email marketing metrics that matter webinar

Email Marketing Metrics That Matter

July 16, 2009

Speakers & Agenda

• Will Stacy IV

– Director of Marketing

– Santander Consumer USA / Drive®

• Loren McDonald

– VP, Industry Relations

– Silverpop

• Agenda

– Beyond Opens &

Clicks

– Measurement Mindset

– Metrics &

Management

– Social Media & Email

– Using Metrics for

Improvement

– Santander Case Study

– Questions & Answers

Moving Beyond Opens and Clicks

TM Taco Bell

Email Metrics – Let me count the ways…

Open rate

Click-through rate

Click-to-open rate

Unsubscribe rate

Bounce rate

Conversion rate

List churn

Email metrics disconnected from business goals lead to…

…an ROI / Resource Imbalance

• Marketers are:

– Sending more

emails (volume)

– Sending more

frequently

• Budgets are flat or

• No. of FTEs is flat

or down

Email marketing is generally considered to have

the #1 or #2 ROI among marketing channels

…and a Marketing Channel Budget Tug of

Email is increasingly competing for slices of the marketing

budget with channels that didn’t exist a few years ago

So How Did We Get Here?

“OCBUS” - The Basic Foundation

• Open rates

• Click-through rates

• Bounce rates

• Unsubscribe rates

• Spam complaint rates

“OCBUS” – Free inside every email software solution!

Measurement Mindset

Stepping Back - Email Metrics: How

We Use Them

Report Card

(Backward Looking)

• How did our message

perform?

• How did we do this

month/year?

• Did we achieve our targets?

Actionable

(Future Oriented)

• Testing – Which creative worked

better?

• Do we need more resources?

• Are there problems lurking in our

email process?

• Where are we falling short?

• What do we do next?

Differentiate Process from Output Metrics

• Open rates• Bounces• Delivered• Click-through rates

• Revenue• Orders• Demos/Downloads• Sales-qualified leads

Process Output

Think differently about metrics

Corporate Balanced Scorecard

Engagement/Relationship

Campaigns/Time

Balanced Email Marketing Scorecard (BEMS)

Conversion Activity

Financial/ROI/Bus. Goal

Message Level

List Growth/Health

Deliverability

Metrics & Management

Conveying the Value of Email

It is all about the

business goals…

…and communicating

metrics in a meaningful

way to management

Executives Don’t Care About Open Rates

Email Marketer

• My average open rate is now 23%.

• Unique click-through rate is trending up since the redesign.

• Deliverability is up at Hotmail since we stopped using the large postcard-style image.

• Spam complaints are down 20%.

Executives

• How much revenue did we generate from email?

• How has email improved customer retention?

• How has email helped reduce our costs to communicate with customers?

• What impact is email having on conversion via other channels?

Who Cares About Which Metrics?

Metric Marketing CEO/CFO Other Depts

Open, CTRs High Low Low

Bounce Delivery,

Unsub, Spam

High Low Low

Conversion Rate High Medium Low/Med

Leads, Revenue Medium High Med/High

Cost Reduction Low High High

Customer Retention/

Satisfaction

Low High High

Determine which metrics should be provided to key functions.

Email’s Impact on the Business

• Core Business Objectives

– Revenue, Avg Order Size, Margins

– Cost savings, reduced customer support costs

– Share of customer

– Customer retention

• Lifetime Customer Value

• Engagement/Brand Loyalty

Social Media and Email

Social Network Emails in the Mix

• Your emails are

competing with social

alerts/conversations

• Negatively affecting

opens, clicks and

engagement

• Increases need for

relevance, personality and

social components in your

emails

• Share to Social

– Increased views, clicks

– New subscribers

– Share rate

– Most valuable sharers

• Incorporating Social Aspects

Within Emails

– Comments

– User ratings

– Top read, top purchases, etc.

• What impact is it

having on core

metrics?

Using Metrics for Improvement

Benchmarking

• OK - Broad industry benchmarks are fairly

meaningless

– Are you in the ballpark?

• Better - Vertical/Peer-based are better

– Helpful in speaking with management

• Best – Benchmark against your end goals

– What target metrics do you need to achieve your

business objectives

– Use data to drive improvement

Retailer – Simple Framework

• Goal

– $100,000 revenue per month from email

• Current:

– 2 messages/month

– 100,000 emails/mailing = 200,000

– 5% click-through rate = 10,000 clicks

– 3% conversion rate = 300 orders

– $100/average order

– $30,000 revenue/month

Retailer Simple Framework: End Goal

• Approach

– Increase mailings

– Better creative, offers, Web site consistency

– Increased segmentation/personalization

• Forecast:

– 5 messages/month

– 60,000 emails/mailing = 300,000 emails

– 8% click-through rate = 24,000 clicks

– 4% conversion rate = 960 orders

– $100/average order

– $96,000 revenue/month

Santander Consumer USA Case

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