2013 CONSUMER VIEWS OF EMAIL MARKETING

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2013 CONSUMER VIEWS OF EMAIL MARKETING
BLUEHORNET REPORT:

2013 CONSUMER
VIEWS OF EMAIL
MARKETING
For two consecutive years, BlueHornet has surveyed over 1,000
consumers across the United States to better understand their
behavior and sentiment around email marketing.

By surveying similar demographic groups and asking several
of the same questions each year, we’ve been able to identify
some changes that have occurred in how consumers view email
marketing. And by including new questions for 2013, we can
offer insight into possible future trends and behavior patterns
that marketers may use to augment their existing subscriber
response data.

In addition to providing our 2013 survey results and analysis,
this report also includes recommendations for ways marketers
may use the information for email program optimization.
2013 CONSUMER VIEWS OF EMAIL MARKETING
TABLE OF CONTENTS

3 . . . . . About the Study

4 . . . . . Email Acquisition: How and Why Consumers Sign Up to Receive Emails

7 . . . . . Mobile Usage and Sentiment

11 . . . . Email Usage, Engagement, and Purchase Behavior

15 . . . . Advanced Targeting

17 . . . . Why Consumers Unsubscribe from Email Marketing

19 . . . . Conclusion

                                                  Report: 2013 Consumer Views of Email Marketing
2013 CONSUMER VIEWS OF EMAIL MARKETING
ABOUT THE STUDY
Methodology
The questionnaire for this survey was developed by BlueHornet with assistance from Flagship Research. The
survey was administered to a national panel of 1,002 consumers across the United States between the ages
25 and 40 who live in urban or suburban areas; 77% of whom are employed and 76% with an income over
$35,000.

Which of the following best describes                                   What is your total annual
your current employment status?                                         household income?

                                            67.6% Full-Time                                         6.0%   under $15,000

                                            9.5%   Part-time                                        4.1%   $15,000 to $19,999

                                            3.4%   Unemployed Student                               13.6% $20,000 to $34,999

                                            7.8%   Not Employed                                     16.7% $35,000 to $49,999

                                            0.2%   Retired                                          25.2% $50,000 to $74,999

                                            10.3% Homemaker                                         17.1% $75,000 to $99,999

                                            1.2%   Other                                            17.2% $100,000 or greater

Research Objectives
The primary objective of this research was to gain first-hand responses from consumers about their
understanding of and sentiment toward email marketing. Our secondary objective was to identify significant
changes in perception from a similar survey we conducted in 2012.

Survey questions were developed and categorized according to these areas of email marketing:

   • Email Acquisition – How and why consumers sign up to receive emails
   • Mobile Usage and Sentiment – Use of email-enabled mobile devices and how email marketing is
     perceived when viewed on a mobile device
   • Email Usage, Engagement, and Purchase Behavior – Factors that influence engagement and
     conversion
   • Advanced Targeting – Consumer trust in and perception of data-based targeting
   • Unsubscribing – Reasons to unsubscribe and the likelihood of opting ‘down’

©2013 BlueHornet Networks, Inc. A wholly owned subsidiary of Digital River, Inc. | BlueHornet.com                   Page 3
2013 CONSUMER VIEWS OF EMAIL MARKETING
EMAIL ACQUISITION:
HOW AND WHY CONSUMERS SIGN UP TO
RECEIVE EMAILS
For the second consecutive year, discounts remain the most important reason consumers sign up to receive
emails from companies. And sentiment remains strongly against the practice of sending promotional emails
to consumers who, although they’ve purchased from a brand, haven’t specifically signed up for the brand’s
email program.

In the past year, which of the following means have you used to
subscribe to an email program? (Check all that apply)
  Given email to the sales
                                                                 53.0%
     clerk at point-of-sale
                                                                                                        In addition
              Wrote email
          on a paper form                                39.8%                                         to traditional
     Entered email within                                                                                methods,
          sign-up form at                                                     82.0%
          brand's website                                                                             consumers are
         Entered email on
        email opt-in page
     on brand's social site
                                                         39.7%                                         using mobile-
     Entered email within                                                                            specific channels
            sign-up form                         28.0%
       within mobile app                                                                              (apps and text-
Sent email address as text
    message to the brand                 14.5%                                                        to-join) to sign
                                                                                                        up for email
            None of these           9.4%
                                                                                                         programs.
                              0          20        40            60      80           100

Which of the following is your most important reason for
signing up to receive emails from companies seeking your
business?

                                                                         72.6%
      To receive discounts
                                                                                 83.5%                Consumers love
                                                                                                        discounts. In
          To get product/
                                    9.1%
                                                                                                       fact, they love
         services updates
                                   6.4%                                                                 them almost
                                    8.2%
                                                                                                      11% more than
        If I love the brand
                                   7.0%
                                                                                                          last year.

                                    10.0%                                         2012
         To participate in
         product research                                                         2013
                                  3.1%

                              0          20        40            60      80         100

                                                                                            Report: 2013 Consumer Views of Email Marketing
2013 CONSUMER VIEWS OF EMAIL MARKETING
Are you more likely to sign up for emails if celebrities or
experts endorse the brand or their products?

                                                                                             24.8%

                                           Yes
                                                                                    20

                                           20.7%
                                                                                    15               16.6%

                             No
                                                                                    10

                          79.3%
                                                                                     5

                                                                                     0
                                                                                             Yes       Yes
                                                                                             Male    Female

           Celebrity endorsements, while not a major influencer of email sign
            ups, matter more to male respondents (25%) than females (17%).

Do you believe that it’s OK for a company to start sending you
promotional emails if you have purchased something from
them but you didn’t specifically sign up to receive emails from
them?

                                 75.8%      75.4%
                        70

                        60

                        50                                               In 2013, consumers still do
                                                                       not feel that a purchase alone
                        40
                                                                       gives brands the permission to
                        30                                                 send marketing emails.
                        20

                        10

                         0
                                   No          No
                                  2012        2013

©2013 BlueHornet Networks, Inc. A wholly owned subsidiary of Digital River, Inc. | BlueHornet.com             Page 5
2013 CONSUMER VIEWS OF EMAIL MARKETING
Key Takeaways for Email Marketers:
 • Consumers are comfortable sharing their email addresses with companies via a variety of online and
   offline channels. Consider adding additional methods of acquisition to your program or try replacing
   labor intensive point-of-sale collection efforts with a cost-effective and easily implemented text-to-join
   SMS program.

 • In exchange for their email address, consumers expect value, often in the form of a special offer.
   However, remember that your email program is an extension of your brand persona—not simply a
   coupon distribution channel. Make sure there is a strategy behind the discounts that you offer, use
   discounts to elicit a specific strategic customer behavior, and always keep the strategy in alignment with
   your brand.

 • Consumers want email to be on their terms. Avoid making “marketer-centric” assumptions whenever
   possible, whether they’re related to celebrity endorsements, email opt in, or other aspects of your
   program. A/B testing and customer surveys are better bets than assumptions.

                                                                       Report: 2013 Consumer Views of Email Marketing
2013 CONSUMER VIEWS OF EMAIL MARKETING
MOBILE USAGE AND SENTIMENT
Almost 85% of respondents own a mobile device such as a smart phone that is enabled to receive email. Many
cite their mobile device as the method they use most often for reading emails and managing their inbox.

Consumer sentiment around mobile coupons and purchasing from mobile emails is generally favorable.
However, tolerance for poor mobile design or rendering is very low.

Do you own a mobile device such as a smart phone that is
enabled to receive email?
                  100

                   80                    84.8%

                            76.74%

                   60
                                                                        Email-enabled mobile
                                                                        device usage is up 8%
                                                                              from 2012.
                   40

                   20

                    0
                               Yes          Yes
                              2012         2013

Where do you most often read your emails?

                                                  Tablet

                                        6.9%

                                                                                        43% of consumers
                                                                                       say they read emails
                                             Smartphone                                  most often on a
              Desktop or                       36.4%
            laptop computer                                                               mobile device.
                 56.3%

©2013 BlueHornet Networks, Inc. A wholly owned subsidiary of Digital River, Inc. | BlueHornet.com             Page 7
2013 CONSUMER VIEWS OF EMAIL MARKETING
Do you use your mobile device to sort through your emails
before you read them on your desktop?

                            15.8%                                   2012           In 2013, about
   Always                                                                             7% more
                               20.4%                                2013
                                                                                     consumers
                                                                                    report using
                                                          52.8%                     their mobile
Sometimes                                                                         device to triage
                                                            55.3%                 emails some or
                                                                                  all of the time.
                                            31.4%
    Never
                                    24.0%

            0      10   20           30       40     50    60

How likely are you to show your mobile phone to a store cashier
to redeem a discount code, barcode, or online coupon instead
of printing the coupon and bringing it to the register?

                                             Don't Know

                                    5.3%

                                             Not at
                                            all Likely
                                                                      Consumers like the
                Extremely
                  Likely                      20.5%                   idea of using their
                  36.0%                                                 mobile device to
                                                                       redeem discounts
                                                                         and coupons.

                             Somewhat
                               Likely
                               38.2%

                                                                       Report: 2013 Consumer Views of Email Marketing
How likely are you to buy an item or service from an email you
read on your mobile?

                           Extremely          Don't
                               Likely
                                              Know
                                9.8%
                                              12.7%

                                                                                           63% of consumers
                                                                                            say they may buy
                                                         Not at
                                                        all Likely                         from an email read
                                                          24.2%                            on a mobile device.
                   Somewhat
                     Likely
                     53.4%

If you get a mobile email that doesn’t look good, what
do you do? (Check all that apply)

                                                                           69.7%
           Delete it                                                                                 The number of
                                                                                   80.3%
                                                                                                    consumers who
                                          18.0%
                                                                                                    may unsubscribe
      Unsubscribe                                                                                    after receiving
                                                  30.2%
                                                                                                     a mobile email
      Look at it                          17.7%                                                       that doesn’t
on my computer                       13.5%
                                                                                                     look good has
                                                                                                       increased
                                7.6%                                                                 significantly
 Read it anyway                                                                        2012            since 2012.
                               6.3%

                                 9.4%                                                  2013
      Don't know
                              3.8%

                       0             20            40           60            80           100

©2013 BlueHornet Networks, Inc. A wholly owned subsidiary of Digital River, Inc. | BlueHornet.com                 Page 9
Key Takeaways for Email Marketers:
 • Because of the ubiquity of email-enabled mobile devices, email programs must be developed to be
   viewed, managed, and engaged with on consumers’ mobile devices. Making sure that your email
   creative and user experience is optimized for mobile is no longer optional.

 • Survive mobile triage efforts--keep subject lines relevant and focused on consumer value. Use pre-
   header text.

 • Want a win over the competition? Make it easy for subscribers to redeem your coupons from their
   mobile device.

                                                                     Report: 2013 Consumer Views of Email Marketing
EMAIL USAGE, ENGAGEMENT,
AND PURCHASE BEHAVIOR
Once consumers subscribe to your email program, they expect to receive a welcome email from you. In return,
you can expect access to their eyeballs throughout the day, and sometimes access to their social networks.

Consumers are most likely to open emails when the subject line is aligned with their purchase behavior.
They’re most likely to buy from your email if the price is right and they’ve done business with you in the past.

Do you expect to get a welcome email when you sign up?

Yes (2012)                                                                                          75.7%        Expectations
                                                                                                               around receiving
Yes (2013)                                                                                          74.4%      a welcome letter
                                                                                                                 remain high.
              0      10          20     30          40             50          60        70        80

When do you typically read personal email?

              Morning                 10.9%
                                                                                                                Consumers see
                                                                                                               marketing emails
              Evening                       17.3%                                                                throughout
                                                                                                                   the day.
Throughout the day                                                                                  71.8%

                        0        10    20       30            40          50        60        70        80

What do you share to your social networks (Facebook / Twitter)?
                                                                                    41.9%
Web pages
                                                                                     42.3%
                                                                                                               Sharing email to
                                                                    32.1%
   Products
                                                                      34.4%
                                                                                                               social networks
                                                                                                               is down slightly
                                                                             37.3%
      Email                                                                                                        in 2013.
                                                                        32.7%

                                                                         34.5%
   Nothing
                                                                           36.3%                        2012

                            5.9%                                                                        2013
     Other
                             6.9%

              0             10          20               30                    40             50

©2013 BlueHornet Networks, Inc. A wholly owned subsidiary of Digital River, Inc. | BlueHornet.com                            Page 11
Generally speaking, if you don’t immediately open and read an
email, what do you do with it?

                           63.0% Save it for later
                                                                       Consumers save
                                                                       unopened emails
                           25.6% Delete it
                                                                         to read later.

                           7.3%    Put it in a folder

                           4.1%    Don't Know

What is most likely to cause you to open and read an email
from a retail brand?

                           45.4%
                                   Subject line mentions
                                   a discount or special offer
                                                                                 Consumers
                                 Subject line promotes a                           indicate
                           35.7%
                                 product you're interested in                         that
                                   Subject line refers to a product
                                                                                 subject line
                           7.0%
                                   you recently looked at online                  relevance
                                                                                    trumps
                           6.8%    Don't Know                                     efforts to
                                                                                  be clever
                           4.2%    Subject line is humorous                       or overly
                                                                                   familiar.
                                   Subject line includes
                           0.9%
                                   your first name

                                                           Report: 2013 Consumer Views of Email Marketing
What types of emails are you most likely to open?
(Check all that apply)

80         69.7%              69.8%
70                                                                                                          Consumers
60                                                                                                           are more
50                                                                                                              likely
40                                                                                                            to open
30                                                                                                             emails
                                                    17.6%            15.7%                                      from
20
                                                                                         7.3%                  brands
10
                                                                                                              they’ve
 0                                                                                                          purchased
       Emails from         Emails from        Emails from     Emails that               None
      brands whose        brands whose        brands that I      contain               of these               from in
        products I          products I        don't usually    news and
         purchase           purchase             purchase      content -                                     the past.
      in-store often       online often        from, but I   not specifically
                                                like to get     product
                                               inspiration       related
                                               from their
                                            style & products

How much influence does each of these factors have in causing
you to purchase from an email? (Please use a scale of 1 to 7,
where 1 means very little influence and 7 means a great deal of
influence.)

                    7                                        6.03            5.93
                                             5.68                                           5.68
                    6       5.13
                    5                                                                                   4.24

                    4
                    3
                    2
                    1
                    0
                           Brand          Quality           Price        Discounts          Free       Reviews
                                                                                          shipping   displayed in
                                                                                                      the email

                   Consumers say that each of these factors influence whether
                               they will purchase from an email.

©2013 BlueHornet Networks, Inc. A wholly owned subsidiary of Digital River, Inc. | BlueHornet.com                   Page 13
Key Takeaways for Email Marketers:
Viewed collectively, consumers’ email usage, sentiment, and purchase behavior point clearly to one thing: the
value of a strong relationship between your brand and your customers.

   • The relationship starts early. Send a welcome email that sets expectations you’re willing and able to
     meet or exceed.

   • The relationship might be serious. Our survey respondents didn’t take to fun or overly personal subject
     lines, but yours might. Be sure to test often.

   • The relationship should be unique. While only 15% of the consumers we surveyed picked content emails
     as the ones they’re most likely to open, those types of emails can be valuable relationship and brand
     builders. Consider adding a content-specific offering to your email preference center.

   • The relationship wins you business. Develop targeting strategies based on purchase recency, frequency,
     and monetary value.

                                                                        Report: 2013 Consumer Views of Email Marketing
ADVANCED TARGETING
Consumers seem cautiously optimistic about the use of their data to conduct the types of advanced targeting
efforts that are intended to provide added consumer convenience and/or value.

If you received an email from a retailer promoting products
that you just looked at on their site or put into an online
shopping cart but did not purchase, which of the following best
describes your perception?

                                                                   The email is relevant

                  8.6%
                                                                   and valuable                          A slight
                                                                   The email is intrusive and
                                                                                                       majority of
                                                                   “big brotherish”                 consumers find
                                   32.7%                                                             re-marketing
                                                                   I don’t care either way            emails to be
        29.2%                                                                                         relevant and
                                                                   I've never received an            valuable. Less
                                                                   email like that
                                                                                                     than 1/3 find
                         29.4%                                                                      them intrusive.

If you could sign up to receive location-based offers on your
mobile device, so that you could get real-time notifications
when you’re near a particular retailer or business, would
you do so?

                             6.5%                                  Only if I trust the brand
                                                                                                          Most
                                                                   No, because I have               consumers will
            23.8%
                                                                   privacy concerns                  only consider
                                      24.2%                                                            opting in
                                                                   Yes                                to location-
                                                                                                    based offers if
                                                                   No, reasons other
                                                                   than privacy
                                                                                                     they trust the
                                                                                                         brand.
                  45.6%

©2013 BlueHornet Networks, Inc. A wholly owned subsidiary of Digital River, Inc. | BlueHornet.com               Page 15
Key Takeaways for Email Marketers:
 • Regardless of your current email program’s level of sophistication, recognize that almost nothing you
   do is perceived neutrally by consumers. Instead, every component of your program has the potential to
   build or erode consumer trust. That trust is valuable to you today and it will increase in future value as
   you develop programs that rely on customers granting you access to more personal data.

 • If you’re not currently conducting cart abandonment or re-marketing campaigns, look to develop a test
   program today.

                                                                       Report: 2013 Consumer Views of Email Marketing
WHY CONSUMERS UNSUBSCRIBE
FROM EMAIL MARKETING
In 2012, the primary reason consumers told us that they unsubscribe from an email program is because they
feel they’re getting too many emails that are irrelevant to their interests and preferences. Frequency came
in a very close second. One year later, frequency has moved ahead of relevance as the primary reasons for
unsubscribing--by a margin of over 10%. The good news for email marketers? “Opt down” programs can help
reduce churn.

When you unsubscribe, what is the primary reason?

 40             35.4%                                                                     2012
 35     30.7%              31.4%                                                                         New in
                                                                                          2013
 30                                                                                                   2013: High
                                   24.5%
                                             22.7%
                                                     23.5%                                             frequency
 25
                                                                                                      drives more
 20                                                                                                  unsubscribes
                                                                       14.0%
 15
                                                               12.4%                                than relevance
                                                                                                     by over 10%.
 10
                                                                                  2.8% 2.7%
   5

   0
        Frequency          Relevance         Inbox is            Tired of        Some other
                                            overloaded          the brand          reason

If you click to opt out and are presented with the option to “opt
down” (change the frequency, subscription topics, etc.) would
you remain on the list?

                                                                         59.4%

 60                                                                                  52.9%           Compared to
                 2012
                                                                                                    last year, more
 50              2013                                                                                  consumers
                                                                                                      will consider
 40
                                                                                                     opting down
 30
                                           25.6%       26.8%                                           instead of
                        20.3%                                                                        unsubscribing
  20        15.0%                                                                                     when given
                                                                                                      the option.
  10

   0
                 Always                      Sometimes                         Never

©2013 BlueHornet Networks, Inc. A wholly owned subsidiary of Digital River, Inc. | BlueHornet.com               Page 17
Key Takeaways for Email Marketers:
We believe that managing B2C email volume and frequency, along with the accompanying challenges of
hanging on to consumer mindshare in an increasingly noisy digital environment, will be among the central
issues marketers will face in 2013 and beyond.

   • According to our survey, even relevant email programs can get dropped by consumers who can’t
     manage the volume. Definitely make sure your preference center gives customers ways to manage their
     number and type of subscriptions, at minimum. Better yet, let them control the frequency, or move to a
     weekly digest email.

   • A number of companies are now providing inbox management tools to consumers, many of which
     automatically route emails to folders before the consumer ever sees them. While this can seem daunting
     to email marketers, it can also provide new opportunities to develop a “foldering strategy.” A basic
     program could include adding urgency to subject lines and offers. A more sophisticated one could
     leverage the fact that when consumers sit down to their shopping folder, you know they’re ready to
     shop. What data can you collect and use to maximize each of these occasions?

   • Monitor unsubscribes and look for patterns that tie to frequency. Conduct a one-question unsubscribe
     survey that lets your customers tell you why they’re leaving.

                                                                      Report: 2013 Consumer Views of Email Marketing
CONCLUSION
One year after BlueHornet’s initial consumer
survey, our conclusion is that the overall outlook
for email marketing seems more positive than ever:        Video: Going Beyond the Data

  • Thanks to continued adoption of mobile
    technologies, consumers are able and willing
    to take email everywhere they go.

  • Because of marketers’ responsible use of
    customer data to develop relevant email
    programs, consumers express comfort in
    joining and engaging with these programs in
    exchange for value and special benefits.

  • Through their actions as well as their
    statements, consumers indicate an increased              To give a human face to the
    awareness in the value that their email                 research in this report and to
    address has to marketers. Consumers                     help shed more light on what
    understand that they have significant
    leverage with marketers that they can flex             people love and hate about email
    via engagement with campaigns as well as              marketing, BlueHornet conducted
    through their purchasing power.                       video interviews with consumers
                                                          who fit our survey demographic.
  • In general, there’s really only one thing
    consumers indicate that they really dislike
                                                           Hear what they had to say.
    about email marketing from reputable brands,
    and that’s the frequency. Marketers who can
    find the sweet spot that balances consumer              bluehornet.com/consumer2013
    value, email volume, and revenue generation
    should find an unparalleled opportunity to
    sell their products to smart consumers who
    make conscious decisions to buy from them
    instead of their competitors.

EMAIL DONE
DIFFERENTLY.
BlueHornet helps companies do email marketing
differently. The world’s most talked-about brands
partner with us to turn customers into raving
fans. They rely on BlueHornet’s powerful, yet
simple-to-use email technology, unique Support²
service model, and proactive inbox deliverability
management to rise above the noise and put their
message everywhere their customers are – whenever
they want it. To learn more, contact us today:

BlueHornet                    (866) 586-3755
2355 Northside Drive          www.bluehornet.com
Suite B250                    sales@bluehornet.com
San Diego, CA 92108           Twitter: @bluehornetemail
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