Debating Appending

There was a session at the recent Email Insiders Summit that discussed appending. I wasn’t there, but I’ve been hearing about the session, including one description that involved the term ‘fist fight.’
I have found a couple articles about the session.
E-Append Comes Under Fire
Email Insider Summit Email Append Panel — The Day’s Hottest Debate
I encourage folks to read both articles and watch the video posted by Return Path. I agree with different points by folks on both sides of the debate. Appending can be a useful acquisition strategy for some companies. But we can’t pretend there’s any permission involved in common appending strategies.
Ignoring the lack of permission, I believe that the companies saying it is a successful strategy share some common factors.

  1. They are companies with high brand awareness
  2. They are companies with sufficient resources to commit to long term marketing strategy.
  3. They have a mature direct marketing strategy.
  4. They have a well maintained customer database.
  5. They have funds to use a decent appending provider.

Of course most of those factors also mean that those same companies could send unsolicited email to non-customers and have success with that strategy.
My experience, and the experience of many delivery people, is that appending causes a lot of problems. But I’ll be the first to admit that we only see the incidents where it doesn’t work. If an ESPs customer does an append and it doesn’t cause delivery problems, then the ESP will probably never know.
Does this mean I support appending? Not really. I land firmly on the side of permission and that recipients should have control over the email they receive. Unless the recipient is actively involved in the appending process, and giving their permission for their address to be sold to a company, there is no permission involved. So I won’t advocate it, or support its use. I think that opt-out appending doesn’t scale in the same way that spamming doesn’t scale.
 

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Delivery challenges increasing

Return Path published their most recent Global Deliverability report this morning. (Get the Report) This shows that inbox placement of mail has decreased 6% in the second half of 2011. This decrease is the largest decrease Return Path has seen in their years of doing this report.
To be honest, I’m not surprised at the decrease. Filters are getting more sophisticated. This means they’re not relying on simply IP reputation for inbox delivery any longer. IP reputation gets mail through the SMTP transaction, but after that mail is subject to content filters. Those content filters are getting a lot better at sorting out “wanted” from “unwanted” mail.
I’m also hearing a lot of anecdotal reports that bulk folder placements at a couple large ISPs increased in the first quarter of 2012. This is after the RP study was finished, and tells me increased bulk folder placement is more likely to be a trend and not a blip.
One of the other interesting things from the RP study is that the differences are not across all mail streams, but are concentrated in certain streams and they vary across different regions.

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Delivery and marketing, another view

In addition to posting some of my thoughts about how delivery and marketing have different and possible contradictory constraints, I asked folks on the Only Influencers list what they thought. They had some different perspectives, primarily being marketers. One person even welcomed me to the dark side.
The general response from the marketing side of things appeared to be that ISPs need to stop actually filtering marketing email. That would resolve the problems from the marketers perspective. I don’t necessarily think that will help. I believe if marketers had unfettered access to the inbox, most inboxes would be totally un-useable.
My thinking triggered other folks to consider delivery and marketing and what drives both. George Bilbrey, from Return Path, posted an article in Mediapost looking at why good delivery is an important part of a good marketing strategy.
George points out many marketers really do act as if delivery is separate and detrimental to good marketing.

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Costs and accounting for email

The decision by Cheetahmail to stop allowing customers to use email append caused a very long discussion on some of the marketing lists.  One of the criticisms had to do with what a dumb “business decision” Cheetah was making.
I disagree. Appending, and other non-permission based sending cause a lot of costs to trickle down on the ESP. Many of the large ESPs have teams of 8 or 10 people working to manage delivery, deal with blocks and keep the mail flowing. In fact, I once had a client say “We want to be as clean as ExactTarget” only to choke when I told them how many people are on the compliance and delivery team at ET.
That’s not even looking at the cost of a SBL listing. One company estimated the cost of a slightly less than 24 hour block at over $1,000,000 in lost opportunity costs and in actual staff costs to deal with the listing. I know of one Fortune 20 company who had to re-engineer their entire customer and prospect databases due to a blocklist. And, yeah, that one was actually due to an append. They did an append and the append not only added a “new” address to a record where the person had previously opted out, but that person worked at a major spam filtering company. They experienced a whole world of very expensive pain.
Many ESPs are actually making a sound business decision by refusing to deal with non-permission mail, whether it be a purchased list or an appended list. The sender does not have permission to send to the addresses. That causes all sorts of delivery problems, which costs the ESPs lots of money and staff time to deal with. Most marketers won’t actually pay for the resources they use when appending or buying lists. Then they blame the ESP when their mail ends up in the bulk folder or is blocked outright.
I don’t think many marketers fully integrate the cost of dealing with a poor list into their decisions. My tweet from earlier today “If you have to “ignore all the costs associated with complaints” to find a positive ROI on opt-out mail, is there really a positive ROI? is a paraphrase of one of the things I heard.
ESPs can’t avoid those costs, they’re stuck with them. Lowering those costs by requiring senders to only send to recipients who have given permission is a smart business decision. Marketers don’t pay those costs, but if they even acknowledged them I suspect that there would be a whole lot less sloppy email marketing.

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