How good is an email mailing list?
Valuing an Email Customer list: Quality vs Quantity
Over the course of the last two years I have been involved in several conversations regarding the effectiveness, and therefore the valuation of customer mailing lists. The question always arises as to what we should do with dormant or unresponsive email subscribers.
One side of the argument has always been that once an email address has been dormant or unresponsive for 6 to 12 months then it is quite right to remove the address from the email file but I tend to sit on the opposite side of the fence.
In my view removing the email address is making the assumption that an ‘inactive’ customer is the same as a ‘dead’ customer, which in my view is quite an assumption to make, especially given the financial potential of persevering.
Do we know better than our customers?
I understand completely that many retailers and businesses are nervous about their ISP reputations being damaged by emailing ‘inactive’ subscribers. However, whether this actually does have an impact on reputation is a matter of debate as no one really seems to know the real extent of inactivity.
We must not lose sight that at some point in our relationship a customer has indeed opted into the email program. They have asked you to send emails to them, so you could argue it is rather presumptuous for you to remove them from your file. If a customer did wish to be deleted then surely they could simply click on the clearly signposted link entitled ‘unsubscribe’.
Do you know better than your customer? Did you tell them at opt-in that they had to respond to every fourth email or they’d face the consequences? Of course you didn’t.
Open or Not
With available tools, we’re in the fortunate position to be able to monitor exactly who opens, who doesn’t open, who clicks, who doesn’t click, who buys and who doesn’t buy. However, I think on occasions because we have this information to hand we can often over analyze things and beat ourselves up over those who aren’t interacting.
Even if a customer hasn’t opened up the message who is to say that the customer hasn’t been nudged into action by simply seeing the message in their inbox? It may have triggered that customer to picking up the telephone to place an order, persuaded them to pick up that corporate brochure or even convinced them into making a direct link to the website.
The value of the subject header can also not be underestimated in terms of its positivity around brand awareness. Even if the customer hasn’t been interested enough by the subject header’s proposition to have opened the message they’ve still potentially read the message reinforcing that business’s benefits. Even if the subject header “Great value TVs just for you” didn’t generate an immediate response that message might well be the very reason that customer visits your website or store when they are in the market for a new television set.
Don’t be so sensitive
I’m ashamed to say that I don’t speak to my Auntie Maud half as often as I should do, but does that mean I never want to speak to her again. Of course it doesn’t and Auntie Maud understands this. She knows how hectic life can be these days. So if Auntie Maud can understand this why do we have a tendency to be overly sensitive? Why do we question whether we should continue with our dialogue after a period of silence?
I’m perfectly happy to receive emails without opening every single one. I’m sure I’m regarded as an ‘inactive’ customer to many retailers and I’m sure my email address has been discussed as one for potential binning. However, with the exception of food etc… what other product group are you constantly in the market for? Insurance? No. Holidays? No. Electricals? No. I will interact when I’m in the market for that particular product and not before, why would I?
Opting back in?
One potential solution to any debate regarding ‘inactive’ email addresses is introducing a re-opt in program, as many believe that this will truly sort out the ‘dead’ email addresses from the ‘dormant’ addresses. However, I would advise you consider this very carefully as I have my doubts as to whether this really is the answer.
Can you really assume that a customer who hasn’t responded to a re-opt in email wishes to be removed from your email list? I’m not convinced that this is the case as there are so many reasons why a customer might not be interacting. Has the message reached their inbox? Are they in fact opening the message but it’s just not being tracked due to images being blocked? It’s a minefield.
For argument sake, let’s say you decided to send an opt-in email to your ‘inactive’ segment. What would you then do with the 80% of recipients who didn’t open? Ditch them? In my view that would be foolhardy.
In summary, the decision to cull an email address is a decision which needs to be considered very carefully. It simply can’t be assumed that an ‘inactive’ email address is a ‘dead’ address ready for culling. What is the benefit of deleting the customer from your file? Is it financial? Is it based on improving your KPIs? Or is it regarding your sender reputation? Whatever the reason think long and hard and ask yourself; does the benefit or risk associated with sending that ‘inactive’ customer an email really outweigh the financial benefits of persevering? If it does, then go ahead and cull the address. However, if it doesn’t or you’re not sure then you really shouldn’t be taking the decision to reduce the size of your customer base and its financial potential.
Valuation
Obviously, valuation depends on whether you are a buyer or a seller, but either way, I suggest there is room for valuation based on the number of registered email addresses, even if many are passive. The right message could turn them active! Don’t be too hasty in dumping an asset!
