List Building Best Practices

Jesse Hopps

Having a well qualified list of contacts is one of the most important factors in determining the success or failure of an email marketing campaign. Read the following summary to understand how you can build a rock-hard list.

What is Permission Based Marketing?

Email marketing permission is defined as giving “formal consent” to receive email marketing messages. Permission can not be assumed and must be granted by a willing party.

There are a number of ways to gain permission from your target. We recommend that you explain the value of “opting-in” to the campaign and simply ask for permission. Permission based campaigns that require an “opt-in” tend to have higher conversion rates, higher retention rates, a better reputation with prospects/customers and more relevant campaigns.

Models of Acquisition for List Building

Opt-in – This is the most common method of permission. Simply check a box if you would like to receive our email.
Confirmed Opt-in – This method of permission is similar to the traditional opt-in but follows up with an email to remind the customer of what they opted in for.
Double Opt-in – This is the longest way of obtaining permission. However, by using a double opt-in, the recipient is giving you strong permission to email him/her and this often results in higher retention rates. This method uses a traditional opt-in form, then sends an email requiring confirmation that they did in fact register to receive the email marketing.

Types of Permission-Based Lists

Generally speaking, there are two types of lists: in-house and rentals.

House lists:

Includes customers, prospects and website visitors
Multiple collection points
Part of an Integrated Marketing Campaign
Lists are segmented into groups with specific traits (i.e. age, gender, etc.)

Rental lists:

Collected by businesses, websites and publications
Re-sold directly to interested parties or via third-party list brokers
Pricing for sending a message to these lists is standardized on a CPM basis depending on scarcity, purchase power and amount of supporting data
Cost to design and produce the email messages is additional
Larger examples include Dun & Bradstreet and Equifax who have access to hundreds of millions of email addresses and are able to sort by specific criteria and preferences (industry, geographic location, income, etc.)

We strongly recommend that you build your own lists. However, if you decide to rent a list, make sure you use a trustworthy source. In order to establish credibility, ask the following questions before you rent:

How often do they rent these lists?
When were these lists last cleaned?
Do these third party senders have any spam complaints?
What is the privacy policy and opt-out system that these third parties use?
What sites or sources are these opt-in lists gathered from?
Is this company CAN SPAM complaint?
What are the payment terms and what are the make-good or refund policies?
What data points are available about the list?
Is the list opt-out, opt-in or double opt-in?How often has the list been mailed to?

Regardless of how you obtain your list, it is imperative to review all legislation before sending an email campaign. If you would like more information on legislation in your country, schedule a discussion with one of our research analysts today.