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#KCIABCBCS
Email ROI
Email drove $67.8 billion in sales in 2012.
Email ROI in 2012 was $28.50, the highest of any
direct marketing medium. (DMA, 2012)

#KCIABCBCS
Email ROI
(Revenues-Expenses)/Expenses = Return On Investment
Campaign

List Size

Expenses

Revenues

ROI

Free Shipping offer

100,000

$1450

$31,245

$20.55

Free Product w/Purchase

100,000

$1450

$24,996

$16.24

1,000

$85

$3,513

$40.33

New Customer Bounceback

Got it. Now how do we improve it?
 Increase revenue; OR
 Decrease expenses

#KCIABCBCS
IMPROVE DELIVERABILITY
Deliverability = getting into the inbox.
More inboxes means more revenue.

#KCIABCBCS
Deliverability by the Numbers
In the U.S., only 86% of valid marketing email ever makes it
to the inbox. 8% never shows up anywhere (never delivered
and not reported).

#KCIABCBCS
Deliverability by the Numbers
Reported open rate: 20% | Actual open rate: 25%
Potential boost in response/revenue: 25%+!
100,000
80,000
60,000
40,000
20,000
0

Sent

#KCIABCBCS

Delivered
Deliverability = Your Email Provider + YOU
What your Email Service Provider should do for you:
 Good email template code
 Throttled sending
 Automated unsubscribe & complaint handling
 Built-in CAN-SPAM compliance
Optional:

Pay for “Certified” Sender Status

#KCIABCBCS
Improve Deliverability
What YOU can do to improve deliverability:

Create Good Content
&
Maintain a Good, Clean List

#KCIABCBCS
Improve Deliverability: Good Content
 Include a “white list”
request in the pre-header
 Balanced text:image ratio
 Spell check
 Avoid spammy words

#KCIABCBCS
Improve Deliverability: Good Content
 Pre-Flight check against
common spam filters

#KCIABCBCS
Improve Deliverability: Good Content
 Send engaging content
 Send timely content through
automation
 Send relevant content with
segmentation

#KCIABCBCS
Improve Deliverability: Segment

#KCIABCBCS
Improve Deliverability: Test Content
Test, Measure, Learn & Improve
 Subject line
 Offer/Discount %
 Call to Action
 Layout
 Graphics
 Frequency of emails
 Time of day/day of week

 Balance of images/text
 Number of links in an email
 Length of emails
 Landing Pages vs. full site
 Article topics & order
 Mobile responsive design

The more subscribers engage with you, the better your
sender reputation will be.
#KCIABCBCS
Improve Deliverability: Clean List
Maintain a good email list:
 Opt-in (aka permission-based)
house list only.
 Set expectations for frequency
and value to the subscriber
at sign up, and then meet
those expectations.
 Clear out those that don’t exist or bounce back repeatedly
and/or opt-out.

#KCIABCBCS
REENGAGE OR TRIM INACTIVES
Reengaging subscribers that haven’t opened,
clicked or purchased.

#KCIABCBCS
Reengaging Lost Subscribers
Reaching out to those who once opted in but are now either
held (bounced) or simply inactive.
Marketing Sherpa reports that as much as 33% of your email list
can turnover each year.
Without reengaging these addresses,
you’re left with 16.8% of your original
list after 5 years.

#KCIABCBCS
Email Reengagement Campaign
Reengagement/Re-Permission
An email (or series of emails)
with a strong, clear offer to
entice those who haven’t
opened, clicked or converted to
either engage or unsubscribe.

#KCIABCBCS
Other Reengagement Outreach
 In-store & point-of-purchase
 Telemarketing follow ups
 Direct mail
 Online ads/social media outreach
Be sure to ask for an updated email address so you can
reconnect via your most efficient medium!

#KCIABCBCS
Trim Inactives
Keep those that reengage! Those that don’t, gotta go.
20%
80%

20%

Opened

40%

Opened

Didn't open

Didn't open

40%

NEVER open

Reengage ~ 1% and increase revenues.
Trim the other 40% and save the expense of
sending to inactives.
#KCIABCBCS
Trim Inactives
Bonus: increase your email engagement metrics and
improve your sender reputation.
# Sent

# Opens

Open Rate

# Clicks

Click Rate

Pre-Cleanse

100,000

20,000

20%

5,000

5.0%

Post-Cleanse

60,000

20,000

30%

5,000

8.3%

33%

67%

Opened
Didn't open

#KCIABCBCS
Rockin’ Email ROI
IMPROVE DELIVERABILITY

REENGAGE OR TRIM INACTIVES
Campaign

List Size

Expenses

Revenues

ROI

Shipping offer

100,000

$1450

$31,245

$20.55

Free Product w/Purchase

100,000

$1450

$24,996

$16.24

1,000

$85

$3,513

$40.33

New Customer Bounceback

Campaign

List Size

Expenses

Revenues

New ROI

Shipping offer

75,000

$1200

$39,056

$31.55

Free Product w/Purchase

75,000

$1200

$31,245

$25.04

1,000

$85

$4,391

$50.66

New Customer Bounceback

#KCIABCBCS
4 Steps to Rockin’ Email ROI
1. IMPROVE DELIVERABILITY
2. REENGAGE OR TRIM INACTIVES
3. TEST TO ALWAYS BE IMPROVING
4. INTEGRATE CROSS CHANNEL

#KCIABCBCS
#KCIABCBCS

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KCIABC BCS 2014: Email Marketing ROI - Let It Rock!

  • 2. Email ROI Email drove $67.8 billion in sales in 2012. Email ROI in 2012 was $28.50, the highest of any direct marketing medium. (DMA, 2012) #KCIABCBCS
  • 3. Email ROI (Revenues-Expenses)/Expenses = Return On Investment Campaign List Size Expenses Revenues ROI Free Shipping offer 100,000 $1450 $31,245 $20.55 Free Product w/Purchase 100,000 $1450 $24,996 $16.24 1,000 $85 $3,513 $40.33 New Customer Bounceback Got it. Now how do we improve it?  Increase revenue; OR  Decrease expenses #KCIABCBCS
  • 4. IMPROVE DELIVERABILITY Deliverability = getting into the inbox. More inboxes means more revenue. #KCIABCBCS
  • 5. Deliverability by the Numbers In the U.S., only 86% of valid marketing email ever makes it to the inbox. 8% never shows up anywhere (never delivered and not reported). #KCIABCBCS
  • 6. Deliverability by the Numbers Reported open rate: 20% | Actual open rate: 25% Potential boost in response/revenue: 25%+! 100,000 80,000 60,000 40,000 20,000 0 Sent #KCIABCBCS Delivered
  • 7. Deliverability = Your Email Provider + YOU What your Email Service Provider should do for you:  Good email template code  Throttled sending  Automated unsubscribe & complaint handling  Built-in CAN-SPAM compliance Optional: Pay for “Certified” Sender Status #KCIABCBCS
  • 8. Improve Deliverability What YOU can do to improve deliverability: Create Good Content & Maintain a Good, Clean List #KCIABCBCS
  • 9. Improve Deliverability: Good Content  Include a “white list” request in the pre-header  Balanced text:image ratio  Spell check  Avoid spammy words #KCIABCBCS
  • 10. Improve Deliverability: Good Content  Pre-Flight check against common spam filters #KCIABCBCS
  • 11. Improve Deliverability: Good Content  Send engaging content  Send timely content through automation  Send relevant content with segmentation #KCIABCBCS
  • 13. Improve Deliverability: Test Content Test, Measure, Learn & Improve  Subject line  Offer/Discount %  Call to Action  Layout  Graphics  Frequency of emails  Time of day/day of week  Balance of images/text  Number of links in an email  Length of emails  Landing Pages vs. full site  Article topics & order  Mobile responsive design The more subscribers engage with you, the better your sender reputation will be. #KCIABCBCS
  • 14. Improve Deliverability: Clean List Maintain a good email list:  Opt-in (aka permission-based) house list only.  Set expectations for frequency and value to the subscriber at sign up, and then meet those expectations.  Clear out those that don’t exist or bounce back repeatedly and/or opt-out. #KCIABCBCS
  • 15. REENGAGE OR TRIM INACTIVES Reengaging subscribers that haven’t opened, clicked or purchased. #KCIABCBCS
  • 16. Reengaging Lost Subscribers Reaching out to those who once opted in but are now either held (bounced) or simply inactive. Marketing Sherpa reports that as much as 33% of your email list can turnover each year. Without reengaging these addresses, you’re left with 16.8% of your original list after 5 years. #KCIABCBCS
  • 17. Email Reengagement Campaign Reengagement/Re-Permission An email (or series of emails) with a strong, clear offer to entice those who haven’t opened, clicked or converted to either engage or unsubscribe. #KCIABCBCS
  • 18. Other Reengagement Outreach  In-store & point-of-purchase  Telemarketing follow ups  Direct mail  Online ads/social media outreach Be sure to ask for an updated email address so you can reconnect via your most efficient medium! #KCIABCBCS
  • 19. Trim Inactives Keep those that reengage! Those that don’t, gotta go. 20% 80% 20% Opened 40% Opened Didn't open Didn't open 40% NEVER open Reengage ~ 1% and increase revenues. Trim the other 40% and save the expense of sending to inactives. #KCIABCBCS
  • 20. Trim Inactives Bonus: increase your email engagement metrics and improve your sender reputation. # Sent # Opens Open Rate # Clicks Click Rate Pre-Cleanse 100,000 20,000 20% 5,000 5.0% Post-Cleanse 60,000 20,000 30% 5,000 8.3% 33% 67% Opened Didn't open #KCIABCBCS
  • 21. Rockin’ Email ROI IMPROVE DELIVERABILITY REENGAGE OR TRIM INACTIVES Campaign List Size Expenses Revenues ROI Shipping offer 100,000 $1450 $31,245 $20.55 Free Product w/Purchase 100,000 $1450 $24,996 $16.24 1,000 $85 $3,513 $40.33 New Customer Bounceback Campaign List Size Expenses Revenues New ROI Shipping offer 75,000 $1200 $39,056 $31.55 Free Product w/Purchase 75,000 $1200 $31,245 $25.04 1,000 $85 $4,391 $50.66 New Customer Bounceback #KCIABCBCS
  • 22. 4 Steps to Rockin’ Email ROI 1. IMPROVE DELIVERABILITY 2. REENGAGE OR TRIM INACTIVES 3. TEST TO ALWAYS BE IMPROVING 4. INTEGRATE CROSS CHANNEL #KCIABCBCS