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The benefits of permission based email marketing

The benefits of permission based email marketing

Posted 2 December 2009

   

There are many ways of building email lists, but only a couple that are completely legal. Undoubtedly, having an up-to-date email list with exclusively double opt-in subscribers will result in a smaller list, but it does have major advantages: better response rates, increased trust and better deliverability.

It's often difficult to convince fellow managers that a smaller permission based email list will be better for the company than a huge list of unsolicited emails, especially at a time when sales are hard to come by. The reality is though; size doesn't matter. What counts is the results.

What is permission email marketing?

Quite simply, it's to say a user has consented to receiving emails. However, there are varied ways of providing permission which massively influences the effectiveness of an email list.

Soft Opt In

Here is where you may have received the contact details from someone who has enquired into a service you provide. You are allowed to email this user about your business.

Implied Opt In

This is where you may fill in a web form to download a free guide or similar. In return, you have to provide contact information which will involved your email going onto their list.

Expressed Opt In

Expressed permission is where somebody actively ticks a box requesting your emails when filling out some kind of web form. It's important to note that a box that is already ticked does not have the same value (it's called opt-out), the user may have simply missed it. Consequently, don't expect the same results from this method!

Double Opt in

The above is the more typical way of building a permission based email list, but double opt-in goes a step further. It requires the user to confirm their subscription after receiving a validation email. This ensures the email address is both correct and is another thumbs-up that they want to receive your emails.

Why it makes sense to go permission based

So expressed and double opt-in are the forms of permission are the suggested best practice, but why should you go to all of that time and trouble?

Research from a leading email company showed that the switch to an opt-in email list received Click Through Rates (CTR) of 5-10%. In comparison, their opt-out list (where they user had to un-tick a box to not subscribe) received a CTR as low as 0.3%.

The problem with the opt-out method is that you will receive far more unsubscribes and spam complaints. This will quickly reduce the size of your list massively, whereas in comparison an opt-in list will shrink at a much slower rate. Once a few emails have been sent out, the difference in list size could be much smaller than at the start!

A study by AOL showed e-newsletters that used double opt-in had a lower unsubscribe rate - an average 7.6% - compared with single opt-in messages, which had an average 22.2% unsubscribe.

Email recipients say they open emails from those they recognise and trust and delete unopened email from unknown or suspicious-looking senders. Findings from IMT Strategies revealed that 76% percent of consumers delete an unsolicited email without even reading it, compared to 2% for a permission email.

Renting non-permission email lists

Renting email lists can often come down to which is cheapest. It's important to know exactly what you're getting. Are they opt-in? If so, what kind of opt-in?

Where email lists are rented out to many companies, there is usually no facility for email address owners to keep their details up-to-date. There is simply no motivation to do so. Consequently, It's widely recognised that a list of two years old has up to 50% of emails that no longer work. So that could mean you're getting half the information you thought you had paid for.

With many email clients providing a spam button, many recipients on email lists are used to hitting it rather than going through the process of unsubscribing. After all, it's quicker and makes no difference to them when they should only receive your email the once. Too many spam complaints and it could get you put on black lists by Internet Service Providers, preventing your emails from getting delivered again.

If a rented email list is appears cheap, find out why. Compare how lists from different companies were generated, find out how targeted they are and how often they are updated.

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