formatting Features

Now let's consider e-mail formatting features, important particularly for HTML e-mail messages.

A WYSIWYG ("what-you-see-is-what-you-get") editor is valuable when you are fine-tuning HTML e-mails for final sending. Many bulk mailers have a "preview" button that allows you to see what the message will look like, but you want an actual editor that allows you to edit the message as it will finally appear (or pretty close, if not identical). I think this is an important feature, especially for less experienced personnel who don't know HTML.

Not all programs support foreign language characters (such as accented characters). It may not matter to you, but if Léon's name shows up in the subject line or message body without the proper accents, he may be offended and unsubscribe. Ask your vendor! If you publish in Korean and Chinese, you'll need a program that supports double-bit languages. Few Western-designed programs do so.

When you're shopping for a vendor, ask if they have HTML e-mail templates available. Can you modify them? Can you upload your own custom template? Many programs allow you to have a pre-set header and footer. Make sure that you are allowed a different header and footer for each separate list and campaign. These headers and footers simplify matters by providing all the "boilerplate" information for an e-mail newsletter, while your articles and specials for a particular issue or mailing are sandwiched between them.

Finally, inquire to see which database fields can be used for personalizing an e-mail message. Are there any fields that cannot be used for personalization? A few programs only allow the name and e-mail address to be used for personalization, so it is worth checking.

Miscellaneous Tools

Here is a short list of nice-to-have tools that you might need for a particular kind of e-mail campaign: poll, survey, sweepstakes, coupon, refer-a-friend, loyalty, or tight integration with Amazon, eBay, or PayPal. Ask prospective vendors about any add-on tools you might need.

One important feature is "Forward-to-a-Friend." If your subscribers forward the issue you just sent them, their friend may unsubscribe using your loyal subscriber's unsubscribe link. Forward-to-a-Friend sends a new copy of the issue to the friend without his personal unsubscribe links.

Autoresponder Functions

I've discussed some of the things autoresponders can do in Chapter 7. An increasing number of -- but by no means all -- bulk e-mail programs now include built-in autoresponders,. In my experience, such autoresponders have a number of features in common, but they also may have some special unique functions not often seen. Thus it is difficult to describe all the features an autoresponder function might have, but these are important:

Timed, sequential messages can be extremely powerful. Some programs allow you to set the number of intervening days, some allow days of the week, some allow both. Look for the most flexible system you can find. I use one of the best I've seen, AutoResponse Plus, which allows you to select the following for each message: immediate (sends a welcome message as soon as they subscribe), next run (next time the cron task is set to run, usually each hour), any day of the week, or number of days since the previous message.

Number of autoresponder accounts or lists. Most, these days, allow unlimited accounts or lists.

Number of messages in a sequence. You're looking for the greatest flexibility here -- unlimited messages in a series. Many sales series might include five or 10 messages. But a training sequence spread over six weeks could easily require 50 or more messages.

Shopping cart integration. 1ShoppingCart enables you to trigger an autoresponder series when a purchase is made, which could be valuable for instruction, explanation, or an actual purchased course. Sometimes you can trigger an autoresponse by sending a CC: of the order e-mail message to your autoresponder. If you need shopping cart integration, make sure that both your shopping cart and autoresponder can do what is needed.

Sending Features

When you get ready to send your e-mail message or newsletter, a number of features assume importance.

Test e-mails. Most programs allow you to send a test e-mail to yourself or a colleague before releasing the final e-mail blast. This feature is essential, in my opinion -- a deal-breaker if it is not present. You can't afford to send out an e-mail blast with a mistake just because it was too difficult to check!

Scheduling. Nearly all programs I've seen allow you to schedule an e-mailing for future sending. With many programs you can select a particular day, with some the day and the hour. This can be used to send out an e-mail newsletter on its regular day while you're traveling to visit your mother.

Trigger Events. A few programs, such as ConstantContact, allow special events to trigger e-mails, such as a birthday of or the anniversary of becoming a customer. Do you want to send an e-mail to every list member who makes a purchase or clicks through to a particular URL? Only the most sophisticated programs tend to allow this.

Sending Formats. The importance of being able to send both text and HTML was mentioned above. I also believe it is important to be able to send multi-part text/HTML MIME format. Even though the format is no longer needed so that recipients can read your e-mail message, some spam filters consider bare HTML messages as a spam indicator. So, if possible, send your HTML messages out as multi-part MIME to get better deliverability. Not all bulk e-mailers offer this flexibility, however, so you ought to ask. A few programs automatically generate the text version from your HTML. That's nice, but hopefully it doesn't prevent you from substituting your own text version of a message, which will probably look cleaner and better formatted than a machine-generated text message.

Attachments. Many bulk mailing programs allow you to send attachments with your e-mail messages. If this is important to you, be sure to check with your vendor, since some don't allow this. Realize that sending an attachment in a bulk e-mail can be a spam indicator, so be careful with this feature and test carefully before you employ it wholesale. Attachments might be useful to deliver e-books or software programs via e-mail, though most prefer people to download these from a website since e-mails with attachments can be pretty large. Many corporate and government spam filters don't allow any e-mail with an attachment that includes an .exe file, even if it is compressed in a .zip file.

RSS/XML Datafeeds. One trend is to allow subscribers to select either e-mail or an RSS version of a newsletter. A few ASP hosted programs will automatically create this RSS feed when an e-mail is sent, matched to a newsletter archive on your site. This might be important to some. You can see my comments on the RSS subscriptions in Chapter 13.

Now we come to a number of features that apply only to licensed desktop and CGI software since they have to do with technical e-mail sending procedures. If you choose an ASP service, your vendor will handle all these details, but if you want licensed software, consider:

SMTP Server. Nearly all e-mail is sent through an SMTP (Simple Mail Transfer Protocol) server. If the bulk mail software is installed on your webserver, the software will use the SMTP server provided by the hosting service. But if your program is installed on your desktop computer, your ISP may require you to login to your ISP's SMTP server with your username and password in order to send e-mails of any kind. Your ISP often doesn't allow you to select another SMTP server that you control. These restrictions are designed to prevent spammers from abusing the system. Some desktop programs claim that they allow you some kind of "direct delivery," bypassing a sending SMTP server. But this is a slower delivery method and is often blocked by your ISP.

Multi-Threading. Older licensed software bulk mailers sent e-mails one at a time in a single stream. Most programs these days employ multi-threading, allowing you to send as many as 50 e-mail streams at once, thus maximizing the send rate of e-mails through your Internet connection. With bulk mailers installed on your server, this can significantly speed the delivery rate. But it may not help you at all if you're sending from a desktop bulk mailer over your Internet connection. An increasing number of ISPs now put a cap on the number of e-mails sent through your account in a given time period -- but probably won't tell you what this cap is. You'll need to experiment with slowing down your bulk mailer or sending e-mails in bursts (for example of 150 e-mails followed by a pause of 10 or 15 minutes). If you don't slow down, your ISP may suddenly block access to its SMTP server. So when you read claims about multi-threading for desktop software, relax. Multi-threading is important for software installed on your webserver but probably not as important for desktop mailers unless your ISP allows unlimited outgoing bulk e-mails.

Mailing Speed and Burst Control. If you are using desktop software, make sure that your program has ways to either slow the rate of e-mails sent or is able to send in bursts followed by a pause. Most modern desktop e-mailers have these controls -- or they'd be out of business.

I explain these things to help you evaluate features claimed by your software vendor. Don't assume that you can send large numbers of e-mail quickly through a desktop bulk mailer unless you have a special kind of ISP account -- no matter how fast your broadband connection might be.

Deliverability

As mentioned above -- especially in Chapter 8, "Getting Your E-Mail Delivered," the biggest single issue these days is achieving actual inbox delivery of your e-mails, that is, getting your e-mail into your subscriber's "inbox" rather than his "spam folder." The only way to monitor inbox delivery is to use one of the delivery auditing services mentioned in Chapter 8. If you are using licensed software, you are solely responsible for getting e-mails to your recipients' inboxes. But if you are using an ASP hosted service, that responsibility falls to them. Here are some issues to explore with a prospective ISP that relate to deliverability, the details of which were covered in Chapter 8:

SPF Records. Your vendor should publish SPF records and Sender ID records, so that recipient ISPs can determine whether the sender corresponds with what should be expected from the SPF record.

Dedicated IP Addresses. IP addresses are important because they can be included in whitelists (to help speed your e-mail through spam filters) or in blacklists (that can prevent your e-mail from getting to the recipient's inbox). The better ASP services are very careful with their clients' e-mailing practices since e-mails from many clients are sent out using a shared IP address, and any blacklisting could affect the deliverability of all of that ASP's clients. However, with the advent of sender certification, your company may find it an advantage to have a dedicated IP address for outgoing bulk e-mail that can be whitelisted by Habeas or Bonded Sender. (Shared IP addresses are sometimes not whitelisted by sender certification companies.) Dedicated IP addresses are fairly expensive, even if a vendor offers one. And you may get just as good deliverability through a careful vendor's shared IP address. Just be aware of the issue. Because I use licensed software installed on a webserver, I use a dedicated IP address -- and since e-mail practices of other companies on the webhosting service may not be as tightly controlled as they would by a good ASP e-mailing service.

Deliverability Auditing. Ask a prospective ASP service if they provide you with periodic deliverability audits. Few will, since understanding deliverability issues requires sophistication and industry savvy and would raise all sorts of customer questions. But if ASP e-mail services don't provide audits, are they really accountable to you for deliverability? Of course, you can conduct your own audit, as explained in Chapter 8.

Relationships with ISPs. One real advantage of using a good ASP e-mailing service is that they maintain regular communications with the major ISPs. When deliverability issues crop up -- and they do continually -- the better ASP services can pick up the phone immediately and try to get the issue resolved. Few outside this chummy circle can even find a phone number, so such relationships are vital. How do you assess relationships? You can't really, but ask: "If a deliverability problem were to occur, how would you resolve it?" Then consider the answer in light of what you learned from Chapter 8. Just be aware that sales people may not really know how this is done.

Whitelisting. Many ASP services have such good relationships with ISPs that they are on various ISP whitelists that automatically pass through e-mails from these vendors. Ask your prospective ASP e-mailing service if they are on any such whitelists.

Spam Law Compliance

We'll study spam law compliance in detail in Chapter 11, but here let's consider software features may be important in helping you comply with the various laws. I'll focus on the U.S. CAN-SPAM Act of 2003, but some of these factors may apply in other countries also.

Content Checker. While this doesn't relate to anti-spam laws, some ASP services now provide an integrated spam checker that tests your proposed e-mail message content against lists of spammy words and techniques, such as those assessed by SpamAssassin, as explained in Chapter 8. Such integrated checkers can be very handy, but if one isn't available with your vendor, you can use content checkers from Lyris (www.lyris.com/contentchecker/) and SiteSell (send an e-mail to sales-spamcheck@sitesell.net with the capitalized word TEST appearing first in the subject line).

Bulk Unsubscribe. Some ASP services provide a bulk unsubscribe function that allows a subscriber to unsubscribe from any or all mailing lists hosted by the ASP or the user. Some take the subscriber to a web interface where he can select which lists he wants to unsubscribe from and which he wants to continue to receive. Such functions can have their advantages, especially if you have multiple lists that a subscriber might want to be removed from (selectively). But bulk unsubscribe can be a disadvantage if a subscriber became disgusted with another client served by the e-mailing service and ended up unsubscribing from your list also. Ask about this.

Unsubscribe Link. Most ASP services these days are programmed so that an unsubscribe link is automatically included in each e-mail sent out. This is an important way that you are made to comply with the spam laws.

Unsubscribe Steps. You want your subscribers to be able to unsubscribe easily and quickly, without having to remember or find a username and password, or even remember what e-mail address they subscribed under. Check the unsubscribe process that your prospective vendor offers to make sure that it's easy for your list members.

Do Not Mail List or Suppression List. The CAN-SPAM Act of 2003 makes it clear that someone should be able to get off your list quickly. But what if your company has multiple lists or multiple departments? Some of the better ASP vendors have a system where unsubscribers are placed on a "do-not-mail" list or "suppression list" which prevents any e-mails from being sent to their addresses. If you're part of a larger company, your legal department may want to study the FTC regulations and decide how you should handle this issue. If your company needs it, does your vendor provide for a do-not-mail function? If so, ask how names are added to this list.

Summary Reporting

Most bulk e-mail software, both licensed and ASP, provides basic summary reporting of each e-mailing or e-mail campaign. Depending upon the tracking features, these might include delivery success, open rate, click-through rate, and conversion rate, though the latter isn't common among the lower-end programs. Some programs provide for downloading the report for spreadsheet analysis.

Many of the programs e-mail the summary results to the user, though some require you to view them online. E-mail is preferable since it brings the results to you, though having the information online allows you to compare with previous campaigns.

Most programs also provide a summary report about the user lists themselves -- especially subscribes and unsubscribes. Better programs may also indicate demographic distribution of the list as well, based on IP addresses.

While summary reporting is important to see how your e-mailing campaigns are going, I don't see particular standout features here except conversion rate and demographic distribution reporting.

Customer Service

Perhaps the most important issue with e-mail marketing services, other than deliverability, is customer service. When you get over your head, is there someone you can turn to that can explain what to do? Someone who can help you troubleshoot a problem? Unfortunately, there's no easy way to determine how good a company's customer service is except from word-of-mouth.

Nevertheless, when you are looking into prospective bulk mailers, ask what kind of support is available to users at no extra charge. Also see if increased support is available on a per incident fee basis. Is it phone support, e-mail support, or instant chat support? Some of the better small business ASPs such as AWeber, VerticalResponse, and ConstantContact offer telephone support. That's important!

Another thing to look for are the various features of the software designed to help you learn it quickly. These might include: a context-sensitive help system, a FAQ, user manual, training video, and a online user forum.

As I mentioned at the beginning of this chapter, there are two types of ASP hosted services: (1) self-service and (2) full-service. With the latter, priced for larger companies, you are typically assigned a program manager, especially in the early months while you're learning the software. Program managers are also available to assist in setting up more complex queries of your database. If you need this service, you can certainly speed up the timeline to e-mail marketing effectiveness. 

Hosting Infrastructure

For hosted ASP services, you might want to inquire about how often system-wide back-ups are made and what this back-up process entails. Also ask about redundancy, that is, back-up systems that kick in when the main system goes down. What kinds of databases, webservers, e-mail servers, etc. are used?

Integration

If you're part of a small business, you probably don't expect your e-mail program to integrate with all your other business software. A small but growing number of integrated small business systems are becoming available, such as 1ShoppingCart, Site Build It!, and NetSuite. Gammadyne Mailer has an extensive language which can be programmed to interface with just about any database. Arial Software's Campaign Enterprise, too, can relate to existing ODBC-compatible databases.

But the larger you get, the more important integration becomes. Some of the better small business programs contain an API (Application Protocol Interface), a "hook" which can be programmed to link the bulk mailer to other software systems. Look for these. Larger companies with legacy customer databases need to work in tandem with their existing data structures and will need special help from their e-mail service providers to help achieve that integration.

Fee Structures

Let me say a word to small business readers: cheap is not best. You're not looking for the lowest price; you're looking for modestly-priced software and services that will deliver your e-mail reliably. Having said that, let's look at pricing structures:

Licensed software can run as low as a $100 one-time fee with promises of lifetime upgrades. There is sometimes a modest optional fee to install a CGI programs on your webserver.

Unfortunately, software priced that low often doesn't usually provide a steady income for the programmers, so they move off to other projects that pay the bills, touching the bulk mailing program now and again for updates. Because of the economic realities, licensed software isn't often on cutting edge -- not at that price.

One exception that comes to mind is Gammadyne Mailer, which has been under constant development for the last several years, at a price point of $149 with lifetime updates. However, there's little ongoing support available for this complex product, though the owner does answer his e-mails promptly.

The smallest businesses don't often consider support costs, but you may want to figure those in since to get the most out of the more complex programs and to provide training for your staff, you'll need assistance.

Medium to large companies that need in-house software to integrate with other systems may be paying $3,000 to $12,000 and up, for an initial one-time license fee. In addition, there's often an annual upgrade fee that entitles the owner to all the software upgrades released in that year. They often also have a monthly support fee or perhaps a per-incident support fee.

ASP Hosted Services usually work on the basis of a flat monthly fee, plus overage fees. Different companies have different pricing structures. A monthly fee can be based on (a) the size of the e-mail list which is being hosted, (b) the number of e-mails sent each month, or (c) the file size of the e-mails sent each month. There is typically a stepped pricing structure, with a small additional fee if you go over the maximums allowed for that step. Since the software is hosted, there is typically no charge for upgrades and improvements though an advanced feature such as conversion tracking may require a separate fee. Dedicated IP addresses are an additional cost. You can often select your preferred level of support -- standard e-mail, phone, or an assigned account manager.

I know this has been a long, detailed chapter, but hopefully now you know better just what you need and what to look for. Also feel free to use the information collection tool 99 Questions to Ask a Prospective E-Mail Vendor and see many vendors' answers to this questionnaire in the Appendix.