Overview

Recent consumer email studies point to an increasing acknowledgement of email as a legitimate and relied-upon marketing channel. Despite the fact that two-thirds of emails received are considered spam, consumers are increasingly likely to make purchases either online or offline in response to permission-based email (PBE), to see it as a replacement for direct mail communications like bills and statements, and to use it for customer service. Privacy has remained a consistent concern over the past two years but despite this, consumers are more likely to have immediately transacted online due to having received a permission-based email.

Consumers are eager for marketers to acknowledge their interests and solicit their input on content and frequency, which they say will only help increase their likeliness to respond. As consumers are sophisticated in using tools to manage their email experience, marketers must be careful to maintain positive ISP relations to ensure effective delivery and optima response.

Consider these interesting e-mail usage trends:

• Email usage continues to increase, with the vast majority of consumers reporting that they are online multiple times per day.
• A significant percentage of consumers consider email to be a replacement for telemarketing and direct mail to their home addresses, while a smaller number see it replacing their bills and statements.
• There is great promotional and up selling opportunity for permission-based email: the majority of consumers are interested in special offers incorporated into operational emails like those used to notify of order fulfillment.
• The majority of consumers receive some sort of permission-based email from retailers, with nearly equal percentages receiving them from bricks-and-mortar vs. online retailers; a slightly smaller percent receive them from catalogers.
• Product categories like travel and apparel have high penetration rates, but there is great opportunity in food, couponing and home furnishings.
• Sender recognition and content relevance are the keys to successful email marketing; both have a dramatic impact on likeliness to open and convert.
• Consumer concern about email privacy has remained constant; spam is the greatest concern among consumers, but worry about this has declined over the past year.

General Usage and Email Volumes:

• Email usage continues to increase: 81% of consumers reported being online to send and receive email multiple times daily, with 33% reporting “constant” usage, a marked increase of 13 points from those who reported this behavior in 2003.
• The average consumer reports receiving 308 emails per week, which is an increase of 16% over 2003. Nearly two-thirds (62%) of these emails are considered to be spam, while only one in 12 (8%) is considered “permission-based email” .  The majority (67%) report opening 61 - 100% of their permission-based email; the median percent of PBE opened was 78%.

What Is the Marketing Role of Email?

• For the first time, this year’s survey asked consumers about what role email played in the marketing spectrum: 49% say that e-mail has replaced telemarketing and 45% say it has replaced direct mail to their postal address.
• When asked what they would like it to replace, 54% said telemarketing, 45% in person sales calls and 40% said direct mail to postal addresses. Thirty-three percent would like to see email replacing retail offers and coupons, while 28% said bills or statements.

New Marketing Potential for Email

• Email was initially primarily used for acquisition but has since shifted to promotional and customer relationship marketing. It also still has great promotional potential in the up selling arena. Consumers expect emails to confirm transactions and shipping (95% and 90% respectively), and they are open to the idea of these emails being used to promote ancillary offers.
• Fifty-two percent were interested in offers for related products, 47% in information about membership rewards programs and 41% in sweepstakes. A smaller number (26%) would find offers on related products from partner companies useful. Customer service is another area of opportunity for email. Nearly eight-out of-ten consumers have used email for customer service. Marketers should be aware of the consumer expectations that come along with this interest: 45% expect response within 24 hours, while 44% say from “immediately” to “within 12 hours.” Only 9% found two days acceptable, which is likely closer to an industry reality.

Source: DoubleClick 2004 Consumer Email Study