It turns out, inactive email subscribers aren’t a lost cause for marketers — even if they never open or click an email again. Inactives are worth 32 percent of actives, because they do still notice the emails and read subject lines or more — then buy, finds MailChimp.
The company that sends email for hundreds of thousands of retailers analyzed revenue from purchase data. On Feb. 9, the company published a blog post detailing information from 6.6 billion email sends:
After crunching all the numbers, we’ve got some great news — it turns out that one inactive subscriber is worth 32 percent of an active subscriber. That’s a lot of revenue! We also learned that inactive subscribers purchase more frequently and are less likely to churn than customers who aren’t subscribed to your email list.
This goes against common wisdom that MailChimp acknowledges it used — that inactive subscribers are lost causes, unless marketers can reactivate them, and they should be removed from lists. While MailChimp still suggests marketers re-engage inactive subscribers, as they’re more profitable, they shouldn’t give up on the 39 percent of retailers’ recipients who are inactive.
Active Subscribers Are More Profitable
MailChimp says “61 percent of retailers’ recipients in 2015 were active” and what they spent accounted for 84 percent of what all subscribed customers spent with the senders.
Further, the research says:
Subscribers order at least 25 percent more frequently, and when they do, they spend at least 6 percent more than non-subscribers. Most importantly, they are much more likely to return.
Customers who didn’t opt into email before ordering products created about 56 percent of the retailers’ revenue, though. So each group has its advantages for marketers.
Inactive Subscribers Are Still Profitable
Inactive subscribers spend about the same amount of money on an order as active email recipients, MailChimp finds.
The research states:
Inactive subscribers are 26 percent more likely to make a follow-up purchase than non-subscribers, and active subscribers were actually 38 percent more likely to come back.
So it’s still to a retailer’s advantage to re-engage email recipients. Here’s what Rite Aid did.
What do you think, marketers? Dela Quist, founder and CEO of Touchstone Intelligent Marketing, writes on LinkedIn: “So it is possible to measure the impact of engagement outside of an open or click. What gets measured gets managed.”
Please respond in the comments section below.
Related story: Rite Aid’s Email Re-engagement Rx