Thursday, March 8, 2012

Email: The Nudge Effect

When compared to other communication channels, email has always produced a great ROI. With email being such a cost effective communication channel, it is probably difficult to understand how it can generate the most revenue, even when the open rate is low.

The nudge effect is essentially indirect influence. It is encouraging an action without stating one.

According to Dela Quist of Alchemy Worx; the presence of an unopened email in an inbox can influence a recipient’s behaviour and action by simply creating awareness or acting as a reminder.

This influence can lead to actions such as an online purchase or a store visit, even a social mention, which in itself has massive reach implications for your message (this too can be easily measured with Share with Your Nework (SWYN) tracking and used to enrich that non-opened reporting – an extended reach from an unopened email, now that is effective!)
Research has found an increase in sales among groups of people who received an email but didn’t open it, compared to customers who didn’t receive the email at all.

How to create the nudge effect


Mentioning a sale or even a new branch location, along with your brand name in the subject line or from address could make an unopened email work for your campaign. Here’s how:

1. Create an effective subject line:


Create a subject line that not only neatly summarizes your primary message, but that is also sharable (character length to consider) and most importantly, it must promote action via another channel. This can nudge your customers to engage without them even opening the email.

These days it is almost impossible to read about, research or write about email effectiveness without mentioning the popularity of smart phones or tablets.

Subject lines need to be considered for the various devices that emails are received on and it is vital to test how emails render on all of them - this will ensure that the key message is not lost.

2. Pre-headers:


Use a pre-header to enhance the subject line of your email. It communicates your email message further, without your customer having to open the email. For additional effectiveness, include a cross channel call to action in your pre-header.

The pre-header is especially important when receiving email on a mobile phone, as often this little bit of copy is all the recipient will see.

3. From name and address:


Including your company or brand in the 'from' name, is just as important as having an effective subject line, as it creates top-of-mind awareness. For example, I don’t necessarily open every Groupon deal email, but when I’m looking for a good deal in my area, I have to admit, Groupon comes to mind immediately.

4. Logo embedding:


Similar to the 'from' name, an embedded logo in the preview pane is a visual reminder of your brand. This reminder may result in awareness or action (or both) regardless of whether the email is opened or not.

5. Timing of send:


Give the recipient due time to action, such as saving or planning a trip (e.g. New store opening special - 25% off tomorrow). A ‘3 shopping days left’ email during the festive season is ideal for getting your brand into the inbox during peak shopping periods. An email invite (time and date in subject line) to an exciting entertainment event, sent on a Friday morning, arrives just in time for people to start planning their weekend.

Non-open does not necessarily mean non-respondent


Obviously as marketers we want to deliver the full experience. We want our subscribers to open the email, download the images, as well as to engage and interact with our carefully laid out communication where we’ve been careful to ensure that the supporting images compliment the content. But where the subscriber, for whatever reason, doesn’t open the email and get the full experience, the extra effort put into the basics could result in an action or sale, even if the open rate seems low.

In conclusion, remember that open rate as a metric should never be analyzed alone. It is important to consider the nudge effect before removing non-opens from your database – non-open is not necessarily a non-respondent.

The nudge effect is not about bombarding your database with email just to get your brand into their inbox; it’s about well timed email campaigns that have all the basics in place.

The nudge effect in action – source: Alchemy Worx

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