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Each issue of CMO Close-up features an interview with a CMO, as well as other marketing executives answering that issue's "Big Question."
This week's feature:
Close-up with Laura Howard, CMO, ECI Telecom
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3 reasons to avoid e-mail saturation
Judith Nemes
Story posted: June 18, 2009 - 6:01 am EDT
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It’s a tempting idea during tough economic times: Turn up the volume of e-mails you send to customers and prospects in hopes of boosting revenue. But when it comes to sending out marketing e-mails, sometimes less is more, said Aaron Smith, principal and co-founder of Smith-Harmon, a Seattle-based e-mail marketing, strategy and creative services provider.
“E-mail is such a low-cost channel to send that people have the impression they can keep pulling that lever,” he said. “There’s a saturation level in the inbox that is unprecedented right now, and you are far more likely to oversaturate your customer base, upset them and turn them off.”
If senior management implores you to start cranking out more e-mails, there are some strong arguments you can make about why that could be a bad idea, Smith said. He offers the following counterpoints:
• Lower lifetime value: Subscribers are more likely to tune you out or drop off your list if you send them too many e-mails, Smith said. The average value of an e-mail address is $118, he said, and if subscribers are bombarded with messages and ignore them, the return-on-investment diminishes. “You’ll have a higher list churn, and you’ll have to work harder to bring new people onto your list,” he said.
• Higher spam complaints: The more mail you send, the more likely you are to attract the attention of ISPs and people who report you as spam, Smith said. “People are marking you as spam even if they’ve already signed up as a subscriber,” he said. “It’s a trend that’s really picking up steam now.” If you’re just sending more e-mails without crafting worthwhile messages, you will experience higher spam complaints, he said.
• Brand damage: B-to-b marketers rely on e-mail for lead generation and can’t afford to anger subscribers with too many messages. “It’s possible that you can upset someone so much with your e-mails that they’ll punish you in other channels,” said Smith, who added he’s talked to people who say they got so much e-mail from a company they stopped doing business with it. “Brand damage is the antithesis of what you want as a marketer,” he said. “It’s another hurdle you have to overcome to close a deal and in some cases, you can’t ever fix that damage.”
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11 Comments
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Paul Greeley
The Creative Spin, Marketing
July 10, 2009 03:27 pm
We are a media production/ad agency and we send out e-mails to prospective customers that contain a link to a vdieo we've produced that focuses on on-going projects from a behind-the- scenes point of view. Like this one:
Creativity Worth Talking About
Quicktime Video
http://www.thecreativespin.com/SpinTestimonials/SpinTestimonials.html
Windows Media Player Video
http://www.thecreativespin.com/SpinTestimonials.wmv
EmailQueen
June 18, 2009 01:44 pm
How much email is too much for a small B2B business?
We send 2 emails a month to our leads and customers, sometimes a third one at the very end of the month. We've been called all kinds of names, but our open rates, click throughs, and unsubscribe rates have been constant over the last two years. What other data should I be looking at?
What is an acceptable unsubscribe rate? I thought less than 1% is decent.
Thanks
Robert Motley
Engagement Systems
June 18, 2009 01:48 pm
This is all the more reason to chose a marketing automation plug-in that seamlessly intergrates DIRECT MAIL along with email!
www.engagementsystems.com
Robert Motley
866-938-3616
Irish Carroll
Cactus Sky Communications
June 18, 2009 02:53 pm
Three emails per month could be a lot, but it depends on the message. You could send a Tip of the Week or a Quote of the Week and most people would not be offended; they probably would get used to receiving it and look forward to it.
Sales messages can get old quickly, especially if they're coming every other week. We "try" to limit our promotional message to once a month, but we also send out a Monthly Tip to help build trust and stay top of mind as email marketing leaders.
Certainly, you want to keep unsubscribe rates lower than 1%, and your customer unsubscribe rates should be a lot less than that, so check to see if your leads or your customers are driving the unsubscribes. Look at your email message where you saw a spike in unsubscribes or very few unsubscribes.
Also, get a feel for the unsubscribes as they relate to the Opens and the Clicks, for the rates that jump out (high or low) and then take a look at the message.
Thanks.
Irish Carroll
b-to-b'er
June 18, 2009 02:56 pm
Actually, an acceptable unsubscribe rate is .1% - 1/10th of what you had expected. You really need to test your email frequency within your customer base. If your unsubscribe rates aren't increasing, that's great but making all of your communications within one month somehow integrated in message is the real key.
In Email Rehab
June 18, 2009 03:11 pm
We're fixing the ramifications of over-emailing now by switching providers, creating a communications calendar and an opt-in and drip program--as well as internal training for those responsible for customer communications. It's much easier, and cheaper, to email conservatively than to repair the damage to your brand and smooth things over with your customers.
Frank Candio
Sales Engine International
June 18, 2009 06:24 pm
Content is more important than volume. One low value (to the recipient) email is enough for someone to click "unsubscribe".
The key is creating varied and engaging content for your audience. Not everyone is ready for a buy now message so banging them over the head will only hurt you.
John Gibb
John S. Gibb
June 18, 2009 07:47 pm
There are a couple of issues to keep in mind in this arena - message and alternative channels. If your email stream does not contain consistant "push" messaging - i.e. I've seen including content in some communications and/or incorporating a content-based email strem has increased CTR/clicks and decreased opt-outs.
Building a social media community to augement emails can also act to alleviate the number of emails sent.
Just a couple quick thoughts...
John
http://www.johnsgibb.net
http://www.theeventmarketinginsider.blogspot.com
Stephen Shore
STADIS Corporation, CEO
June 19, 2009 11:22 am
>> "How much email is too much?"
There is no magic number. It is really a matter of setting expectations. In your sign-up process make sure that subscriber knows how frequently you will be sending out emails. Four emails a day is not too many IF that is what is expected. On the other hand, two a month could be way too much if you have told your subscribers you will only send them one a month.
Additionally, content is key for frequency. If all that you are sending out in your emails is information that is important to you, you will need to keep the frequency minimal. However, if your content concentrates on what is important to your subscribers, you can have a much higher frequency. I've had programs that sent out a "tip" to our subscribers every day with an advertising message as a subsidiary part of the email and continually watched the list grow into first the tens of thousands and then hundreds of thousands of subscribers. Eventually we had multiple "tip" emails and sent out millions of emails a day ... and had extremely low unsubscribe rates.
Stephen
http://www.stadis.net
Mark Vogel
President, Vogel Marketing Solutions
June 20, 2009 03:12 pm
If your B2B product/service is big-ticket and/or long sales cycle (e.g. large commercial construction projects) then quarterly may be just fine. Anything more than monthly better have a clear purpose, plus a clear acceptance by the recipients. A good brand can be damaged so fast you won't know what hit you, and the costs to repair it outweigh any additional click-thrus you think you're getting. Remember, just because someone isn't unsuscribing or replying in anger doesn't mean they aren't swearing at you and your brand -- and then telling others about you to others in person or on a twitter page.
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