#cnx14 - the strategic formula for email conversion success
DESCRIPTION
While improving your email subject lines, pre-headers, copy, mobile design, and calls-to-action may seem like an endless set of possibilities, there is a patented strategic formula you can use to add method to the madness and better control and analyze outcomes. This session will teach you a strategic formula for optimizing promotions and newsletters via email and provide case studies on companies that have done so successfully.TRANSCRIPT
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Track: Email Marketing
#CNX14
#CNX14
The Strategic Formula for Email Conversion Success
Jon Powell,
Sr. Manager, Executive Research and Development
MECLABS
@JonPowell31
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Track: Email Marketing
#CNX14
Track: Email Marketing
#CNX14
Three ExperimentsThe Strategic Formula for Email Conversion Success
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Track: Email Marketing
#CNX14
Experiment 1Version A Vs. Version B
42%
In Click Rate
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Track: Email Marketing
#CNX14
Experiment 2
Vs.Version A Version B
46%
In Purchase Rate20%
In Click Rate
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Track: Email Marketing
#CNX14
Experiment 3
Vs.Version A Version B
621%
In Purchase Rate
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Track: Email Marketing
#CNX14
What went wrong?
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Track: Email Marketing
#CNX14
Isn’t it good to provide more options for the customer?
What if they’re not interested in the main product/service that I’m
featuring?
What if they don’t have enough information about the offer?
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Track: Email Marketing
#CNX14
• The human sensory system sends the brain about 11,000,000 bits of information each second.
• The actual amount of information our conscious mind can handle has been estimated to be somewhere between 16 and 50 bits per second.
Consumer Behavior
Source: Mlodinow, Leonard. (2012) Subliminal: How Your Unconscious Mind Rules Your Behavior. Pantheon Books.
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Track: Email Marketing
#CNX14
• The human sensory system sends the brain about 11,000,000 bits of information each second.
• The actual amount of information our conscious mind can handle has been estimated to be somewhere between 16 and 50 bits per second.
Consumer Behavior
The mind will make itself up without our consent; helping
us in some instances, confusing us in others.
Source: Mlodinow, Leonard. (2012) Subliminal: How Your Unconscious Mind Rules Your Behavior. Pantheon Books.
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Track: Email Marketing
#CNX14
• Since the early 1800s, scientists have been uncovering laws of mental processing through classic experimentation, from E. H. Weber’s discovery (1834) on sense to William Carpenter’s thesis on unconscious thought (1874).
Consumer Behavior
Source: Mlodinow, Leonard. (2012) Subliminal: How Your Unconscious Mind Rules Your Behavior. Pantheon Books.
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Track: Email Marketing
#CNX14
• Since the early 1800s, scientists have been uncovering laws of mental processing through classic experimentation, from E. H. Weber’s discovery (1834) on sense to William Carpenter’s thesis on unconscious thought (1874).
Consumer Behavior
There are hundreds of documented studies that
demonstrate the influence of the unconscious mind on
human behavior. Source: Mlodinow, Leonard. (2012) Subliminal: How Your Unconscious Mind Rules Your Behavior. Pantheon Books.
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Track: Email Marketing
#CNX14
Science-based Optimization InstituteConducts both primary and secondary media and messaging research and strategy from actual behavioral tests with real customer data.
20 years of active research, including over: • 20,000 sale path experiments• 1 billion tested emails• 500,000 executive interviews• 2,200 brand-side case studies
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Track: Email Marketing
#CNX14
Science-based Optimization InstituteConducts both primary and secondary media and messaging research and strategy from actual behavioral tests with real customer data.
20 years of active research, including over: • 20,000 sale path experiments• 1 billion tested emails• 500,000 executive interviews• 2,200 brand-side case studies
People make the same type of judgments in the digital
experience as they do in the physical experience.
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Track: Email Marketing
#CNX14
The Digital Dating Experience
For ladies, the type of profile photo displayed has been tightly correlated with the likelihood that an initial message will result in an actual conversation.
Source: Rudder, Christian. (2009-2014) The 4 Big Myths of Profile Pictures. http://blog.okcupid.com/index.php/the-4-big-myths-of-profile-pictures/
Did You know?
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Track: Email Marketing
#CNX14
How can I ensure that my emails aren’t prematurely
dismissed by customers while simultaneously maximizing
response?
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Track: Email Marketing
#CNX14
The Strategic Formula for Email Success
eme = rv(of + i) – (f + a) ©
eme = email messaging effectiveness index rv = Relevance to the consumer of = Immediate offer force i = Incentive to take action f = Friction elements in the email a = Anxiety elements in the email
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Track: Email Marketing
#CNX14
The Strategic Formula for Email Success
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Track: Email Marketing
#CNX14
eme = rv(of + i) – (f + a) ©
Today we are going to focus on the 4 elements that don’t cost you anything to conduct.
Today’s Focus
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Track: Email Marketing
#CNX14
Track: Email Marketing
#CNX14
Relevance (rv)
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Track: Email Marketing
#CNX14
eme = rv(of + i) – (f + a) ©
Definition – The immediate compatibility of the email message to the recipient’s motivations.
Relevance
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Track: Email Marketing
#CNX14
Relevance eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
• Customers aren’t trying to open and click your emails, they are trying to eliminate them.
• To prevent elimination, the most effective strategy a marketer can take is to ensure an immediate personal connection with the customer. This can be established on two levels:• A customer’s internal biases• A customer’s external events
Relevance
Key Observations
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case StudiesFrom This
PadiAct Takes Your Targeted Subscriptions to a New Level
Don't Kill the Romance: 7 Email Marketing Buzzkills to Avoid
Effective Marketing: It's All About Your Subscribers
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case StudiesTo This
PadiAct Takes Your Targeted Subscriptions
Don't Kill the Romance: 7 Email Marketing
Effective Marketing: It's All About Your
to a New Level
Buzzkills to Avoid
Subscribers
Jon,
Jon,
Jon,
25%In Click-rate
7%In Open-rate
19%In Click-rate
7%In Open-rate
In 2nd Orders rate 25%In Click-rate
3%In Open-rate
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case Studies
288%In Sales-rate
85%In Click-rate
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case StudiesFrom This
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case StudiesTo This
15%In Click-rate
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case StudiesFrom This
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case StudiesTo This
100%In Click-rate
90%In 2nd Orders Rate
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case Studies From This eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case Studies To This
410%In Click-rate
13%In Daily Total Rev.
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Personalization
To gain a greater understanding of relevance and personalization in email, we conducted a meta-analysis of all MarketingSherpa and MECLABS case studies that explicitly used terms such as “personalize,” “personalization,” and even “customization.”
300+ pages of data
100+ creative samples Brand-side studies
Controlled experiments
Meta-analysis eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
ROI
Low
Hig
h
Installation ComplexityComplexSimple
Results revealed an area of personalization that offers the most potential gain for the least potential energy investment.
PersonalizationMeta-analysis eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Furthermore, we also observed that one could double, even triple their ROI by simply combining these tactics into a single campaign.
Deeper analysis of that opportunity uncovered three consistent categories of tactics present in all campaigns achieving a significant ROI.
PersonalizationMeta-analysis
www.meclabs.com/CNX2014
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Track: Email Marketing
#CNX14
Offer (of)
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Track: Email Marketing
#CNX14
eme = rv(of + i) – (f + a) ©
Definition – The value you promise in exchange for an action (i.e. a click)
Offer
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Track: Email Marketing
#CNX14
Offer eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
• You may think that the offer is the product that you want to sell.
• In reality, however, the offer is the additional information a customer receives in exchange for a “click.”
• What is the most effective way to get a click? • Is it to give them an entire product pitch? Or just part?• Is it to draw them through clever statements? Or just clarity?
Offer
Key Observations
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case Studies
Barack ObamaStand with me today
The New York TimesGet Unlimited Access to NewYorkTimes.com with Home Delivery
[Known Audio Company]NEW Wave SoundTouch System | Free Shipping
Subject Lines
From This
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Wave SoundTouch System | Free Shipping
Case Studies
Barack ObamaStand with me today
The New York Times
[Known Audio Company]NEW
Subject Lines
To This
product released just in time for the holidays
Get Unlimited Access to NewYorkTimes with Home Delivery.comFree the Online
Hey
52%In Revenue
10%In Opens
34%In clicks
16%In Donation Revenue
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case StudiesPreheaders
From This
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case StudiesPreheaders
To This
12%In Click-Rate
104%In Click-Rate
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case StudiesBody Copy
From This
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case StudiesBody Copy
To This
16%In Click-rate
50%In Click-rate
23%In Revenue
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case StudiesCalls-to-action
From This
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case Studies
13%In Click-rate
Calls-to-action
37%In Click-rate
To This
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Track: Email Marketing
#CNX14
Friction (f)
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Track: Email Marketing
#CNX14
eme = rv(of + i) – (f + a) ©
Definition – Psychological resistance to a given element anywhere in the email process.
Friction
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Track: Email Marketing
#CNX14
• We often generate unnecessary problems in our emails by the amount of content we have and/or the way we display it. To the customer, this is perceived as:• Unnecessary Difficulty• Unnecessary Length
• In most cases, the objective is to minimize, not eliminate friction. If you eliminate all friction, you eliminate “the click.”
Friction
Key Observations
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case Studies
621%In Purchase
Rate
46%In Purchase
Rate
42%In Click Rate
From This To This From This To This From This To This
Each of these case studies are a prime example of how unnecessary difficulty can significantly impact behavior.
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case StudiesDifficulty – Mobile
From Thiseme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case StudiesDifficulty – Mobile
To This
15%In Click-rate
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case StudyDifficulty – Desktop
From Thiseme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case StudyDifficulty – Desktop
To This
Click here to learn more
Click here to learn more
11%In Click-rate
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case Studies Length
From This eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case Studies Length
11%In Click-rate
To This eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Track: Email Marketing
#CNX14
Anxiety (a)
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Track: Email Marketing
#CNX14
eme = rv(of + i) – (f + a) ©
Definition – Psychological concern stimulated by a given (or unaddressed) element in the email process.
Anxiety
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Track: Email Marketing
#CNX14
Anxiety They’re just hard water stains…
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
• Anxiety is just as lethal to conversion as friction.
• Try and mitigate anxiety rationally and you are likely to fail…• Though created from legitimate concern, its impact in the
mind is often disproportionate to the reality of risk.
• In email, anxiety is most often experienced as a form of intense “knee-jerk” skepticism and caution.
Anxiety
Key Observations
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case StudiesFrom This
Anxiety
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case StudiesTo This
60%In Click-Rate
159%In Completion Rate
From ThisAnxiety
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14From This To This
252%In Email Conversion Rate
152%In Revenue per email
Case StudyAnxiety
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case Studies From This
Anxiety
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Case Studies To This
151%In Click-Rate
Anxiety
eme = rv(of+i) – (f+a)
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Track: Email Marketing
#CNX14
Track: Email Marketing
#CNX14
Final Case Study
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Track: Email Marketing
#CNX14
Final Case Study
Background: A company selling audio equipment and accessories.
Goal: To significantly increase email click-through rate.
Research Question: Which email copy approach will generate the highest click-through rate?
Approach: A/B split test
� Brand: (Protected)Location: MarketingExperiments Research LibraryProtocol ID: TP20184
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Track: Email Marketing
#CNX14
Final Case Study Original
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Track: Email Marketing
#CNX14
Final Case Study
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Track: Email Marketing
#CNX14
Final Case Study
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Track: Email Marketing
#CNX14
Final Case Study
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Track: Email Marketing
#CNX14
Final Case Study
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Track: Email Marketing
#CNX14
Final Case Study
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Track: Email Marketing
#CNX14
TreatmentOriginal
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Track: Email Marketing
#CNX14
Final Case Study
Email Design Click-through Rate
Purchase Rate
Revenue per Email
Version A 0.6% 0.017% $0.044
Version B 1.6% 0.024% $0.066
% Relative Change: 167.6% 43.2% 48.2%
Increase in Purchases43%
The email design that utilized the strategic formula produced a statistically significant increase in clicks, purchases and revenue.
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Track: Email Marketing
#CNX14
Track: Email Marketing
#CNX14
Summary
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Track: Email Marketing
#CNX14
• Customers aren’t trying to open and click your emails, they are trying to eliminate them.
• To prevent your emails from being prematurely dismissed by customers, you must significantly increase perceived value and significantly decrease perceived cost.
• You can achieve this when you use the email effectiveness index as a strategic guide to optimizing and creating your email campaigns.
Summary
Key Observations
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Track: Email Marketing
#CNX14
Free Bookmark and additional tools
• Get today’s slides immediately.
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• Get free access to the recently captured presentation on email personalization.
• Get $100 off on tickets to MarketingSherpa’s 2015 Email Summit.
MECLABS.com/CNX2014
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Track: Email Marketing
#CNX14
Track: Email Marketing
#CNX14
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Session speaker info
@JonPowell31
@MktgExperiments
#CNX14
![Page 80: #CNX14 - The Strategic Formula for Email Conversion Success](https://reader038.vdocument.in/reader038/viewer/2022102813/5463d572af7959f6118b4f48/html5/thumbnails/80.jpg)
Track: Email Marketing
#CNX14
Track: Email Marketing
#CNX14
Questions?
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Track: Email Marketing
#CNX14