Latest / The Email Marketing Podcast with Fexingo: Newsletters, Open Rates, and Subscriber Growth / How Email List Inflation Hurts Deliverability and Revenue
Transcript
- Lucas: So Luna, I was looking at a client's email analytics the other day, and something jumped out. Their list had grown forty percent in six months, but their open rates had dropped by twenty-two percent. And their revenue from email was down fifteen percent. Luna: Whoa, that's a painful trade-off. More subscribers but less money? How is that even possible? Lucas: Well, that's the thing — when you chase raw list size, you often end up with a bunch of people who never asked to hear from you. And that wreaks havoc on deliverability. Internet service providers start flagging your emails as spam, and before you know it, your messages aren't even reaching the people who actually want them. Luna: Right, so it's not just about the number of subscribers, it's about who those subscribers are. Lucas: Exactly. And this client, a fitness apparel brand, had bought a list from a third-party vendor. A classic mistake. They thought a bigger audience meant more sales, but instead, they tanked their sender reputation. Luna: So what did they do? Did they recover? Lucas: They did, but it took work. They had to clean the list, remove the unengaged contacts, and rebuild trust with the ISPs. And it took about three months before their deliverability got back to normal. In the meantime, they lost a chunk of revenue. Luna: That's a steep price for a shortcut. I'm guessing the lesson here is quality over quantity. Lucas: Absolutely. And the irony is, they could have grown their list organically with lead magnets and co-registration, which we've talked about before. But when you buy a list, you're inviting spam complaints, and that's the fastest way to get your emails sent straight to the promotions tab or the trash. Luna: So what's the actual number that matters? Like, when you look at a list, what should you track? Lucas: There are a few key metrics. First, the complaint rate — that's the percentage of recipients who mark your email as spam. Anything above point one percent is a red flag. And then there's the bounce rate, especially hard bounces, which tell you if the addresses are even valid. Luna: And those are the things that hurt your sender score, right? Lucas: Exactly. ISPs look at your complaint rate, your bounce rate, and also your engagement — whether people are opening, clicking, or deleting unread. If you have a huge list but most people ignore you, that's actually worse than a smaller, engaged list. Luna: So in that sense, a smaller list can perform better. We've touched on that before, but it's worth repeating. Lucas: Yeah, and it's not just about the short term. If your deliverability is damaged, it can take months to repair. And even after you fix it, some of your best subscribers might have missed important emails during that window, so you lose engagement there too. Luna: That's a good point. So what's the smart way to grow a list without falling into this trap? Lucas: Well, the obvious answer is to never buy a list. But beyond that, you need to be strategic. Lead magnets, like a free guide or a discount, attract people who are genuinely interested. And co-registration, where you partner with a complementary brand, can bring in subscribers who already trust you. Luna: And you have to make sure they opt in, not just pre-checked boxes. Lucas: Exactly. Consent is huge. And then, once you have them, you need to keep them engaged. That means sending the right frequency, segmenting your list, and paying attention to what they respond to. If you see a drop in engagement, it's better to prune those names than to let them drag down your metrics. Luna: So you're saying we should be proactive about removing people, not just adding them. Lucas: Right. And that's where sunset rules come in. If someone hasn't engaged in, say, six months, you might re-engage them with a special offer, and if that doesn't work, you drop them. It's better to have a thousand engaged subscribers than ten thousand who ignore you. Luna: Yeah, that makes sense. It's like, if this conversation today was worth a coffee to you, you could support us at buy me a coffee dot com slash fexingo. It helps keep the show ad-free, but no pressure. Lucas: Yeah, that's the link. And it does mean we can keep doing deep dives like this without selling out to sponsors. But back to the email stuff — the other thing that surprised me about this fitness brand was how much their open rates recovered once they cleaned house. Luna: Oh really? How much? Lucas: Within two months, their open rates jumped back to pre-buying levels, and their revenue from email actually exceeded where they were before, because they were finally reaching the right people. They also cut their list size by thirty percent, but their click-through rate tripled. Luna: So the smaller list was more profitable. That's a powerful story to share with anyone who thinks bigger is better. Lucas: Absolutely. And it's not just about the list size itself. It's about the quality of the relationship. When someone signs up because they want to hear from you, they're more likely to open, click, and buy. When you force it, you're just digging a hole. Luna: So, for our listeners who are thinking about their own lists, what's the one thing they should check today? Lucas: I'd say look at your complaint rate. If it's above point one percent, you need to act. Remove the sources of those complaints, maybe a purchased list or a co-registration partner that isn't bringing in the right people. And then look at your engagement — are your most valuable subscribers actually opening your emails? Luna: And if they aren't, you might need a re-engagement campaign or a sunset rule. Lucas: Exactly. And don't be afraid to lose subscribers. In the long run, a clean, engaged list will drive more revenue than a bloated one that's killing your deliverability. Luna: Well said. Thanks for breaking that down, Lucas. Lucas: Any time. Next time we can talk about how to structure a re-engagement email that actually converts, because that's a fun one. Luna: I'm in. Until then, keep your lists healthy, and maybe send a few less emails to the people who don't care.