Section Title State of the Email Marketing
Industry – Key Trends
Loren McDonald@LorenMcDonald
Email is Strong
Opt-in Everywhere
Automation
ContentInactives
Design for Mobile
Q & A
AgendaKey Trends
1. Industry performance is strong - email still rocks
Email is thriving by ALL accounts!
Email is bringing in $40.56 for every dollar spent on it.
Source: DMA
1 percentage point decline over
9 years
User Base Still Growing
20.1% Open Rate - Average
43.7% Open Rate - Top Quartile
8.0% Open Rate - Bottom Quartile
Open Rate – Select Industries (WW)
Vertical
Retail
Leisure, Sport & Recreation
Media
Banks / Fin. Services
Mean
17.12%
16.18%
20.91%
22.62%
Top Quartile
30.60%
32.61%
47.98%
48.91%
5.2% Click-through Rate- Average
16.6% WW: CTR - Top Quartile
0.7% CTR - Bottom Quartile
CTR – Select Industries (WW)
Vertical
Retail
Leisure, Sport & Recreation
Media
Banks / Fin. Services
Mean
3.09%
2.31%
8.87%
3.46%
Top Quartile
6.21%
5.29%
31.67%
9.88%
19.3% Click-to Open Rate- Average
40.0% CTOR - Top Quartile
6.7% CTR - Bottom Quartile
2. Capturing opt-ins and data everywhere your customers are
Popovers: A Bit Annoying – But They Work!!!
Pop-overs = 200-400% lift
15
38% of Americans would rather
clean their toilet than create another
Username/password combination!
What types of data are available?
Facebook Timeline Email Sign Up
Tablet/Kiosk Opt-in Collection
SMS to Email Opt-in
• POS• Video Alerts
• Return/Info. center• Store Signage
• Events
QR Codes to Email Opt-in
State of QR Code Usage/Awareness – Still A Little Early
3. The shift from broadcast to automation + behavior
Pounding isn’t the answer, because…
…Hope is not a marketing strategy.
Individual relevance is increasingly the key to deliverability
Manual
Automated
Response Rates/Engagement
Mar
ketin
g So
phis
ticati
on
Behavior-basedMessages(Multi-Track)
Time-based Messages(Drip, Simple Nurture)
Targeted Mailings based on Segmentation
Mass Mailing to a broad database
Broadcast to BehaviorBto1IndividualMessages
Relevant Emails Rock!
Note: Metrics and salary costs based on JupiterResearch executive survey. Broadcast assumes $3 CPM, and all others assume $4.5 CPM. All assume $89 AOV, 50 percent product margin, and 2.8 million pieces of mail per month.
9x
Low Volume, High ROI!
59.8 %Batch Campaigns
40.2%Triggered
Campaigns95.9 %Batch Campaigns
4.1%TriggeredCampaigns
Sales GeneratedVolume of Emails sent
Demo-graphics
Behavior
Automation
Explicit data
Implicit data
Programs – Mass Personalization
Browse Behavior
Browse Behavior
Customer viewed “Joint Supplements” landing page Sent SmartFlex Finder email
Message A – 1 day after
Message B – 3 days after
Message C – 5 days after
DEMCO Cart Results
Cart Email ADay 1
Cart Email BDay 3
Cart Email CDay 5 AVERAG
E
Open Rate 40% 39% 32% 37%
Click-to-Open 44% 47% 28% 41%
Click-thru-Rate 18% 18% 9% 15%
Conversion Rate
22% 15% 24% 20%
Sales/email $8.60 $8.40 $5.04 $7.46
4. Content and personality plays a bigger role
[get pur-suh-nl]
1. Marketing content that speaks with a “human” voice.
2. Targeted, personally relevant messaging based on consumer preferences, demographics and behavior.
3. Dude, lose the corporate speak.
• Aaron - Real person• Service tone• 50% conversion rate
“Human” Cart abandonment
Let Customers Do the Selling
30+% Increase in Orders and Sales
How-to video
45
Important Dates Reminder Email
Your dates trigger an email…
21 days before occasion
Personalised with name
Occasion w/ date
Coupon code
10% Off
31% CTRHighest revenue generating email
5. Inactives become the biggest challenge
Inactives Are a HUGE Issue
Typical Actives vs. Inactives Ratio
Impact of InactivesLost potential revenue
Inefficiencies/Reduced ROI
Fuzzy metrics
Potential reduced deliverability
Hypothetical Revenue LossActives Inactives
# Subscribers 250,000 200,000
Average Revenue Per Email Delivered $0.12
4 X week X 53 weeks ~ 212 emails $6.4M
Potential Lost Revenue $5.1M
Reactivation & List Cleansing
• Data cleansing by implementing a Re Engagement Program• Contacts who have had no mailing activity for 9 months• Have not opted in within the last 3 months
Re-engagement Email 1
Birmingham Airport: Hello There!
3 weeks later…Re-engagement Email 2
Birmingham Airport: We Miss You!
2 more weeks later…Final Email
Birmingham Airport: Details deleted
Data Cleansing
Upon receiving Email 3 contacts are track routed to ‘To Be Removed from Database’ track and then get purged by the client
Upon receiving Email 3 contacts’ profiles get date stamped under ‘Inactive’ date database field which makes them easy to query off
The best reactivation strategy
is to minimize inactives
to begin with.
Typical Reactivation Rate: 1%-2%
High Performers: 10%+
Automate: Activate Early InactivesNew subscribers don’t
open/click first XX messages/X weeks
Move these early inactives into “activation” track
Send survey, different offers; best of, diff subject lines,
testimonials, etc.
Opt-in process
Expectation mgmt.
Welcome / Onboarding
Targeted / Relevant Content
Preference mgmt.
Minimize!
6. Designing for mobile is no longer optional
Going Mobile / Screensize-apalooza
Q4 2010
Smartphone Sales Pass PC Sales
U.S. Smartphone Penetration – Nielsen 2/2012
369M2016
Source: Gartner, April 2012
119M2012
Tablets…
35% of email subscribers are opening your emails on their
mobile device!
Where is Your Email Being Read?
So Context Means…
Scannable
Singular calls to action
Larger fonts
Single columns
Bullet-proof / large CTA buttons
Design for touch …
Old mouse New mouse
The New Design Challenge
Source: StyleCampaign.com, Litmus
Do Your Email’s Have the Touch?
Know Your Audience
Source: Unica Corporation/Pivotal Veracity
Mobile64% higher
CTR
Regular
A/B test sent to frequent
mobile openers
Speaker
Loren McDonaldVP, Industry Relations
Twitter: @LorenMcDonald
Google+: +LorenMcDonald