Understanding List Fatigue and List Churn

Read More: Email Marketing

E-mail list dies a sluggish but steady death if action isn't taken from time to time. For most of the companies, a half of their subscribers leave them annually. Everyone uses their click, conversion and open rates with a purpose to measure their email program's success. However they fail to measure the magnitude and quality of their email list. Email list hurdle rate is the most recent metric to be considered, along with the old ones, in order to keep your list growing.
Mailing list list hurdle rate determines the loss rate of the mailing list that needs to be overcome in order for the list to grow. It provides the precise number of new subscribers to be attracted in order to substitute the old ones which have left the list. Another obstacle to be tackled are list churn and list fatigue.
List churn is the percentage of subscribers who have left the email list in the course of a certain period. This can be measured either monthly or annually. Out of this only three percent constitute of individuals who have unsubscribed from the list. Other thirty percent constitute of email addresses which were lost to hard bounces yearly. The subscribers can either enter their email address incorrectly when signing up as well as the emails addresses might no longer be valid, causing the emails to bounce. The rest of the percentage constitute of those who have reported spam complaints. Yes, even the biggest legitimate permission marketers get spam complaints.
The list churn rate can be calculated monthly by looking at the e-mail performance reports. The yearly lost subscribers can be calculated by including the number of unsubscribed, hard bounces, and spam complaints. The total should then be divided by the existing size of the email list to find out the list hurdle rate. Calculation of the list hurdle rate is crucial for the annual planning process and for forecasting the revenues. The email list churn rate can be improved by lowering the number of spam complaints and bounces.
List fatigue concerns the subscribers on the mailing list which have hibernated and have become inactive for quite a while. These individuals haven't unsubscribed, but have stopped reading the emails and interaction. Therefore the un-subscription rate cannot provide a clear picture about how precisely the readers perceive the company's emails. A typical cause of list fatigue is irrelevant offers, over mailing and newsletter content which dose not allude to the interest of the reader.
The percentage of the inactive subscribers should to be calculated to discover the email list fatigue. Individuals that haven't clicked or opened not even a single email within a certain period of time need be counted. Usually thirty to fifty percent of an email list becomes inactive annually. There can be many different reasons why these people are receiving your emails but aren't unsubscribing. Major reason is because your mail can possibly be going straight to their spam folder or because your un-subscription link isn't working. So there is a possibility that out from the fifty percent, forty percent are inactive and the rest ten percent are busy, on vacation, or just not motivated enough by the subject line or email content. Small surveys should be conducted to discover the changing needs of the subscribers.
These sleeping subscribers should be activated every so often by giving them spicy stuff like special offers, different newsletter outlook, interactive tools, etc. So old subscribers must be re-energized and new subscribers must be added from time to time. Otherwise the list gets shorter and shorter. Resources must be obtained and plans have to be established in order to achieve the targeted list growth rates. The ratio of inactive subscribers also have to be reduced and stalled.

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About the Author: Anderson Goncalves

Member Since: 12/02/2009

Industry: Marketing and Advertising

Primary Web Site: http://www.andersongoncalves.com


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