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)

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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)

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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.

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24H Fitness Misses Big Email Opportunity

June 3rd, 2009

24 hour fitness logo

About a year ago I signed up for a 12 month membership to 24 Hour Fitness. I knew I would be traveling quite a bit, so I wanted to give the all-club access a shot. For the most part, my experience was a positive one, however during the course of the year I received practically no emails. If I recall correctly, there was one ‘membership kick-off’ email and that’s it.

What about some cross-selling, new classes, membership expiration promos? Being that I was on board for at least 12 months, this was a fantastic opportunity for them to set up some snazzy life-cycle messaging and retention campaigns.

Below are a few areas of low-hanging fruit that 24h could have implemented

Geo-Segmentation: Let me know when new classes are available at my primary location. Also let me know when new facilities are open. This is important to increase the use of my membership and keep the brand top-of-mind. Better yet, set up an email preference center so I can select what I want to receive.

Promotional: Why not set up a sequenced campaign with special promotions to cross sell products, up-sell packages, and offers to refer my friends and family to the gym?

Retention: The biggest blunder was the missing membership renewal emails. I found out my membership was up when I went in one day and they told me it had expired 3 days earlier. Here was the perfect opportunity to plan a scheduled sequence of emails to ensure I renew my membership. They could have started 2 months back with reminders that my expiration was coming up, followed with invites to meet with a sales person or promotions to extend my membership online. They could have done some testing, sweetened the offer, and secured me for a longer period at a lower cost it took to initially acquire me. Once my membership did expire, they could have implemented some tactful win-back emails.

It’s still not too late, as I have not had time to make a decision on a competing gym. Perhaps I accidentally fell off the their list or was placed in the wrong segment. But this is a very costly error for 24h that potentially costs millions a year in lost opportunity. I would make it top priority to audit your program, review your key email marketing metrics, and establish a strategy that aligns with your customers, products & services.

- Cheers

Forest Bronzan  -  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

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