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August 7, 2006

The Importance of Email Collection

We are currently conducting transactional database analysis for one of our clients. The data is compiled from both catalog- and web-based sales efforts. Our analysis confirmed that email collection and subsequent multi-channel marketing to these customers can increase lifetime value of a customer and in turn make a huge impact on your bottom line.

Our analysis concluded that a customer whose email we have on file generates 20% more in catalog and web sales than a customer without an email address on file. (This 20% increase does not take into consideration additional sales driven specifically from email events.)

Therefore it is critically important to aggressively collect emails through all channels. Some suggestions we’ve had for our client:

  • If the order is coming in via the phone, incent the customer service personnel to always ask for the email address. The most effective way is to have them capture the email address by offering email notification when the product is shipped. Within the notification email, ask the customer to sign up for future offers/promotions and offer them an incentive to do so.
  • Make sure that email sign up is easy and visible on the ecommerce home page and throughout the site (make it a one step process)