Venmo: Reminds Me of My Mother

My mother meant well. When I was a college freshman, she meant to send me a care package. But life was so busy for Mom, working full time while taking care of two younger children. No worries for me, though -- if I wanted snacks, my dorm was just a short walk from 7-11.

When I was a sophomore, then a junior, still no care packages. Somehow, I got by on healthy cafeteria food.

Then, senior year -- the day before final exams -- a small box showed up at my apartment door. It was filled with assorted snacks and a note from my mother. I called her up to thank her and asked why she’d sent it during my last week of my last year of school. She replied, “I didn’t want you to say I never sent you a care package.” Aw, Mom, so sweet -- but a bit late.

Did you know that April was Financial Literacy Month? Even though it’s been recognized in the United States for over 20 years, apparently Venmo remembered it just in the nick of time: It was the theme of an email they sent me 40 minutes before the end of the month.

I suppose they didn't want me to think they'd forgotten to share some financial money tips during Financial Literacy Month. Or maybe the content managers had planned to send this content earlier in the month but were too busy? Fail for Timing.

Lesson: 
Be relevant early, not late. 

PayPal: Venmo $10 Giveaway Email Lacks Explanation or Focused Targeting

This recent email from PayPal trying to cross-sell Venmo merits Fails for Creative and Targeting.

Enrollment offer email, sent to long-term
Venmo customer

The email offers me a straight cash bribe (or, as we say in marketing, an incentive) to sign up for Venmo. The Call to Action is to click on the “Claim Your $10” link that will bring me to the below landing page.

Landing page
lacks explanation of Venmo product features or customer benefits

The landing page reinforces the incentive and discloses information about fees -- and allows me to sign up for Venmo and verify my phone number.

But what is Venmo? Neither the email nor landing page include a product explanation. Simply put: If someone hasn’t used Venmo -- which is, after all, the kind of person the email is targeting -- they would have no idea what it is or why they should provide their mobile number to get $10. Both the email and landing page should include benefit statements or at least some brief sales messages.

Now, in fact, I know all about Venmo. I’ve been using it for a long time, long enough for Venmo’s parent PayPal to know that I am an active customer. That is why I give this a Fail for Targeting. There is no value in sending a new customer acquisition offer to a long-term active customer like myself. Communications like this can make customers question the strength of a brand.

Speaking of brand, why doesn’t PayPal put its name behind Venmo -- at least on this marketing email? For customers who haven’t heard of or used Venmo (like the ones targeted by the offer), including phrasing such as “backed by PayPal” or “a PayPal service” would at least lend some credibility to the product.

This isn’t the first time PayPal has offered me an incentive for something without explanation. Last year, PayPal sent me an offer for Honey that lacked a product value proposition. Nor is this the first time that PayPal has demeaned its brand with shoddy marketing communications. These communications can implicitly send a message to customers that PayPal doesn’t have its act together, which could lead to decreased trust and decreased use. Is this a company to trust with cryptocurrency purchases?

Sometimes marketing managers are so obsessed with their products, they forget the basics. That’s why they need to take a step back, review lessons like the below, and avoid sending Mail That Fails.

Lessons:

1. Explain what it is you are selling and why it is beneficial.
2. Extend your new customer offer only to potential new customers.
3. If selling an affiliate service, consider explaining the relationship with the affiliate.