In 2001, when we first met the 4 founders of ExactTarget at a dry cleaning conference, who could have guessed where our two businesses would be today? We could have partnered with any number of technology providers to help us drive our direct-to-fan vision… and these days there are dozens if not hundreds of database/email/voice/social/sms service providers out there that run the spectrum in quality and cost.

“Email marketing is a commodity,” is what one exec told me not long ago. Yeah, well sort of… The ability to send lots of messages to lots of people is a commodity, but the ability to accomplish great marketing is not. Permission marketing is not a commodity… it’s a premium. Delivering the right message to the right person at the right time through the right medium is not a commodity… it is a premium.

So, yeah we were lucky. Out of all the partners we could have picked, we picked the one that understands that it isn’t about sending emails but about helping organizations connect with their customers in real and meaningful ways. Great technology is just the beginning, but real and true customer relationships are the glue that keeps it together.

This partnership has been incredibly valuable to FanMail and has allowed us to push some of the most sophisticated direct-to-fan marketing initiatives ever seen in the music and entertainment industry. The technology which ExactTarget has built allows us to ask “how” instead of “if” when it comes to complex direct, lights-out and lifecycle marketing programs. Almost anything we want to do is possible. In addition, their dedication to the FanMail Reseller Partnership and our vision and commitment to the music and entertainment vertical has permitted us to bring ExactTarget technology to our customers in a way that is accessible and cost effective for them.

So, we were not surprised to hear that ExactTarget has swept the field in the latest Forrester Wave report. Earning the title of “Leader of the Pack”, ExactTarget dominated the competition.

The Forrester report analyzed the products and services of 15 top-tier email service providers, using over 70 criteria and found ExactTarget dominated in nearly every category! In fact, ExactTarget earned perfect scores in 6 of the 14 categories – Product Roadmap, Vertical Strategy, Executive Vision, Strength of Management Team, Employees and, most importantly, ExactTarget was the only Email Service Provider to earn a perfect score in the Customers Category – a clear validation of realizing their core value of “Make clients look like heroes.”

The graphic above is a quick synopsis of the report. Notice ExactTarget’s placement in the upper right, making them a “Leader in the Industry.” It’s clear that it’s become a two-horse race between ExactTarget and Responsys. The data behind the graphic tells an even more compelling story. We beat or tied Responsys in 11 of the 14 categories, and ExactTarget beat them especially where it counts: current offering, technology platform, services and customer satisfaction! ExactTarget distanced themselves even further from the rest of the competitive pack, including e-Dialog, CheetahMail, Epsilon, Silverpop, Lyris and EmailVision. Even Forrester made mention in the report of ExactTarget’s acceleration and separation in the market. “ExactTarget has vastly expanded its organization to cater to marketers in any market segment. It offers a highly usable self-service application and has a growing services organization that offers the ability for its personnel to be deployed at the client location.”

Congratulations to the ExactTarget team. This show a tremendous amount of work and dedication to being the best of the best. As we enter 2010, FanMail is very proud to have such a prominent technology leader as our partner!

>> Download the complete Forrester report here

Some of my highlights from Connections included hanging out with Morgan Stewart and talking about the convergence of email, social and mobile marketing, discovering some advanced data marketing strategies from my new friend Ami Packard from Expedia and presenting our Roadrunner Records Social Profile story in the entertainment and media showcase with our friend, Lauren Kufta, New Media Coordinator at Roadrunner Records. In addition, our team member Josiah Kaiser spoke at the Developer’s Track on the evolution of Live Capture and Mobile Automation.

Wow, what a week!

One of the things which really struck me was how far behind the music industry (in general) is on the sophistication spectrum from other industries.  There are organizations who really push the envelope, but, generally, the music industry is 2-5 years behind on direct email, SMS, voice and social strategies and implementation.

Yup, the music industry missed the boat.

And the travesty of it is that the music industry has the asset which every other industry covets… they have fans. They have people who actually care! Best Buy dreams of having the type of loyalty which is baked into the music industry.

Why is the industry behind the sophistication spectrum? Here is my take…

The Music Industry is Spoiled. - Or, at least, it has been. Because of the fan asset they haven’t been driven to innovate, strategize and do the work around really owning and engaging the life cycle of the fan until recently.

Who’s Job Is It? – In every other industry it is the MARKETER’S JOB to be in charge of customer acquisition, retention and growth. In the music industry it used to be the label’s job.  . .  that is what they do. . .  they sell. Now days? Well, now days, it is anybody’s guess. Is it the manager, the drummer, the label, the distributor, or the publicist? Who knows? Consequently, nobody has developed the skills and competency to do it well.

Bright Shiny Objects! - There has been fascination over the last decade for the music industry to run after the latest and greatest bright shiny object. Ring Tones, Mobile Fan Clubs, MySpace, Facebook, Twitter, Reverb Nation and Topspin have all be heralded as the savior of the music business. These are all amazing and fascinating pieces to the fan engagement tool set. . . but they don’t constitute a holistic, strategic long-term-strategy for fan-relationship-management(FRM). They  don’t account for not learning the very basics of permission-based marketing.

Who Owns the Fan? – I find it fascinating that Artists have been writing into their riders that they also get a copy of the concert ticket buyer manifest complete with customer email address. It is fascinating because it places the value on the list, rather on than on the subscriber. It suggests that permission is sharable. . . that the promoter, artist and ticketing company should all be able to contact somebody just because the have access to the same database. . . without any real permission process. Yes, the music industry spams the fans more than any other industry out there.

There have been big moves across the major labels and promoters to initiate broad CRM based strategies and solutions and the managers and artists are certainly getting more savvy. It will be interesting to see how it plays out over the next few years and we certainly will be trying to be one of the leaders in the mix.

Below is the sophistication spectrum which we use to work with clients on understanding where they are and what their goals in revenue can be.

If you would like a more complete understanding of this chart visit the link below:

The Sophistication Matrix

A full copy of our slide deck is available for download here.

We are really looking forward to what the future holds here.

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On October 14th we will be joined by our client Road Runner Records in the Media & Entertainment Solutions Showcase at ExactTarget Connections 09 in Indianapolis. This is the largest direct marketing conference in the world and is a super valuable and insightful event for any direct or interactive marketer. If you are going be there, hit us up so that we can hang out.

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On October 19th, The A2IM will be presenting a Tech Day for their members prior to CMJ. We have been asked to participate on the panel discussing direct and email marketing. If you are an A2IM member and going to be in NYC for CMJ, check out this event and hit me up to hang out.

In their words:

Hosted by the A2IM New Media Committee, this Tech Day will feature presentations and question & answer sessions on the topics of Email Marketing and Direct-to-Consumer (D2C) Marketing.  It will be our 3rd such event and the two previous have been very informative and no doubt benefited the members who attended.

Following Tech Day, A2IM will host a Cocktail Party starting at 6pm and open to all members.  Last February’s pre-Digital Music Forum: East and last October’s pre-CMJ Tech Day and Cocktail Party were both great successes with over 70 attendees at each Tech Day and over 130 attendees at each Cocktail Party.

But what can we do about such things?

Well, first of all, we have to cope. ExactTarget has published a white paper about designing for Outlook 2007 with some tips to ease the pain. The main point they make though is to “test, test, test”. Which is always sage advice.

Secondly, we can make our collective despair heard by raising our voices together. To this end, fixoutlook.org has risen to herald the cause. I encourage you to visit their site and lend your voice, especially since Microsoft has recently announced that Outlook 2010 will continue to use Word to improperly render emails.