Commentary

Half of Opt-Outs Are For Irrelevant Material

According to a new poll from the Chief Marketing Officer Council, 64% of consumers say promotional offers dominate both the email and traditional mail they receive, and only 41% view these as must-read communications. Of the 91% of consumers who opt out or unsubscribe to emails, 46% are driven to brand defection because the messages are simply not relevant.

Reasons US Internet User Unsubscribe from Email Newsletters (% of Respondents Unsubscribed)

Reason

% of Unsubscribers

Not relevant

46%

Too many to manage

23

Cause clutter in inbox

16

Not from trusted source

16

Source: CMO Council and InfoPrint Solutions, November 2009

41% of consumers say they would consider ending a brand relationship due to irrelevant promotions, and an additional 22% say they would definitely defect from the brand. Yet, while marketers continue to weigh the pros and cons of email versus printed postal mail, consumers are much more concerned about the level of individualization and understanding of their needs and relationship with the brand.

Key findings of the consumer engagement study highlighted in the report, Why Relevance Drives Response and Relationships, showed that:

  • Nearly three quarters of consumers have received promotions for products they have previously purchased from the company
  • 73% of consumers would be open to receiving print statements if mailed materials were recyclable or part of a sustainability program
  • Nine out of ten consumers open monthly bills delivered via traditional mail, compared to 72% who open bills delivered via email
  • When given the opportunity to choose, 51% of consumers prefer to receive product or service promotions via traditional mail while 44% prefer email

Types of Email US Internet Users Always Open

Type of Email

% of Respondents

Monthly bills

72%

Bank statements

60%

Promotional offers

41%

E-newsletters

40%

News alerts

37%

Source: CMO Council and InfoPrint Solutions Company, November 2009

The CMO Council report found that consumers are overloaded with unwanted direct marketing and promotional messages that are blasted out via email, or mass-produced and mailed in vast quantities, choking mail boxes and filling recycling bins. In most cases, recipients ignore, or have become immune, to standardized commercial overtures. And with the advent of the Internet, consumers are seeking product information and affirmation from trusted sources and referral networks online.
 Liz Miller, Vice President, Programs and Operations, CMO Council, said "Irrelevant, impersonal communications... (do) not engage a receptive recipient... customers will disconnect and stop doing business with brands who continue to send messages that demonstrate a lack of intimacy, customer insight and individual understanding."

 Even when marketers have deeper engagements with customer, as with loyalty clubs and rewards programs, they are often missing the mark in delivering meaningful messages. In fact, only 6% of consumers felt that the promotions received through loyalty club communications were based on preferences or past purchasing behavior. 30% of consumers stated they are inspired to do business with a company after receiving personalized communication.

Sandra Zoratti, Vice President, Global Solutions Marketing at InfoPrint Solutions Company, concludes that "The research... shows that staying relevant, valued and connected to customers has become the number one challenge for marketers today..."

Additional report highlights:

  • Traditional junk mail accounts for over 100 billion pieces of mail each year, and 44% of this unsolicited, primarily promotional mail ends up in a landfill...unopened
  • Email waste is also staggering. There is more than 200 billion email messages sent each day, yet 97% of all email sent is actually spam, according to an April, 2009 report released by Microsoft
  • Cisco reports "customized" spam that is based on personal information stolen from the web has quadrupled over the last 12 months (2009)
  • The average email open rate across 16 industries during Q2 of 2009 now stands at 22.2%, and has increased for the fourth quarter in a row
  • About 3.3% of opt-in emails for subscribers in the US and Canada were sent to "junk" or "bulk" email bins, while 17.4% did not get delivered at all
  • Forrester reports that by 2014, email marketing spend will rise to $2 billion - almost double the projected spend of $1.2 billion for 2009
  • The average individual is expected to receive 25 messages a day in five years, double 10 or 12 emails received now

For additional information from the CMO council and a  complimentary summary of findings, please visit here.

1 comment about "Half of Opt-Outs Are For Irrelevant Material".
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  1. Howie Goldfarb from Blue Star Strategic Marketing, December 1, 2009 at 1:59 p.m.

    This proves why I am against the surge in Mobile SMS Loyalty Campaigns. When someone signs up for future offers eventually this will accumulate and be no different than email. Soon inboxes are filled with clutter not immediate to us. The key is to have impact. If it is a loyalty program give stuff away free. If I knew once a month Quizno's was sending me a free sandwich in my inbox I will open it. But if the offer is the exact same found in the newspaper, online, in the store etc..yawn...opt-out.
    Great data thank you!

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