Surprisingly, it seems that personalization in marketing is not as effective as one would think. Even when surveyed consumers declare that they are more likely to buy from an advertiser when they are addressed using their name, statistics shows that the effect might be the opposite.
Personalization is an often-practiced approach for marketers worldwide, but it is not the right tactic when it comes to direct marketing. Statistics categorically show that e-mail open rates and click rates are significantly higher when sending depersonalized e-mails. This might sound counterintuitive but is easy to understand. Personalized viral messages from an unknown sender can raise alarm and the fear of falling victim to a phishing attack.
A lower degree of personalization is just one of the things to keep in mind. Some personalization in the message is acceptable but leave the subject line impersonal. This strategy will achieve an average open rate of 18% and click rate of 2.1%. In comparison, an e-mail with both the subject line and message personalized will only have an average open rate of 5.9% and a click rate of .2%.
Also, keep in mind that direct marketing is only effective when it´s done repeatedly yet not excessively. Building either advertiser or sender trust, is the key factor in the direct marketing process and should be prioritized in your long-term strategy. Any direct marketing message will have one of two different sources: the advertiser as the creator of the message or the sender as the distributor of the message. What’s interesting is that if a message is sent by a trusted sender, the influence of advertiser trust becomes irrelevant or reduced, suggesting that an e-mail from a trusted sender can overcome the drawback a less trusted advertiser might have.
If you’re looking to increase your response rate and get more out of your direct marketing campaigns, we’d be happy to help.