We are all aware of the potential costs of a CAN-SPAM violation ($16,000 per each individual email: ouch) and the cost to your brand reputation caused by emailing customers and prospects too frequently, but do you know how much revenue is left on the table when you only give the option of global opt outs to your subscribers?
As consumers, we receive dozens if not hundreds of email marketing messages daily. They come in the form of offers and promotional discounts, newsletters, event notices, etc. As an avid golfer, I receive quite a few emails from club manufacturers. I like to receive information about promotions and demo day events, but I am not particularly interested in hearing about one of their sponsored pros and how they fared in that week’s PGA event. Unfortunately, when I click unsubscribe, I am only given the ability to opt out of all of the emails for that brand, and for the brand, that can be costly. For instance when I opted out of the TaylorMade emails after the announcement that Jason Day won The Barclays in August, they missed the opportunity to send me offers around the holidays, and as a result, I ended up buying a few dozen personalized balls from another manufacturer who sent a timely email in December.
Missed Opportunities Add Up
According to Smarter Insights, 0.27% of all email recipients per send opt out of further email from the brand. When you factor in an industry average 0.4% conversion rate and an average order value of $182.92, lost revenue to opt-outs can quickly add up. If you are mailing weekly to a list size of 10 million, you could be losing over $1,000,000 in annual revenue.
A great way to reduce your potential lost revenue and to keep your customers and prospects engaged is to utilize a preference center.
What’s a Preference Center?
A preference center is a single page that allows users to opt in or out of only the types of messages they want to receive as well as control the frequency of those mailings. A Forrester study revealed that only 26% of unsubscribers do not want to hear from the brand ever again. That means that 74% of global opt-outs would rather customize their preferences than opt out of future messages from the brand, but unsubscribe because they have no choice. Many of you are already using a preference center for your internal email marketing, but now with UnsubCentral, you can deploy a preference center for your third-party acquisition mailings as well.
By using a preference center, you will not only reduce lost revenue due to opt-outs but will also provide your customers with a better user experience. Want to see it in action? Schedule your demo today.