Should I correct typos in existing email addresses in my CRM and what are the best practices for handling email typos in Fintech signups?

Key findings

• Consent risk: Correcting a typo means you are sending to an address for which you did not explicitly receive consent, potentially leading to legal and compliance issues (e.g., GDPR, CAN-SPAM).
• Spam complaints: Users who intentionally provided an incorrect address (or whose typo resulted in a valid, different address) will receive unexpected emails, likely leading to high spam complaints.
• Data security: Typos, especially in Fintech, can inadvertently send sensitive transactional information (like invoices or payment reminders) to unintended recipients, posing a significant privacy and security risk.
• Proactive prevention: The focus should shift from post-signup correction to robust email validation at the point of data collection to prevent typos in the first place.
• Alternative channels: For critical communications or identified typo addresses, leveraging alternative communication channels (SMS, push notifications) to prompt users to update their details is recommended, rather than guessing the correct email.

Key considerations

• Double opt-in: Implementing a confirmed opt-in process is the most effective way to ensure valid email addresses and explicit consent at the time of signup.
• Real-time validation: Utilize real-time email validation at the form submission stage. This helps catch common typos and syntax errors before they enter your CRM.
• User experience: Balance the need for data accuracy with user experience. Friction can reduce signups, but data quality is paramount, especially in Fintech. Consider asking users to confirm their email in a separate field.
• Transactional vs. marketing: For transactional emails, the risk of non-delivery or misdelivery is higher. Prioritize strategies to ensure these critical communications reach the correct recipients. Learn more about what to do instead of correcting typos.

Key opinions

• Don't correct: Many marketers strongly advise against unilaterally correcting typos, as it fundamentally alters the consent provided by the user, even if unintentional.
• Risk of complaints: Sending to a corrected address can result in unexpected emails for the recipient, leading to higher spam complaint rates and potential blocklisting (or blacklisting). This is crucial for maintaining sender reputation.
• Spam trap concern: Correcting an address risks converting it into a spam trap, particularly if the typo'd domain is a common one that later becomes a honeypot.
• Address collection improvement: Many suggest that if typos are a significant issue, the primary solution lies in improving the email address collection process itself.

Key considerations

• Preventive measures: Implement real-time email validation on signup forms to catch errors before they enter the CRM. This is a core part of preventing bad signups.
• Alternative outreach: For critical transactional communications, if an email bounces due to a typo, use other channels like SMS or push notifications to prompt the user to update their email address directly within their profile.
• Fintech sensitivity: Given the sensitive nature of financial data, ensuring correct contact information is paramount for security and compliance, even if it means slightly more friction at signup.
• Analyze source: Investigate the source of typo-ridden signups; sometimes, they originate from specific traffic sources (e.g., affiliate marketing) that might be generating bogus leads. Understanding how to verify and validate emails can help.

Key opinions

• Do not alter consent: Experts universally agree that you cannot modify an email address a user provided, as it fundamentally changes the terms of their consent. This applies even if it's an obvious typo.
• PII leak risk: Typos, particularly those in the username part of an email or those leading to an active, unintended domain, can result in the accidental disclosure of Personally Identifiable Information (PII), which is a severe security and privacy breach.
• Prevention over correction: The emphasis should be on preventing typos and bad data from entering your CRM initially, rather than attempting to fix them after the fact. This includes strong email verification practices.
• Beyond bounce rates: Relying solely on high bounce rates to identify typo domains is insufficient, as many typo domains might still be deliverable but lead to unintended recipients, posing a greater risk than a simple bounce.

Key considerations

• Comprehensive validation: Implement real-time email validation that goes beyond syntax checks to include domain existence, MX record checks, and even potential typo domain detection.
• Customer communication: If a critical communication is necessary, use alternative contact methods (SMS, phone, push notifications) to prompt the user to update their email address themselves through a secure portal.
• Legal and ethical obligations: Understand that correcting emails without consent can lead to legal ramifications and erode customer trust, especially in regulated industries like Fintech where data integrity is paramount.
• Proactive data hygiene: Focus on upstream solutions to improve data quality rather than downstream fixes. This aligns with broader strategies for maintaining a clean and deliverable email list.

Key findings

• Consent requirements: Regulations like GDPR and CAN-SPAM strictly define what constitutes valid consent. Unilaterally altering an email address can be interpreted as sending to an unconsenting recipient, leading to legal penalties.
• Data accuracy: Documentation encourages businesses to implement robust data entry validation to ensure the accuracy of collected information, reducing the occurrence of typos at the source.
• Security implications: For sensitive data (e.g., financial, health), documentation often highlights the severe security risks associated with misdelivered emails due to typos, emphasizing the need for rigorous verification processes.
• Deliverability impact: Email service providers (ESPs) and postmasters routinely monitor for high complaint rates and bounces, which can result from sending to incorrect or typo'd addresses, negatively impacting sender reputation and inbox placement.

Key considerations

• Implement real-time checks: Utilize client-side and server-side validation to flag common typos, disposable domains, and syntax errors during signup, offering suggestions or requiring re-entry.
• Confirmed opt-in: Adopt double opt-in for all marketing lists to ensure email addresses are valid and that recipients genuinely wish to receive communications.
• Secure update processes: Provide clear, secure mechanisms for users to update their contact information, emphasizing the responsibility of the user to provide correct data.
• Compliance framework: Establish internal policies that align with global data protection regulations, ensuring that all data handling, including email addresses, adheres to consent and privacy principles.