Tuesday, 26 June 2012

Why Opt-Out Is Sometimes Good - Member Messaging

From a pure business point of view, you want as many members/clients/prospects to opt-in as possible, so that you can reach the most people with your marketing/motivational messages and maintain or improve members’ retention.

However, the analyst will welcome a few opt-outs as this provides a control group to compare the effect of messages being sent.

Sending a message to 400 absent members to encourage them back, and seeing 80 of them return is a positive sign, but how many would have returned anyway?

Where 500 members are high risk, but 100 have opted-out, we can compare the effect of a motivational message or special offer on the 400 who receive the communication versus the 100 who don’t, and get a truer measure of the effect.  If 20% (80/100) return following the message, but only 10% of the other 100 come back, you can say your message had a positive effect.

So having a few opt-outs can be a good thing, for the analyst.  If the effect is show to be very positive, then it can drive staff to collect more member information.

Check ico.gov.uk or business.ftc.gov for more info.

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