Less can be more and more can be more

The Wall Street Journal reports that some large retailers are scaling back their email marketing. Benefits of sending less mail include higher open rates, lower unsubscribe rates and an increase in sales.

Since cutting back its volume, Nicole Miller has seen the rate at which customers “unsubscribe”—or request to stop receiving emails—drop, and the percentage of recipients who open the emails has grown from 15% to 40%, […] the percentage of online sales that began with an email has grown to 17% from 10%.

Other retailers, however, see a benefit to increasing volume if the emails are customized to each individual user.

In 2010, Neiman began using customer data to tailor its emails. It uses online purchase history, in-store purchase history linked to its credit card, and online cookies that track behavior on its website to learn what brands, categories and types of deals customers favor. It can then target email about a Marc Jacobs launch to customers who tend to buy Marc Jacobs purses, for instance.
Open rates and click through rates have increased by 10% to 20% since the chain started customizing its emails, Mr. Shockey said. “We keep a close eye on unsubscribe rates,” he added. “If they were to climb, we would investigate.”

What I get out of this article is a lot of interesting market research data, but also confirmation that different markets tolerate and respond to different things. Some recipient groups are going to love daily emails. Some are going to burn out quickly at that frequency.
Successful email marketing is a lot more than just sending a pretty email with the right kind of text. It’s about sending to the right people at the right time. The days of batch and blast the same offer to the same file are not over, and probably never will be. But the days of them being the most effective way to monetize a customer list are drawing to a close.
 

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Attention is a limited resource

Marketing is all about grabbing attention. You can’t run a successful marketing program without first grabbing attention. But attention is a limited resource. There are only so many things a person can remember, focus on or interact with at any one time.
In many marketing channels there is an outside limit on the amount of attention a marketer can grab. There are only so many minutes available for marketing in a TV or radio hour and they cost real dollars. There’s only so much page space available for press. Billboards cost real money and you can’t just put a billboard up anywhere. With email marketing, there are no such costs and thus a recipient can be trivially and easily overwhelmed by marketers trying to grab their attention.
Whether its unsolicited email or just sending overly frequent solicited email, an overly full mailbox overwhelms the recipient. When this happens, they’ll start blocking mail, or hitting “this is spam” or just abandoning that email address. Faced with an overflowing inbox recipients may take drastic action in order to focus on the stuff that is really important to them.
This is a reality that many marketers don’t get. They think that they can assume that if a person purchases from their company that person wants communication from that company.

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Standing in the stadium

If you distill marketing down to its very essence what you find is everyone battling for a targets attention. Everything marketers do is to get “mindshare” or, in normal people terms, attention. The goal is to get people to remember your product over all the other products out there.
Many email marketers seem to think that increasing the frequency of mail is the most successful way to get attention from their recipients. What would happen, then, if every email marketer started sending more email? Would this really get more attention from recipients?
I don’t think so.
Increasing mail frequency is like standing up to see better in a stadium. One person stands up (increases frequency) and that person sees better than they did before. But if everyone stands up (increases frequency), then everyone is back to where they were and everyone is back to not being able to see.

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End of quarter spam

There has been a plethora of big brand companies doing stupid stuff with marketing recently. I can only figure it’s end of quarter and everyone is looking to pump up their numbers as fast as possible.
I talked about Millenium hotels sending me with an utterly irrelevant ad earlier this week.
@Yahoomail direct message spammed all their twitter followers with an ad for something related to the new Yahoo mail product.
Anyone watching my twitter feed yesterday probably noticed me complaining about spam from Dell.
All of these things are just examples of sloppy marketing. In Dell’s case it’s even worse because they sent me multiple copies of the spam to different addresses. Two copies of the same “SHOP NOW!” email to different addresses, one of which has never been given to Dell.
Mail to the first address is unquestionably spam and I did send in a complaint to Dell’s ESP. That address is never used to sign up for anything. I did try clicking on the “update your subscription” link in the footer and Dell’s website helpfully told me that address was not on their mailing lists. Looks like Dell bought a list.
The second address is one that was involved with the purchase of software from Dell last July. This is the first non-transactional mail sent to that address. I can’t necessarily call the email spam as I did give it to Dell during the course of a transaction. However, Dell could have done a lot better in managing our “relationship” than they did.
Dell collected my email address as part of a transaction in July 2010. They did not start sending marketing mail to this address until May 2011. While Dell is a major brand and most people would recognize the name and may be a little less inclined to hit “this is spam” waiting 10 months between a purchase and regular mailings is a bad idea.  People who don’t use tagged addresses may forget they gave the sender an email address and automatically send in a spam complaint.
Sitting on an address for 10 months means Dell really should have done a welcome series, or even just a single welcome email, to ease the transition from no mail to regular mail. But, no, they just send me an email advertising their sales.
We’ve been Dell customers for quite a while, and all of our purchases have been enterprise grade hardware or software to run on those servers. We’ve never purchased anything remotely like office computers. But the sales flyer was for desktops, printers and monitors. Dell knows what I purchased from there, so why are they sending me ads for things I’ve never bought?
We have our own Dell sales rep, and my only involvement in the transaction is source of payment. Adding me to a product list really feels like spam.
Then there was the email itself.  The “update your subscription” link was broken and told me I wasn’t subscribed to their list. I mentioned it to Steve and he pointed out that particular link had been broken “forever.” How long has it been since anyone inside of Dell has checked that their footer links work?
What is Dell up to? Who knows. But they unarguably are sending mail to addresses that never opted in. And even if you consider an email giving during a purchase process their handling of that particular address was appalling and in violation of almost every good practice out there.
 

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