Journal Selections from MSI
Influencing Customer Opt-In and Opt-Out
Marketers should avoid over-marketing to customers who have joined a permission-based email program.
Research by V. Kumar, Xi (Alan) Zhang, and Anita Luo suggests that marketers can model and influence consumer opt-in and opt-out times for permission-based email programs. They adopt a multivariate copula model to jointly model opt-in time (from a customer's first purchase to the opt-in decision), opt-out time (from the opt-in decision to the opt-out decision), and average transaction amount. Their model significantly improves the predictive performance of the opt-out time in comparison with several benchmark models. In addition, the study offers several important findings: (1) marketing intensity affects opt-in and opt-out times, (2) customers with certain characteristics are more or less likely to opt in or opt out, and (3) firms can extend customer opt-out time and increase customer spending level by strategically allocating resources.
Download article from American Marketing Association (free until May 13, 2015)
Modeling Customer Opt-In and Opt-Out in a Permission-Based Marketing Context by V. Kumar, Xi (Alan) Zhang, and Anita Luo, Journal of Marketing Research (August 2014)
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