Email Metrics: Create Your Own Benchmark

June 8th, 2009

In a previous post we discussed various email marketing metrics to monitor. This is very important in order to make continuous improvement to your email program.

Many people ask about ‘average metrics’ with the desire to see how their campaigns are measuring up. Some industry wide statistics may be interesting and somewhat useful, but even more value comes out of measuring your campaigns with your own previous metrics. Every company is different and every list will behave in a different way. While it may be nice to know that the average open rate in the first half of 2008 was 24.86% for the transportation and travel industry, I would be very interested in knowing that MY travel company’s open rate was 22% during that period and now averages 26%.

Moral of the story here:

1. Look at some big industry averages, but pay closer attention to how your campaigns compare to your own historical metrics.

2. In addition to viewing and keeping track of metrics on a campaign or monthly basis, establish a system for keeping historical records of all the metrics you track.

Below is an example of a monthly snapshot of metrics. (Note these are arbitrary numbers for illustration)

(Click on image to enlarge)

Monthly Email Metrics Example

It’s nice to see how our campaigns performed in that month, but I also want to see how they did compared to my own historical average. Comparing just to the previous month does not give us an accurate picture of how things are doing. One of the simplest methods is to create a trailing twelve month record. If you are keeping track of metrics each month, pull the average for the previous 12 months. This helps correct natural variance and provides a better picture of the direction your campaigns are going.

Below is a simplified example of how this might look for you. (Note these are arbitrary numbers for illustration)

(Click on image to enlarge)

Trailing 12 Month Example

In this example, we can see that compared to the previous 12 months, our total revenue this month was $2,266 lower. If we were looking just at the previous month we may be higher for certain metrics, but this does not paint an accurate picture of performance.

Setting up a historical benchmark guide for your email program will provide you great insight on how your campaigns are performing. In addition to looking at averages as we have focused on in this post, you can compare months, quarters etc. This can then be as simple or complex as you need and want to implement.

Questions or thoughts? Leave a comment or feel free to shoot me an email.

Follow Me on Twitter

The Email Shotgun, Rifle, and Blow Dart

June 1st, 2009

We often discuss the shotgun and rifle approach to marketing, and with email communications it plays an extremely important role. The premise is straight forward, but the approach you implement will have significant implications on the effectiveness of your email efforts.

Every email marketer you ask will likely balk at the shotgun approach and jump straight to a rifle strategy. While in theory this is ‘optimal’ – it’s not always that black and white. Additionally, many email marketers pick up the rifle, put on their sniper costume, and call it a day. While this of course is a great starting point, there are opportunities to have a greater impact with multiple approaches also utilizing a high powered blow-dart.

Let’s Examine the Shotgun, Rifle and High Powered Blow Dart

1. Shotgun Approach

Basics: Your email communications are broad and promotions are developed for a wide and diverse audience. In other email terms; you are sending one general email to your entire list with no segmentation and little or no personalization.

Why it’s Bad: For starters, you are not leveraging the email channel. With available technology, you have the opportunity to create targeted segments and dynamically insert personalized data. With a ‘batch and blast’ approach like the shotgun, everyone receives the same email and promotion.

However: What if you don’t have any data (outside of email address) to segment? Many companies starting off with email don’t implement all the best practices for list acquisition, not to mention proper tracking of email engagement for segmentation purposes. In this case, you may be limited to a broad email – and this creates an opportunity to quickly get important information about your subscribers for more refined communications in the future.

For starters:

A. Make sure you have navigation in your emails — which will help you segment based on click activity.

B. Conduct A/B subject line testing to better leverage that big send.

C. Create an email preference center to get more data from you subscribers.

D. Implement some email segmentation just from email engagement.

We of course want to strive for targeted, ‘rifle like’ communication with our subscribers – and when possible this should absolutely be implemented. But In the event you are unable to do this from the start, do begin collecting information that will allow you to make better use of the email channel in the future.

2. Rifle Approach

Basics: Your email communications are focused and campaigns are directed to a select target audience/segment. Promotions are extremely relevant and timely, and you strive to create the impression of a 1-1 communication.

Why it’s Good: Instead of sending one message to 100,000 subscribers, we may be sending 20 messages to 5,000 subscribers based on strategically defined criteria. Here we place our subscribers into meaningful segments and serve them relevant content. This may be done through individual messaging or utilizing dynamic content to execute our segmentation and content strategies.

This will have tremendous impact on the success of your email efforts, and should be implemented whenever possible. This is an extremely summarized description, but the basic premise is that we want to provide relevant and extremely targeted communications and promotions to our subscribers.

3. High Powered Blow Dart

Basics: The blow dart picks up where the rifle left off. With the rifle approach, we are creating targeted segments, developing relevant and timely communications, and creating a better experience for our subscribers. This may or may not include advanced personalization within the email, but we like to make sure it goes that extra step and utilize a blow dart, if you will, to truly strive for a 1-1 communication.

Here we make sure we utilize dynamic content when possible, and further personalize the communication by inserting data that is relevant.

Example of dynamic content from American Advantage

Example of simple personalization from Wells Fargo

Summary

1. Create targeted email segments and focus your content and promotions. Become a sniper and provide extremely relevant and timely communications.

2. If for whatever reason you don’t have data to segment, then start on a basic level with email engagement, reviewing your acquisition process, and upgrading to a better email platform if needed. There is no reason you can’t segment based on some criteria (historical opens, click activity, list origination, products purchased etc)

3. Create an even more personalized experience and utilize dynamic content, personalization, and even more specific targeting.

Cheers,

Forest Bronzan

Follow me on Twitter

5 Email List Building Mistakes

May 28th, 2009

Email list building is an important topic for any email program, as you must make efforts to continue adding to your subscriber list. While there are many tips and tricks for building your email list, let’s focus on some errors many companies make:

5 Common Mistakes with Email List Building

1. Don’t keep the sign-up process fast and simple: This is a big one. If you make the sign-up process complex, you will not get many sign-ups. It’s that simple. Below are some previous posts on email sign-up forms and process.

Good simple form from Express

Nice simple opt-in from New York Life

Flawed sign-up process from SCORE

2. Don’t send a welcome email message: Another huge mistake. When people sign up for your list they are expecting an email welcoming them. This will be one of the highest open rates you will see. Use this opportunity to kick off the relationship on a good note. Below are some previous posts on the topic of welcome messages.

Pro Flowers welcome letter review

Good things from Olive Garden’s welcome email

Sephora screws up their welcome letter

3. Purchase lists: It’s just not a good idea. Unsolicited messages have the highest spam complaint rates and have the opportunity to deteriorate your sending reputation. Focus on building your email lists naturally and you will have much better results from the email channel.

4. Automatically add forward to a friend folks: This is not true permission. But do include an easy way to join your mailing list in the forwarded versions of the email.

5. Don’t offer website sign-up: Sounds elementary, but some big players drop the ball here and don’t leverage their site traffic to build their email list. Here is a post about jewelry retailer Shane Co making this same mistake.

In a future post we’ll provide some more best practices for email list building.

- Forest Bronzan

Follow me on Twitter

Quick Tip: Text to Graphics Ratio

May 25th, 2009

Never send an email that is one big image. It will be blocked by many email clients, you won’t get full tracking capability of link engagement, and you run a higher risk of landing in spam filters.

You also don’t want to send emails that are extra heavy on graphics and light on text. Aim for a ratio of around 60% text and 40% graphics.

Follow me on Twitter

Email Marketing Metrics – What to Watch

May 21st, 2009

Marketers are obsessed with metrics. They provide key information to help us improve our marketing efforts, and a lot of entertainment; a Friday night with a bag of popcorn, cold beverage, and some fresh analytics reports sounds like a great night indeed.

It is, however, important to focus on the right (or best for a given situation) metrics – and talking about email marketing, it’s important to not measure success on one metric alone.

Different goals call for different metrics. What is the focus of your email campaigns? Is it a product recall announcement, brand-building newsletter, order reminder, special promotion, announcement of a new store?  Each of these would prioritize a different set of metrics.

For the product recall example, you’re probably not concerned that your sale conversion rate is near non-existent, but do want to make sure the message was opened and read. For your big email promotion email, it does not matter much if everyone opened the email, but no one made a purchase.

Below is a starter list of email marketing metrics:

1. Open Rate: [ratio of unique opens to total delivered] Don’t get too caught up here. Some companies base their entire success on the open rate. Do monitor this metric for every send, but don’t make it the only metric you monitor.

2. CTR (Click Through Rate): [ratio of unique clicks to total delivered or unique opens] The CTR can be helpful, especially when you have different links and you monitor the CTR for each. Knowing that your ‘Basketball Shoes’ link had a CTR of 39% while your ‘Soccer Shoes’ was 10% can be helpful.

3. Conversion Rate: [ratio of a 'goal' conversion to the total click through, or opens] If you are an e-commerce site, the conversion rate from your email initiatives is pretty important. In this case, the percent of visitors from the email that made a purchase. If you find that Promotion/Campaign X converts at 10% while another at 1%, you have some valuable data to work with.

4. Campaign Revenue: In addition to the previous metric, how much revenue did a campaign (or group of campaigns) bring in? This of course can be monitored for different email sends, or based on time to see how much money the email channel brings by month, quarter etc.

5. Bounce Rate: [ratio of bounced emails to total sent] This metric is universal no matter what the goals of your campaign are. Increasing bounce rate = look into the issue quickly. While not really as sexy as the conversion rate or total revenue, it is very important and will affect other metrics.

6. Delivery Rate: [ratio of delivered emails to total sent] See comments from Bounce Rate — the same apply, but here: decreasing delivery rate = look into the issue quickly.

7. Opt-Out (or Unsubscribe) Rate:[ratio of opt-outs to total delivered] Clearly we want to keep this one low. We will inevitably have some occurrences of subscribers no longer wanting our emails, but we need to monitor this metric to make sure it doesn’t get out of hand.

8. Link Revenue: Going off of our campaign revenue, let’s dig a little deeper and see how much money each specific link in our email is generating.

9. Time-Delay Metrics: What percent of our opens, or clicks, conversion etc occur on the day the email was sent? Within 3 days? Within 7 days? 2-4 weeks? On a somewhat related note, when providing reports to clients, we like to do so in delay, to account for that delayed engagement.

As mentioned at the beginning of this post, some metrics won’t be a priority for all emails. It’s important to know what your goals are for a particular campaign and for your email channel at large. This will let you identify and prioritize your key performance indicators. This data will then allow you to make meaningful decisions and improvements to your email efforts.

In a future post, we will discuss the importance of creating your own historical benchmark guide.

Follow me on Twitter

Let's talk email!

Call 909-363-1455 or email us to start improving your email marketing efforts.

Name
Phone
Website
Email