email marketing trends state of the industry dma 2012 silverpop

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

Thanks / Q & A

Loren McDonaldlmcdonald@silverpop.com

@LorenMcDonaldGoogle+: LorenMcDonald