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School of Hard Knocks
Sam Cece Chairman and Chief Executive Officer
June 20, 2008
Email Bankruptcy
There are 210 billion emails sent each day, 80% of which are SPAM. Startling statistics, for sure. So, what are companies to do?
It was funny to hear this NPR interview during my morning commute last week. Well, maybe “funny” is the wrong word, but I found myself intrigued. Here I am in Silicon Valley, leading one of the most innovative, on-premise email solution providers that serves the world’s largest corporations, and I'm listening to a radio interview with the rank and file complaining about email. It’s similar to a head-coach listening to a post-game interview from a sportscaster and a fan.
Email continues to be a conundrum for consumers, leading some to delete their entire inbox as they declare a state of email bankruptcy. So, what to do? Well, our prospects and customers think they know part of the answer - build relationships.
Forrester Research issued a report in April called, “Break Free from Bad Email” and introduces the notion of Intentional E-Mail:
“Using email for only-short-term revenue gains is myopic. Instead, marketers should use email to improve customer relationships and grow their long-term value. Doing this requires a combination of best practices: integrating data from external sources, targeting based on past behaviors and calculating the business value of an email subscriber.”
Many of our prospects and customers realize that the relevancy and frequency of email is important. More and more companies hope to address this by bringing email in-house and centralizing email streams—giving them the visibility and tools needed to pull email out of Chapter 11.
Posted by: Sam Cece at 7:34 PM
Categories: Business , Silicon Valley
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Coldwell Banker has a pretty solid resource center built around the MLS & Outlook. Would you say that larger residential and commercial real estate companies would be good prospects for your company?
Comment by Jackson Robertson – June 25, 2008 11:58 AM
Jackson, thanks for visiting my Blog.
The short answer is yes—any enterprise that values e-mail, whether marketing or transactional in nature, is a good prospect for an on-premise email solution. Businesses want to better leverage their email and messaging so they may interact with their customers more efficiently. We’re finding that more and more companies are taking e-mail in-house because of the reduced cost, ROI, integration with business systems, data security and most importantly, total control. Feel free to email me directly if you have any other questions: scece@strongmail.com
Comment by Sam Cece – June 25, 2008 12:36 PM
The SPAM volume figure you cite is staggering. I run a technology company that relies in part on email as a delivery channel. It's clear that a lot of legitimate email is being overlooked or filtered out due to the Spam volume - it happens in my own in box. Two questions;
If no one responds to the spam - what is their economic incentive for spammers to continue? and
Why hasn't the HTML email infrastructure been overhauled? We are all operating on email dirt roads built 25 years ago -seems like we need email more than ever today yet the technology infrastucture for email is not keeping up forcing everyone to become more restrictive in their email practices - image blockers, spam filters, etc - some corporations still have text only email. It's a mess.
Comment by Wayne – July 16, 2008 7:12 AM
Wayne,
Thanks for visiting my blog.
Believe it or not, people do respond to SPAM, that's why the practice still exists. Since a very small number of receivers do respond to SPAM, it becomes a numbers game. Here's a hypothetical example: a spammer sends 500,000 emails with success rate of .001%. In order to increase their revenue and success rate, spammers conclude that they should send more messages. A .001% success rate on 10,000,000 emails sent is more lucrative than a .001% success rate on 500,000 emails sent. The economics are appealing: often spammers are not even paying for bandwidth, but rather using networks of malware-infected PCs known as Botnets. So with the low (or no-cost) overhead of sending SPAM, spammers will not stop their efforts to fill your inbox any time soon. More is better--for spammers, that is.
Regarding your second question: corporations are usually slow to move on updating technologies - in fact, there are major corporations still running software programs based on obsolete programming languages (think Y2K). Many IT departments take the view that if it’s not completely and utterly broken, it’s good enough.
Forward-thinking companies that view email as a core business function realize that upgrading their email technology is a strategic advantage to their business. Improving deliverability with an on-premise scalable email delivery platform, along with email authentication and reputation services provides maximum flexibility, control and visibility into their programs. And, frankly, that's why we're in business today.
StrongMail's technology was designed to address today's sending challenges in one high-performance appliance that is optimized for high deliverability. There are two other alternatives: cobble together a custom solution, which is expensive, hard to support and lacks the flexibility to adapt to new sending parameters. The other option is to outsource, which is a costly proposition for companies that send large volumes of email. Plus, it takes the control from the marketer, introduces data security risks and makes it difficult to achieve the tight data integration that is necessary to send relevant messages.
You may want to check out our whitepaper called "Fixing the Broken Killer App," which you can download from our web site.
Comment by Sam Cece – July 16, 2008 11:19 PM