Don't take a risk with email in a recession
Latest posts | Feed | By Mark Brownlow on February 04, 2008
It's getting a little jittery out there with the specter of recession poking its unpleasant head in through office windows throughout the world.Whether real, media-inspired or just a scare story, the prospect has prompted a few heavy hitters in the email space to ponder how email marketing and email marketers might cope with an economic downturn.
There are two dangers out there.
The first is presented well by Bill McCloskey in his Email Insider column, and reiterated by fellow columnist Loren McDonald. Namely that resources may shift to email because it's low cost and effective. Because it's safe.
That's not a danger per se, but it might be if those extra resources mean sending more email, rather than more effective email.
Despite all the good advice doled out by Bill, Loren and others, an inevitable rush to send more and more mediocre email would follow, and see the email resource overgrazed. Barren shopping carts and government regulation would likely follow.
At times like these, it's worth re-reading what Seth Godin has to say on the permission marketing concept that he was first to properly articulate.
Now the second danger.
Industry advocates have gone to great lengths to persuade businesses that there is considerable value to be gained from significant investment in the email channel. Because additional resources let you do clever things (like better segmentation and trigger emails.) All of which can increase profits.
Email has begun to shake off the unsophisticated low-cost image.
It would be tragic to see email return to that image simply because email marketers play the low-cost card to boost email's position in the context of an economic downturn.
Fact is that email is both low cost and worth heavier investment. It can work well with few resources, but also brings rewards through higher investment.
So it's a political balancing act when arguing for funds. Focus on the low-cost and you forfeit future investment. Focus on the value of investments in email and you forfeit current resources when money is tight.
The trick is to communicate the dual potential of email accurately and not to go overboard on how cheap it is just because a recession threatens.
Tags: email marketing, permission marketing, email marketing strategy
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2 Comments:
Great post Mark - and a rather poetic one at that. You've really nailed the issue. While a recession has not been offically declared anywhere that I'm aware - most economists agree that the economies of the world - even in places like China will see slower growth.
This is a time for us as an industry and individual marketers to better position email marketing's role within the marketing mix and convery its value to your company. Let's continue to improve our practices and demonstrate that email is still the best channel to build and enhance customer relationships - and it just happens to do it cost effectively.
Cheers.
Loren McDonald
VP, Industry Relations
Silverpop
By 
Loren mcDonald, on
07 February, 2008
Yep, with you there. I think email is in danger of becoming accepted as an equal partner (!) and it would be a shame to see its image tumble just when people were beginning to get the message.
By Mark Brownlow - Email Marketing Reports, on
07 February, 2008
