Broken Policies

As an email policy wonk, I think a lot about how specific policy implementations can go wrong. Sure, every policy can go wrong, or not fit a common case. A lot of people only write polices that address common cases and don’t worry about the rarer cases. The problem is there are some rare cases that may cause significant harm and those cases should be addressed.
Consumerist has a case up about email policy gone wrong with a clear path to harm but no policy for handling the issue. There are a couple places I see where this policy hole can be fixed.
Chase Bank does no verification when they collect email addresses, which results in them sending email to a person who does not have an account with Chase. This is not an ideal situation for anyone. Chase is revealing private financial information to an outside party, the actual bank customer is not getting their information and someone is getting email about money that’s not theirs.
In terms of policy for institutions handling sensitive personal information, I would always recommend implementing a verification step. This is mail that people want so they should confirm it. It’s also mail that really should be not going to 3rd parties.
Chase does not implement any verification step for email. This isn’t a fatal problem, as long as there is some process in place to get feedback and then correct the issue.
Unfortunately, Chase’s policies failed here, too. Chase requires an account number to speak to a representative about any issues. In this case, the email recipient does not have an account number. All of Chase’s contact channels rely on an account number: no account number, no talking to a human.
In terms of overall policy  Chase is hoping here is that, at some point, their actual customer will notice they’re not getting email and call in and attempt to troubleshoot the problem with Chase reps. I’m willing to bet, though, that their tier 1 people don’t have the training or information needed to troubleshoot this problem. I expect they’re going to read the script that says, “We sent you the mail, it must be a problem on your end. Have a nice day.”
Chase, and other bank analogues that require an account number, that do not verify email addresses should not require account numbers to talk to someone about the mail they are receiving. Why? Because although it’s reasonably rare that the mail is going to the wrong party, the potential harm to the bank’s customer is very high. This danger to customers means the bank should invest in a support pathway that allows non-customers to call, or write, to report misdirected email.
If Chase were my customer, I’d recommend adding a button to the email that says “receiving this mail in error, report here.” Make this a simple form that the recipient can fill out, two boxes one for email address and one optional one for “reason”. Once the bank has the report, they can stop the misdirected email and attempt to contact the customer through another channel. I’d also recommend that customers confirm any new address they add to the account in the future.
I know the bank thinks that by requiring an account number they are protecting their customers. Unfortunately, they’re failing to address a rare but potentially harmful case. Sadly, I expect even after this, they will still fail to implement any changes that will stop this from happening in the future.

Related Posts

The return of the Magill Report

After a 6 month hiatus, Ken Magill has returned to offer his insightful, and somewhat snarky, take on email marketing. You can subscribe at The Magill Report.
Ken is really trying to make this report an example of how to do ad supported email newsletters right. When I subscribed yesterday I received the following welcome message:

Read More

Link roundup June 18, 2010

Hotmail has released a new version of their software with some changes. Return Path discusses the changes in depth, but there are a couple that senders may find helpful.

Read More

Zombie email: Part 3

Last week, in Zombie email: part 1 and part 2 I talked a little about the history of email addresses and how changes in the ISP industry in the early to mid 2000’s brought about the rise of zombie email addresses. Today we’ll look at the effect zombie addresses have on email stats and why ISPs are starting to monitor zombie addresses.
A zombie address, despite the fervent belief of some email marketers, doesn’t come back to life. The person who initially registered that address has decided to stop using that email address.  The defining factor of a zombie address is that there isn’t now and won’t be anyone in the future reading email sent to that address. There is no human there to read or react to any email sent to that address.
A zombie address does not represent an actual recipient, they’re just remnants of a recipient that once was present.
Having a list containing any significant number of zombie addresses can throw off metrics enough to mislead a sender about the effectiveness of their email marketing program. Sometimes, the zombie addresses make the metrics look worse, sometimes they make metrics look better. In either case, the metrics don’t accurately represent the performance of a marketing program.
Zombie email addresses do bulk out a mailing list, making lists look bigger. They’re not real addresses, so they don’t reflect quality, but they do impress marketers that think bigger is always better. But, in reality, you may as well add thousands of addresses at non-existent domains for the real value these addresses bring to your list.
Zombie email addresses on a list depresses any metric that use “number of emails sent” or “number of emails accepted” as a denominator.  If 10% of a list is zombie addresses, then an open rate reported as 15% will actually be an open rate of 16.7%. The more zombie addresses on a list, the more the statistics will be depressed.
In addition to having lower open rates, lists with more zombie addresses also have a lower complaint rate. In fact, in the recent past spammers have padded their lists with zombie addresses as a way to artificially lower their complaint rates.
Spammers using addresses created just to bulk up the denominator and lower complaint rates have led ISPs to start monitoring the types of addresses on a particular list. I first heard about ISPs looking at recipient profiles at a meeting in 2006, so it is not, in any way, a new technique for ISPs. What is new is the number of zombie addresses on legitimate, well maintained lists, and the fact that they are present in high enough volume to affect reputation and delivery.
ISPs use zombie addresses to monitor the reputation of a sender because it is a more accurate way to measure what the recipients think about an email and that sender. Senders ignore zombie addresses because they make some stats look bigger (total list size) and better (lower complaint rates). Many senders also believe that addresses come back to life, despite all evidence to the contrary, and will not purge an address for any reason other than it bounces. They’d rather live with inaccurate and misleading metrics than removing non-performing addresses.
Tomorrow, in the final post of this series, we’ll examine how senders can identify potential zombie addresses and what steps they can take protect themselves from the negative reputation hit from zombie addresses. (Zombie Apocalypse)

Read More