eBook - Silverpop

What’s Your Preference?
What kind of data should
Q: I be collecting on my
subscribers?
Data is the foundation of a successful
A: email marketing program, whether
it’s based on behavior or customers’ expressed
preferences.
Although some marketers say behavioral data is
more valuable because it reflects what customers
actually do in your emails and on your
website, it really tells only half the story.
Someone who buys, say, a set of golf clubs at
your site might be a golfer. But it also could
be someone buying a gift for someone else.
Behavioral data might lead you to send golfrelated
emails to someone who doesn’t know a
chip shot from a sand trap.
That’s a compelling reason for offering a preference
center, which allows the customer to
specify which emails he/she wants to receive.
You really need to collect both kinds of data,
because you will get a fuller picture of your
customers. In this answer, however, I will focus
on preference data, which gives you a baseline
for initial segmentation, targeting and triggered
programs until you can leverage and layer
behavior data over preferences.
Preference centers also allow subscribers to update
preferences, contact information and other
important information more easily.
This can increase engagement early in the relationship
and reduce churn in the long run.
Adoption of Preference Centers
Although capturing customer data and enabling
easy updates of preferences and profiles have
clear benefits, many companies still have not
invested time or money in the effort.
Only 24 percent of Internet Retailer’s Top 500
e-commerce companies permit customers to
specify preferences, interests or messaging
options at opt-in, according to a 2012 Silverpop
study. Barely a third of Top 500 retailers offered
preference changes or alternatives at opt-out.
Perhaps some of those retailers ask for
preferences further into the subscriber
relationship. That’s better than not asking
at all, but if you could have already lost
unengaged subscribers by the time you get
around to it.
Why Preference Centers Matter
Even More Now
With the principle that preference centers
enable more relevant messaging and
subscriber empowerment, below are some of
the factors that now make adding or improving
your preference centers more important than
ever:
‘Channel-choosy’ consumers: They now
expect communication options beyond email,
including SMS, social and direct mail.
Address changes: With the launch of
Facebook Messages, AOL’s Project Phoenix
and general email service hopping, enabling
easy change of address has never been more
important.
Increased relevance expectations: Call it
the “Amazon Effect.” As some marketers’
programs have gotten more sophisticated
and personalized, consumers have raised
expectations that your messaging should be
more personalized to their individual needs.
Inbox placement: With ISP/Web mail
providers incorporating recipient engagement
in their filtering and inbox placement
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