Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Dear (insert company name), personalized emails don't impress customers

13.06.2012
Personalized email advertisements are far more likely to repel customers than to endear them, according to a study led by a Temple University Fox School of Business professor.

But the research – which drew from 10 million marketing emails sent to 600,000 customers – also shows there is a way companies can use personal information without driving customers away: send them deals on products they want.

Using data from a firm's real-world transactions, Assistant Professor of Management Information Systems (MIS) Sunil Wattal found that consumers' responses to personalized greetings ranged from very negative to, at best, neutral. Overall, 95 percent of customers responded negatively when an email ad greeted them by name.

Customers who were unfamiliar with the firm were very likely to click off or unsubscribe from emails with personalized greetings. Customers who were more familiar with the firm were less likely to do so, but still responded more negatively than to emails without greetings. Customers who had made past purchases were unaffected.

Research into sales strategies suggests consumers generally react positively to being recognized by name. But Wattal suggests the variable introduced to online environments – fears of privacy invasion – heavily outweighs the intended personal touch.

"Given the high level of cyber security concerns about phishing, identity theft, and credit card fraud, many consumers would be wary of e-mails, particularly those with personal greetings," Wattal and his co-authors wrote in the study.

Wattal also found that product personalization, in which customers are directed to products that their past purchasing patterns suggest they will like, triggered positive responses in 98 percent of customers, with the positive effect being most pronounced among customers unfamiliar with the firm.

Since consumers may not have known these product-personalization emails used their personal information, researchers suggest that no red flags about privacy were raised, and thus consumers only experienced the positive aspect of these email advertisements: exposure to desirable products.

The study, co-authored by Wattal and Carnegie Mellon professors Rahul Telang, Tridas Mukhopadhyay and Peter Boatwright, is titled "What's in a "Name"? Impact of Use of Customer Information in E-mail Advertisements" and appears online in the journal Information Systems Research.

The researchers used their findings to craft four key strategies for improving email marketing effectiveness:

1. Don't assume that a customer's acceptance of the terms and conditions of a privacy policy is a license to openly use their personal information for marketing purposes.

2. Do not send personalized greetings to new customers. If greeting past purchasers personally, don't expect improved results.

3. Send emails to established customers more frequently than to new ones. A large number of emails may drive a new customer away but may prompt an established customer to purchase.

4. Build a relationship with new customers by only emailing them ads for products they are predicted to like. But expand your relationship with existing customers by occasionally exposing them to products they've never bought before.

Brandon Lausch | EurekAlert!
Further information:
http://www.temple.edu

More articles from Communications Media:

nachricht Tile Based DASH Streaming for Virtual Reality with HEVC from Fraunhofer HHI
03.01.2017 | Fraunhofer-Institut für Nachrichtentechnik Heinrich-Hertz-Institut

nachricht Product placement: Only brands placed very prominently benefit from 3D technology
07.07.2016 | Alpen-Adria-Universität Klagenfurt

All articles from Communications Media >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Traffic jam in empty space

New success for Konstanz physicists in studying the quantum vacuum

An important step towards a completely new experimental access to quantum physics has been made at University of Konstanz. The team of scientists headed by...

Im Focus: How gut bacteria can make us ill

HZI researchers decipher infection mechanisms of Yersinia and immune responses of the host

Yersiniae cause severe intestinal infections. Studies using Yersinia pseudotuberculosis as a model organism aim to elucidate the infection mechanisms of these...

Im Focus: Interfacial Superconductivity: Magnetic and superconducting order revealed simultaneously

Researchers from the University of Hamburg in Germany, in collaboration with colleagues from the University of Aarhus in Denmark, have synthesized a new superconducting material by growing a few layers of an antiferromagnetic transition-metal chalcogenide on a bismuth-based topological insulator, both being non-superconducting materials.

While superconductivity and magnetism are generally believed to be mutually exclusive, surprisingly, in this new material, superconducting correlations...

Im Focus: Studying fundamental particles in materials

Laser-driving of semimetals allows creating novel quasiparticle states within condensed matter systems and switching between different states on ultrafast time scales

Studying properties of fundamental particles in condensed matter systems is a promising approach to quantum field theory. Quasiparticles offer the opportunity...

Im Focus: Designing Architecture with Solar Building Envelopes

Among the general public, solar thermal energy is currently associated with dark blue, rectangular collectors on building roofs. Technologies are needed for aesthetically high quality architecture which offer the architect more room for manoeuvre when it comes to low- and plus-energy buildings. With the “ArKol” project, researchers at Fraunhofer ISE together with partners are currently developing two façade collectors for solar thermal energy generation, which permit a high degree of design flexibility: a strip collector for opaque façade sections and a solar thermal blind for transparent sections. The current state of the two developments will be presented at the BAU 2017 trade fair.

As part of the “ArKol – development of architecturally highly integrated façade collectors with heat pipes” project, Fraunhofer ISE together with its partners...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Sustainable Water use in Agriculture in Eastern Europe and Central Asia

19.01.2017 | Event News

12V, 48V, high-voltage – trends in E/E automotive architecture

10.01.2017 | Event News

2nd Conference on Non-Textual Information on 10 and 11 May 2017 in Hannover

09.01.2017 | Event News

 
Latest News

Global threat to primates concerns us all

19.01.2017 | Ecology, The Environment and Conservation

Scientist from Kiel University coordinates Million Euros Project in Inflammation Research

19.01.2017 | Awards Funding

The Great Unknown: Risk-Taking Behavior in Adolescents

19.01.2017 | Studies and Analyses

VideoLinks
B2B-VideoLinks
More VideoLinks >>>