Tuesday, June 14, 2005

Spanish newsletters on crutches

Internet marketing and e-commerce is really taking off in Spain. But one cannot argue that it is not a bumpy road with plenty of room for improvement. In their study, Netyidea, a Spanish internet marketing strategy firm, who analyzed Spanish e-newsletters from two points of view, (1) the newsletter as a valuable user experience and
(2) the newsletter as an instrument of customer loyalty, has come to a rather disappointing conclusion:
Spanish companies are not as conscious as they should be about the importance of newsletters to securing customer loyalty.

After signing up for a newsletter, a mere 65% actually receive one, while the other 35% are left with a truncated relationship. During registration, when collecting potential customer data, 58% of businesses settle just for the email address, making it impossible to segment their user base and personalise newsletters, correspondence and advertisements.

61% of newsletters aim to generate direct client response, while the remaining 39% are used purely for branding purposes. Despite their objectives, Spanish companies are leaving plenty of room for improvement during the entire cycle of newsletter mailing (from customer data collection, result analytics and strategic improvements).

Not measuring the effectiveness and performance of their newsletters is truly the most detrimental flaw. Only 40% of newsletters arrive with a mechanism that measures whether they have been opened at all. 52% are measuring actual click throughs, and only 35% include the necessary code to track the entire path taken by the user after opening a newsletter.

But there is no need to get discouraged; on the contrary, although occasionally stumbling, Spain is moving in the right direction.