Advantages of Building an E-Mail Marketing List
E-mail marketing: it has quickly become one
of the hottest new industries of the past decade, with more people than
ever seeing substantial returns on this investment. But if you're new
to e-mail marketing, there's usually just one question on your mind...
how do I get started?
There are two primary options available to choose from when establishing your e-mail marketing program: 1) Create an in-house, opt-in list of your own, or... 2) Purchase / rent a list from one of the many suppliers that have
already taken the initiative of creating a list for your specific
industry. In this article we're going to examine the top three
advantages of creating your own list vs. purchasing or renting a list. First and foremost, to create an opt-in list of your own, you have
to give something of value to your subscribers - in other words, give
them a legitimate reason to share their contact information with you.
This can be in the form of a white paper, an e-letter, a document
containing helpful tips for your particular industry, or any other
offer that really piques the consumer's curiosity. For instance, a
consumer opting in to receive information on eating right and
maintaining a healthy lifestyle will likely be interested in weight
loss offers. The advantage here is that you know that the subscriber
has a genuine interest in your company and services, while if you were
to purchase / rent a list, you really have no way of knowing how those
e-mail addresses were sourced, or if the individuals on the list
actually have an interest in your product or service. Secondly, you must adhere to the CAN-SPAM Act of 2003, which
basically states that all e-mail marketers are only allowed to send
messages to subscribers who have opted-in to their list. If you're
purchasing / renting a list, it's virtually impossible to be 100%
certain that the supplier you're using has fully complied here. Most
will say they have used best practices to build the lists that they're
offering, but taking a chance like that could lead to complaints
against your IP address, which means problems with the ESPs (e-mail
service providers). Ultimately, this can translate into fewer and fewer
of your e-mails actually reaching the consumer's inbox. Finally, and this point is crucial, when you create your own opt-in
list via your website, you have the opportunity to a) require specific
information that you simply could not receive when purchasing / renting
a list, and b) know exactly where and why someone signed up for your
list. The advantages here lead to one key word: Segmentation. When you
know details about a subscriber, such as where they visited on your
website and what they were interested in, you can tailor an e-mail
specifically to those exact interests. This greatly increases the level
of personalization by segmenting your list into what you deem to be
relevant categories. There have been many studies conducted over the
past few years with a focus on this topic, and in every one, the
segmented e-mail not only beats the generic e-mail in terms of
conversions, it usually does so by a substantial number. Sears
introduced a personalization program that also let subscribers choose
the kinds of e-mails they wanted to get. The reported results of the
move away from batch and blast (based on A/B tests): "41% increase in revenue per clickthrough, a 178% increase in
conversion, a 59% increase in average order volume and a 215% increase
in clickthroughs." (Segmentation 1) In conclusion, while it may seem easier and more convenient (at
least in the short-term) to purchase or rent a list from a third-party
supplier, that is not always the best course of action. If you're
looking to establish the strongest relationship possible with your
consumers, while receiving the maximum ROI, then it is highly
recommended that you go the extra mile and really take the time to
build your own opt-in list. Reference: "Does segmentation work? Stats and case studies" E-mail Marketing Reports. 07 Jan. 2009 Todd Armstrong is an Affiliate Strategist for Clickbooth and an experienced member of the E-mail Division.
( http://www.email-marketing-reports.com/iland/2008/10/does-segmentation-work-stats-and-case.html )
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