Conversions on the rise – modernizing e-mail marketing practices by utilizing volunteered data

Abstract

PurposeThe purpose of the study is to examine how utilizing volunteered data influences the response and unsubscribe rates of e-mail marketing to consumers.Design/methodology/approachIn three longitudinal field experiments conducted among 1,864 applicants of a higher education institution, the study compares customized marketing e-mails based on volunteered consumer data to e-mails that are personalized based on observed consumer data and to control e-mails that are not tailored by the marketer at all.FindingsThe results indicate that marketers should make consumers active participants in the communication process, as response rates are higher in those e-mails where volunteered data are utilized. However, the unsubscribe rate is the highest in customized e-mails.Research limitations/implicationsThe authors demonstrate that e-mails displaying empowering aspects influence consumers' behaviors and lead to outcomes that mostly outperform non-empowered e-mails.Practical implicationsCompared to other forms of interactive marketing, e-mail has lagged behind in both popularity and customer-friendly implementation. However, it has the potential to succeed if marketers pay more attention to consumer empowerment. As over 306 billion e-mails are sent worldwide daily and 75% of marketers use e-mail when contacting customers, the increase in response rates can have a significant influence on their returns.Originality/valueUnlike prior research the focus was on the process of tailoring, this perspective supports customer advocacy and emphasizes consumers' important role in creating engaging, empowering e-mail marketing communication.