Summary
Using an existing email list for a new sub-company presents both opportunities and significant challenges for email deliverability. While it might seem efficient to leverage a pre-existing audience, it is critical to address consent, relevance, and sender reputation concerns to avoid potential issues such as increased unsubscribe rates, spam complaints, and damage to your domain's sending reputation. The core principle is to manage subscriber expectations and ensure clear communication about the relationship between the old and new entities.
Key findings
- Consent is paramount: Subscribers opted into communications from the original company. Their consent does not automatically transfer to a new, even related, entity, especially if the product or service type differs. Treating this as a new relationship requiring explicit opt-in for the sub-company's specific communications is the safest approach.
- Sender reputation risk: Sending to an unengaged or misaligned audience can quickly lead to high bounce rates, spam complaints, and unsubscribes, negatively impacting your sender reputation. This can affect not only the new sub-company's deliverability but potentially the parent company's as well.
- Transparency is key: Clearly communicate the connection between the original company and the new sub-company. Acknowledge the subscriber's prior relationship and explain why they are receiving the email, offering a clear path to opt-out specifically from the new entity's communications.
- Engagement strategy: An introductory email, possibly from the original company, inviting subscribers to explicitly opt-in to the new sub-company's list, can significantly improve engagement and reduce churn. This also provides an opportunity to offer incentives.
- List hygiene: Inactive or old lists pose a significant risk of containing spam traps or invalid addresses. Before any outreach, a thorough cleaning process is essential to protect your sender reputation.
Key considerations
- Audience relevance: Even if the sub-company is part of the same parent, the new direct-to-consumer (DTC) focus might not align with the original B2B audience's interests. Evaluate if the existing consumer list is truly relevant to the new DTC offerings.
- Dedicated opt-out: Implement a separate unsubscribe option specifically for the new sub-company's campaigns, ensuring subscribers can opt-out without affecting their subscription to the parent company's communications.
- Branding consistency: Consider if the new sub-company will use its own branding or leverage the parent company's. A consistent brand identity can help subscribers recognize the relationship and reduce confusion.
- Gradual re-engagement: If the existing list has been inactive, a gradual re-engagement strategy is vital. Sending a high volume of emails to an unengaged list can trigger spam filters. Learn more about re-engaging inactive subscribers.
- Legal and compliance: Ensure your approach complies with relevant data privacy regulations like GDPR and CCPA. The original consent might not cover marketing for a distinct business line, even under the same corporate umbrella. For a comprehensive guide on managing email lists, see Klaviyo's Email List Management Best Practices.
What email marketers say
Email marketers often face the practical challenge of balancing business growth with maintaining strong sender reputation when launching new ventures. Their collective wisdom points towards cautious, consent-driven strategies that prioritize subscriber experience and long-term deliverability over immediate list size. The prevailing sentiment is that a smaller, engaged list is far more valuable than a large, unresponsive one, especially when introducing a new brand or product line to an existing audience.
Key opinions
- Sponsored message approach: Many marketers advocate for treating the initial communication from the new sub-company as a sponsored message from the original, trusted company. This helps bridge the gap and leverage existing trust.
- Re-opt-in for new list: A common and highly recommended strategy is to send an introductory message from the old company to the existing list, inviting subscribers to explicitly sign up for the new sub-company's list, often with an incentive.
- Risk of poor engagement: Marketers recognize that using an unengaged or old list for a new purpose can lead to high unsubscribe rates and low engagement, which damages sender reputation and deliverability.
- Separate opt-out segments: Creating distinct opt-out segments for each company's communications allows subscribers to control their preferences without completely disengaging from the parent company.
- Acknowledge the source: Email content should explicitly mention the original point of contact or purchase, helping subscribers understand why they are receiving the email and reinforcing the legitimacy of the communication.
Key considerations
- List quality over quantity: An old, inactive list may not be good quality and could harm initial deliverability efforts for the new sub-company.
- New IP and sender reputation: If the new sub-company uses different sending infrastructure (e.g., a new ESP or IP address), it will have a fresh sender reputation that needs to be built carefully. A sudden large send to a potentially unengaged list can damage this new reputation. Refer to Wix's guide on building an email list for foundational practices.
- Branding and messaging: Maintain consistent branding and clear messaging from the parent company during the initial outreach. This helps establish credibility and prevents confusion that could lead to spam complaints.
- Immediate engagement assessment: Be prepared to quickly remove subscribers who do not engage with the introductory message. Continued sending to unengaged recipients negatively impacts future inbox placement.
Marketer view
Email marketer from Email Geeks suggests that companies that have done this in the past treated the new sub-company's message as a sponsored message from the old company. This approach can help maintain a sense of continuity and trust with the existing subscriber base. It leverages the established relationship with the parent brand to introduce the new entity. They also advise creating a separate opt-out segment. This allows customers of the old company to easily opt out of the new company's specific campaigns without unsubscribing from all communications, preserving subscriber choice.
Marketer view
Email marketer from Email Geeks suggests sending an introductory message about the new brand with an offer. This strategy aims to encourage people to sign up for a new list specifically for the sub-company, ensuring engagement from the outset. It helps to avoid starting with a high volume of unsubscribes, which can negatively impact sender reputation. This approach is particularly useful if the existing list has not been actively engaged, as it allows for a fresh start with genuinely interested subscribers.
What the experts say
Email deliverability experts consistently warn against the perils of mismanaged list transfers between related entities. Their advice centers on protecting sender reputation, ensuring explicit consent, and recognizing that even within the same parent company, a new brand or different type of offering constitutes a new relationship with the subscriber. The consensus is that any perceived ambiguity in consent or relevance can lead to significant deliverability problems, including being blocklisted, with long-term consequences.
Key opinions
- Be very careful: Experts emphasize extreme caution when using an existing list for a new sub-company, especially if the recipient type or business model (e.g., B2B to DTC) differs. The risk of damaging sender reputation is high.
- Acknowledge the source: An introductory message should explicitly acknowledge the original source of the email address (e.g., 'we appreciated your business at [old company], and wanted to make you aware of new group [new company]' ). This transparency helps manage subscriber expectations.
- Immediate engagement assessment: If there is no engagement from the introductory message, experts advise dropping those recipients immediately. Continuing to send to unengaged contacts can harm your domain and IP reputation.
- Opt-in for new list: The most effective method is to treat the new sub-company as an affiliate and encourage recipients to opt-in to its email list. This ensures clear consent and higher engagement for the new entity.
- Avoid disaster: Experts have seen absolute, unmitigated disaster when new sub-companies use existing lists without proper re-permissioning, especially if sending infrastructure, templates, or messaging differ, making it seem like a purchased list.
Key considerations
- Acquisition method and age: Evaluate how the original addresses were acquired and their age. Older, less engaged lists carry a higher risk of spam traps and inactive users, leading to bounces and blacklist placements.
- Clarity of company relationship: Ensure that the relationship between the small store, the large parent company, and the new sub-company is absolutely clear to the recipient. Confusion can easily lead to spam complaints.
- Consistent infrastructure: If possible, use the original company's branding, templates, and sending infrastructure for the initial outreach. This maintains consistency and reinforces the legitimacy of the communication before directing them to a new site for opt-in.
- Long-term deliverability: The primary goal should be to protect the sender's reputation and ensure long-term deliverability for both the parent and sub-companies. Any shortcuts with consent or relevance can severely impact this. For more insights on this, refer to Spam Resource's explanation of email deliverability.
- Parent company campaigns: Consider if these consumers are already part of the parent company's current B2B campaigns. If they are, that strengthens the case for a sponsored message approach. If not, the distinction between B2B and DTC could be even more critical.
Expert view
Expert from Email Geeks strongly advises caution, particularly if the list of recipients is entirely new and represents a different type of audience. They question the acquisition method and purpose of these addresses, such as whether they were for product purchases or incentives, and how long ago they were acquired. This is crucial because consent and relevance diminish over time, increasing the risk of negative sender reputation impact.
Expert view
Expert from Email Geeks suggests tailoring the introductory message to acknowledge the source of the contact. An example provided is: 'we appreciated your business at x, and wanted to make you aware of new group z.Y'. This approach builds trust by reminding recipients of their existing relationship with the parent company, making the introduction of the new sub-company more natural and less intrusive. Such transparency helps to minimize confusion and reduce unsubscribe rates, leading to better overall engagement.
What the documentation says
Official documentation and industry best practices underscore the critical role of consent, list hygiene, and gradual warming when expanding email operations, especially with new sub-companies. These sources highlight that a sudden change in email content, sending domain, or sender identity for an existing list can be flagged as suspicious by Internet Service Providers (ISPs). Adhering to established guidelines helps protect sender reputation and ensures messages reach the inbox reliably.
Key findings
- Consent and permission: Documentation consistently emphasizes that explicit, verifiable consent is necessary for all email marketing communications. Reusing a list for a new sub-company may require obtaining fresh consent specific to the new entity's offerings, even if under the same parent brand.
- Sender reputation impact: ISPs monitor sender reputation closely, which includes factors like complaint rates, bounce rates, and engagement. A sudden increase in any negative metrics due to sending to a less-engaged or misaligned list can severely damage the sending domain's reputation, affecting future deliverability across all entities within the company. This is a vital element for business partnerships.
- List hygiene importance: Regularly cleaning and maintaining an email database is crucial to remove inactive or invalid addresses, reducing the risk of hitting spam traps or generating hard bounces. This process is even more important when an older list is being repurposed.
- Domain and IP warmup: If the new sub-company uses a new sending domain or IP, it requires a careful warmup process to build a positive reputation with ISPs. Sending a large volume to an old list can derail this process.
Key considerations
- Transparency and clarity: Clearly communicate the relationship between the original company and the new sub-company in your emails. This includes using recognizable branding, clear sender names, and providing a reason why the recipient is receiving the email.
- Opt-out mechanisms: Ensure that easy and clear unsubscribe options are available, preferably allowing recipients to opt-out specifically from the new sub-company's communications while remaining subscribed to the parent company if desired.
- Segmentation: Segmenting your existing list based on engagement, purchase history, or other relevant criteria can help identify the most engaged subscribers who are most likely to convert into valuable contacts for the new sub-company.
- Legal compliance: Always prioritize compliance with anti-spam laws (e.g., CAN-SPAM, CASL, GDPR). Misinterpreting consent for a new entity can lead to legal penalties and significant damage to reputation. AWS offers a guide to maintaining a healthy email database that delves into these complexities.
Technical article
Documentation from AWS explains that maintaining a healthy email database is crucial for deliverability. They emphasize making informed decisions that suit your business needs, which extends to how existing lists are leveraged for new ventures. A key takeaway is that an email list is a dynamic asset that requires continuous management and adaptation to new business objectives. Proper list segmentation and hygiene are foundational to this management, preventing issues when introducing new entities or offerings.
Technical article
Documentation from Constant Contact Community suggests creating a new list each time you upload contacts from an external file. Their reasoning is that uploading to an existing list simply adds new contacts, which might not be ideal for managing distinct segments or re-engagement strategies for a new sub-company. This implies that for clear segmentation and tracking, starting fresh for the new entity's subscribers is often preferable, even if those subscribers originate from a parent list.
Related resources
15 resources
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