Measuring The Effectiveness Of Your Email Programmes


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Measuring The Effectiveness Of Your Email Programmes

  1. 1. Measuring the effectiveness of your e-mail programmes Luke Griffiths – Account Director e-Dialog Client Knowledge Day 28 th January 2009
  2. 2. Overview <ul><li>Why measurement is important </li></ul><ul><li>Checklist for success </li></ul><ul><li>A framework for measuring email’s impact </li></ul><ul><li>Responding to your findings </li></ul>
  3. 3. Times are tough…
  4. 4. Times are tough…and getting tougher <ul><li>The UK’s face of the credit crunch: </li></ul><ul><li>“… unprecedented government lending…” </li></ul><ul><li>“… consumers are going into hibernation and battening down the hatches…” </li></ul><ul><li>Brands are disappearing from the high street </li></ul><ul><ul><li>Woolies… </li></ul></ul><ul><ul><li>Zaavi…. </li></ul></ul><ul><ul><li>XL Holidays </li></ul></ul>
  5. 5. When the going gets tough…. <ul><li>Your budgets are being eyed… </li></ul><ul><li>Marketing is often the first port of call </li></ul><ul><li>Be ready for the email or call </li></ul>*Marketing Sherpa Special Report: Marketing During a Downturn <ul><li>Some accountants see the marketing budgets as a discretionary spend </li></ul><ul><li>‘ Discretionary’ because marketers have done a poor job at measuring and reporting on the benefit of their budgets… </li></ul>
  6. 6. Cuts have started…. <ul><li>Your budgets may have been reduced </li></ul><ul><li>They will continue to be challenged </li></ul><ul><li>Smart businesses are investing ready for the bounce </li></ul><ul><li>Spend is being directed away from traditional channels </li></ul><ul><li>Closed loop measurement means online channels are best positioned to see out the downturn </li></ul>*Marketing Sherpa Special Report: Marketing During a Downturn
  7. 7. This is what you are up against <ul><li>Less customers </li></ul><ul><li>Less new customers </li></ul><ul><li>Higher acquisition costs </li></ul><ul><li>Lengthening sales cycles </li></ul><ul><li>Insights need to direct your programme strategies to ensure you continue to direct your spend correctly </li></ul><ul><li>Focus on retention….its cheaper </li></ul>*Marketing Sherpa Special Report: Marketing During a Downturn
  8. 8. <ul><li>e-mail has the ability to be one of your most successful channels </li></ul><ul><li>Marketers must understand how to define and calculate the impact of their e-mail marketing efforts </li></ul><ul><li>“ Knowledge is power!” </li></ul>Let your numbers do the talking….
  9. 9. Email Effectiveness Check List… <ul><li>What is working and what’s not? </li></ul><ul><li>For every £, €, or $ spent on email, what is the average return? </li></ul><ul><li>Where are the majority of emails addresses “coming” from? </li></ul><ul><li>Multi-channel impact? </li></ul><ul><li>How are you changing your programme to adjust to current economic environment? </li></ul>Five questions to ask before someone else does…
  10. 10. Success not defined by just revenue… <ul><li>The success of your email programme can be defined in several ways… </li></ul>… key is for you to define what success looks like <ul><ul><li>Immediate revenue generation </li></ul></ul><ul><ul><li>Longer Term Customer Value </li></ul></ul><ul><ul><li>Brand Marketing Support </li></ul></ul>
  11. 11. Framework for measuring contribution Commercial Brand Strategic Long-term commercial value of email programme? Emails contribution to overall brand value? Tactical Commercial value of specific activities? Programmes contribution to brand value?
  12. 12. Tactical / Commercial <ul><ul><li>Measures: </li></ul></ul><ul><ul><li>Total revenue generated </li></ul></ul><ul><ul><li>Revenue per click </li></ul></ul><ul><ul><li>Revenue per email </li></ul></ul>What are the specific success criteria for the commercial success of the campaign? Commercial Brand Strategic Tactical
  13. 13. Strategic / Commercial <ul><ul><li>Measures: </li></ul></ul><ul><ul><li>Revenue per subscriber from email </li></ul></ul><ul><ul><li>Increase in overall customer value or share of wallet for email audience vs.. off-line audience </li></ul></ul><ul><ul><li>Number of product holdings (cross-sales value) </li></ul></ul><ul><ul><li>Increase over time in:- </li></ul></ul><ul><ul><ul><li>Total revenue generated </li></ul></ul></ul><ul><ul><ul><li>Revenue per click </li></ul></ul></ul><ul><ul><ul><li>Revenue per email </li></ul></ul></ul>What are the measures of success for the commercial contribution of the programme/channel? Commercial Brand Strategic Tactical
  14. 14. Strategic / Brand <ul><ul><li>Measures: </li></ul></ul><ul><ul><li>NPV/brand advocacy measures – consider using include email in any brand tracker programme </li></ul></ul><ul><ul><li>Proportion of email audience engaged in channel </li></ul></ul><ul><ul><li>Response rate trends (open, CTR) </li></ul></ul>What is the impact on brand value of the email programme? Commercial Brand Strategic Tactical
  15. 15. Tactical / Brand <ul><ul><li>Measures: </li></ul></ul><ul><ul><li>Positive measures: </li></ul></ul><ul><ul><ul><li>Open rates </li></ul></ul></ul><ul><ul><ul><li>Click-through rates </li></ul></ul></ul><ul><ul><ul><li>Engagement measures e.g. Click rate/open rate </li></ul></ul></ul><ul><ul><ul><li>Customer engagement – poll completions, referrals , reviews. </li></ul></ul></ul><ul><ul><li>Negative measures: </li></ul></ul><ul><ul><ul><li>Unsubscribe rate </li></ul></ul></ul>How does each campaign support your brand value? Commercial Brand Strategic Tactical
  16. 16. What else is needed…? <ul><li>Beyond baseline metrics </li></ul><ul><li>More detailed reporting: </li></ul><ul><ul><li>Click stream data - Layers of response providing behavioral insight beyond conversions </li></ul></ul><ul><ul><li>Drill-down on conversion revenue </li></ul></ul><ul><ul><li>Define actual mailing lift </li></ul></ul><ul><ul><li>Margin, profitability and ROI analysis </li></ul></ul><ul><ul><li>LTV of an email address to your business </li></ul></ul><ul><li>Data implications: </li></ul><ul><ul><li>Full multi-channel customer views </li></ul></ul><ul><ul><li>Margin and cost information </li></ul></ul>
  17. 17. Measuring the health of your email database <ul><li>List health is key for long term growth </li></ul>LTV Unsubscribe Inactive Customers New Customers Channel Migration Total Active Customers Reactivating Customers
  18. 18. Responding to measurement <ul><li>Once you have completed your analysis </li></ul><ul><ul><li>Report consistently </li></ul></ul><ul><ul><li>Champion success </li></ul></ul><ul><ul><li>Evolve your programme </li></ul></ul><ul><ul><li>Test, test and test </li></ul></ul>
  19. 19. Summary <ul><li>Measurement is vital to understanding impact & productivity of e-mail investment </li></ul><ul><li>If you cant measure the results your going to deliver then your spend will be seen as discretionary </li></ul><ul><li>Metrics should be geared to your e-mail objectives </li></ul><ul><li>Consider metrics beyond just revenue impacts </li></ul><ul><li>Monitor results and react quickly </li></ul><ul><li>Talk to your account team about reporting and dashboards to help you </li></ul>