Open rate

Mark Brownlow over at Email Marketing Reports has been talking about open rates for a while. His point, one I fully agree with, is that open rate is not what you think it is. At best it is a measure of who is rendering your email. Today he links to a post from ReturnOnSubscriber. In this post, the author demonstrates that by using an alt tag saying “don’t you want to save 40%”, the open rate for an email increased 27% over previous sends.
But. Wait.
I would argue that there was no change in the number of emails that were opened and read. In fact, an alt tag can only increase your open rate if recipients are already opening and reading your mail. What is really being measured here is the number of people who load images, not the number of people who are reading your mail. Those extra 27% of people opened and read that email before they loaded an image. They had to! If the alt tag was to have any effect on open rates, then people had to read the alt tag!
Now we have this great increase in a statistic, but what does that actually mean? I know that open rates make marketers feel all warm and fuzzy, but HUF did not actually increase the number of people opening and reading his mail. The only increase was in the number of people rendering images. Much more interesting would be actual clicks or even sales. Does the increase in people loading images in an email translate into actual revenue? That’s the really critical measure.

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Verifying email addresses

Over at CircleID Aviram Jenik posts about using email addresses as identification and how that can go horribly wrong if the website does no verification. In his case, the problem is a user who has made a purchase using Aviram’s gmail address and Aviram now has access to the other users personal information. As he explains it:

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Those addresses are costing you

Mark Brownlow has a post up about the hidden costs of bad email marketing. These center around brand damage, but there are other costs to poor email marketing strategies.
Previously, having old and non-responsive email addresses on a mailing list did not hurt and may have helped a reputation at an ISP. In some cases, these addresses may have even helped a reputation by increasing the number of emails delivered thus lowering the overall percentage of complaints.
More recently, some ISPs have started looking at the characteristics of recipients as part of the reputation score of a sender. If a sender is mailing a lot of abandoned email addresses, these ISPs can detect that fact. This counts against a senders reputation and may result in email ending up in the bulk folder or being blocked at the transaction.
Many senders are extremely resistant to removing old addresses from their lists. Some of the more numbers driven ones have even followed the statistics and can tell me exactly how many people ignore their email for 12 months or 18 months, and then come back and make a large purchase. This is true, sometimes people will ignore email for a long time and then come back. Keeping these people on a list may be beneficial.
However, in those recipients who ignore email (no opens, no clicks) for a long time are some addresses that have been abandoned. While these addresses are not spamtraps, repeatedly sending email to large numbers of abandoned addresses will lower the sender’s reputation over time.
All senders should have a process for dealing with non-active addresses. Allowing cruft to accumulate on a list does negatively affect reputation.

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Address harvesting through social networks

The next killer ap on the Internet seems to be social networking. Everyone has a great idea for the next facebook or or myspace. All of these sites, though, have to find users. The site will fail if there are no users. One way to get new users is to ask all your current users to invite all their friends to join. This tends to lead to the marketing / product decision to insert functionality into the social networking site which allows current users to upload their address book and the site itself will send out invitations to all your friends and contacts.
This is not actually as great as an idea as it sounds, however. First, you end up with situations like what happened to me this past week.  On Wednesday I received the following email:

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