Tag Archives: Technology

Bad Email marketing by Entrepreneurs


As a fervent user of email, I do check my messages nearly every thirty minutes or even less. However, I came across an email that I thought was important to share since it gives us a lot to learn from as Small Business owners.

Due to the financial limitations of many start-up entrepreneurs, there is usually a need to improvise when it comes to attending to the different aspects of the business. As the founder, you’re probably the Marketing Manager, Operations Manager as well as Customer Service Representative.

In this regard, I received an email from a one Frank that read as follows (Copied verbatim):

****

Subject: Hello Beloved

My name is Frank and i am the CEO of Happi-Tech Enterprises , An uprising IT srervice providing Enterprise. we do operate under the following caompanies,

* happi-Tech computer center

This company focuses on sell of laptops and computers for both individual and computer maintenance plus repair.

*happi-tech incoporation.

-website designing

-It security and information privacy.

-Development of systems.

*happi-Tech cyber academy

-Training in Information Technology .

We aree always willing to serve you at the best of our ability. Contact us on +256752XXXXXX for more information

****

There is a lot we can learn from this email about, How not to market using Email. These are the flaws I noticed in the communication:

Subject

Hello Beloved” is the subject he used. The minute I see such a subject, I suspect one of the following;

  • A religious email from someone I know or
  • A con man’s email like the Nigerian 419 scam mails

Quickly, I looked at the sender’s name and realised that it was unfamiliar. This immediately led me to regard it as spam.

Lesson – A business marketing email cannot be addressed with such a subject. There are better subjects like “Introducing Happi-Tech Group of Companies”

Email List

Screen Shot 2018-07-29 at 13.20.33Frank went ahead to put his entire email list in the To field of the email thereby making it visible to every recipient of the email. This is an abuse of the privacy of his recipients. First of all, we do not know each other as the recipients. Secondly, I do not know the sender. Thirdly, he gives an opportunity to a spammer to harvest our addresses and use them to send us useless content.

Lesson – Respect the people you are marketing to by being conscious about their privacy. If you can’t send personalised and tailored emails, at least put their email addresses in the Bcc (Blind Carbon Copy) field of the email. The recipients shall only see the sender’s email address.

Language

Did you see the kind of English used? Right from spellings to punctuation and grammar. There were lots of issues. It is hard to believe that a CEO authored that email.

Lesson – If you choose to use English, write good English. However good your services may be, the fact that your english was written poorly turns off any potential customer like me.

Focus

What is the focus of the email? He wrote the names of the three companies they operate as and outlined the services offered by each. Did he expect all recipients to understand these services as listed?

Even technical people would have a challenge because some of the areas listed can be broad. Take the example of, Training in Information Technology.

Lesson – Any Marketing email should have a very specific focus in order not to lose the plot. If you have many things you want to convey, probably provide an internet link that details that information instead of trying to put all of it in an email.

Legitimacy

Right from the name and email address used, the Subject as well as the information written, there was nothing much to show that it was a legitimate email. I read it till the end in a hesitant manner and it is only the fact that the sender put his mobile phone number that I thought, Maybe!!!

Lesson – An operation involving a group of companies like this one cannot merely be run using a gmail address. It waters down a lot of what you are trying to achieve as an entrepreneur. It is most likely to end up in the SPAM folder of someone’s email. In fact, I wonder how it escaped mine.

Call to Action

What action does he want to be taken by the recipient after reading the email? He wants me to call, but for what? I hardly understand exactly what they do considering that most of what was listed were just highlights of potentially broad service areas. I saw no justifiable reason to call him in case I already have a provider of similar services.

Lesson – If you focus your email well, it becomes easier to come up with a call to action that the recipients can act upon. Calls may come through out of need or curiosity and that implies that you should be ready for the next stage of selling.

Identity – From the email, it seems like the company is Frank and vice versa. This is not a good sign especially if he wants to tap big customers who prefer to rely on a provider that is sizeable enough to take on the heavy load of work. One man entities are usually feared since any harm that comes upon the individual could mean disaster for the service recipients.

Lesson – It is important to brand your business independently of you the individual. This gives it a life of its own to the extent that as you grow and get more staff, they too can comfortably execute work without your direct presence.

Now that we have seen what went wrong with Frank’s email pitch, below is a proposal that I came up with. Just maybe, by comparing, you shall be in a better position to tell the difference and which of the two emails would yield better results.

*****

Subject: Introducing Happitech Group

Dear Mr. Oribadri

I am reaching out to you from Happi-Tech Group of companies to establish if I can have a discussion with you or someone at Oribadri Technologies regarding our Information Technology (IT) Services.

At Happi-Tech, we have had the opportunity to work with some of the leading brands in East Africa to design, deploy and maintain various IT services and products.

Some of the notable challenges we have been able to address include among others;

  • The lack of organisational IT Security Policies
  • The need for secure corporate networks
  • The lack of skills in: Cyber Security, Social Media use, Desktop publishing and Online content management.

Does your organisation experience some of these challenges? Do you anticipate any of them in the near future?

If you do, kindly let me know whether you’re open to setting up an appointment to discuss this further.

Kindly revert on the email address used or call me up on 0756XXXXXX.

Many thanks for taking time to read this email.

Yours Sincerely

Abuga Androa

CEO

Happi-Tech Group of Companies

www.happitechgroup.com

******

Happy Email marketing. Feel free to share even better ways of handling email marketing for start-ups.

James Wire is a Business and Technology Consultant based in Kampala, Uganda
Follow @wirejames on Twitter.
Email lunghabo [at] gmail [dot] com

Of Uganda’s Analog technocrats managing a Digital economy


The drive to increase tax revenue in Uganda has seen the Government explore all forms of novel ways of creating new taxes. One of those has been an attempt at taxing Social Media usage through a flat daily access rate.

Granted, we do appreciate the tight spot the Government is in as regards budgetary funding, however the misguided approach being used has turned the technocrats into headless chicken. A headless chicken will run around disoriented and aimlessly until it eventually dies due to shortage of blood.

In the run up to the Financial Year 2018/19 budget, various proposals were mooted including taxing Holy Books like Bibles and the Koran, introducing new taxes on Mobile Money transactions and Social Media usage.

Despite protests from different sector players, the level of insensitivity and ignorance displayed by the legislators as well as Ministry of Finance officials was very deplorable. They took on a one way street mindset with one goal, To ensure that the President’s thoughts on Social Media taxation are implemented.

Little did they know that they were setting the stage for a bigger fight with the consumers of the Social Media services. D-Day came and to our horror, the tax implementation went ahead as planned on July 1st 2018. The ensuing fracas is one that has turned Uganda into a laughing stock. All this because the technocrats that came up with this tax implementation chose to believe that they knew what they were talking about only to be outdone by a digitally alert citizenry.

Today, social media users as far as Butaleja district are comfortably using VPNs to bypass the need to pay the Social Media tax. Fifteen years ago, while training some university students, I had a hard time getting them to understand what a VPN was. Today, thanks to the Government’s misguided decisions, nearly all Ugandans with a smartphone understand what a VPN is and does.

Advice on Social Media Tax

Since this is my only channel that I can effectively use to advise the Ministry of Finance, Planning and Economic Development (MoFPED), I have chosen to share some ideas on how the government can consider gaining tax revenue from the Social Media giants.

Transactional Tax Surcharge: The government is better off engaging with the key players like Facebook, Google, and others to consider a tax surcharge on transactions originating from Uganda. As opposed to making every user in Uganda access social media after paying a daily tax, focus should be on any individual or organisation that transacts with Facebook. For example, VAT of 18% could be added outrightly onto each transaction. Thereafter, quarterly or monthly reconciliations can be made between Facebook and the Uganda Revenue Authority.

This can be achieved through protracted talks with these online giants. Infact, as opposed to approaching them as Uganda alone, we could come together as the East African Community and engage them. That way, we have a bigger voice than going it alone.

Flat rate tax: The government again through negotiations can consider a flat rate tax of say 2% of estimated market value of people accessing the platforms from Uganda. There are ways this can be determined using various matrix that have been developed over time. These could take into consideration; How many users access the platforms daily, weekly or monthly; The Average Revenue Per User (Varies per country and continent) e.t.c.

Misguided Excitement?

The person that sat down and simply scribbled numbers on a piece of paper in order to figure out how much money the Government could earn from Social Media taxation suffered from misguided excitement.

Res ipsa loquitur” (Facts Speak for themselves). Using publicly available information, I was able to work out the potential earnings from Social media in order to help set a bar of expectations that is more realistic.

GlobalStats indicates that Uganda’s social media usage is as shown below.

globalstats_socialmedia

We see that Facebook at 82.7% takes the lion’s share of Social Media access. You may ask, what of WhatsApp? It’s also owned by Facebook.

For purposes of this article, let us explore Facebook. The number of people accessing Facebook from Uganda on a monthly basis lies between 2.7 million to 3 million. These statistics are pre-Social Media tax implementation.

The Facebook Quarter 1 2018 earnings results reveal that the company earned US$ 11.966 Billion of which 98.6% came from advertising alone. This implies that the average monthly income in the first quarter was US$ 4 Billion.

Of this quarterly income, the report indicates that 9.8% came from users in the “Rest of the World,” a category that combines Africa (where Uganda is), South America and the Middle East. This implies that the monthly contribution from this category was close to US$ 390 million.

The Average Revenue Per User (ARPU) for the “Rest of the World,” in the first quarter was at US$ 1.68 which works out to US$ 0.56 monthly. In lay man speak, a Ugandan who accessed Facebook during the first quarter of 2018 (January to March) contributed UGX 6,400/= in all those three months or UGX 2,130/= per month.

Let us take 3 million as the number of unique visitors that access facebook from Uganda on a monthly basis. They are likely to generate for Facebook the following income;

3,000,000 x 2,130 = UGX 6.39 Billion or US$ 1.68 Million

If Facebook had put a surcharge of 18% VAT on these transactions, then the Uganda Government would have earned UGX 1.15 Billion or US$ 286,000 on a monthly basis.

In a year, this translates into at least UGX 13.8 Billion or US$ 3.4 Million as potential tax from Facebook.

The same approach could be used for others like Google. The mistake made by the architects of this social media tax was to get too greedy after seeing how widely used Social Media is in Uganda. If only they had put effort in understanding how the digital economy works, they wouldn’t have entertained adding another direct tax to the users of Social Media.

By the end of July 2018, the statistics of Facebook are likely to show a big drop in user access from Uganda because of the VPNs that we are utilising to bypass and protest the tax. This will have a multiplier effect on the revenue valuations from Uganda.

It is therefore high time greater awareness is made on the Digital Economy in order to bring most of our technocrats on board. It doesn’t hurt to admit that once in a while mistakes are made. The focus should be on transforming that analog approach into a digital one.

Over to you Hon. Matia Kasaija, Hon. David Bahati and the no nonsense Mr. Keith Muhakanizi.

James Wire is a Business and Technology Consultant based in Kampala, Uganda
Follow
@wirejames on Twitter.
Email
lunghabo [at] gmail [dot] com