INDIANAPOLIS - (November 9, 2005) - Despite concerns that email list growth is waning, a new study by ExactTarget shows that list growth for many industries in fact is quite healthy, with monthly average net increases of 3.2 percent-or 38 percent annual net growth.
Even though the study is encouraging news for email marketers, the author of the study warns that it is getting harder to grow an email list and that organizations need to consciously and continually focus on acquisition.
"Our study shows a marked difference between companies that are focused on growing their list and those that are not," said Morgan Stewart, director of strategic services at ExactTarget, author of the study. "About 25 percent of an email list will go bad over the course of the year due to unsubscribed and undeliverable email addresses. Thus, organizations need to keep replenishing their lists just to stay even."
ExactTarget`s study comprised actual list data for 142 organizations in five industries during Q2 of 2005. Overall, monthly list growth was 5.2 percent and shrinkage was 2.0 percent, giving a monthly net increase of 3.2 percent. Social and fraternal organizations experienced stronger list growth than all other groups studied, including manufacturers, retailers, media and publishing and professional services.
Media and publishing companies experienced the most list turnover at 4.7 percent, followed by social and professional organizations, retail and professional services. Manufacturing had the least list turnover. In all, 24 percent of organizations in the study saw their lists decrease in size in Q2 2005.
ExactTarget spoke with marketing representatives from both B2B and B2C companies included in the study who maintained strong and consistent list growth across the study period. "These organizations all have been very deliberate in growing their lists," says Stewart. "Every one of these companies has a strong value proposition attached to their email program, and they actively sell that value proposition."
"The key to growing and maintaining email lists is to be relevant to subscribers," said Stewart. "Consumers know you want their email address and increasingly are demanding something of value in return."
ExactTarget is the market leader in on-demand email software solutions for permission-based email marketing. More than 3,800 organizations worldwide, including The Home Depot, Scotts and Encyclopedia Britannica, rely on ExactTarget email solutions to strengthen their customer relationships and to control email throughout the enterprise. ExactTarget is a recognized technology leader, ranked highest in business suitability by JupiterResearch in 2004 and 2005 based on the solution`s usability, strong feature set and dynamic content tool. ExactTarget also ranked a Strong Performer in the 2004 Forrester Wave(tm) report based on the software`s extreme ease of use and standout capabilities for managing brand consistency and legislative compliance. ExactTarget solutions meet the needs of all industry verticals and all size organizations, including SMB, corporate divisions, not-for-profits, large retail/direct marketers, agencies and enterprises. Privately owned and headquartered in Indianapolis, USA, the company has more than 30 offices spanning North America, Europe and Australia. To learn more, go to http://www.exacttarget.com.