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The subject line is important, but it must work in unison with two other email elements: the “from” label (sender name) and “from” address. The label says who is responsible for the subject line and email. The address supports the label and validates the email is legitimate and worth the read.
A good sender name instills trustworthiness, brand awareness, and consistency, all things that build confidence and encourage engagement. And it’s true – having a recognizable from label and a matching email address creates a unified identity that increases the likelihood of a subject line driving an open versus having it marked as spam or being ignored by the recipient.
According to Brevo, 42% of email audiences make the decision to open an email based on the “from” label. That means the “from” label and “from” address the second-most influential email elements for driving open rates (subject line being first).
Yes, we said the same thing about subject lines, but it holds truer for “from” labels and email addresses. Ghost explains that email systems only accept up to 25 characters for a label, meaning it is best to not just keep it short, but make the most of what you have.
With so few characters, the best practice is to use your company name, your name, or some combination of the two. If your company name is long, then shorten it to something pithy and easy for audiences to remember. For example, Landon @ Fifth Rock is a simple label that says who you are, the company you serve, and who is responsible for the subject line and email contents. That’s particularly important when approaching investors, as they want to know that they are dealing with a professional tied to a firm or fund or organization relevant to them.
Owning your own domain means you can align all your digital presence. Your website URL and your “from” addresses become one, making it easy for the audience to find your online in multiple ways. Even if they are not perfectly aligned, creating a unified presence online helps instill confidence in audiences, especially those that have or may soon invest.
Act-On expresses that owning your own domain also builds brand equity and showcases professionalism. This is especially the case when you develop multiple “from” addresses for different purposes: newsletter@fifthrockfunddevelopment.com and support@fifthrockfunddevelopment.com are great examples of this, as each address is easy to recognize, they align with one another, and are general enough that they could fit well with any person from the company.
If a subject line is about garnering interest, then the “from” label and address are about showcasing professionalism. The idea is to provide credit and validity to the subject and content by ensuring the audience that you appear to be a reputable source. That is not possible if you are generic or leaning on free email addresses, like Customer Support or support_fr@gmail.com.
Generic labels undermine the first “DO” we covered. Without a proper way to showcase yourself and your organization, the audience will lack confidence in everything the email embodies and all the other elements. It is not just bad practice, but like free-to-use addresses, it increases the risk of bounces and spam.
Campaign Monitor covers the risks of free-to-use thoroughly, especially when it comes to marketing purposes. Third-party email marketing services are common in the finance industry, especially when it comes to fund marketing, and the use of free email addresses means no authentication and a very high risk of bounce rates and spam deliveries. In fact, our own delivery testing and data shows that unauthenticated domains sent by email services average an 85% bounce rate or higher.
MailChimp makes it abundantly clear that using no-reply addresses is problematic from numerous points of view. First of all, audiences are significantly more likely to mark an email as spam if it comes from a no-reply, so much so that can negate even the best subject line and “from” attributes. Second, no-reply addresses literally tell the audience that engagement is not important. If something is coming from an unmoderated address that literally says you will not reply, why would they feel inclined to read it, especially if you’re targeting investors who may have questions or concerns.
The use of no-reply is also not compliant with privacy and email regulations in a great deal of the world. General Data Protection Regulation (GDPR) requires an address that can accept replies, and CAN-SPAM implies it too. It may not be a violation of SEC or financial regulations, but why would you intentionally send any communication that could put you at risk? In general, just avoid noreply@… whenever possible.
When in doubt, put your organization’s name on it. Remember that investors expect professional communication, and that starts before they open the email. Do everything you can to ensure you keep up the professionalism and stray away from free-to-use domains, GDPR, and CAN-SPAM concerns. Combine that with a strong subject line and powerful preheader, and you will find yourself with a high open rate.
Fifth Rock will cover email best practices in subsequent parts of this Email Best Practices When Targeting Investors series.