2011 Email Marketing Benchmark Report (Excerpt)

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    2011Email Marketing

    Benchmark ReportPractical instructions to generatequalify and nurture new busines

    leads based on proven, real-lifemarketing

    EXCERPT

    New Research and Insights forAccelerating Email Performance

    Note: This is an authorized excerpt from the full

    Marketing Sherpa 2011 Email Marketing

    Benchmark Report. To download the entire Repor

    go to: Sherpastore.com/2011Email MarketingBMR

    or call 877-895-1717

    Special Rate Sponsor:

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    2011 Email Marketing Benchmark ReportUS $447 / ISBN: 978-1-936390-04-5Copyright 2010 by MarketingSherpa LLC

    All rights reserved. No part of this report may be reproduced or transmitted in any form or by anymeans, electronic or mechanical, including photocopying, recording, faxing, emailing, posting onlineor by any information storage and retrieval system, without written permission from the Publisher.

    To purchase additional copies of this report, please visit

    http://www.SherpaStore.com

    Yes, bulk discounts are available for multiple copies. Contact:Customer ServiceMarketingSherpa LLC+1 (877) 895-1717 (outside US, call +401-247-7655)[email protected] Main Street

    Warren, RI 02885 USA

    2011 Email Marketing Benchmark ReportNew Research and Insights or Accelerating Email Perormance

    Lead Author

    Sergio Balegno, Director o Research

    Contributing Authors

    Jen Doyle, Senior Research Analyst

    Jefrey Rice, Research Analyst

    Production Editor

    Brad Bortone, Reporter

    David Kirkpatrick, Reporter

    i Copyright 20002010 MarketingSherpa LLC. It is forbidden to copy this report in any manner.

    For permissions contact [email protected]. For more copies, visit http://www.SherpaStore.com

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    MarketingSherpa 2011 Email Marketing Benchmark Report

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    TABLE OF CONTENTS

    Table of Contents .................................................................................................................... ii

    Executive Summary ................................................................................................................ 2

    New Research and Insights for Accelerating Email Performance ......................................................... 2

    Research highlight 1. Email marketing maturity a key indicator of success ....................................... 3

    Three Phases of Email Marketing Maturity .................................................................................... 3

    Chart: Half of all organizations stuck between Trial Phase and Strategic Phase of maturity ......... 3

    Research highlight 2. Perception of ROI drives email marketing investment ........................................ 4

    Chart: How organizations perceive email marketing ROI at budget time, by maturity phase ......... 4

    Research highlight 3. Facing significant obstacles to email marketing success ................................... 5

    Chart: Most significant challenges to email marketing effectiveness, by primary channel ............. 5

    Research highlight 4. Top tactics for delivering relevant content .......................................................... 6

    Chart: Three dimensions of relevancy tactics - effectiveness, difficulty and use ........................... 6

    Research highlight 5. Trends in email deliverability .............................................................................. 7

    Chart: Deliverability improvements offset by continued challenges ............................................... 7

    Research highlight 6. Metrics that matter most ..................................................................................... 8

    Chart: Email marketing metrics tracked by percentage of organizations tracking them ................. 8

    Chapter 1. The State of Email Marketing .............................................................................. 9

    Facing significant new obstacles to email marketing success............................................................. 10

    Chart: The significance of challenges to email marketing effectiveness ...................................... 11

    Chart: Most significant challenges to email marketing effectiveness, by primary channel ........... 11

    Chart: Most significant challenges to email marketing effectiveness, by organization size.......... 12

    Chart: Most significant challenges to email marketing effectiveness, by maturity phase ............. 13

    Marketer insights on their most difficult email marketing challenges .......... ........... ........... .......... ......... 14

    What email marketers are really trying to achieve .............................................................................. 17

    Chart: The importance of email marketing objectives .................................................................. 17

    Chart: Most important email marketing objectives, by primary channel ....................................... 18

    Chart: Most important email marketing objectives, by organization size...................................... 19

    Chart: Most important email marketing objectives, by maturity phase ......................................... 20

    Marketer insights on their most important objectives for the coming year ......... ........... ........... .......... .. 21

    Objectives email marketers are achieving most effectively ................................................................. 24

    Chart: The effectiveness of email marketing at achieving objectives ........................................... 24

    Chart: Objectives email marketing achieves most effectively, by primary channel ...................... 25

    Chart: Objectives email marketing achieves most effectively, by organization size ..................... 26

    Chart: Objectives email marketing achieves most effectively, by maturity phase ........................ 27

    Email marketing maturity a key indicator of success .......... ........... .......... ........... .......... ........... ......... 28

    Three Phases of Email Marketing Maturity .................................................................................. 28

    Chart: Half of organizations between Trial and Strategic phases of email marketing maturity .... 28

    Chart: Organizations in each phase of email marketing maturity, by primary channel................. 30

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    Chart: Organizations in each phase of email marketing maturity, by organization size ............... 31

    Chapter 2. Email Budgets and Bottomlines ....................................................................... 32

    The perception of ROI drives email marketing investment .......... .......... ........... .......... ........... .......... .... 32

    Chart: Email marketing ROI a reality for more than a quarter of organizations ............................ 32

    Chart: How organizations perceive email marketing ROI at budget time, by primary channel ..... 33

    Chart: How organizations perceive email marketing ROI at budget time, by organization size ... 34

    Chart: How organizations perceive email marketing ROI at budget time, by maturity phase ....... 35

    A method for quantifying ROI .............................................................................................................. 36

    Chart: Organizations with a method for quantifying email marketing ROI are in the minority ...... 36

    Chart: Organizations with a method for quantifying email marketing ROI, by primary channel ... 37

    Chart: Marketers with a method for quantifying email marketing ROI, by organization size ........ 38

    Chart: Marketers with a method for quantifying email marketing ROI, by maturity phase............ 39

    Email marketing ROI benchmarks ...................................................................................................... 40

    Chart: Email marketing ROI as percentage as reported by majority of respondents .................. 40

    Chart: Email marketing ROI as percentage, by primary channel ................................................. 41

    The changing marketing budget landscape ........................................................................................ 42

    Chart: Organizations increasing and decreasing marketing budgets - the impact on tactics ....... 42

    Chart: Net change (organizations increasing minus decreasing budgets), by primary channel ... 43

    Chart: Net change (organizations increasing minus decreasing budgets), by organization size . 44

    Chart: Net change (organizations increasing minus decreasing budgets), by maturity phase ..... 45

    Chart: Marketing budgets don't include staffing costs for majority of organizations ..................... 46

    Onlines share of the marketing budget .............................................................................................. 47

    Chart: Share of marketing budget allocated to online marketing by majority of organizations ..... 47

    Chart: Share of marketing budget allocated to online marketing, by primary channel ................. 48

    Chart: Share of marketing budget allocated to online marketing, by organization size ................ 49

    Chart: Share of marketing budget allocated to online marketing, by maturity phase ................... 50

    Emails share of the online marketing budget ..................................................................................... 51

    Chart: Share of online budget allocated to email marketing by majority of organizations ............ 51

    Chart: Share of online marketing budget allocated to email marketing, by primary channel ........ 52

    Chart: Share of online marketing budget allocated to email marketing, by organization size ...... 53

    Chart: Share of online marketing budget allocated to email marketing, by maturity phase.......... 54

    Substantial email marketing budget increases projected for 2011 ...................................................... 55

    Chart: Extent of changes to email marketing budgets in the coming year ................................... 55

    Chart: Extent of changes to email marketing budgets in the coming year, by primary channel ... 56

    Chart: Extent of changes to email marketing budgets in the coming year, by organization size .. 57

    Chart: Extent of changes to email marketing budgets in the coming year, by maturity phase ..... 58

    Chapter 3. Getting Relevant by Being Personal ................................................................ 59

    Top tactics for delivering relevant content ........................................................................................... 59

    Chart: Three dimensions of relevancy tactics - effectiveness, difficulty and use ......................... 59

    Relevancy tactics used ....................................................................................................................... 60

    Chart: Tactics organizations are using to improve relevancy ....................................................... 60

    Chart: Tactics used to improve email relevancy, by primary channel .......................................... 61

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    Chart: Tactics used to improve email relevancy, by organization size ......................................... 62

    Chart: Tactics used to improve email relevancy, by maturity phase ............................................ 63

    The time, effort and expense required of relevancy tactics ................................................................. 64

    Chart: Relevancy improvement tactics - degree of difficulty ........................................................ 64

    Chart: Relevancy improvement tactics rated difficult, by primary channel ................................... 65

    Chart: Relevancy improvement tactics rated difficult, by organization size.................................. 66Chart: Relevancy improvement tactics rated difficult, by maturity phase ..................................... 67

    The effectiveness of relevancy tactics ................................................................................................ 68

    Chart: Relevancy improvement tactics - level of effectiveness .................................................... 68

    Chart: Relevancy improvement tactics rated very effective, by primary channel ......................... 69

    Chart: Relevancy improvement tactics rated very effective, by organization size ........................ 70

    Chart: Relevancy improvement tactics rated very effective, by maturity phase ........................... 71

    Marketer insights on the most effective relevancy and personalization tactics ................................... 72

    Satisfying subscriber preferences ....................................................................................................... 75

    Chart: Satisfying subscriber preferences starts with collecting data ............................................ 75

    Chart: Organizations collecting and using subscriber preference data, by primary channel ........ 76Chart: Organizations collecting and using subscriber preference data, by organization size ...... 77

    Chart: Organizations collecting and using subscriber preference data, by maturity phase .......... 78

    What it takes to personalize email ...................................................................................................... 79

    Chart: Data collected for email personalization goes beyond subscriber name ........................... 79

    Chart: Collecting and using subscriber personalization data, by primary channel ....................... 80

    Chart: Collecting and using subscriber personalization data, by organization size ...................... 81

    Chart: Collecting and using subscriber personalization data, by maturity phase ......................... 82

    Case briefing: Personalization tactics increase conversions ............................................................... 83

    Chapter 4. Driving Email List Growth .................................................................................. 84

    Top tactics for increasing subscriber lists ........................................................................................... 84

    Chart: Three dimensions of list growth tactics - effectiveness, difficulty and use ......................... 84

    Email list growth tactics used .............................................................................................................. 85

    Chart: Tactics organizations are using to grow email lists ........................................................... 85

    Chart: Tactics used to drive email list growth, by primary channel .............................................. 86

    Chart: Tactics used to drive email list growth, by organization size ............................................. 87

    Chart: Tactics used to drive email list growth, by maturity phase ................................................ 88

    The time, effort and expense required of list growth tactics ................................................................ 89

    Chart: Email list growth tactics - degree of difficulty..................................................................... 89

    Chart: Email list growth tactics rated difficult, by primary channel ............................................... 90

    Chart: Email list growth tactics rated difficult, by organization size .............................................. 91

    Chart: Email list growth tactics rated difficult, by maturity phase ................................................. 92

    The effectiveness of list growth tactics ................................................................................................ 93

    Chart: Email list growth tactics - level of effectiveness ................................................................ 93

    Chart: Email list growth tactics rated very effective, by primary channel ..................................... 94

    Chart: Email list growth tactics rated very effective, by organization size .................................... 95

    Chart: Email list growth tactics rated very effective, by maturity phase ....................................... 96

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    Marketer insights on their most effective list growth tactics ................................................................ 97

    Social media as a list growth tactic ..................................................................................................... 99

    Chart: Organizations using limited number of social sharing buttons in email campaigns ........... 99

    Chart: Social sharing buttons used in email campaigns, by primary channel ............................ 100

    Chart: Social sharing buttons used in email campaigns, by organization size ........................... 101

    Chart: Social sharing buttons used in email campaigns, by maturity phase .............................. 102Trends in email list growth ................................................................................................................ 103

    Chart: Email list growth continues positive trend during the past year ....................................... 103

    Chart: Email list growth trend, by primary channel .................................................................... 104

    Chart: Email list growth trend, by organization size ................................................................... 105

    Chart: Email list growth trend, by maturity phase ...................................................................... 106

    Case briefing: .................................................................................................................................... 107

    Solutions and providers for sending house email list ........................................................................ 108

    Chart: Advanced solutions and service providers the top choice among email marketers ........ 108

    Chart: Type of email solution or provider used, by primary channel .......................................... 109

    Chart: Type of email solution or provider used, by organization size ......................................... 110Chart: Type of email solution or provider used, by maturity phase ............................................ 111

    Chapter 5. Making it Into the Inbox ................................................................................... 112

    Top tactics for improving email deliverability ..................................................................................... 112

    Chart: Three dimensions of deliverability tactics - effectiveness, difficulty and use ................... 112

    Deliverability tactics used .................................................................................................................. 113

    Chart: Improving email deliverability starts with removing inactive subscribers ......................... 113

    Chart: Tactics used to improve email deliverability, by primary channel .................................... 114

    Chart: Tactics used to improve email deliverability, by organization size .................................. 115

    Chart: Tactics used to improve email deliverability, by maturity phase ...................................... 116

    The time, effort and expense required of deliverability tactics .......................................................... 117

    Chart: Deliverability improvement tactics - degree of difficulty ................................................... 117

    Chart: Deliverability improvement tactics rated difficult, by primary channel ............................. 118

    Chart: Deliverability improvement tactics rated difficult, by organization size ............................ 119

    Chart: Deliverability improvement tactics rated difficult, by maturity phase ............................... 120

    The effectiveness of deliverability tactics .......................................................................................... 121

    Chart: Deliverability improvement tactics - level of effectiveness .............................................. 121

    Chart: Deliverability improvement tactics rated very effective, by primary channel ................... 122

    Chart: Deliverability improvement tactics rated very effective, by organization size .................. 123

    Chart: Deliverability improvement tactics rated very effective, by maturity phase ..................... 124

    Trends in deliverability issues ........................................................................................................... 125

    Chart: Deliverability improvements offset by continued challenges ........................................... 125

    Marketer insights on the state of deliverability and tactics for improving it ........................................ 126

    Chapter 6. Metrics that Matter Most .................................................................................. 128

    Measuring email marketing performance .......................................................................................... 128

    Chart: Email marketing metrics tracked by percentage of organizations ................................... 128

    Chart: Email marketing metrics tracked, by primary channel ..................................................... 129

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    Chart: Email marketing metrics tracked, by organization size ................................................... 130

    Chart: Email marketing metrics tracked, by maturity phase ....................................................... 131

    A year of change in key performance metrics ................................................................................... 132

    Chart: Organizations seeing measurable changes in email response rates .............................. 132

    Chart: Net change (increases minus decreases) in response rates, by primary channel .......... 133

    Chart: Net change (increases minus decreases in response rates), by organization size ......... 134Chart: Net change (increases minus decreases in response rates), by maturity phase ............ 135

    Marketer insights on using metrics to improve email performance ................................................... 136

    How marketers measure emails delivered ........................................................................................ 140

    Chart: How email marketers calculate 'Delivery Rate' ............................................................... 140

    Chart: 'Delivery Rate' defined, by primary channel .................................................................... 141

    Chart: 'Delivery Rate' defined, by organization size ................................................................... 142

    Chart: 'Delivery Rate' defined, by maturity phase ...................................................................... 143

    How marketers measure emails opened ........................................................................................... 144

    Chart: Calculating 'Open Rate'................................................................................................... 144

    Chart: 'Open Rate' defined, by primary channel ........................................................................ 145Chart: 'Open Rate' defined, by organization size ....................................................................... 146

    Chart: 'Open Rate' defined, by maturity phase .......................................................................... 147

    How marketers measure emails opened ........................................................................................... 148

    Chart: Calculating 'Click-Through Rate' ..................................................................................... 148

    Chart: 'Click-Through Rate' defined, by primary market ............................................................ 149

    Chart: 'Click-Through Rate' defined, by organization size ......................................................... 150

    Chart: 'Click-Through Rate' defined, by maturity phase ............................................................. 151

    How marketers measure emails converted ....................................................................................... 152

    Chart: Calculating 'Post-Click Conversions' ............................................................................... 152

    Chart: 'Post-Click Conversions' defined, by primary channel ..................................................... 153Chart: 'Post-Click Conversions' defined, by organization size ................................................... 154

    Chart: 'Post-Click Conversions' defined, by maturity phase ....................................................... 155

    Benchmarking email newsletter performance ................................................................................... 156

    Chart: How the average email newsletter campaign performs .................................................. 156

    Chart: Performance rates for email newsletter campaigns, by primary channel ........................ 157

    Chart: Performance rates for email newsletter campaigns, by organization size ....................... 158

    Chart: Performance rates for email newsletter campaigns, by maturity phase .......................... 159

    Benchmarking email (other than newsletter) performance ................................................................ 160

    Chart: How the average email campaign that is not a newsletter performs ............................... 160

    Chart: Performance rates for email campaigns that are not newsletters, by primary channel ... 161Chart: Performance rates for email campaigns that are not newsletters, by organization size .. 162

    Chart: Performance rates for email campaigns that are not newsletters, by maturity phase ..... 163

    Chapter 7. Putting Email to the Test ................................................................................. 164

    Testing and optimizing email marketing performance ....................................................................... 164

    Chart: Minority of organizations routinely test email campaigns ................................................ 164

    Chart: Organizations routinely testing email campaigns, by primary channel ............................ 165

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    Chart: Organizations routinely testing email campaigns, by organization size .......................... 166

    Chart: Organizations routinely testing email campaigns, by maturity phase .............................. 167

    Campaign elements tested ............................................................................................................... 168

    Chart: Campaign elements routinely tested to optimize performance........................................ 168

    Chart: Campaign elements routinely tested to optimize performance, by primary channel ....... 169

    Chart: Campaign elements routinely tested to optimize performance, by organization size ...... 170Chart: Campaign elements routinely tested to optimize performance, by maturity phase ......... 171

    Marketer insights on methods typically used to test email campaigns .............................................. 172

    Methodology for email testing and optimization ................................................................................ 174

    Appendix 1. Benchmark Survey Demographics .............................................................. 175

    Chart: Survey respondents by primary channel ......................................................................... 175

    Chart: Survey respondents by industry sector ........................................................................... 176

    Chart: Survey respondents by organization size ....................................................................... 177

    Chart: Survey respondents by marketing role and decision-making authority ........................... 179

    Appendix 2. Email Marketing Glossary ............................................................................. 180

    Appendix 3. Research Partner ........................................................................................... 198

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    EXECUTIVE SUMMARY

    NEW RESEARCH AND INSIGHTS FOR ACCELERATING EMAIL PERFORMANCE

    Email has long been established as one of the hardest working tools in the marketing toolbox. Strategically,

    email plays an important role in achieving a wide range of marketing objectives. Tactically, email appears to

    have unlimited potential especially when integrated with emerging marketing channels like social media. As

    a mature tactic, performance improvements are no longer measured in quantum leaps but in incremental

    steps. But when multiple improvement tactics are combined, performance is accelerated. And helping you

    understand which email marketing tactics will be most effective is the purpose of this study.

    For the eighth consecutive year, MarketingSherpa has conducted new

    research and comprehensively rewritten the 2011 Email Marketing

    Benchmark Reportto provide marketers the data and insights needed

    to make informative marketing decisions. In this study, more than

    1100 marketers shared their valuable experience about whats

    working (and whats not) in email marketing today, to help you better

    understand how to accelerate email performance.

    In addition to learning more about the state of email from a strategic

    and tactical standpoint, youll also gain a deeper knowledge of the

    following key issues from the most comprehensive study of email

    marketing available.

    The impact of email marketing maturity

    This study has revealed a clear correlation between the phase of an organizations email marketing maturity

    and the effectiveness of its email programs. Throughout this report, findings have been segmented byphase of maturity to demonstrate the disparity in performance of organizations in each phase. This

    information allows you to determine the practices and follow the lead of marketers with proven success.

    Three dimensional views of email tactics

    We found that, in many cases, marketers are more likely to use email tactics that are fast and easy to

    implement than those that are most effective. By incorporating and analyzing three sets of data from the

    study (effectiveness, difficulty and use) on some of email marketings most significant challenges, marketers

    are able to correct their course of actions to improve performance.

    All new metrics and benchmarks

    Email marketers wanted more data for comparing their email marketing performance with similar

    organizations and weve delivered. The 2011 Email Marketing Benchmark Reporthas taken a deeper dive

    into the metrics that matter most to email marketers, and segmented this information by organization size,

    primary channel and phase of marketing maturity for comparative purposes.

    The research highlights contained in this Executive Summary section of the 2011 Email Marketing

    Benchmark Reportare a very small sample of the more than 150 charts with in-depth analysis from

    MarketingSherpa researchers and the hundreds of insights from real-life marketers like you.

    Benchmark Reports

    MarketingSherpa Benchmark

    Reports provide marketing

    executives and practitioners the

    comprehensive research data

    and insights needed to compare

    an organizations practices and

    performance against industry

    benchmarks, to guide strategic

    decisions and tactical planning.

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    RESEARCH HIGHLIGHT 1.EMAIL MARKETING MATURITY A KEY INDICATOR OF SUCCESS

    Throughout this report, we have segmented data by phase of email marketing maturity. Each phase

    represents how systematic an organization is in its approach to email marketing. The phase of an

    organizations maturity is determined by the process they use (or dont use) to plan, execute, measure and

    report on email marketing programs. The purpose of this segmentation is to demonstrate the disparity in

    the performance of email marketing programs by organizations in each phase of maturity, and the

    relationship between the phase and an organizations email marketing success.

    Three Phases of Email Marketing Maturity

    Trial Phase Transition Phase Strategic Phase

    Organization does not have a

    process or guidelines for

    performing email marketing.

    Organization has an informal

    process with a few guidelines

    they sporadically perform.

    Organization has a formal process

    with thorough guidelines they

    routinely perform.

    Chart: Half of all organizations stuck between Trial Phase and Strategic Phase of maturity

    We have a formal

    process with

    thorough

    guidelines we

    routinely perform(Strategic phase)

    37%

    We have an

    informal process

    with a few

    guidelines we

    sporadically

    perform

    (Transition phase)

    49%

    We do not have a

    process or

    guidelines for

    performing email

    marketing (Trial

    phase)

    14%

    Source: MarketingSherpa Email Marketing Benchmark Survey

    Methodology: Fielded Sep 2010, N=1,115

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    RESEARCH HIGHLIGHT 2.PERCEPTION OF ROI DRIVES EMAIL MARKETING INVESTMENT

    How executives perceive email marketing's ability to produce a return on investment will determine the

    investment they are willing to make. Organizations in the strategic phase of email marketing maturity are

    about twice as likely to believe that email marketing is producing a ROI as are their counterparts in the

    transition and trial phases. Consequently, strategic phase organizations are more than twice as likely to

    increase email marketing budgets liberally in 2011 for continuous improvement.

    At the other extreme, organizations in the trial and transition phases of maturity are much more likely to

    believe that email marketing is basically free and intend to keep it that way. These organizations are

    destined to get what they pay for.

    Chart: How organizations perceive email marketing ROI at budget time, by maturity phase

    32%

    8%

    41%

    19%

    28%

    10%

    43%

    20%

    18%

    6%

    38%

    38%

    Email marketing is basically free.

    Let's keep it that way.

    Email marketing is unlikely to

    produce a ROI. Why invest more?

    Email marketing will eventually

    produce a ROI. Let's increase the

    budget but do it conservatively.

    Email marketing is producing a ROI.

    Let's increase the budget liberally

    for continuous improvement.

    Strategic phase

    Transition phase

    Trial phase

    Source: MarketingSherpa Email Marketing Benchmark Survey

    Methodology: Fielded Sep 2010, N=1,115

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    RESEARCH HIGHLIGHT 3.FACING SIGNIFICANT OBSTACLES TO EMAIL MARKETING SUCCESS

    Email marketers continue to struggle with the challenge of delivering highly relevant content to their target

    audiences. Whether you are marketing to consumers, businesses or both, the more targeted your email

    campaigns, the more content is required. Developing a sufficient amount of content is a time-intensive

    process that many marketers do not have the resources to produce.

    While relevancy will be the most significant challenge to email marketing effectiveness in 2011, there is a

    range of second tier issues - from quantifying email marketing ROI to growing email lists - that are equally

    challenging to marketers in all channels and have been addressed in this study.

    Chart: Most significant challenges to email marketing effectiveness, by primary channel

    40%

    36%

    42%

    31%

    44%

    56%

    33%

    35%

    46%

    39%

    37%

    66%

    33%

    38%

    40%

    41%

    44%

    68%

    Lack of an effective email

    marketing strategy

    Legitimate email being

    perceived as spam

    Getting people to opt-in

    to email lists

    Improving email

    deliverability

    Quantifying email

    marketing ROI

    Targeting recipients with

    highly relevant content

    Business channel (B2B)

    Consumer channel (B2C)

    Both channels (B2B2C)

    Source: MarketingSherpa Email Marketing Benchmark Survey

    Methodology: Fielded Sep 2010, N=1,115

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    RESEARCH HIGHLIGHT 4.TOP TACTICS FOR DELIVERING RELEVANT CONTENT

    The popular use of an email marketing tactic does not always reflect its effectiveness. We've taken a deeper

    dive into the analysis of tactics throughout this study to gain a better understanding.

    This chart incorporates three sets of data on relevancy tactics. The level of effectiveness is shown on the

    vertical axis while the degree of difficulty to implement the tactic is shown on the horizontal axis. The size

    of each sphere represents its level of usage.

    This chart shows, for example, that the tactic of segmenting email campaigns based on behavior is used

    more often than automatically sending email based on triggers, which is more effective and less difficult to

    implement.

    Chart: Three dimensions of relevancy tactics - effectiveness, difficulty and use

    Automatically send

    email based on

    triggers

    Allowed

    subscribers to

    specify email

    preferences

    Segmented email

    campaigns based

    on behavior

    Segmented email

    campaigns based

    on sales cycle

    Dynamically

    personalized email

    content

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    0% 20% 40% 60% 80% 100%

    LevelofEffectiveness

    Degree of Difficulty

    Usage indicated by sphere size

    Source: MarketingSherpa Email Marketing Benchmark Survey

    Methodology: Fielded Sep 2010, N=1,115

    mailto:[email protected]:[email protected]
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    MarketingSherpa 2011 Email Marketing Benchmark Report

    7

    Copyright 20002010 MarketingSherpa LLC, a MECLABS Group Company.

    It is forbidden to copy this report in any manner. For permissions contact [email protected].

    RESEARCH HIGHLIGHT 5.TRENDS IN EMAIL DELIVERABILITY

    Making it into the inbox involves a complex set of issues and is a perennial challenge for email marketers.

    While many organizations are experiencing measurable improvements, nearly as many are experiencing

    worsening conditions. The net result overall is a slight change for the better.

    The effectiveness of tactics used to improve deliverability varies significantly and many marketers have

    shared their insights in this study on what works best for them. For example, as one marketer told us,

    Removal of non participating subscribers has had the most influence on improving deliverability and email

    performance rates in all aspects of email marketing. In other words, get rid of the deadbeat email addresses

    and everything improves, and the spam companies leave our email alone.

    Chart: Deliverability improvements offset by continued challenges

    15%

    18%

    18%

    11%

    12%

    15%

    16%

    18%

    19%

    21%

    22%

    27%

    -20% -10% 0% 10% 20% 30%

    Emails not clicked in more

    than 6 months

    Emails not opened in more

    than 6 months

    Junk folder placement rate

    Inbox placement rate

    Missing rate (not delivered

    anywhere)

    Bounce-backs and

    undeliverable email

    Measureably worsening Measureably improving

    Source: MarketingSherpa Email Marketing Benchmark Survey

    Methodology: Fielded Sep 2010, N=1,115

    mailto:[email protected]:[email protected]
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    MarketingSherpa 2011 Email Marketing Benchmark Report

    8

    Copyright 20002010 MarketingSherpa LLC, a MECLABS Group Company.

    It is forbidden to copy this report in any manner. For permissions contact [email protected].

    RESEARCH HIGHLIGHT 6.METRICS THAT MATTER MOST

    Measuring the performance of email campaigns enables marketers to benchmark and optimize results. But

    which metrics are worth tracking?

    The vast majority of organizations track the fundamental delivery, open and click-through rates. But, as well

    established as these traditional metrics are, we found there is still no clear consensus on the formula used

    to calculate each of these metrics.

    The more comprehensive an email program becomes, the more reliant a marketer becomes on incremental

    downstream metrics like post-click conversions and revenue per email. These downstream metrics are

    essential to tracking ROI back to email campaigns, and gaining the budgets necessary for continuous email

    marketing improvements.

    Chart: Email marketing metrics tracked by percentage of organizations tracking them

    18%

    33%

    36%

    44%

    51%

    51%

    81%

    90%

    92%

    Social sharing rate

    Revenue per email

    Response by list segment

    Post-click conversion rate

    Clicks per email

    Clicks per link in email

    Delivery rate

    Open rate

    Click-through rate

    Source: MarketingSherpa Email Marketing Benchmark Survey

    Methodology: Fielded Sep 2010, N=1,115

    mailto:[email protected]:[email protected]
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