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Email’s potential not yet reached

June 09, 2003 |

A new study from research firm the e-tailing group reveals that there is much work to be done to realize email's potential for building customer relationships.

The importance of email to business practices can’t be denied, but a new study from research firm the e-tailing group reveals that there is much work to be done to realize email’s potential for building customer relationships.

According to “The Merchant Speaks,” more than 96 percent of 200 online merchants surveyed use email as a marketing tool, but personalization and customer preferences are the least important components of the respondents’ strategies.

Only 33 percent of merchants take advantage of personalized messaging in their email interactions with customers, and only 6 percent consider their messages very personalized. Instead, merchants use email most often to promote mass-marketing initiatives such as sales and specials (80 percent), full-price products (70 percent) and seasonal messaging (70 percent).

In addition to mass-marketing tactics, overall companies aren’t considering customer needs and preferences. The survey shows that only 7 percent of companies empower customers to choose the frequency of email communication. What’s more, only 37 percent use the customer opt-in model, which places the control in the customer’s hands when it comes to deciding the level of email interaction.

This leaves a lot of room for opportunities to connect with customers in deep ways that will build loyalty. “Merchants should regularly evaluate their email programs to be assured that their strategies are meeting objectives and being well received by customers,” the report states.

Related link: e-tailing group

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