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Email ROI
Email drove $67.8 billion in sales in 2012.
Email ROI in 2012 was $28.50, the highest of any direct marketing medium. (DMA, 2012)
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Email ROI
(Revenues-Expenses)/Expenses = Return On Investment
Got it. Now how do we improve it?
Increase revenue; OR
Decrease expenses
Campaign List Size Expenses Revenues ROI
Free Shipping offer 100,000 $1450 $31,245 $20.55
Free Product w/Purchase 100,000 $1450 $24,996 $16.24
New Customer Bounceback 1,000 $85 $3,513 $40.33
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IMPROVE DELIVERABILITY
Deliverability = getting into the inbox.
More inboxes means more revenue.
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Deliverability by the Numbers
In the U.S., only 86% of valid marketing email ever makes it to the inbox. 8% never shows up anywhere (never delivered and not reported).
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Reported open rate: 20% | Actual open rate: 25%
Potential boost in response/revenue: 25%+!
Deliverability by the Numbers
0
20,000
40,000
60,000
80,000
100,000
Sent Delivered
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Deliverability = Your Email Provider + YOU
What your Email Service Provider should do for you:
Good email template code
Throttled sending
Automated unsubscribe & complaint handling
Built-in CAN-SPAM compliance
Optional:
Pay for “Certified” Sender Status
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What YOU can do to improve deliverability:
Improve Deliverability
Create Good Content
Maintain a Good, Clean List
&
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Improve Deliverability: Good Content
Include a “white list” request in the pre-header
Balanced text:image ratio
Spell check
Avoid spammy words
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Improve Deliverability: Good Content
Pre-Flight check against common spam filters
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Improve Deliverability: Good Content
Send engaging content
Send timely content through automation
Send relevant content with segmentation
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Improve Deliverability: Segment
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Improve Deliverability: Test Content
Test, Measure, Learn & Improve
The more subscribers engage with you, the better your sender reputation will be.
Subject line Offer/Discount % Call to Action Layout Graphics Frequency of emails Time of day/day of week
Balance of images/text Number of links in an email Length of emails Landing Pages vs. full site Article topics & order Mobile responsive design
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Maintain a good email list:
Opt-in (aka permission-based) house list only.
Set expectations for frequency and value to the subscriber at sign up, and then meet those expectations.
Clear out those that don’t exist or bounce back repeatedly and/or opt-out.
Improve Deliverability: Clean List
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REENGAGE OR TRIM INACTIVES
Reengaging subscribers that haven’t opened, clicked or purchased.
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Reengaging Lost Subscribers
Reaching out to those who once opted in but are now either held (bounced) or simply inactive.
Marketing Sherpa reports that as much as 33% of your email list can turnover each year.
Without reengaging these addresses, you’re left with 16.8% of your original list after 5 years.
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Email Reengagement Campaign
Reengagement/Re-Permission
An email (or series of emails) with a strong, clear offer to entice those who haven’t opened, clicked or converted to either engage or unsubscribe.
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Other Reengagement Outreach
In-store & point-of-purchase
Telemarketing follow ups
Direct mail
Online ads/social media outreach
Be sure to ask for an updated email address so you can reconnect via your most efficient medium!
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Trim Inactives
Keep those that reengage! Those that don’t, gotta go.
Opened
Didn't open
Opened
Didn't open
NEVER open
Reengage ~ 1% and increase revenues. Trim the other 40% and save the expense of
sending to inactives.
80%
20% 20%
40%
40%
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Trim Inactives
Bonus: increase your email engagement metrics and improve your sender reputation.
# Sent # Opens Open Rate # Clicks Click Rate
Pre-Cleanse 100,000 20,000 20% 5,000 5.0%
Post-Cleanse 60,000 20,000 30% 5,000 8.3%
Opened
Didn't open
33%
67%
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Rockin’ Email ROI
REENGAGE OR TRIM INACTIVES
IMPROVE DELIVERABILITY
Campaign List Size Expenses Revenues ROI
Shipping offer 100,000 $1450 $31,245 $20.55
Free Product w/Purchase 100,000 $1450 $24,996 $16.24
New Customer Bounceback 1,000 $85 $3,513 $40.33
Campaign List Size Expenses Revenues New ROI
Shipping offer 75,000 $1200 $39,056 $31.55
Free Product w/Purchase 75,000 $1200 $31,245 $25.04
New Customer Bounceback 1,000 $85 $4,391 $50.66
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4 Steps to Rockin’ Email ROI
2. REENGAGE OR TRIM INACTIVES
1. IMPROVE DELIVERABILITY
3. TEST TO ALWAYS BE IMPROVING
4. INTEGRATE CROSS CHANNEL
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