Related Posts

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.

Read More

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.

Read More

Best Practices: your mileage may vary

YMMV. One of those abbreviations us old folks used ages ago before email had pictures and the closest we had to social networking was USENET and social gaming was in the form of MUDs. I rarely see it used any more. In a lot of ways that’s a sad thing. It was a very useful abbreviation. Using it at the end of a post full of advice was a sign that the author was providing information but knew that different situations may require different solutions. It acknowledged that what might be the best practice in one form may not be the best for another.
It’s not just the usage that seems to have declined, there seem to be a lot more people who just want to share The Answer! and not acknowledge their experience may not be universal. This seems particularly rampant in email marketing, at least to me (YMMV).
I’ve talked before about how I don’t believe there are any universal best practices for email.
Let’s be honest, the experience of a well known national retailer buying, or appending email addresses is not going to be the same as a local business doing the same thing. The national retailer acquiring email addresses and sending well targeted mail to their purchasers probably won’t cause too many delivery problems, and will generate revenue. The local pizza place probably won’t be so lucky.
A number of marketers have complained that they all too often hear “it depends” when they ask a question about email. But how well a particular email campaign perform does depend. Success depends on the audience and the offer. But more than just the specific offer, success also depends on how well known the brand is and what their real world reputation with customers is.
Customers are a lot more likely to give brands the benefit of the doubt if they like the product. That means poor practices don’t always result in poor results. It also means other companies may not have the same success with poor practices.
Your Mileage May Vary.

Read More