Tough economic times increase the pressure on marketers to hit their goals for open rate, click throughs, conversions, and new email subscriber acquisition. Some marketers believe renting email lists is a way to reach these goals.
MarketingSherpa reports in their new 2009 Email Marketing Benchmark Guide that 29% of B2B marketers plan to increase spending on third-party list rentals (compared to 23% planning cuts). In this free excerpt of the report, their experts weigh in on this development:
"Pressure to meet numbers has always been a problem for email. It forces marketers to send too many emails to too many list members - the 'batch and blast' mentality that has eroded the trust of consumers and business[people] over the last 10 years...and that's not necessarily good for the long-term health of the medium."
(If you are interested in this report, you can get more information at the end of this post.*)
And yet, later in the excerpt, they report that 66% of consumers would be much more or somewhat more likely to subscribe to an email list if the company guaranteed not to share their information with other companies.
So, in this next year, we can expect to see businesses engage in an activity that decreases customer trust and engagement with that very business. A lot of marketers could kill their email list in 2009.
List Rental's Influence On Relevance
Let me be clear: companies who use rented lists are inherently and unquestionably going to deliver content that is less relevant than what the subscriber signed up for. Period.
Lowered relevance equals lowered trust. The customer will trust both companies less - after all, one sold her information and the other delivered spam. Unless she agreed to receive third-party emails (and a default checked box does not mean agreement), she will likely unsubscribe and refrain from doing business with either company.
Lack of relevance is one of most complained about email marketing practices. From a recent eMarketer article: "'There is a substantial gap between what marketers believe is relevant to the consumer, and what the consumers rate as valuable,' said Lori Connolly, director of research at Merkle."
List rental is the toxic waste of online customer relations. It poisons everything it touches.
Marketing In A Recession
A recent Merkle study, as reported in that same eMarketer article, said that about one-third of respondents said "they had stopped doing business with at least one company as a result of poor email marketing practices." That's almost the same percentage of B2B marketers who expect to increase their spam through list rental in 2009.
List rentals equal decreased relevance. Decreased relevance equals decreased trust. Decreased trust during an economic slowdown equals a serious threat to your business.
Loren McDonald from MediaPost's Email Insider explains:
"Consumers with a growing concern about the future of the economy and their own pocketbooks with increasingly choose to do business with companies they trust and may be less likely to risk their personal data and inbox space on unknown entities or those for whom trust is questionable."
You can't afford to kill your email list during this economic downturn. But building your own list, building trust, and staying relevant can avert this disaster.
What do you think? Am I totally off-base? Or do you have a list rental horror story to share? Feel free to use the comments section below.
(Image courtesy of stublog via Flickr)
(*The Email Benchmark Guides are one of my favorite resources. It's a little pricey, but if you put the knowledge therein to use, you will likely save much more in the long run. Here's a link if you want to purchase the new version: MarketingSherpa's 2009 Email Marketing Benchmark Guide.
Yes, I'm an affiliate, but I was singing their praises long before I signed up and I wouldn't be an affiliate if I didn't believe in their work. Plus, as an affiliate, I can occasionally get you discounts on their reports - yet another reason to subscribe.)