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2008 Retail Email Subscription Benchmark Study: Executive Summary

Sponsored by: Message Systems

The Direct Marketing Association’s Email Experience Council signed up to receive promotional emails from 120 of the top online retailers tracked via the Retail Email Blog. Findings indicate a trend toward richer subscription processes.

One highlight of the report shows that the percentage of retailers using only a one-click sign-up from homepage method to collect email addresses declined to 51% this year from 63% last year. That shift accompanied increases in the amount of data collected from new subscribers. Research also demonstrated that the number of retailers providing sample emails and allowing subscribers to choose email topic preferences was up.

“The old adage applies here—you never have a second chance to make a good first impression,” says Dave Lewis, chief marketing officer of Message Systems. “Your opportunity is to convert a prospect’s initial interest into a long-term, brand loyal relationship. Your challenge is not to ‘kill’ that interest (and the opportunity) with an intimidating or intrusive subscription process.”

This year retailers are also putting more focus on list hygiene. Thirty-eight percent of retailers ask subscribers to confirm their email address by re-entering it, up from 27% last year. Also, 5% of retailers now use a confirmed (double) opt-in process, up from 3% last year, which also improves list quality.

Retailers are also taking greater advantage of their email sign-up process to promote other channels such as direct mail, blogs and RSS feeds. For the first time this year, research indicates that retailers are promoting SMS subscriptions, social networks and widgets along side or within their email programs. While the percentage of retailers promoting those new channels is currently small, it signals a new trend which is expected to grow significantly over the next year.

“Communication behaviors and preferences have changed,” says Lewis. “Virtually all of us utilize multiple channels of communication, both online and offline. And how we want companies to communicate with us depends on the nature of the message, where we’re at and our personal preferences. Yet, companies have badly lagged in their ability to deliver messages through our channels of choice. So I’m very pleased to see this trend developing, even if just in its infancy. It means we’re moving beyond defining ‘relevancy’ just in terms of the content of the message. It means we’re getting closer to realizing the direct marketing mantra of delivering the right message at the right time in the right place.”

Other key findings from the study include:

● After falling from 27% in 2006 to 8% last year, the percentage of retailers using sign-up incentives rebounded to 13% this year, despite growing concerns about the quality of subscribers that are attracted by sweepstakes and other incentives.

● With recent evidence suggesting that putting privacy policies front and center during the subscription process actually reduce sign-ups, only 36% of retailers mentioned their privacy policy this year, down from 45% last year.

● Despite quicker subscription fulfillments overall, 29% of retailers took 15 days or longer to honor opt-ins or failed to honor them all together. That figure was the same as last year.

Get the Full Report
Visit the Whitepaper Room to download the full 39-page report, which is free for eec platinum members and available at a discount to eec gold and silver members. Not a member? Learn more about becoming a member of the Email Experience Council.

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Comments (1)

We constantly stress the importance of testing email creative, content, frequency, etc. But it's also wise to regularly test your email subscription process to see what strategies work best to get the most quality subscribers with the least drop-off. There's a lot of great insight here and plenty of ideas to test. Great work!

Posted by Erik Gabrielson | November 19, 2008 4:55 PM

Posted on November 19, 2008 16:55

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the voices of email

The Email Experience Council's membership includes many of the brightest and most committed email marketing experts. We're pleased to have some of them share their insights here on these pages. Our blog contributors include:

Jordan Ayan is the chairman of Create-It!, a technology consulting organization, as well as the CEO of SubscriberMail, one of the leading email marketing companies. A two-time book author, a patent holder and a frequent speaker, Jordan has more than 20 years of experience in direct and database marketing. Read more.

Nicholas Einstein is director of strategic and analytic services at Datran Media. Specializing in email and CRM strategy, he helps some of America’s top brands leverage online channels to communicate more effectively with their customers and prospects.

Lisa Harmon is a principal at Smith-Harmon, a creative services consultancy dedicated to email marketing strategy and production. She works with marketers to increase clickthrough, maximize revenue, and infuse delight into their email creative. Lisa is also the blogger behind edm.smith-harmon.com, an ongoing commentary on the best (and worst!) in email marketing creative. Read more.

Chip House is ExactTarget's VP of marketing services, leading the teams responsible for client success. He was named to BtoB Magazine’s 2005 “Who’s Who in B-To-B,” for being a vocal proponent of legitimate commercial email and an active lobbyist regarding spam and privacy issues. Read more.

Marco Marini is the CEO of ClickMail Marketing (CMM) and an acknowledged expert in e-marketing with over a decade and half's-worth of experience in the field. Before taking over as CEO, he was CMM's VP of Marketing & Operations. Marini has also held key marketing positions with CyberSource, eHealthInsurance, DoveBid and IBM Canada.

Stephanie Miller is VP of strategic services for Return Path, the leading email performance company. She works with marketers to earn a higher ROI and response from their acquisition and retention email programs—developing content, contact and segmentation strategies, along with testing, measurement and production programs. Read more.

Erick Mott is communications director at email service provider Lyris. He has 20 years of experience from enterprise, SMB, agency and start-up marketing, communications and innovation roles at companies including Habeas, Nokia, MarkMonitor, GlobalFluency, Cisco, Sun Microsystems, Philips Electronics and two of his own start-ups. Read more.

Jeanniey Mullen is the Email Experience Council's founder and the global EVP and CMO of global online publishing company Zinio. She is a thought leader and visionary in the email and digital marketing field. A columnist for ClickZ, she has published numerous papers and is a frequent speaker. Read more.

Kevin Senne is the Strategic Deliverability Director for Premiere Global Services. Kevin has been heavily involved in all facets of email marketing for more than a decade and he previously managed Email Operations for Travelocity.com. Kevin specializes in deliverability, strategy, and social media integratio and he focuses on helping marketers become permission-based one-to-one marketers. Read more.

Charles Stiles is the VP of worldwide business development at Goodmail Systems. In his role, Charles is focused on helping generate a better understanding of the email environment and potential solutions for a better consumer experience. He currently serves as the chairman for the Messaging Anti-Abuse Work Group. Read more.

Jeremy Swift is director of client relations for email service provider BlueHornet. He helped form BlueHornet’s founding team in 2000 and has been responsible for client services and marketing strategy since the company’s inception. Jeremy is known for his ability to articulate technical information in ways that clearly resonate with today’s online marketer.

Kara Trivunovic currently serves as the senior director of strategic services for StrongMail Systems, where she is responsible for helping marketers optimize their email marketing programs for greater returns. Most recently Kara was founder and principal of The Email Advisor, a respected email marketing consultancy. Prior to launching The Email Advisor, Kara led strategic services for the email division of Premiere Global Services. Kara brings a unique perspective to the space having worked on the client, agency and provider side for 10 years.

Chris Wheeleris the director of deliverability at Bronto Software. He is leading the charge for ensuring both Bronto's customers and staff are well informed about email marketing practices and technology as well as being the face of Bronto deliverability externally. Previously, Chris created the internal deliverability program at Amazon.com alongside program managing the operations of the email team and was at an ESP leading a team of deliverability consultants. Besides being a frequent contributor on Deliverability.com, Chris is a part of many email industry forums, both business and technical. Read more.

Chad White is the research director at Smith-Harmon, an email marketing strategy and creative services agency. He is the founder of the Retail Email Blog, a blog dedicated to tracking the email marketing practices of the largest online retailers. Chad regularly writes major research reports on email marketing and is an Email Insider columnist for MediaPost. Read more.

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