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Spam makes only 200MM dollars a year

Now, in a new paper in the Journal of Economic Perspectives, Justin Rao of Microsoft and David Reiley of Google (who met working at Yahoo) have teamed up to estimate the cost of spam to society relative to its worldwide revenues. The societal price tag comes to $20 billion. The revenue? A mere $200 million. As they note, that means that the “‘externality ratio’ of external costs to internal benefits for spam is around 100:1. Spammers are dumping a lot on society and reaping fairly little in return.” In case it’s not clear, this is a suboptimal situation. The Atlantic

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Data Cleansing part 2

In an effort to get a blog post out yesterday before yet another doctor’s appointment I did not do nearly enough research on the company I mentioned selling list cleansing data. As Al correctly pointed out in the comments they are currently listed on the SBL. And when I actually did the research I should have done it was clear this company has a long term history of sending unsolicited email.
Poor research and a quickly written blog post led to me endorsing a company that I absolutely shouldn’t have. And I do apologize for that.
With all that being said, Justin had a great question in the comments of yesterday’s post about data cleansing.

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Leaving money on the table

On August 1 two domains in the Netherlands are going away: wanadoo.nl and orange.nl. Current users of these domains are being transitioned to new addresses at online.nl. Mailchimp has more information and links.
This is a good time for all of us to consider how easy it is for a subscriber to change their address of record. Some senders just have the subscriber unsubscribe from one address and resubscribe for another. This sounds like the simplest way to do things, and it certainly doesn’t take much engineering effort.
But what information do you lose by simply asking subscribers to unsubscribe and resubscribe? It depends on what you’re tracking, but you do lose everything that you track. Preferences, interaction history, purchase history, it’s all gone. Providing a simple way to change an email address of record preserves the information related to that subscriber.
For some senders, keeping subscriber information through different ISPs and email addresses will pay for the development of a preference center. For others, there’s no real value there. How much money are companies leaving on the table by not providing a mechanism for recipients to change their email address?

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