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RFM: The Critical Metric Less Than 1/4 of All Email Marketers Apply

Date post:18-Jan-2015
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Open and click-through rates provided by your email marketing software are not the end-all of performance metrics, as they do not provide data that is finely grained enough about the value aspect of your prospects. The application of another metric can provide valuable insight into consumer purchasing behavior and the overall value of a customer. This metric can also allow for accurate predictions of required inventory and staffing. This metric is known as RFM.Read all about it: http://www.benchmarkemail.com/blogs/detail/rfm-the-critical-metric-less-than-1/4-of-all-email-marketers-apply
Transcript:
  • 1. Today were talking aboutRFM: The Critical Email Marketing Metric . . .

2. A Forrester Research study recently demonstrated that 71% of all email marketers consider click-through rate as a valuable metric and 61% also track open rates. There is, however, one very important metric that is applied be less than one quarter of all email marketers. This is surprising, considering it can provide significant results. The following is a definition of that metric, as well as how to optimize it to increase ROI. 3. Ignoring this critical aspect of your customers profiles can be a serious shortcoming as research has proven that: 4. - Recency- When was the last time the customer made a purchase or performed a conversion? - Frequency- How many purchases or conversions were made over a set period of time? - Monetary Value- How much money did they spend? - How much money did they spend? - How much money did they spend? 5. This will lead to greater accuracy in your segmentation, a positive reputation and decrease in list churn and fatigue. Design a re-engagement strategy to recapture inactive customers and target to your higher spending customers for increased ROI. 6. Encouraging direct one on one communication and feedback drives home the message that you know that theyre special and youre working to reinforce that relationship. A sliding scale can be devised, with the largest discounts going to the least responsive and inactive customers to encourage their return to activity. 7. For visual learners:RFM - The Critical Email Marketing Metric Listen to theEmail Marketing Podcast Stayed informed by following Benchmark Email on [email protected] . . . . .

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