Email Marketing Metrics That Matter Webinar
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Email Marketing Metrics That Matter July 16, 2009
description
In this 60-minute Webinar, you'll learn the difference between process and output metrics, gain insight in how to more effectively communicate email success to management, examples of how to use metrics to drive email improvement, the impact of social media on email metrics and discover how one marketer measures and communicates email success. Will Stacy, director of marketing for Santander Consumer USA / Drive®, will explore key metrics and sample emails that are delivering substantial results, such as reduced call center volume, increased data quality, lower customer communication costs and increased online customer payments.
Transcript of Email Marketing Metrics That Matter Webinar
Email Marketing Metrics That Matter
July 16, 2009
Speakers & Agenda
• Will Stacy IV
– Director of Marketing
– Santander Consumer USA / Drive®
• Loren McDonald
– VP, Industry Relations
– Silverpop
• Agenda
– Beyond Opens &
Clicks
– Measurement Mindset
– Metrics &
Management
– Social Media & Email
– Using Metrics for
Improvement
– Santander Case Study
– Questions & Answers
Moving Beyond Opens and Clicks
TM Taco Bell
Email Metrics – Let me count the ways…
Open rate
Click-through rate
Click-to-open rate
Unsubscribe rate
Bounce rate
Conversion rate
List churn
….
Email metrics disconnected from business goals lead to…
…an ROI / Resource Imbalance
• Marketers are:
– Sending more
emails (volume)
– Sending more
frequently
• Budgets are flat or
down
• No. of FTEs is flat
or down
Email marketing is generally considered to have
the #1 or #2 ROI among marketing channels
ROI
Is
Huge!
Team
…and a Marketing Channel Budget Tug of
War
Email is increasingly competing for slices of the marketing
budget with channels that didn’t exist a few years ago
So How Did We Get Here?
“OCBUS” - The Basic Foundation
• Open rates
• Click-through rates
• Bounce rates
• Unsubscribe rates
• Spam complaint rates
“OCBUS” – Free inside every email software solution!
Measurement Mindset
Stepping Back - Email Metrics: How
We Use Them
Report Card
(Backward Looking)
• How did our message
perform?
• How did we do this
month/year?
• Did we achieve our targets?
Actionable
(Future Oriented)
• Testing – Which creative worked
better?
• Do we need more resources?
• Are there problems lurking in our
email process?
• Where are we falling short?
• What do we do next?
Differentiate Process from Output Metrics
• Open rates• Bounces• Delivered• Click-through rates
• Revenue• Orders• Demos/Downloads• Sales-qualified leads
Process Output
Think differently about metrics
Corporate Balanced Scorecard
Engagement/Relationship
Campaigns/Time
BEMS
Balanced Email Marketing Scorecard (BEMS)
Conversion Activity
Financial/ROI/Bus. Goal
Message Level
List Growth/Health
Deliverability
Metrics & Management
Conveying the Value of Email
It is all about the
business goals…
…and communicating
metrics in a meaningful
way to management
Executives Don’t Care About Open Rates
Email Marketer
• My average open rate is now 23%.
• Unique click-through rate is trending up since the redesign.
• Deliverability is up at Hotmail since we stopped using the large postcard-style image.
• Spam complaints are down 20%.
Executives
• How much revenue did we generate from email?
• How has email improved customer retention?
• How has email helped reduce our costs to communicate with customers?
• What impact is email having on conversion via other channels?
Who Cares About Which Metrics?
Metric Marketing CEO/CFO Other Depts
Open, CTRs High Low Low
Bounce Delivery,
Unsub, Spam
High Low Low
Conversion Rate High Medium Low/Med
Leads, Revenue Medium High Med/High
Cost Reduction Low High High
Customer Retention/
Satisfaction
Low High High
Determine which metrics should be provided to key functions.
Email’s Impact on the Business
• Core Business Objectives
– Revenue, Avg Order Size, Margins
– Cost savings, reduced customer support costs
– Share of customer
– Customer retention
• Lifetime Customer Value
• Engagement/Brand Loyalty
Social Media and Email
Social Network Emails in the Mix
• Your emails are
competing with social
alerts/conversations
• Negatively affecting
opens, clicks and
engagement
• Increases need for
relevance, personality and
social components in your
emails
Social Media and Email
• Share to Social
– Increased views, clicks
– New subscribers
– Share rate
– Most valuable sharers
Social Media and Email
• Incorporating Social Aspects
Within Emails
– Comments
– User ratings
– Top read, top purchases, etc.
• What impact is it
having on core
metrics?
Using Metrics for Improvement
Benchmarking
• OK - Broad industry benchmarks are fairly
meaningless
– Are you in the ballpark?
• Better - Vertical/Peer-based are better
– Helpful in speaking with management
• Best – Benchmark against your end goals
– What target metrics do you need to achieve your
business objectives
– Use data to drive improvement
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Retailer – Simple Framework
• Goal
– $100,000 revenue per month from email
• Current:
– 2 messages/month
– 100,000 emails/mailing = 200,000
– 5% click-through rate = 10,000 clicks
– 3% conversion rate = 300 orders
– $100/average order
– $30,000 revenue/month
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Retailer Simple Framework: End Goal
• Approach
– Increase mailings
– Better creative, offers, Web site consistency
– Increased segmentation/personalization
• Forecast:
– 5 messages/month
– 60,000 emails/mailing = 300,000 emails
– 8% click-through rate = 24,000 clicks
– 4% conversion rate = 960 orders
– $100/average order
– $96,000 revenue/month
Santander Consumer USA Case
Study
More data on this topic
available from::
Metrics that Matter
Will Stacy IV - Director of Marketing
Santander Consumer USA /
More data on this topic
available from::
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About Santander Consumer USA
Owned by Santander – one of the largest banks in the world
Specialize in sub/non-prime auto finance
Currently have over 500,000 auto loan customers, $7B Loan Portfolio
Our dept assists the Servicing group in their efforts to collect payments
More data on this topic
available from::
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Our Servicing Department
Over 350K outbound phone
calls per day
Over 800 people
Top goals are to collect loan
payments and have positive
interactions with the customer
More data on this topic
available from::
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Metrics That Matter
Correct customer phone #’s
Email helped with a 35% increase
Incorrect customer postal address
Email helped with a 75% decrease
Customers contact preferences
Prevented over 10,000 email opt outs
Inbound phone calls & online chats
SMS is driving ready to pay customers
Email increased chat by 60%
Amount of payments collected that began with receiving an email
Over $25 Million in one month
More data on this topic
available from::
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Email to Collect Accurate
Telephone Number
More data on this topic
available from::
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Increase of 35% of Accurate Cell Number
Jan-
08Feb-
08Mar-
08Apr-
08May-
08Jun-
08Jul-
08Aug-
08Sep-
08Oct-
08Nov-
08Dec-
08Jan-
09Feb-
09
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
% of With Good Cell Phone #
More data on this topic
available from::
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Email to Collect Accurate Postal Mailing Address
More data on this topic
available from::
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Jan-
08
Mar
-08
May
-08
Jul-0
8
Sep
-08
Nov
-08
Jan-
09
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
% of Customers With Bad Address
Decrease of 75% of Inaccurate Postal Addresses
More data on this topic
available from::
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SMS Payment Reminders to
Create Inbound Calls & Payments
More data on this topic
available from::
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SMS Messaging
Customers Asked Us
No Promotion
Send Daily Payment Reminders
via SMS
Over 2,700 People Registered
3% are calling the # and making
payments
More data on this topic
available from::
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Email to IncreaseOnline Live Chats
More data on this topic
available from::
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60% Increase in Chat Volume Over 16 Months
Jun-08 Jul-08 Aug-08 Sep-08Oct-08 Nov-08 Dec-08
Jan-09Feb-09
Mar-09 Apr-09
S1
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
More data on this topic
available from::
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Preference Center
10,700 + customers
have selected “no” on
our list preference
page helping prevent
opt outs.
More data on this topic
available from::
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Payment Reminder Email
More data on this topic
available from::
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Statement Available Email
More data on this topic
available from::
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Email Effectiveness – Jan 09
Sent ~ 750K Email to 250K+
Opens as High as 36%
Clicks as High as 12%
Over 15K Clicked and Made a
Payment Online
Over $25M in Payments
Over $500k in Fee Revenue
Q & A
Resources
• White Paper– Beyond Opens & Clicks
• Resource Center– White papers
– Webinars
– Blogs
– Case studies
– Newsletters
– http://www.silverpop.com/marketing-resources/index.html
Next Webinar
• August 20
– 2 pm EST/11 am PST
• Findings from Silverpop’s Study of Top Retailers’ Email Marketing Practices
• Speakers TBD
• Registration information coming soon
Contacts
• Will Stacy IV
• Loren McDonald
– Twitter: @LorenMcDonald
www.silverpop.com
Twitter: @Silverpop
www.slideshare.net/silverpop
