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My saved search doesn't appear to be sending me email alerts when records appear within the search.

i mean, it's a saved search on the customer record - but it's not expecting new customer records to be created before it fires the email?

my understanding is that an email will fire off once the search criteria is met and a record is found within the search

From what I remember, it will send you an email alert when the saved search criteria are met and only when records are created since you did not check the Send on Update column.