The Tipping Point of Email Marketing

Responsys, a leading email marketing company, announced in January that according their research, retailers sent out an all-time high number of promotional emails to subscribers in 2011. According to Chad White, the company’s research director, “Retailers sent each of their subscribers 177 promotional email campaigns on average last year, up 16 percent from 2010.” White also said, “Since 2008, the average number of promotional email campaigns sent by the top retailers to each of their subscribers has risen 51 percent.”

Heather Blank, Vice President of Strategic Services at Responsys, said the increase in numbers was tied mostly to, "More flash and daily deal promotions, as well as more retailers sending same-day reminder campaigns for large promotions.”

Let’s do some simple math. Based on the numbers above, retailers are sending emails about once every other day. If the average person subscribes to ten company emails, that’s 20 messages per week. What percentage of those deals actually filters through to the consumer? One step further: How many of those emails lead to conversion?

Studies have shown that at least 50 percent of the messages sent by retailers don’t reach their target. Common reasons include subjects not matching consumer interest and, for the purposes of this post, messages arriving too frequently. As the number of messages originating from retailers continues to increase – and there’s no indication it won’t – the numbers will likely increase. 

So what’s the solution? Improved targeting and improved consumer lifecycle management. Retailers need to realize the shotgun approach has diminishing returns. Building a database and bombarding consumers is a poor strategy. Identifying the right customers and hooking them with messages that meet their specific needs will improve returns. Customers that experience reduced email fatigue are more apt to absorb the message.

How do you respond to the email you currently receive from retail organizations? Have you reached your tipping point? What would improve your experience?