Transcript of "Use the Right Metric for the Right Job"
Use the Right Metric For the Right Job Adam Holden-Bache Dela Quist Luke Glasner Ryan Hofmann
Difference in MetricsTraditional Metrics vs. EEC SAME Project Metrics Traditional: EEC SAME: Delivered Accepted Accepted = Any email not rejected by a server Open Render Render = Total number of times an HTML email is displayed (full open or preview pane)
Accepted vs. Delivered• Accepted means the email reached the recipient’s server, not just that it left the sender’s server• Accepted does not include bounces, Delivered does• Accepted does include messages delivered to spam/junk or those that are missing, as those messages were not bounced
Render vs. Open• A Render identifies an HTML open with images on. An Open could mean a view of any message such as HTML with images off or even a text message that received a click-through.• Total Confirmed Opens includes renders PLUS counts from clicks on any link in messages such as HTML images off or a text version.
When to use SAME Metrics• When accuracy matters• When knowing if you reached the inbox matters• When HTML vs. non-HTML views is important• When comparing campaign metrics to other campaign metrics
SAME Metrics Goals• Common set of industry-wide metrics definitions• Establish usable benchmarks for marketers• Allow for consistent metrics reporting across platforms• Provide accuracy for metrics shared between platforms
Life Cycle Email Marketing eMarketer, "Keeping Customers Loyal with Targeted Email" February 14,2011 http://www.emarketer.co/Article.aspx?R=1008233&dsNav=Rpp:25,Ro:-1,N:706-405&xsrc=GeographyPanel
Life Cycle Email Marketing A Lifecycle email program starts with the Welcome Message Post Purchase Programs help to build engagement and increase loyalty, great for selling consumables. A lifecycle program typically ends with a Win-Back effort before giving up on the customer eMarketer, "Customer Lifecycle Email Campaigns See Better Engagement" June 30,2011 http://www.emarketer.tv/Article.aspx?R=1008471
Life Cycle Email MarketingCommon goals of a lifecycle program:• Move prospects along the sales cycle to customers• Increase order rates or re-order rates• Increase customer loyalty• Increase value of customer• Increase lifespan of customerBegin by mapping the life cycle of an emailcustomer or the steps in the sales process.
Life Cycle Email MarketingUse engagement indicators, such as purchases or site logins, in addition toopens and clicks when determining to remove a subscriber. Often subscribers that are reading, but do not respond are not captured in open/click metrics. Remove Emotionally Unsubscribed?
Calculate Your Subscriber Lifespan Determine segment or overall subscriber average lifespan in 3 steps: 1. For each subscriber, calculate the number of days between join date & date of most recent open/click = lifespan of the subscriber (you can also use weeks or months). 2. Use excel to find the mean (average) and standard deviation for lifespan either overall or by segment. 3. Take your mean 2 standard deviations, this range represents the lifespan of 95% of subscribers. Once you find your range for average lifespan, you’ve discovered two points in time for time based engagement triggers.Tip: If your standard deviation is large (above 7-10 units) then you may wish to use a confidence interval of the mean instead.
Metrics to Track in a Lifecycle Program • Re-order rate of email program members vs. average company re-order rate or re-order rate of non-members. • Determine your Email Lifespan: Join Date – Date of most recent action driven by email (click, open, site login, etc.) • Compare performance for subscribers in the lifecycle email program vs. those not in the program. Is the difference Significant? • Use the Analysis ToolPack in Excel to run the tests. http://office.microsoft.com/en-us/excel-help/about- statistical-analysis-tools-HP005203873.aspx. • Aim for a confidence level above 90%.
Influence of Email• Last-Click Attribution – Indicator of how well your email campaigns do at Email Subscribers directly converting subscribers Email Openers• Revenue Participation Attribution – Subscribers who opened or clicked through the Email Clickers email, but whose last click came through another channel such as search, display or affiliates Email – How big is your gap between Last Click and Revenue Participation? Last-Click – Does your email program have a better value proposition vs. other channels?• Impression Attribution – Subscribers who do not open or click and come to your site (or store) through other channels – Impression effect of just being in the inbox• Measure and benchmark with each of these attribution methodologies to understand gaps and opportunities
Attribution: Knowing Where To LookDMA / fast.MAP Email Tracking Study
Value of a Subscribed Lead/ProspectDo you want answers to the following questions?– Which subscription source is my most/least profitable?– How much am I willing to spend to generate a new lead?– How long does it take for a lead generation efforts to break even?– How valuable are subscribers who sign-up on my website?– How have site changes impacted the volume of onsite signups per day?– How have new business processes increased in-store signups per day?– How does the value of a subscriber change over time? For a lead that subscribes today, how valuable do I expect them to be in 3 months? 1 year? 2 years? 5 years?
MethodologyStep 1 Step 1 Example SQLIdentify all email addresses SELECT emailAddressthat were a lead or a ,customerIdprospect on the date that ,emailSubscriptionDatethey subscribed to your email ,firstOrderDatecommunications. ,subscriptionSource ,acquisitionCost FROM … WHERE ((emailSubscriptionDate < firstOrderDate) OR firstOrderDate IS NULL)• If you have a defined cost-per-lead for any specific subscription sources, this would be the acquisition cost.• The acquisition cost for onsite, in-store, or other company sources (excluding sweepstakes) should be considered a sunk cost, and calculated as $0.00.• If you don’t know the subscription source for any of your subscribers, you may leave that out of the analysis, but you should start collecting this data ASAP for future use.
MethodologyStep 2 Step 2 Example SQLSum the historical SELECT emailAddressrevenues, gross profits and ,emailSubscriptionDateacquisition costs and net ,subscriptionSourceprofit from all email ,SUM(itemQty * price) AS revenueaddresses identified in Step ,revenue - SUM(costs) AS grossProfit1. ,SUM(acquisitionCost) AS acquisitionCost ,grossProfit - AS netProfit FROM step1SampleDataset … GROUP BY 1, 2, 3• Due to the major variations in how individual businesses calculate revenue, costs, gross profit, and allocate marketing spend, this has been simplified to illustrate the basic calculation.
MethodologyStep 3 Step 3 Example SQLSum the revenue and net SELECT emailSubscriptionDateprofit by email subscription ,subscriptionSourcedate by subscription source. ,COUNT(emailAddress) AS countEmails ,SUM(revenue) AS revenue ,SUM(netProfit) AS netProfit FROM step2sampleDataset GROUP BY 1, 2• The resulting data set from step 3 can then be exported into an Excel pivot table or other BI or statistical application for analysis, trending, etc.
How long does it take for a lead generation source to break even?• Leads from Week 32 are now breaking even at Week 52; it takes about 20 weeks for leads from Lead Source A to break even and start generating positive net profit• How does this compare to other sources?• What can we do to get this down to 13 weeks?
How valuable are subscribers that signup on my website? Time Since Average Net Email Signup Profit Per Email 90 Days $0.24 180 Days $0.52 1 Year $1.08 2 Years $1.88 5 Years $8.97• After 1 year, onsite email signups have generated $1.08 in net profit per email address• Now that you know the value, what can you do with it?
How have site design changes impacted the volume of onsite email signups?• Week 7: New footer design with more prominent signup form: +73%• Week 16: Signup form added to New Untracked homepage: +19%• Weeks 25-32: Lost NU homepage form placement: -18%• Weeks 44-52: Seasonal traffic increase, no changes
Setting & Achieving Subscriber Goals• What is your goal for onsite subscribers?• Set a target: – % increase over your current baseline, or – Benchmark to 3% of monthly site visitors• Make the plan – List of website projects to achieve the target• Measure your progress – Develop automated reporting to track your subscriber growth against your target• Optimize – Better creative, stronger calls-to-action, enhanced site placement, improved program value proposition
Thanks For Attending TodayQuestions, Comments or Feedback? Contact Us.Adam Holden-Bache Dela Quist@AdamHoldenBache @DelaQuistadam.email@example.com firstname.lastname@example.org x200 678-954-4762Luke Glasner Ryan Hofmann@Lukes_Tweets @email@example.com firstname.lastname@example.org-MAIL (6245) Ryan’s Number
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