Email Trend Report: Consumers Go Mobile, Dodge Spam

1. Marketing As Usual. Not A Chance.™
RESEARCH JUNE 2009
Inside the Inbox: Trends for the
Multichannel Marketer
Epsilon’s Global Consumer Email Study
epsilon.com

2. Marketing As Usual. Not A Chance.™
Marketing As Usual. Not A Chance.™
Introduction
Today’s marketing landscape is increasingly complicated and consumers around the globe are savvier than ever. Brands large and
small face a wide variety of challenges in every corner of the world. In order to execute an effective, multichannel marketing
strategy, the first step is to understand consumer behavior in order to tailor programs to each target audience.
Consumers in the new marketing world order are exposed to more media than they have physical time to consume both on and
off-line, from Hulu and Facebook to text and instant messaging. The same consumers are in the driver’s seat, taking control of
the communication stream, signing up, leaving and influencing others in a matter of seconds. In addition, decisions are made in
networks, not just by individuals, and consumer engagement extends beyond on and off-line purchasing behavior.
Marketers are faced with a challenging economy and shrinking budgets. As a result there has been a notable shift towards
interactive/digital marketing from more traditional marketing. One of the most effective, measurable and targeted tools is email
marketing. Often used in conjunction with traditional marketing channels such as direct mail, email marketing provides a real-time
and quantifiable opportunity to interact with customers. Recent Epsilon data shows that email performance remains strong1 with
steady delivery, open and click-through rates.
Epsilon’s global consumer email study was designed to explore consumer behavior such as use of online communications tools
and attitudes about permission-based emails and spam. The survey was conducted in conjunction with ROI Research in April 2009
with over 4000 consumer respondents in select countries in North America, Asia Pacific and Europe. The study builds on similar
research conducted in the US from 2002-20052 and APAC in 20083.
The Evolution of Email Tools for Online Communications
What is the primary tool you use for personal online communication?
As an online communications channel, email is
87%
most frequently cited as consumers’ primary tool. Email 74%
63%
While there is widespread use of instant messaging, 6%
15%
text and social networks around the globe, email Instant Messaging
28%
use surpasses all other channels. Each week, 2%
consumers receive hundreds of email messages Test/SMS 5%
5%
containing retail offers, business/work-related 4%
information, personal interest, newsletters, account Social network(s) 5%
8%
statements and the often-dreaded spam. The chal- 2%
lenge to today’s marketer is breaking through this Other 1%
1% North America (N=642) EMEA (N=1,221) APAC (N=2,221)
inbox clutter to deliver relevant messages at the right
time to their best customers and prospects. Types of Emails Received
In an average week, how many emails of each of the following types do
you receive? (Average # Emails Received Per Week)
169
71
61
42 49 36
22 24 26 23 22 23 20
16 16
7 11 14 4 2 5
Spam Retail Business/ Personal From Business Account
offers work emails interest friends/ newsletters statements
family
North America EMEA APAC
1
Q1 2009 Epsilon Email Trends and Benchmarks Data
2
3
DoubleClick Consumer Email Study, 2002-2005 epsilon.com
Asia Pacific Consumer Email Survey, 2008

3. Marketing As Usual. Not A Chance.™
As a replacement for other types of communications, The format of email messages is directly tied to the
email has made progress displacing things evolution of email to devices such as mobile, PDA
like in-person sales calls, retail discount offers, and Smartphones. As consumers use more iPhones
telemarketing calls, bills or statements and promo- and Blackberries, they interact with their inboxes
tional mail. The surveyed consumers feel there is differently. Marketers need to consider factors such
additional opportunity to replace these vehicles as message and subject line length as well as email
especially in-person sales calls and telemarketing format. Not surprisingly, Asia Pacific (APAC) leads
calls. This suggests that consumers may find email in PDA or Smartphone usage for email. North
to be more informative and less intrusive than other America and EMEA will likely continue to adapt to
sales and marketing efforts. a more mobile culture, creating new challenges and
opportunities for digital marketers.
Email Displacing Other Media Email Format, PDA/Smartphone Use
Has email become a replacement for any
of the following types of communications? What is your preferred format for receiving emails?
(Check all that apply) 50%
HTML 41%
Email Displacing In-Person Sales Calls Email Displacing Retail Discount Offers 38%
18%
29% 25%
EMEA (N= 1,221) EMEA (N= 1,221) Plain Text 16%
27% 16%
24%
44% 48%
APAC (N=2,221) APAC (N=2,221) 26%
24% 25%
No preference 34%
32% 36%
North America North America 32%
(N=642) 23% (N=642) 14%
6%
Don’t know what 9%
Email has replaced Would like it to Email has replaced Would like it to this means 2%
Email Displacing Telemarketing Calls Email Displacing Bills or Statements North America (N=642) EMEA (N=1,221) APAC (N=2,221)
29% 32%
EMEA (N= 1,221) EMEA (N= 1,221)
32% 10% Do you use a PDA or Smartphone for email?
48% 54%
APAC (N=2,221) APAC (N=2,221) 19%
25% North America (N=642) 9%
34% North America 40%
North America
(N=642) 28% (N=642) 8% EMEA (N=1,221) 7%
Email has replaced Would like it to Email has replaced Would like it to
APAC (N=2,221) 32%
Email Displacing Promotional Mail
38%
EMEA (N= 1,221) 18%
APAC (N=2,221) 59%
17%
North America 38%
(N=642) 13%
Email has replaced Would like it to
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4. Marketing As Usual. Not A Chance.™
The New Definition of Spam North American respondents are the mostly likely to
As long as email has existed, so have spam and a unsubscribe from permission-based emails followed
consumer intolerance of unsolicited messages. The closely by EMEA respondents. North American inboxes
new definition of spam is not just emails to which also seem the most cluttered due to the significant
consumers have not subscribed. Spam now encom- number of spam emails per week. The top reasons
passes irrelevant messages and contact saturation cited for un-subscription include irrelevant content,
email frequency, and concerns about addresses being
Defining Spam shared/sold and other privacy issues.
Which of the following do you consider Spam? (Check all that apply.)
83%
Emails that intend to trick me into opening them 67% Unsubscribe Frequency
71%
Emails of an offensive subject matter
71%
69%
How often do you unsubscribe from emails you have signed up to
65%
73%
receive? (Total respondents - N = 4,084)
Any email I receive that I did not ask for or subscribe to 54%
60%
76% North America (N=642) 5% 26% 55% 14%
Emails from senders who are unknown to me 52%
55%
45%
All emails that are filtered into the junk mailbox 42% EMEA (N=1,221) 6% 29% 50% 15%
43%
Any email I receive that I don’t want, regardless 39%
39%
of whether I subscribed 33% APAC (N=2,221) 14% 51% 31% 4%
45%
Any email sent to me from a sender who is not 29%
in my address book or approved sender list 29% Never Rarely Occasionally Frequently
An email from a company I may have given permission to 39%
32%
send me mail at one time, but that I no longer wish to receive 32%
34%
Emails from companies I have a relationship with offline, 28% Reasons for Unsubscribing
but to whom I never gave permission to contact me via email 34%
Why have you unsubscribed? (Check all that apply)
Emails from a company I have done business with 31%
23%
(Have unsubscribed - N = 3,766)
but that come too frequently 28%
26%
67% 64% 60%
Any email that tries to sell me a product or service, 27%
62% 62%
even if I know the sender 18%
56%
50% 48%
North America (N=642) EMEA (N=1,221) APAC (N=2,221) 39%
30% 31% 32% 29%
20% 18%
Accustomed to these messages, consumers are taking
Irrelevant Receive Think address Don’t recall Privacy
action to eliminate or limit the amount of spam they content too frequently being signing up concerns
shared/sold
receive by unsubscribing and using tools such as “junk
email” folders, “report spam” and “block sender.” North America (N=618) EMEA (N=1,145) APAC (N=2,003)
Techniques for Limiting Spam
How likely are you to take the following actions in order to eliminate or
limit the amount of spam that you receive?
(Five point scale - Summary top 2 box) (Total Respondents - N=4,084)
77% 73% 71% 68% 74%
68%68% 66% 68%
63% 61% 60%
44%45%43% 43% 48% 45% 42%
37% 39% 36% 40% 36% 35% 40% 29%
27% 21% 16%
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epsilon.com

5. Marketing As Usual. Not A Chance.™
Permission-based Email: Who? What? When? Compelling “Subject” Lines
What type of subject line content compels you to open a PBE?
There’s no doubt about it, relevance, timing and (Check all that apply) (“Subject” Line is Most Compelling - N=1,449)
personalization are critical components of a successful 66%
59% 59% 63% 66%57% 60%
email marketing strategy. When it comes to timing, 46% 50% 49%
31% 34%
48%
33% 29%
42%36% 36% 43%
31% 36%
48%
31% 34%
37%
18% 16%
the batch-and-blast approach is being replaced 5%
12% 7%
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APAC (N=966) EMEA (N=330) North America (N=153)
a consumer even opens a permission-based email.
Compared to an earlier US study41, the “from” line is
becoming more important, challenging marketers to Once permission-based emails are opened, the next
establish a trusted relationship with consumers. challenge is to deliver useful content to customers
that will drive desired behavior such as purchases
Importance of “From” and “Subject” Lines - US Trending and forwards to friends. Offers for regularly
What most compels you to open a permission based email? purchased products and related products reflect
60% a solid understanding of the individual customer.
63%
The “From” line 64% Opportunities for rewards and sweepstakes are also
65%
68% 2002
well-received.
2003
35%
32% 2004
33%
Desired Content
Subject Line 2005
Which of the following would you find useful if included in a permission
31%
26% 2009 based email?
68%64% 62%
64% 57%
50% 55% 54%
42% 45% 43%
36% 37% 40% 36%
Consumers in North America and EMEA agreed that 22% 26%
34% 29% 34% 29% 30%
10% 8%
16% 19%
4%
the “from” line is the most influential feature in their
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APAC (N=2,221) North America (N=642) EMEA (N=1,221)
history or a consumer’s name.
Importance of “From” and “Subject” Lines
What most compels you to open a PBE?
68%
The “From” line 64%
44%
26%
The “Subject” line 26%
51%
6% North America (N=642)
8%
Other 6% EMEA (N=1,221)
APAC (N=2,221)
4
DoubleClick Consumer Email Study, 2002-2005 epsilon.com

6. Marketing As Usual. Not A Chance.™
Even if an email makes it to the inbox, and is opened too long and too short – and impersonal messages
and reviewed by a consumer, it still doesn’t necessarily that lack human interaction or information about the
amount to a “win” for an email marketer. The consumer. This proves, once again, that testing is the
overarching goal is to influence multichannel behavior best way to find the appropriate balance for a target
and attitudes about products, brands or services. Some audience.
of these actions and behaviors are measurable such as
coupon redemption or revenue conversions. Others, Barriers to Interaction
Which of the following are barriers that prevent you from interacting with
such as purchases made offline in a retail store, emails offers sent to you by email? (Check all that apply)
forwarded to friends and purchases made by phone, (Total Respondents - N=4,084)
are more difficult to measure. Overall, our findings
59%
indicate that consumers around the world are taking 50% 43% 50%40%
42% 43%
33% 37%
31% 29% 29%
20% 27% 21% 20% 15% 24% 22%
15% 17%
action and thus email marketing remains an effective 13% 16%
6%
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Email Impacts Behavior
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As a result of opening permission based emails, how often do you normally
take each of the following actions? (Four point scale - Summary top 2 box) Of
APAC (N=2,221) North America (N=642) EMEA (N=1,221)
87%
Click on a website 69%
77%
57%
Enter sweepstakes or promotion
50%
67%
North Americans are most concerned about a number of
63%
Watch video clip 46%
42% issues related to email and Internet use followed closely
62%
Purchase online 46%
42% by APAC and EMEA respondents. While worries such
58%
Purchase offline at retail store 48%
41% as viruses, identity theft, phishing, scams and pharming
67%
Sign up for more information 38%
37% may not be keeping the “Average Joe” up at night,
62%
Click on advertised link in newsletter 34%
39% they are real concerns that reemphasize the need for
55%
Play a game 39%
41% marketers to establish a trusting relationship and keep
58%
Listen to audio clip 39%
37% their consumer information safe.
51%
Forward email 39%
32%33%
15%
13%
Sign up for another company’s email newsletter Concerns About Email & the Internet
Purchase over the telephone
31%
24%
How concerned are you about the following issues related to your use of
13%
34%
email and the internet? (Three point scale - Summary Very Concerned)
Purchase via phone from catalog 19%
14%
(Total Respondents - N=4,084)
32%
Print order form and purchase via postal mail 15%
13% 73% 78% 73% 70% 71%
60% 65% 66%50% 66%
34% 60%57% 52% 59% 55%
Subscribe to paid subscription 11% 50% 52% 54%
43% 46%
53% 49% 47% 44%
7% 34% 36%
26%
APAC (N=966) North America (N=153) EMEA (N=330)
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Inside the Cautious Consumer Mind
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Trust goes a long way, especially in cyber space.
Permission-based emails may have the best “from” and
“subject” lines, optimal content and arrive in consumer North America (N=642) APAC (N=2,221) EMEA (N=1,221)
inboxes at the prime time, but still there are barriers
that prevent recipients from interacting with offers. By
understanding these considerations, messages can be
more successful and less likely to end up in the “trash.”
Security issues and a lack of attractive offers/promotions
were the primary reasons as well as email length – both
epsilon.com

7. Marketing As Usual. Not A Chance.™
Conclusion Methodology
Digital marketers face immense opportunities to Epsilon’s 2009 Global Consumer Email Study was
enhance multichannel strategies that engage consumers conducted in April 2009 by ROI Research, of Lancaster,
locally, regionally and globally. A shift from campaign- PA, and compiles data from 4084 responding consumers
centric planning and execution to customer experience in 13 countries: US, Canada, China, Singapore, Hong
and lifecycle marketing opens up new doors. Email is Kong, Australia, India, Malaysia, Japan, UK, France,
no longer a standalone tactic but rather one channel Germany and Spain. The panel of participants includes
for brand interaction within a matrix of integrated and consumers who have an active email account and receive
coordinated strategies. permission-based email. When reporting by region,
sample sizes reflect the number of completed surveys but
data has been weighted to reflect each countries relative
population size. The data has a sampling error of +/-
1.5%.
For More Information
Epsilon Corporate Headquarters
4401 Regent Boulevard
Irving, TX 75063
1-800-309-0505
info@epsilon.com
Marketing As Usual. Not A Chance.™