Return Path - Email Winback Programs Report

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Email Win-Back Programs:


Everyone Recommends Them,
But Do They Work?

Email Win-Back Programs:


Everyone Recommends Them,
But Do They Work?

Weve missed
you!

Yes, But Not the Way You Think


Talk to a permission-based email marketing
expert long enough and sooner or later the
subject of win-back campaigns will come up.
Also known as lapsed-customer and
reactivation campaigns, email win-back
programs are considered must-haves in the
email marketers tool kit, according to the
experts.

Not surprisingly, email win-back programs


are very common, at least in theory. A
recent study by email technology provider
StrongView found that 50 percent of
marketers plan to focus on win-back
campaigns to reactivate inactive subscribers.
But do win-back campaigns work? The answer
is yes, but not in the way most experts think.
More on that later.

With mailbox providers using


engagement indicators, such as
marking email as spam and the
percentage of recipients that read a
campaign, as at least part of their spamfiltering formulas, win-back programs
are universally accepted as one way
to increase customer and subscriber
engagement and the likelihood of
getting commercial email delivered to
recipients inboxes.

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How Common Are Email WinBack Campaigns, Really?


Win-back or reactivation campaigns are a
staple in direct-marketing, particularly in
catalog marketing. But catalogs are expensive
to send and recipients who dont purchase
cost money.
As a result, its common for inactive catalog
customers to receive mailings with warnings
on them, that this may be the last time the
company contacts them.
The case for win-back efforts in cataloging is
a no-brainer. Inactive catalog recipients are a
drain on precious resources.

The case for email win-back campaigns in


email isnt nearly as straightforward. After all,
email costs very little to send. So if an email
address doesnt bounce, why remove it?
Return Path identified 33 retailers that
employed win-back campaigns from April 1,
2013 to January 31, 2014.
This small number shows that email win-back
campaigns arent as common as many of the
experts would have us believe.

33

retailers
employed win-back
campaigns

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Why Email Win-Back Programs Matter


Another important metric mailbox providers
use in their spam filtering systems is how
many email addresses that have been
recycled as spam traps a marketer hits. Inbox
providers turn some addresses that have
shown no log-in activity for a long period of
time into spam traps. Hitting recycled spamtrap addresses is a sign of a serious lack of list
hygiene. Spammers arent known for cleaning
their lists.

One of the methods mailbox providers


such as Yahoo!, Gmail and Outlook use to
determine whether or not incoming email
is spamand should be treated as suchis
monitoring how engaged recipients are with
a marketers messages.
Do they log in? How frequently? Do they
open and read or delete and ignore? There
is some debate as to truly how important
engagement metrics are, but the more
people who positively interact with a
marketers messages, the less likely that
marketers email will be treated as spam.

Click here

As loath as most marketers are to trim email


addresses from their filesemail lists are so
hard to buildthere comes a time when
inactive addresses should be removed in
order to avoid sending to unknown users
or recycled address spam traps and lift
engagement metrics to an acceptable level.
But simply culling an email list of inactive
addresses without trying to reactivate
them is unwise. Hence, the widealbeit
not universalacceptance of win-back
campaigns as a necessary tool for any email
marketing program.

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Inactive Subscribers Defined


There is an important distinction to be made
here: Email marketers define inactive very
differently than mailbox providers, mainly
because of the type of data to which they
have access.
Marketers define inactive subscribers as those
who have not interacted with their messages
for a certain period of time. How long
depends on the email marketers business
model. A seasonal retailer may define inactive
as someone who has not opened or clicked
on a message for two years, for example.

A key question: Is the address inactive,


period? Or is it just inactive with the
marketers brand? Its a question email
intelligence can answer.
Either way, most email marketers have a great
deal of dead weight on their files. According
to Return Path data, marketers on average
send 20 percent of their email to inactive
subscribers.
Thats a lot of room for money savings and
deliverability improvement.

Is the address
inactive, period?
Or is it just
inactive with the
marketers brand?

Mailbox providers define inactive subscribers


as those who have not logged in for a
certain period of time, and the percentage
of recipients that reads a given campaign.
Most mailbox providers consider an address
inactive if the address holder has not logged
in for 12 months.

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Whos Who in Your Subscriber Lists - How Mailbox Providers See Your File
Super Users

Engaged Personal

Super Subscriber

Engaged Secondary

This subscriber type loves email, and could be


considered disciples of Inbox Zero. They read most
of the email they receive, but tend to be picky
about what they subscribe to judging by the lack
of promotional emails in their inbox. However, they
read their promotional emails when delivered to
their inbox.

This type of subscriber also loves their inbox. They


log into their account almost daily and unlike the
Super Users, they dont adhere to Inbox Zero, and
are happy only reading whats of interest to them.

Inbox Overload isnt a myth with these subscribers.


Its a reality. These subscribers not only receive a
disproportionate amount of promotional email,
they also read very little of it, likely because they
receive so much of it.

This subscriber type is somewhat engaged and


active with their inbox and reads relatively few
messages that they receive. This account is likely
the email address they give out to businesses in
fear of being spammed.

Message Percent: 9%

Message Percent: 20%

Message Percent: 24%

Message Percent: 15%

Subscriber Percent: 6%

Subscriber Percent: 11%

Subscriber Percent: 9%

Subscriber Percent: 8%

Unengaged Secondary

Inactive Personal

Inactive Secondary

Idle Account

This type only engages with their account a couple


of times a month and thus reads very little mail.
This is likely a secondary account that is used
sporadically for specific subscriptions.

These mailbox types have not been used over


the past 30 days but receive an extremely high
percentage of personal looking mail.

These mailbox types have not been used over the


past 30 days and look to be like they were never
heavily used accounts. Because of the higher than
normal promotional emails received, these email
addresses were given to separate promotional
email from personal.

These mailboxes have neither interacted nor


received mail over the past 30 days.

Message Percent: 12%

Message Percent: 0.9%

Message Percent: 19%

Message Percent: 0.15%

Subscriber Percent: 10%

Subscriber Percent: 0.4%

Subscriber Percent: 25%

Subscriber Percent: 31%

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Email Win-Backs Work, But Apparently Not Right Away


While email experts consider win-back
campaigns a must-have marketing tactic,
rarely do they discuss if or how they work.

TOTAL WIN-BACK RECIPIENTS

Return Path studied email win-back


campaigns sent by 33 retailers.

Did not read

The numbers are revealing. First, win-back


emails are for the most part making it into
subscribers inboxes. According to Return Path
data, the inbox-placement rate for brands
using win-back emails is 92 percent.
The overall read rate for retailers sending winback emails was 14 percent, compared to a
12 percent read rate for win-back campaigns.
AOL subscribers had the highest read rate at
23 percent. Yahoo! subscribers had an average
read rate of 15 percent and Gmail subscribers
had a read rate of 16 percent.

Read

12%
88%

95%

94%

22% 23%

AOL

Studies have shown AOL users tend to skew


older and spend more, so they may be more
receptive to email win-back campaigns.

92%

91%

15% 16%

GMAIL

Inbox Placement Rate

Only, 12 percent of people who


received win-back messages read
them. But while this means 88 percent
of recipients didnt read win-back
messages sent to them, a 12 percent
read rate for disengaged customers is
still a pretty good result.

13% 15%

14% 15%

YAHOO

TOTALS

Total Read Rate

Inbox Read Rate

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Where things Get Interesting


While win-back emails have a respectable
engagement rate, what happens after those
messages go out may surprise some:

24%

45%

45 percent of recipients who received winback emails read subsequent messages. And
of that 45 percent, just 24 percent had read
win-back emails.
Conversely, of the 45 percent who read
subsequent messages, 76 percent had not
read any win-back messages.
Also, according to Return Path data, 4 percent
of subscribers who received win-back emails
stopped getting future emails. However, 85
percent of the 4 percent had read the winback message.

Moreover, the average length of time


between when people received a win-back
email and when they read a subsequent
message was 57 days - almost two months.
What is unknown is whether or not the winback emails had any significant effect on
recipients engagement with future emails.

A wiser approach is to send multiple


win-back emails before culling inactive
recipients. Even up to 300 days,
recipients were still opening email after
receiving the subsequent win-back
message. 75% of these subscribers
clicked on a subsequent message
within 89 days.

Conclusion: Immediately removing people


from an email list who do not respond to winback emails is not a good idea. You may be
removing people who are still engaged with
your brand or who respond to the message
by shopping at a bricks-and-mortar location,
or who may reengage in the future.

3000

2000
Count
1000

100

200

300

Day Gap

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What Works and What Doesnt


First, what doesnt. According to Return Path
data, re-permission campaigns had a dismal
1.8 percent read rate. Re-permission emails,
where the sender attempts to get long
inactive recipients to opt into receiving email
again, tend to be last-ditch efforts, so this isnt
necessarily a surprise.

However, reactivation emails with the words


miss you in their subject lines achieved a
13 percent read rate, and messages with
the words come back in their subject lines
achieved a 12.7 percent read rate.

Also according to Return Path data, win-back


emails with $ off discounts in their subject
lines were nearly twice as successful as emails
with % off discounts at getting people to
open and read them. Yet, most marketers use
% off in their win-back email subject lines.

Inbox

Miss You...

13%
Come Back!

12.7%

X2

higher opens for


dollar discounts

$50 off!
Special offer this week only $50 off

50% off!
Special offer this week only 50% off

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Conclusions
Win-back emails can be an effective way to
reengage subscribers as long as marketers
use the right data (read rates, inbox activity)
know what keywords are effective in subject
lines, and test to learn the optimal number
and frequency of win-back messages.

The key is not to measure win-back programs


as standalone campaigns. Send inactive
subscribers multiple win-back messages. Make
them enticing offers. Return Path data says $
off offers work best, but each marketer should
test to determine what works for them.

Give reengagement campaign recipients at


least two months to interact with the brand
understanding the interaction may not occur
with the win-back message.

Win-back emails can


be an effective way to
reengage subscribers as
long as marketers use
the right data

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Tips for Reengagement Campaigns


Use a shorter template and subject lines
(e.g., We Miss You or Was it Something we
Said?) that differs from your current emails
to try and capture attention.
Focus on one clear call to action.
If the email addresses have not been mailed
for an extended period of time and the file
size is large, send reengagement campaigns
from a different IP than that which is used
to mail to active, engaged subscribers.
Create a throttling schedule based on the
total size of the reengagement campaign
and deploy in smaller quantities to monitor
complaints, unsubscribes, and unknown
users.
Dont send only 1 reengagement email. Test
a variety of different content and calls to
action to try and reengage subscribers.

If providing an incentive, test different


offers. According to Return Paths research, $
off incentives performed better than % off.
Make this offer truly compelling and hard to
pass up.
Experiment with the tone and sentiment
that will be a good fit for your brand. Test
to determine whether your campaigns see
a lift with a straight-forward approach or a
more emotional appeal.
If possible, use any existing additional data
(beyond last engagement) to personalize
the email and increase the chance of
reengagement. Remind subscribers about
the value of receiving emails from your
brand.

Review your reengagement campaign


content and metrics regularly to ensure that
they continue to drive positive results.
Solicit feedback. Understanding why these
subscribers stopped engaging can help
inform future email program strategy and
reduce subscriber inactivity.
Dont remove subscribers immediately
after sending a reengagement campaign.
Provide the opportunity for subscribers to
reengage with your brand.
When you remove subscribers, be explicit in
communicating next steps and honor those
statements. It should be clear at what point
email messaging will cease.

Once the initial reengagement campaign


has been tested and deployed, create an
optimized triggered campaign that can be
sent to inactive subscribers once they hit
the defined inactivity threshold.
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About
Return Path

Canada

[email protected]

Return Path is the worldwide leader in email


intelligence. We analyze more data about
email than anyone else in the world and use
that data to power products that ensure that
only emails people want and expect reach the
inbox. Our industry-leading email intelligence

United Kingdom

solutions utilize the worlds most comprehensive


set of data to maximize the performance and

[email protected]

Germany
USA (Corporate
Headquarters)

[email protected]

accountability of email, build trust across the


entire email ecosystem and protect users from

[email protected]

France

spam and other abuse. We help businesses

[email protected]

build better relationships with their customers


and improve their email ROI; and we help ISPs
and other mailbox providers enhance network
performance and drive customer retention.
Information about Return Path can be found at:

returnpath.com
Methodology
Brazil

[email protected]

Australia

[email protected]

To conduct this research Return Path studied


a representative sample of 300 million email
messages sent to 100 million consumers by
brands in the most recent Internet Retailer Top
500 Guide. Win-back campaigns were identified
through subject line analysis and subscriber
engagement was measured using Inbox Insight,
an email intelligence solution that provides
behavioral analysis of the aggregated and
anonymous inbox experience of approximately
3 million mailbox users worldwide.
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