Those addresses are costing you

Mark Brownlow has a post up about the hidden costs of bad email marketing. These center around brand damage, but there are other costs to poor email marketing strategies.
Previously, having old and non-responsive email addresses on a mailing list did not hurt and may have helped a reputation at an ISP. In some cases, these addresses may have even helped a reputation by increasing the number of emails delivered thus lowering the overall percentage of complaints.
More recently, some ISPs have started looking at the characteristics of recipients as part of the reputation score of a sender. If a sender is mailing a lot of abandoned email addresses, these ISPs can detect that fact. This counts against a senders reputation and may result in email ending up in the bulk folder or being blocked at the transaction.
Many senders are extremely resistant to removing old addresses from their lists. Some of the more numbers driven ones have even followed the statistics and can tell me exactly how many people ignore their email for 12 months or 18 months, and then come back and make a large purchase. This is true, sometimes people will ignore email for a long time and then come back. Keeping these people on a list may be beneficial.
However, in those recipients who ignore email (no opens, no clicks) for a long time are some addresses that have been abandoned. While these addresses are not spamtraps, repeatedly sending email to large numbers of abandoned addresses will lower the sender’s reputation over time.
All senders should have a process for dealing with non-active addresses. Allowing cruft to accumulate on a list does negatively affect reputation.

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Signup forms and bad data

One thing I frequently mention, both here on the blog and with my clients, is the importance of setting recipient expectations during the signup process. Mark Brownlow posted yesterday about signup forms, and linked to a number of resources and blog posts discussing how to create user friendly and usable signup forms.
As a consumer, a signup process for an online-only experience that requires a postal address annoys and frustrates me to no end. Just recently I purchased a Nike + iPod sport kit. Part of the benefit to this, is free access to the Nike website, where I can see pretty graphs showing my pace, distance and time. When I went to go register, however, Nike asked me to give them a postal address. I know there are a lot of reasons they might want to do this, but, to my mind, they have no need to know my address and I am reluctant go give that info out. An attempt to register leaving those blanks empty was rejected. A blatantly fake street address (nowhere, nowhere, valid zipcode) did not inhibit my ability to sign up at the site.
Still, I find more and more sites are asking for more and more information about their site users. From a marketing perspective it is a no-brainer to ask for the information, at least in the short term. Over the longer term, asking for more and more information may result in more and more users avoiding websites or providing false data.
In the context of email addresses, many users already fill in random addresses into forms when they are required to give up addresses. This results in higher complaint rates, spamtrap hits and high bounce rates for the sender. Eventually, the sender ends up blocked or blacklisted, and they cannot figure out why because all of their addresses belong to their users. They have done everything right, so they think.
What they have not done is compensate for their users. Information collection is a critical part of the senders process, but some senders seem give little thought to data integrity or user reluctance to share data. This lack of thought can, and often does, result in poor email delivery.

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Address harvesting through social networks

The next killer ap on the Internet seems to be social networking. Everyone has a great idea for the next facebook or or myspace. All of these sites, though, have to find users. The site will fail if there are no users. One way to get new users is to ask all your current users to invite all their friends to join. This tends to lead to the marketing / product decision to insert functionality into the social networking site which allows current users to upload their address book and the site itself will send out invitations to all your friends and contacts.
This is not actually as great as an idea as it sounds, however. First, you end up with situations like what happened to me this past week.  On Wednesday I received the following email:

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Email non-viable for acquisition

Chris Marriott over at iMediaConnection talks about all the reasons email is a non-starter as a replacement for direct mail. This is something I have been telling clients for a while now. Chris mentions a number of reasons for why email is not an acquisition tool.

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