I hate just doing linkblogs, but Fred’s thoughts this morning on Facebook and privacy around the beacon issue are spot on. 

Two highlights I couldn’t agree with more:

When the internet knows who you are, what you do, who your friends are, and what they do, it goes from the random bar you wander into to your favorite pub where your friends congregate and the bartender knows your drink and pours it for you when you walk in the door

and

These privacy backlashes do some good though. They keep big companies like Google and Facebook sensitized to the issue. And so we hope that they ‘do no evil’ with this data they are collecting

Read the full post here.

Academic Inspiration

I just read in my alumni magazine that at Opening Exercises for incoming freshmen this year, Princeton President Shirley Tilghman closed her remarks with the following:

For the next four years, you will be encouraged – and indeed sometimes even exhorted – to develop the qualities of mind that allowed Katherine Newman, Simon Morrison, and Alan Krueger to change what we know about the world.  Those qualities are the willingness to ask an unorthodox question and pursue its solution relentlessly; to cultivate the suppleness of mind to see what lies between black and white; to reject knee-jerk reactions to ideas and ideologies; to recognize nuance and complexity in an argument; to differentiate between knowledge and belief; to be prepared to be surprised; and to appreciate that changing your mind is not a sign of weakness but of strength.  We ask you to be open to new ideas, however surprising; to shun the superficial trends of popular culture in favor of careful analysis; and to recognize propaganda, ignorance, and baseless revisionism when you see it.  That is the essence of a Princeton education.

While some of these comments are more appropriate for an academic setting, how many of us who run businesses want to encourage the same behavior and thoughtfulness of our employees?  Here are a few examples taken from the above.

To change what we know about the world — a hallmark of a successful startup is to invent new products and services, to change the way the world works in some small way.  In our case, to fix some of the most critical problems with email marketing.

The willingness to ask an unorthodox question and pursue its solution relentlessly — reinventing some part of the world only comes by challenging the status quo.  Return Path was started by asking an unorthodox question:  why isn’t there an easy way for people to change their email address online?

To cultivate the suppleness of mind to see what lies between black and white; to recognize nuance and complexity in an argument — the longer I run a company, the less black and white I see.  When I do seev it, I think of it as a gift.  The rest of the day is spent trying to figure out the zone in between.  Making 51/49 decisions all day long is difficult, but it’s easier when the rest of the organization is capable of doing the same thing.

To appreciate that changing your mind is not a sign of weakness but of strength; to be open to new ideas, however surprising — perseverance in business is critical; stubbornness is deadly.  How does the old saying go?  The definition of Insanity is doing the same thing over and over again but expecting different results.  If the only thing we were still doing at Return Path is ECOA, we’d be long gone by now, or at least MUCH smaller than we are today.

I don’t know too many entrepreneurs that don’t espouse most of the above principles.  The trick is to build an entire company of people that do.

Unleashing the True Power of Email

A recent Behavioral Insider column had a truly tantalizing quote from iPost’s Steve Webster:

"There is the presumption that when someone receives an email message they then click on the email go to the Web site and either make a purchase or not and then they are done interacting with your email. This turned out to be wrong. We discovered very quickly that the power of an email impression lasts for weeks after the customer has actually received the message. The particular interaction they will have with you later really depends more on their personal preferences than on your putting a new email in front of them."

The highlighted portion is a point we’ve been making here at Return Path for years now.  Emails are not perceived by recipients as distinct, one-off promotions.  But many marketers continue to view them that way and make both strategic and tactical errors because of that.  Here are a five things you need to start doing – right now – if you want to capitalize on the true power of email:

1. Stop analyzing each email in a vacuum.  The whole is worth more than the sum of the parts.  The deeper you can dive into your data and analyze the whole program and how recipients interact (or don’t) the better decisions you can make.  Be sure to read the entire Behavioral Insider column – some of the tests they describe around segmentation reveal how email does or doesn’t influence purchasing and how it can be used more effectively.

2. Sending ever more email isn’t the answer.  To the point above, more email seldom makes buyers buy more.  Marketers don’t quite believe this because every email blast they deploy results in revenue.  But the point this column makes is that you have to look at what is happening at the individual level.  It soon becomes clear that sending targeted, segmented email – less email per person – is more effective.

3. Look past the click. As a corollary to #1, many marketers believe if a subscriber doesn’t click, they haven’t interacted.  This clearly isn’t the case.  The smartest marketers segment their non-clickers into buckets.  For example, a retailer might look at non-clickers who are openers, online purchasers, site browsers or in-store purchasers.  If you have an email recipient who browses your website every other week and then purchases in store once per quarter, it is nutty to assume that the email isn’t influencing that just because they don’t click through.

4. Reliance on CPA is going to bite you.  Yesterday my colleague Craig Swerdloff wrote about CPA versus CPM in list rental on the Return Path corporate blog.  Marketers believe that CPA is the best deal for them because they only pay for performance.  The problem is that CPA often requires a very high degree of volume to achieve success for both publisher and marketer.  All those extra emails don’t just self-destruct and wipe the memory of the recipient who doesn’t take your "action."  They’ve still made an impression – positive or negative.  Both CPA and CPM can be effective, but you need to work with an expert who understands that email is about more than clicks.

5. Permission + value = ROI. Steve Webster’s quote goes on to point out that "We thought the quality of the … creative made all the difference. It turns out that it does – but not nearly as much as the fact that [the email] made an impression on a customer who actually was interested in receiving an email from you."  Sending email without permission, as defined by the customer not by you, is a non-starter.  The first step is getting that person to proactively sign up, and then making sure they recognize your emails as desired.  Then the value piece kicks in.  Do you send what you promised?  Do your emails exceed their expectations?  Do you delight them?  The more yeses you rack up there, the more revenue your email will generate.

Brilliant Client Service:  It’s Not Just for Peaceful Revolutionaries Any More!

I just read this quote, attributed to an unlikely source, Mahatma Gandhi, in an annual report from InfoUSA, one of the biggest public companies in our industry:

A customer is the most important visitor on our premises.
He is not dependent on us.  We are dependent on him.
He is not an interruption in our work.  He is the purpose of it.
He is not an outsider in our business. He is part of it.
We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so.

This quote is widely believed to actually be from Gandhi, despite questions about that authenticity, at least according to one expert.

But boy is the content spot on.  We literally just finished developing something we call the Return Path Client Promise a few weeks ago, which you can see here.  The trick to getting something like this to work is that it has to be truly genuine and come from within, not from on high.  Our marketing, sales, and account teams worked diligently over the course of a couple of months to draft and refine this document and make it accurate and meaningful.

These Things Do Take Lots of Care and Feeding

Pete Blackshaw wrote a really thoughtful piece in ClickZ today entitled “Ten Reasons Why I Should Stop Blogging.”  It’s a good read if you’re a middle of the road blogger…or particularly if you’re thinking about starting a new blog.

Association Proliferation

NOTE:  I was fortunate enough to be asked to write a monthly column for DMNews.  This is the most recent column.  By agreement with DMNews, I am linking to them for the bulk of the content, but you can get an idea of what I’m talking about with the first few sentences below.

You can be forgiven if you can’t precisely remember the difference between the OPA and the IAB. Or the DMA and the DAC. Or EEC and ESPC. Or WOMMA and OMMA. And, while we are at it, what exactly is a MAAWG? And isn’t OLGA the name of someone you’d go out to dinner with?

Gone are the days when a business could belong to one or maybe two trade associations and feel that it was covering…(read the rest at DMNews here).

Only Once, Part II

As many of you know, this blog is called Only Once because You’re Only a First-Time CEO Once — that’s the general theme of my writings on entrepreneurship and on the email marketing industry (read the initial posting which explains all of that here).

As of today, I am entering into another Only Once because "You’re Only a First-Time Parent Once" as well!  Mariquita and I welcomed Casey Joanna Blumberg into the world at 8:46 this evening.  Everyone is doing well, and you can see our official announcement here. 

New Deliverability Index is Out

Return Path’s semi-annual Sender Score Deliverability Index, which has become a sort of industry standard metric about how much non-spam commercial email is getting snared by ISP filters, is out.  You can read Heather Palmer Goff’s posting about it (and download the report and the metrics) on the Return Path blog here.

A Flurry of CAN-SPAM Activity – But Is It Meaningful?

Our four-year old oft maligned anti-spam legislation in this country, the CAN-SPAM act, has seen an uptick of activity this past week. 

Melinda Krueger sums up the sentiments of many in the anti-spam community in her Email Insider column today when she says,

There is no provision in the act against sending unsolicited email as long as you comply with the rest of the act. The motivation of the act was more to make voters feel politicians were doing something about this annoying problem.

In the last two days, however, we got news of ValueClick’s $2.9 million settlement with the FTC over a CAN-SPAM violation (the largest ever), as well as notorious hardcore spammer Robert Soloway pleading guilty on a variety of charges for Really Bad Things, probably including spamming (I’ve read differing reports of his plea, some of which include the CAN-SPAM violation, and some of which don’t).

I’ve never felt that CAN-SPAM did all that much to stop sneaky practices.  It has loopholes so large you can drive a semi through it.  People joke that the law means, “yes, you CAN spam.”  Yet, the law does seem to be doing at least a little of what it was intended to do, which is give the federal government the teeth to go after the bad guys. 

Soloway undoubtedly is a bad guy.  ValueClick may or may not be a bad guy, depending on who you talk to.  But, weak as the law may be, public fines and convictions for violations of CAN-SPAM will ultimately start to impact both the black hats and the grey hats.  Let’s just hope the feds keep up their enforcement work!

Feeling Less Like a Luddite:  Welcome, Meebo!

As I’ve written about on occasion (here, here), it’s easy to feel like a Luddite with the rapid pace of change of the web these days.  Anyway, I’m feeling slightly less like one today with the addition of Meebo to my blog.

I read about Meebo in David Kirkpatrick’s Fast Forward column last week, and it was such a cool idea, I had to install it right away.  Basically, it adds a widget to the right sidebar of my blog which allows readers to Instant Message me any time I’m online if they’re reading my blog (anonymously, I think, and regardless of whether or not they have a Meebo account, although I needed to create one in order to install it on OnlyOnce).

Having a Meebo account is also basically like having a web-based version of Trillian, so I can get on IM from any computer with a browser at any time.

Should be an interesting way to hear more from readers.  We’ll see.  Meebo Me!