Dealing With This Season’s Burned Out Subscribers

In September, all email marketers have good intentions. They meticulously map out segmentations; plan a logical calendar to support strategic initiatives; and commit to holding firm on protecting margins, avoiding the trap of ever increasing sweeteners as we near the end of December.

In September, all email marketers have good intentions. They meticulously map out segmentations; plan a logical calendar to support strategic initiatives; and commit to holding firm on protecting margins, avoiding the trap of ever increasing sweeteners as we near the end of December.

Then reality sets in. Although this year has been significantly better than last year in terms of business buying and consumer spending, most email marketers are quickly caught up in the email marketing return on investment trap. When times are tough, the pressure goes up to send just one more email campaign in order to boost revenues and response.

That strategy can work in the short term, but come January, the reckoning takes hold. This is when email marketers must rebuild relationships sullied by overmailing and lack of targeting. Hopefully, your business can pause and take a deep breath in order to both slow down the frequency as well as improve customization and relevancy. If you still see low response rates and list fatigue, then it’s time for a strategy to win back your audience.

Strategies for winning back subscribers
A win-back strategy can be anything from a friendly reminder to visit the preference center to a full-on bribe, like offering a steep discount or free service if the subscriber clicks now. Test a few of these ideas on subscribers who didn’t open or click on your emails in December and January. After a few attempts to win them back, if you still don’t see any activity, it may be time to clear the dead wood from your file.

While suppressing data is an anathema to direct marketers’ hearts, clearing nonresponsive subscribers from your email marketing file can help with everything from reducing churn to lowering costs to improving the new engagement metrics used for inbox placement and deliverability. Logically, it makes sense. More active subscribers are more likely to respond.

Surprisingly, however, clearing nonactive addresses from your file also improves response. That boost in response isn’t just on the rate off of a smaller base, but is also on absolute response and revenue per subscriber. Why does this happen? By focusing on the needs of active subscribers, marketers improve relevancy and lower frequency. They start to segment their files with tighter subscriber profiles. Be sure to note that this is the opposite of what you’re able to do in the rush of end of year.

Even permission files end up with anywhere from 25 percent to 65 percent of inactive subscribers. These subscribers, despite giving permission at some point, haven’t opened, clicked or converted from email in the past year or more. Unfortunately, the fourth quarter is when most subscribers burn out. The overflowing inbox at a busy time of year just becomes too much. They tune out your messages if you’re not offering value. Pretty soon, ignoring your emails becomes a habit.

For a long time, it was widely believed to be reasonable to keep all those dead addresses on your file, as it didn’t cost much to mail them and having a larger denominator made complaint rates and other deliverability metrics seem lower. Plus, marketers are ever hopeful. Even if a subscriber hasn’t responded to their emails in a long time, they still believe that today’s message will be the one that rouses them to profitable response. Of course, very few of these sleepers ever wake up.

However, internet service providers and mailbox providers like Yahoo, Hotmail and Gmail have long been suspicious of marketers who keep such nonresponsive data on their files, believing that they’re trying to game the system and escape penalties of higher complaint rates. In the past six months, all three global providers have introduced new metrics as well as new inbox management tools to help them see subscriber-level activity. MSN/Hotmail was the first to announce the use of activity measures to block senders from a particular subscriber’s inbox (I wrote about this in early September).

I’ve seen some success in win-back campaigns that respect subscribers, are honest about the offer in the subject line, and keep the message and tone in line with the brand. Test a few alternatives and segment as much as possible to improve relevancy as well. For example:

  • A publisher tested several approaches and found that “We hate spam, too. Change your email settings now” in the subject line was the best way to encourage 90-day nonactive readers to adjust frequency and title choices. Typically, I find that clarity trumps cleverness in a subject line. Just say clearly what the subscriber is being asked to do.
  • A retailer sent an email campaign to six-month inactive subscribers inviting them to vote for the brand’s next catalog cover. The engaging campaign consistently earned 25 percent clickthrough rates. By focusing on the click (the action needed to prove that the subscriber isn’t truly dead), the campaign earned a very high response rate. As a bonus, while many subscribers were on the company’s website they took advantage of specials offered on the landing page.
  • A retailer tested the effect of a win-back campaign versus lowering frequency to six-month inactive accounts. Lowering frequency is a commonly used tactic to respect nonresponding subscribers level of interest, but, of course, does nothing to actually engage them. The win-back strategy was the clear winner, earning a 10 percent response rate and $900K in revenue versus a 2 percent response rate and $150K in revenue from the segment that received lower frequency.

Let us know how you’ve successfully re-engaged subscribers by posting a comment below.

A ‘Back-to-Business’ Email Optimization Checklist

Back to school is also back-to-business time. Set aside a few hours this final week of summer to freshen up your email program and take advantage of the silence before the rush. Here are six ways to quickly improve reader satisfaction and response rates:

Back to school is also back-to-business time. Set aside a few hours this final week of summer to freshen up your email program and take advantage of the silence before the rush. Here are six ways to quickly improve reader satisfaction and response rates:

1. Put on the proverbial tie. Just as we don suits again in September, smarten up your email look with a template minirefresh. A simpler, more streamlined template will focus subscriber attention on key content and calls to action. Gather your creative and content teams and do a quick inventory of all the changes made to your newsletter template in the past nine months. Remove those that no longer make sense. Nearly every program has them, including the following:

  • small image, link or headline additions requested by the brand, product or sales teams;
  • the multilink masthead that no longer matches the landing pages;
  • that extra banner at the bottom of your emails promoting a special event that never seemed to go away;
  • a bunch of social networking links that no one has clicked on (usually, you’ll find two or three that your subscribers actually use. Keep those and give them breathing room so they’re more appealing and inviting); and
  • extra legal or other language in the footer.

2. Insure against failure. Take a quick look at two key engagement metrics this year: unsubscribe requests and complaints (i.e., clicks on the “Report Spam” button). First, ask everyone on your team to make sure the unsubscribe link works. Then, take a look if the unsubscribe and complaint rates for your various types of messages (e.g., newsletters or promotions) are erratic, growing or steady?

If erratic, you may find certain message types or frequency caps need to change. If growing, your subscribers may be moving to a new lifestage and are now uninterested in your content, or a new source of data may be signing up subscribers ill-suited for your brand and/or content. Both of these are great segmentation opportunities.

3. Turn frequency into cadence. Back when everything reached the inbox, being present was enough to earn a brand impression. So, many marketers just broadcast often to be near the top of the inbox. People are now fatigued from inbox clutter, however, and are employing more filters as a result. Being relevant and timely trumps volume. Subscribers visit their inboxes expecting to see timely messages tailored to their interests. On the other hand, repeated reminders about last week’s sale may turn them off forever.

4. Adopt a new attitude. Gather new information about subscribers, and use it to test content or segmentation strategies. Run a few instant polls to gauge how important key demand drivers are to your subscribers. Ask for a vote on some product taglines you’re considering. To get higher participation, make it fun by featuring the results of the poll on your Facebook fan page, inviting comments that you can share. Or keep a Twitter tally of response in real time.

5. Arm yourself for the crush. Just as traffic swells on the highways and commuter trains this time of year, the email transit way also fills up as marketers promote their fall offerings and gear up for the holidays/Q4. Just like in any rush hour, the more email traffic, the higher the likelihood that your messages will wait in line or be filtered.

Make it a habit to check your sender reputation every day that you send broadcast mailings — it only takes a minute if you have access to inbox placement data. If you don’t have this data, get it from a deliverability service, demand it from your email service provider (ESP), or even check simple diagnostics such as my firm’s free email reputation service SenderScore.org or DNSstuff.com, another free email reputation service.

Sender reputation is directly tied to inbox reach, and the best senders enjoy inbox placement rates in the 95th percentile. Don’t be fooled by ESP reports of “delivered” (i.e., the inverse of your bounce rate). Even for permission-based marketers, about 20 percent of delivered email is filtered or blocked and never reaches the inbox, according to a study by my firm. You can’t earn a response if you aren’t in the inbox. Imagine the immediate boost on all your response metrics if you move your inbox placement rate up 10 or more points.

6. Make new friends. You likely already read a number of blogs or e-newsletters that cover topics relevant to your brand and important to your audience. Audit these for new, fresh voices, then regularly link to those websites in your own messages as part of a regular “view from the world” feature. Your subscribers will appreciate the additional heads up to interesting or helpful articles, and you’ll start to build a network of experts and potential referrals back to your business.

These might be tasks already on your to-do list. Do them this week and get back to business a bit stronger and ready to optimize. Let me know what you think; please share any ideas or comments below.