Email: Beyond
Opens and Clicks
KCDMA | February 11, 2014
Jeanne S. Jennings
Vice President, Global Strategic Services
Alch...
Session Overview
• Revenue
• Conversion
• Send Metrics
• Testing Metrics
• Combining Metrics

© All Rights
Reserved

KCDMA...
Revenue Metrics
Email: Beyond Opens and Clicks

© All Rights
Reserved

KCDMA | February 11, 2014

3
Return on Investment (ROI)
There are a couple different ROI calculations

Data

Calculation

• Source: Web Analytics
and
•...
List ROI
Profitable Lists

Not Profitable Lists

• STR Teacher Express
($3.08 )
• TSO Customers ($1.03)

© All Rights
Rese...
Revenue per Email (RPE)
When true ROI is difficult to track; to combat list fatigue
Data

Calculation

• Source: Web Analy...
Revenue per Thousand Emails Assumed Delivered (RPME)
Quarterly – all business units

Source: Client Case Study, JeanneJenn...
Average Value of an Email Address
How much is an email address worth to your organization?
Data

Calculation

• Source: We...
Average Value of an Email Address
Initial Analysis After Test Period

Source
Type
A LinkedIn Ad
B
List Rental
C
Telemarket...
Lifetime Value of an Email Address
How much is an email address worth to your organization over
its lifetime?

Data

Calcu...
NUDGE EFFECT
Cross-channel impact of your
emails

Data:

•

Source: Purchase
data and Email
Activity Data

•

Track by sub...
NUDGE EFFECT
Take a holistic view of email success

Holistic view:

•

•

Look at those
campaigns that
may be driving
subs...
Revenue Attribution
What Revenue Gets Attributed to Email?

Four Elements of an Attribution Model
1. Action: sent, open or...
One Purchase –
Different Attribution Models
Attibution Models
Model A Model B Model C

Model D Model E
Model F
Opened / Op...
Hybrid Attibution Model
Direct

Hybrid Attribution Model

Indirect
Open or
Click
(Email)
14 days
Featured
only
Not Last
$
...
Conversion Metrics
Email: Beyond Opens and Clicks

© All Rights
Reserved

KCDMA | February 11, 2014

16
Abandon Rate
Email Acquisition Process or any other Conversion Funnel
How effective is my conversion funnel?

Data

Calcul...
Abandon Rate
Start – Page 1
Email Address
and Name
Page 2
Lead Scoring
Questions
Page 3
Phone and
USPS Address

Any Conver...
Website Email Conversion Rate
How effective is my Website at driving Email Sign-ups?
Data

Calculation

• Source: Web Anal...
Control
Website Email
Conversion Rate
Online Email Sign-up

Control
Test
Lift

Test

Website
Email
Unique
Website
Email
Co...
Send Metrics
Email: Beyond Opens and Clicks

© All Rights
Reserved

KCDMA | February 11, 2014

21
REACH
Overall Email Program or Individual Sub-program
How much of my subscriber base is engaged with my program?

Data:
• ...
REACH
Focus on subscriber
behaviour

•

Goal depends on your
program

–
–
•

Weekly or less: 50%
Open Reach
More often: 70...
Lifecycle
of an
Email
Address

© All Rights
Reserved

KCDMA | February 11, 2014

24
Mobile View Rate

Source: Mobile Maintains 51% Majority; Gmail Gains 3%, Justine Jordan for the Litmus Blog, January 9, 20...
Mobile v. Desktop
View Rate
How much effort should I
make to address mobile?
• Reported, not
calculated
• Device type as w...
Responsive Design

© All Rights
Reserved

KCDMA | February 11, 2014

Usually Best…
But Think it
Through

27
Testing Analytics
Email: Past Opens and Clicks

© All Rights
Reserved

KCDMA | February 11, 2014

28
Estimated Sample Size
How many emails should I send to have a good chance of getting
statistically significant results?
Ca...
Statistical Significance (95%)
Are my test results valid?
Calculations (Excel Formulas)

• Conversion Rate (CR: Control an...
Statistical Significance
Are my test results valid?
Use a Free Online Calculator

•
•
•
•

Hubspot.com
TheKeystoneSolution...
Combining Metrics
Email: Past Opens and Clicks

© All Rights
Reserved

KCDMA | February 11, 2014

32
Combine Metrics to Set Goals and
Prioritize Time and Resources:
Bubble Chart

© All Rights
Reserved

KCDMA | February 11, ...
Combine
Metrics to
Identify
Areas of
Strength
and
Weakness:
Data Tree
Analysis

Source: Diagnosing a Common Email Malady: ...
Additional Resources
Email: Past Opens and Clicks

© All Rights
Reserved

KCDMA | February 11, 2014

35
Additional Email Marketing
Resources (Free)
Look for Jeanne’s column on email
marketing every other Monday
www.ClickZ.com
...
Additional Email Marketing
Resources (Paid)
The Premier Email Marketing
Association, part of the DMA;
Resources and Annual...
Alchemy Worx
A 100% Email Marketing Agency
• Services offered include strategy, creative, production
and deployment
• We a...
Email: Beyond Opens and Clicks
KCDMA | February 11, 2014
Thanks for Joining Us Today!

Questions?
Jeanne S. Jennings
Vice ...
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Email Marketing: Beyond Opens and Clicks into an Advanced Analytics Adventure

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Like the quantitative side of email marketing and hungry to learn some new metrics you can use to improve your performance? Not so comfortable with the quantitative side of email but know that you need to be to advance your program and your career? Either way, this is the presentation for you!

Concerned that it will be dry and boring? It won’t be, I promise! It will be fun and playful — and you’ll leave with the quantitative tools you need to improve your email marketing program and become a rock star in your marketing department!

Why go beyond open and clicks? Because they’re nice, but if you’re like most organizations it’s revenue generated that pays the bills and keeps the doors open. Join us for this presentation to learn how to calculate and apply quantitative metrics to help you improve the effectiveness -- and profitability — of your email program. Topics we’ll cover include (but are not limited to):
• Data trees
• Reach Metrics
• Revenue per email sent
• Value of an email address
• Verifying Statistical Significance
Bring your questions and biggest email marketing challenges — chances are the quantitative tools that can help you solve them are here.

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Email Marketing: Beyond Opens and Clicks into an Advanced Analytics Adventure

  1. 1. Email: Beyond Opens and Clicks KCDMA | February 11, 2014 Jeanne S. Jennings Vice President, Global Strategic Services Alchemy Worx a 100% Email Marketing Agency © All Rights Reserved KCDMA | February 11, 2014 1
  2. 2. Session Overview • Revenue • Conversion • Send Metrics • Testing Metrics • Combining Metrics © All Rights Reserved KCDMA | February 11, 2014 2
  3. 3. Revenue Metrics Email: Beyond Opens and Clicks © All Rights Reserved KCDMA | February 11, 2014 3
  4. 4. Return on Investment (ROI) There are a couple different ROI calculations Data Calculation • Source: Web Analytics and • Track: • Revenue generated from the email • Costs, which may include: • Marketing cost • Cost of goods or services sold • Any overhead, contribution or other costs (salaries, operational expenses, etc.) © All Rights Reserved Revenue Costs (Marketing or all) • Which costs are included varies from company to company • Expressed as “dollars generated for each dollar spent” • So an ROI of $28 means for each $1 spent, $28 is returned KCDMA | February 11, 2014 4
  5. 5. List ROI Profitable Lists Not Profitable Lists • STR Teacher Express ($3.08 ) • TSO Customers ($1.03) © All Rights Reserved • Teacher Newsletter ($0.59 ROI) • SBC Red Apple ($0.43 ROI) KCDMA | February 11, 2014 5
  6. 6. Revenue per Email (RPE) When true ROI is difficult to track; to combat list fatigue Data Calculation • Source: Web Analytics and Email Metrics • Track: Revenue Non-Bounce Send Quantity • Easier to calculate (usually) than ROI • Revenue generated • Can be used both for individual from email sends as well as for all sends in a given week, month, quarter, etc. • Quantity of email assumed delivered (sent • If the number is very low, calculate RPME – revenue per and didn’t bounce) thousand emails assumed delivered © All Rights Reserved KCDMA | February 11, 2014 6
  7. 7. Revenue per Thousand Emails Assumed Delivered (RPME) Quarterly – all business units Source: Client Case Study, JeanneJennings.com, Inc. © All Rights Reserved KCDMA | February 11, 2014 7
  8. 8. Average Value of an Email Address How much is an email address worth to your organization? Data Calculation • Source: Web Analytics and Email Metrics • Track: Total revenue generated from email • Revenue generated from email • Average number of email addresses on the list • Usually calculated annually © All Rights Reserved Average Size of Email List • Benchmark for improvement • Useful for determining how much you can afford to spend to get a new email address Annual Revenue from Email Average List Size Average Annual Value of an Email Address KCDMA | February 11, 2014 $ 12,030,960 2,023,345 $ 5.95 8
  9. 9. Average Value of an Email Address Initial Analysis After Test Period Source Type A LinkedIn Ad B List Rental C Telemarketing Cost Per Lead $ 2.28 $ 5.90 $ 9.48 Average Annual Value of an Email Estimated Address (Current Return on List) Spend $ 5.95 $ 2.61 $ 5.95 $ 1.01 $ 5.95 $ 0.63 Final Analysis After Tracking Actual Performance Source Type A LinkedIn Ad B List Rental C Telemarketing Cost Per Lead $ 2.28 $ 5.90 $ 9.48 Actual Value of an Email Address by Source (Annual) $ 5.75 $ 2.02 $ 36.27 Actual Return on Spend $ 2.52 $ 0.34 $ 3.83 Source: Leveraging the Value of Your Email List, Jeanne Jennings for ClickZ.com, June 24, 2013 © All Rights Reserved KCDMA | February 11, 2014 9
  10. 10. Lifetime Value of an Email Address How much is an email address worth to your organization over its lifetime? Data Calculation • Source: Web Analytics and Email Metrics • Track/Calculate: • Annual average value of an email address • Average time in years that an email address on your list remains active © All Rights Reserved Annual Average Value of an Email Address * Average Time Active on List in Years • Useful for estimating future revenue and anticipating when performance will drop off KCDMA | February 11, 2014 10
  11. 11. NUDGE EFFECT Cross-channel impact of your emails Data: • Source: Purchase data and Email Activity Data • Track by subscriber: – Purchases online and offline – Open or Don’t Open © All Rights Reserved KCDMA | February 11, 2014 11
  12. 12. NUDGE EFFECT Take a holistic view of email success Holistic view: • • Look at those campaigns that may be driving subscribers elsewhere. Test subject lines that boost store footfall at key times. Revenue from other channels on days when email campaigns were sent vs. days without © All Rights Reserved KCDMA | February 11, 2014 12
  13. 13. Revenue Attribution What Revenue Gets Attributed to Email? Four Elements of an Attribution Model 1. Action: sent, open or click (email) 2. Product(s): just those featured, those featured along with anything else in the cart, any product (featured or not) 3. Timeframe: days, weeks, months from action 4. Order of touch: first, last, any Define too broadly and you’re overstating revenue… Define too narrowly and you’re understating it… What percentage of unattributed revenue is acceptable? © All Rights Reserved KCDMA | February 11, 2014 13
  14. 14. One Purchase – Different Attribution Models Attibution Models Model A Model B Model C Model D Model E Model F Opened / Opened / Sent / Action Click Click Click Displayed Displayed Displayed Timeframe 0 days 7 days 7 days 14 days 14 days 28 days Featured Featured Featured Featured Featured Featured plus only plus only only only Product(s) Touch Last First First First Last First Total Revenue $ 45 $ 45 $ 45 $ 45 $ 45 $ 45 Attribution: SEM $ $ $ $ $ $ 20 Email $ $ 15 $ 45 $ 35 $ 20 $ 15 Display $ $ $ $ $ 15 $ % Attributed 0% 33% 100% 78% 78% 78% % UnAttributed 100% 67% 0% 22% 22% 22% © All Rights Reserved KCDMA | February 11, 2014 Model G Sent / Displayed 28 days Featured plus Any $ 45 $ $ $ 45 45 45 300% -200% 14
  15. 15. Hybrid Attibution Model Direct Hybrid Attribution Model Indirect Open or Click (Email) 14 days Featured only Not Last $ 45 Indirect Display or Click (SEM or Display) 14 days Featured only Not Last $ 45 Click (All Action Channels) Timeframe 14 days Featured Product(s) plus Touch Last Total Revenue $ 45 Attribution: SEM $ $ $ Email $ 45 $ $ Display $ $ $ 15 % Attributed 100% 0% 33% % UnAttributed 100% 100% 100% © All Rights Reserved KCDMA | February 11, 2014 15
  16. 16. Conversion Metrics Email: Beyond Opens and Clicks © All Rights Reserved KCDMA | February 11, 2014 16
  17. 17. Abandon Rate Email Acquisition Process or any other Conversion Funnel How effective is my conversion funnel? Data Calculation • Source: Web Analytics • Track: people who make it to the initial landing page but don’t convert • Good to have an overall figure from start to finish • Tracking page-by-page (for multi-page conversion funnels) tells you where you are losing them © All Rights Reserved (Unique Visitors – Conversions) Unique Visitors • Unique Visitors to first page of the conversion funnel • Conversions , the number of people who completed the goal action • Signs-ups for acquisition process • Can also be leads generated or sales • For page-by-page analysis, next page in the process KCDMA | February 11, 2014 17
  18. 18. Abandon Rate Start – Page 1 Email Address and Name Page 2 Lead Scoring Questions Page 3 Phone and USPS Address Any Conversion Funnel Start - Page 1 Page 2 Page 3 Finish - Page 4 Start to Finish Unique Visitors 10,000 8,000 1,500 1,000 Conversion Abandon Rate Rate 80% 20% 19% 81% 67% 33% 10% 90% 90% Abandon Rate – Conversion Funnel could be better (Goal: 50% or less) • Collect data after each page, not at end • Partial info is better than no info • Prioritize the pages • What’s more critical – lead scoring questions or phone and USPS address? Finish – Page 4 Thank You © All Rights Reserved • Test to lower the abandon rate on the Lead Scoring Questions Page KCDMA | February 11, 2014 18
  19. 19. Website Email Conversion Rate How effective is my Website at driving Email Sign-ups? Data Calculation • Source: Web Analytics • Track: • Unique NEW Visitors per Month • Online Email Sign-ups per Month © All Rights Reserved Email Sign-Ups Unique NEW Visitors • Unique NEW Visitors weeds out previous visitors, a high percentage of which have signed up previously • If you have acquisition efforts in place driving directly to the signup page, you’ll want to exclude these folks from both data points KCDMA | February 11, 2014 19
  20. 20. Control Website Email Conversion Rate Online Email Sign-up Control Test Lift Test Website Email Unique Website Email Conversion Revenue NEW Visitors Sign-Ups Rate Generated 5,738 748 13.0% $ 20,024 5,492 933 17.0% $ 25,494 30% 27% 30% lift in Website Email Conversion Rate Revenue generated didn’t decrease, in fact it increased © All Rights Reserved KCDMA | February 11, 2014 20
  21. 21. Send Metrics Email: Beyond Opens and Clicks © All Rights Reserved KCDMA | February 11, 2014 21
  22. 22. REACH Overall Email Program or Individual Sub-program How much of my subscriber base is engaged with my program? Data: • Source: Email activity data • Track: Number of unique subscribers who open an email. – Typically measured email by email over a Quarter and/or a Year. Calculation: Open Reach = De-duped list of all email addresses that opened De-duped list of all email addresses that were delivered Click = Reach De-duped list of all email addresses that clicked De-duped list of all email addresses that were delivered © All Rights Reserved KCDMA | February 11, 2014 22
  23. 23. REACH Focus on subscriber behaviour • Goal depends on your program – – • Weekly or less: 50% Open Reach More often: 70% Open Reach Look out for the emails that give you those new Engagers vs. attracting repeat. © All Rights Reserved KCDMA | February 11, 2014 23
  24. 24. Lifecycle of an Email Address © All Rights Reserved KCDMA | February 11, 2014 24
  25. 25. Mobile View Rate Source: Mobile Maintains 51% Majority; Gmail Gains 3%, Justine Jordan for the Litmus Blog, January 9, 2014 © All Rights Reserved KCDMA | February 11, 2014 25
  26. 26. Mobile v. Desktop View Rate How much effort should I make to address mobile? • Reported, not calculated • Device type as well as operating systems • Match your resource expenditures on mobile to your current and projected mobile view rate • Responsive design vs. narrow fixed width Source: SubscriberMail © All Rights Reserved KCDMA | February 11, 2014 26
  27. 27. Responsive Design © All Rights Reserved KCDMA | February 11, 2014 Usually Best… But Think it Through 27
  28. 28. Testing Analytics Email: Past Opens and Clicks © All Rights Reserved KCDMA | February 11, 2014 28
  29. 29. Estimated Sample Size How many emails should I send to have a good chance of getting statistically significant results? Calculation Data • Source: Email Metrics and Assumptions • Track: 31.38 * CR * (1-CR) (Lift * CR) * (Lift * CR) • Split the quantity returned between 2 cells • Average expected • My rule: minimum of 20,000 per conversion rate (CR) test cell (over multiple sends if necessary) • Minimum lift you’re looking for (Lift) Average expected conversion rate 1.0% Minimum lift desired Total Send Quantity Needed (Control + Test Cells) Control Cell Test Cell © All Rights Reserved KCDMA | February 11, 2014 25% 49,706 24,853 24,853 29
  30. 30. Statistical Significance (95%) Are my test results valid? Calculations (Excel Formulas) • Conversion Rate (CR: Control and Test) =Conversions/Quantity_Assumed_Delivered Or… • Standard Error (SE; Control and Test) =SQRT ((CR*(1- CR)/Quantity_Assumed_Delivered) • Z-Score (Z_Score) =(Control_CRTest_CR)/SQRT(POWER(Control_SE,2)+POWER(Test_SE,2)) • P-value (P_Value) =NORMDIST(Z_Score,0,1,TRUE) • Statistical Significance =IF(OR(P_Value<0.05,P_Value>0.95), “YES”, “NO”) © All Rights Reserved KCDMA | February 11, 2014 30
  31. 31. Statistical Significance Are my test results valid? Use a Free Online Calculator • • • • Hubspot.com TheKeystoneSolution.com UserEffect.com VisualWebsiteOptimizer.com Most use Website terminology – but they work just fine for email (visits = quantity assumed delivered) © All Rights Reserved KCDMA | February 11, 2014 31
  32. 32. Combining Metrics Email: Past Opens and Clicks © All Rights Reserved KCDMA | February 11, 2014 32
  33. 33. Combine Metrics to Set Goals and Prioritize Time and Resources: Bubble Chart © All Rights Reserved KCDMA | February 11, 2014 33
  34. 34. Combine Metrics to Identify Areas of Strength and Weakness: Data Tree Analysis Source: Diagnosing a Common Email Malady: ‘Revenue Failure,’ Ed Henrich (ClickZ), March 4, 2010 © All Rights Reserved KCDMA | February 11, 2014 34
  35. 35. Additional Resources Email: Past Opens and Clicks © All Rights Reserved KCDMA | February 11, 2014 35
  36. 36. Additional Email Marketing Resources (Free) Look for Jeanne’s column on email marketing every other Monday www.ClickZ.com The Alchemy Worx email newsletter; Read past articles and sign-up at www.alchemyworx.com/emailworx/ @JeaJen to follow Jeanne @AlchemyWorx to follow the agency © All Rights Reserved KCDMA | February 11, 2014 36
  37. 37. Additional Email Marketing Resources (Paid) The Premier Email Marketing Association, part of the DMA; Resources and Annual Conference www.EmailExperience.org A Private Community for Email Marketers; Discussion Lists and Meetups (Feel free to say I referred you); Look for Jeanne’s monthly post on the blog www.OnlyInfluencers.com © All Rights Reserved KCDMA | February 11, 2014 37
  38. 38. Alchemy Worx A 100% Email Marketing Agency • Services offered include strategy, creative, production and deployment • We are ESP agnostic – we handle deployment for many clients through a variety of ESPs • Headquartered in London; US Headquarters in Atlanta • Founded in 2001 by Dela Quist, CEO • Jeanne joined the team in 2013, after having her own email marketing consultancy for 12 years • Call us! We’d love to help make your email marketing more effective and more profitable © All Rights Reserved KCDMA | February 11, 2014 38
  39. 39. Email: Beyond Opens and Clicks KCDMA | February 11, 2014 Thanks for Joining Us Today! Questions? Jeanne S. Jennings Vice President, Global Strategic Services 404.922.7448 | JJennings@AlchemyWorx.com Alchemy Worx a 100% Email Marketing Agency www.AlchemyWorx.com © All Rights Reserved KCDMA | February 11, 2014 39

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