I recently did some e-mailing list consolidation for a client and in the process cleared out a couple of thousand bounced emails from her previous lists to create a 'good' master list. So now we have several thousand names that - as best we could tell - have never bounced. It's a good thing.
We launch our regular monthly newsletter to the new list and I eagerly await the campaign stats. Pretty good, all in all. Good open and click through rates. Low unsubscribes and a bounce rate of only 2.4%. So we're happy but even a low bounce rate multiplied by several thousand names can be a big number and I'm interested in finding out more...
After downloading and reviewing the bounce report one thing stood out like a sore thumb. Only 8% of the domains accounted for over 44% of the bounces and 2/3s of those were due to fewer than 3% of the domains mailed.
What should you do about Bounces?It looks like a larger number of our emails aren't getting past the email gatekeepers at these companies and it makes sense if your email is being blocked at a particular company or ISP, to ask your subscribers or customers there to contact their company's email postmaster and request to have your email "un-blocked." Best way to do this is to make a call--if you have a personal contact--or to send an email request from your own server and in plain text.
In your request be sure to tell them what email addresses they should unblock. This is particularly important if you're using a 3rd party email broadcaster like
Constant Contact or
Vertical Response (like we do). Ask them to add these to their own Safe Sender's list or email program address book as well as place a request to their corporate email gatekeepers or ISP (Internet Service Provider like Comcast, Earthlink & AOL) to let your missives through.
What does ignoring your Bounce Rate cost you?Do the math. Say you have 1,000 names on your emailing list and you have a 3% bounce rate and, to keep things simple, your list is growing by 10% a month. Over the course of the year you'll lose 300 subscribers. Multiply this number by your lead acquisition costs. Does it cost you $1.00, $5.00, $10.00 to obtain a lead? So does losing 300 subscribers cost you $300, $1,500 or $3,000.
Put another way, what's your closing rate? If 10% of your leads convert to active prospects and you close 10% of your active prospects, that's 1%. Now losing 3 potential customers out of those 300 lost subscribers doesn't matter muc if you're average sale is ten bucks. You've lost $30. Oh well. But what if you're average sale is $10,000 (like some of my customers). Then you've lost, potentially, $30,000. Hmmm. Almost looks like serious money.
Now 1 final nail in the coffin of your desire to do nothing ... Multiply those 3 customers by their lifetime value. Do they only spend $10 at a time but they spend it every month. Do they spend $10,000 at a time and they'll spend it 3 times in the course of your relationship? And don't even get me started on referrals, word-of-mouth, etc.
So catch those bounces and make them good. You won't recover all of them but enough to make it more than worth while.
AN IMPORTANT NOTE TO COMMERCIAL EMAIL BROADCAST SERVICE USERS: Once you've done the work to resolve your bounce problem be sure to ask your broadcast vendor to 'debounce' your list otherwise all your good work may go for naught.
Thanks for reading,

tom.gray@gemsolv.com