Unsubscribe rate: why does your user unsubscribe from your email list?

The Email Churn Rate is one of the most important indicators when analyzing the results of a campaign. It is the percentage of people who have opted not to receive further communications via email.

It is calculated by dividing:

email unsubscription rate

Once we have the result obtained by the formula, it is important to compare it with the established average; they estimate that it should be between 0.4% and 0.6%. If it is close to 0.9% it means that our strategies are not succeeding. 

And this begs the question....

Why do I have such a high attrition rate?

Occasionally there are customers who tend to abandon or unsubscribe for reasons that have nothing to do directly with shipping strategies, but some of the most common are:

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  • Mass mailing

Even today we still find clients who have large databases of registered users and who do not apply any differentiation between them when it comes to campaigning and communicating a message.

Some companies tend to think that the more mailings you send, the more chances you have to generate a higher ROI, but many times you get the opposite, it will generate loss of users that you will have to compensate in an increasing investment to capture new leads and thus obtain the same results in terms of conversions.

  • Unsegmented DB

Not all users are the same and do not interact the same with the brand. It is important to know the customer's average ticket, the type of product they are interested in and the life cycle they are in. We can impact them with interesting information or stop them if they have not interacted with our content for a long time.

  • Too high shipping frequencies

Consistency is one of the most heard words in marketing. Maintaining consistency will make our subscribers wait for our mailings. 

At the other extreme, there are those who want to tell too many things to subscribers and have too high a frequency of mailings, it is not advisable to go from 3 weekly mailings to 5 from one week to another. If we exceed the level of mailings in the long run we will get less reach and a higher percentage of unsubscribes.

What happens if our attrition rate is high?

A high percentage is more than one 0,9%. If we obtain these results in our mailing strategies, we will have to analyze if some of the reasons listed above coincide and make modifications in the mailing strategies for future campaigns. It is important to perform a monthly analysisThe information provided in this document is not intended to be used for the purpose of rectification without damaging the image of the company or the opinion generated by the users about our company policy.

Here is some data according to the type of sector:

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Importance of Churn Rate in Data First

As of Data First, we can take advantage of the intelligent use of the data generated from the moment the customer registers with our company, impacting them with the right information, using a personalized delivery frequency and through the channel with which they will interact the most with our eCommerce. We also told you about this in detail when we talked about it in another post about how to calculate Customer Lifetime Value.

Our main objective with the use of this data is to minimize the churn rate with strategies that allow us to better understand the user and their buying interests.

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Depending on the type of user, we can divide the stages into 3 phases:

  • Initial: We capture the user and through the subscription form we differentiate the sending ratio, content and type of channel with which we are going to impact the user.
  • DevelopmentIdentify if the user has not interacted with our content for a long time and stop impacting with the same frequency for a certain period of time.
  • Final: Know the reason for unsubscribing and differentiate whether you want to unsubscribe from transactional mailings or if you only want to know the specific offers that we launch.

User analysis through Data Explorer

Before starting our whole strategy, it is important to know a little more about the contacts who have unsubscribed (type of purchase, recurrence, number of purchases...) This way we can focus our strategies depending on each hypothesis. On the one hand if it was a public that was interested in the brand but did not want to receive information about it or if on the other hand they were people who had never been interested in the brand and were discharged without being aware of it.

To do so, we make use of the Data Explorer, This tool allows us to learn a little more about our segments through the use of data.

In our case we have added the following variables:

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As we can see, the segment that has generated the largest number of purchases is the "unsubscribed" segment, representing almost 50% of total purchases. This segment are people who bought and buy in our eCommerce, but do not want to receive more communications; either because they have a very marked type of purchase and are not interested in receiving more communications or because they got tired of it at a certain point and stopped buying and stopped being interested in the brand.

Perhaps if we had obtained information from this audience through forms about the reason for unsubscribing, we could have adapted our communications to their needs. For this reason it is important to know our audience, buyers or not, everyone has a type of purchase and we must adapt our communications and the ratio with which we send them to each type of user.

Initial phase: subscription form

The customer signs up for our service and we want to impact with the right content. To this end, when subscribing, we will fill out a form to briefly know their interests.

In addition to the basic fields such as email and name, we will add the "gender" to further customize communications and the type of content in which you are interested. This can be differentiated according to the type of eCommerce but here we have left 3 more generalist options, which in addition to differentiate the type of content you adapt the range of shipments.

Below you will find a example of the type of questions that can be asked: 

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Once we have your answer, we will assign the selected hood, we will send the welcome NL accompanied by a welcome push and you will become part of our database.

And now that we have segmented our database, how do we proceed to make the usual mailings?

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The idea is to have 2 dynamic plus active segments (one-time offers and 1 per week) to filter out people who do not meet certain conditions in all mailings.

Here is an example of how the creation of the dynamic plus segment:

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Development phase: test form

We move on to the development phase, here our main objective is to to personalize the information that each customer will receive and to build customer loyalty. 

If we have too much impact on a type of customer who likes our brand but is not interested in receiving news from our company, it is important to filter this type of segment to prevent them from leaving.

phase 2 verification

We will create a form that will be displayed on the website the next time you visit the page showing you a promotion we have active and asking you if you would like to receive more promotions like this one with 3 options:

  • I do!
  • I don't want to!
  • Not at this time

In this way we ensure that they are interested in receiving content of interest from our brand and thus avoid having a dissatisfied user who stops buying because they have not received the type of attention they were looking for.

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  • If you select "I do" an email is sent to you with the next active promotion. 
  • If you select "I don't want to"contact is forced to terminate it definitively
  • If you select "not for now" keep you as a "lost customer" and re-impact you every x amount of time with some of our active promotions.

Final phase: unsubscribe form

We reach the final phase, the user decides to unsubscribe from our database and not to receive any more communications.

Here our goal is to differentiate whether the contact wants to unsubscribe completely or if he/she wants to receive specific offers. In this way we try to keep the contact impacting with a lower frequency and thus have the possibility of being able to impact in the future with some of our communications. This would be an example of a form that could be sent to the user when clicking the "unsubscribe" button.

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Here is the workflow:

It would be to check that you have clicked the option to no longer send mailings and set the "unsubscribe" field to remove you from the subscriber segment automatically:

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If, on the other hand, we do not want to give that option and directly unsubscribe, there are other unsubscribe forms that are used to collect information about the opinion of our users and have it as a reference when designing mailing strategies.

Here are some examples of options for collecting information:

examples of information gathering

The unsubscribe rate in eCommerce submission strategies represents the level of quality of our content during submissions. Performing an analysis of our strategies and developing forms during the life of our user will determine the reach with our impacts and the satisfaction and positive response from customers.

Connectif helps us with this analysis through the Data Explorer, which will develop our shipments based on parameters such as the ratio of shipments or the type of content according to the type of customer.

We do not want to close the post without first making a small recommendations and essential tips:

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Have you already figured out how to improve the unsubscribe rate of your email marketing database? At Geotelecom we can help you optimize your performance and give you the best guidance and help to make your ecommerce always welcome in the inbox of your target audience.

Contact us now and let's get to work.

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