More compelling emails are better than an incentive

Posted by: Phil Schott
Monday, January 11, 2010

I'm not a fan of offering incentives to entice folks to sign up for email programs. Why? Because you're bound to have folks sign up who are only, or more, interested in your incentive than they are in getting your email.

The subscriber signs up, gets the free swag and then they do one of the following:

1. Unsubscribe
2. Unsubscribe by hitting the "spam" button
3. Stay on your list, but don't ever open, click, or convert
4. Stay on your list and become the bestest, most engaged subscriber EVER!

One, two, and three are more likely to be the case, in my experience.

Admittedly, I don't have any data that definitively proves that incentives are a bad idea, but what I'm suggesting makes sense and I've seen incentives burn clients in the past. On more than one occasion I've seen correlation between incentivized sign up and higher than normal complaint rates.

I'm not saying that incentives are taboo or verboten, but their use should be considered carefully.

Offering incentives may be one way to help build a list, but a questionable method for building loyalty.

I'd be more interested in sending my email to a leaner, but more targeted, list of subscribers who are solely interested in the content rather than a list littered with subscribers who are interested in a freebie.

The goal should be to put forth an offer and content so compelling that no incentive is needed. The offer or email needs to be incentive enough for signing up.

Comments for More compelling emails are better than an incentive

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Monday, January 11, 2010 by Justin Premick:: I think it's a question of whether your incentive is propping up a poor offer. If the offer is weak, then adding an incentive is not an appropriate solution. All it will get you is subscribers who fit your scenarios 1/2/3 above. A better solution in that case is to improve your offer. If, on the other hand, you have an offer that you know to be strong, but you still feel that your opt-in rate could be improved upon, adding an incentive may be appropriate. Incentive tests should not only look at list growth, but also retention, engagement and conversion rates for subscribers who were/weren't shown the incentive.