The State of Email

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#DMNWEBCAST

DAVID DANIELS, CEO/CO-FOUNDER JOSE SANTA ANA THE RELEVANCY GROUP MESSAGE SYSTEMS

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David Daniels – CEO & Co-founder, The Relevancy Group

Publisher, President, FounderThe Marketer Quarterly

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AGENDA #DMNWEBCAST

- Marketer aspirations and challenges

- Data utilization and integration

- Utilizing lifecycle triggered mailings

- Driving revenue through automation

- Considerations to select vendors

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MOBILE EMAIL ADOPTION IS MAINSTREAM ACROSS NEARLY EVERY AGE GROUP

13 to 18 19 to 26 27 to 32 33 to 38 39 to 45 46 to 53 54 to 60 61 to 70 71 to 80 81 or older

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

73%81%

90% 93%84%

73% 69%59%

42%

21%

27%19%

10% 7%16%

27% 31%41%

58%

79%

Mobile Email Adoption by Age - 2014

Yes NoQuestion Asked: Do you currently access one or more of your personal email accounts on a mobile device such as a cell phone, smart phone? (select one) Source: The Relevancy Group, LLC 2014 Consumer Survey n=1,011 3/14, US Only

Copyright © 2014 The Relevancy Group, LLC. All Rights Reserved.

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MARKETERS MUST FOCUS ON FREQUENCY, RELEVANCY & RENDERING TO WIN ON MOBILE

None of the above

It is redundant to what the brand has already pushed me through the application that I have on my phone

I have their App, they should message me this way

Message is jumbled and not well formatted on my mobile phone

When I click through it is too hard to see their full web-site on my mobile phone

Too small to read and interact with

They are not relevant to me

Sent too often, I get too many of them

0% 10% 20% 30% 40% 50%

18%

9%

9%

21%

26%

32%

37%

44%

Inhibitors to Email Marketing on Mobile Phones

Question Asked: What don’t you like about getting email marketing messages on your mobile phone? (select all) Source: The Relevancy Group, LLC 2014 Consumer Survey n=1011 3/14, US Only


FOR MANY THEIR MOBILE PHONE IS A CRUCIAL APPENDAGE TO NAVIGATE DAILY LIFE

It is primary email messaging application

Conduct online banking

I have purchased Apps

Turn on location based services

Downloaded Apps that provide specific functions

When I wake up, check the weather & news

Use it as my primary alarm clock

When I wake up, check my email, social & texts

I can't be without my mobile phone

Communicate on social networks

Play games on this device

Daily check email, social and texts

Take pictures and videos

0% 10% 20% 30% 40% 50% 60% 70%

24%

25%

31%

32%

32%

34%

37%

42%

42%

43%

45%

52%

66%

Top 13 Mobile Phone Behaviors - 2014

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Question Asked: Thinking of your mobile phone, please select all of the responses that best describe your attitudes and utilization of your mobile phone? (select all) Source: The Relevancy Group, LLC 2014 Consumer Survey n=960, those with a mobile phone 3/14, (selected top 13) US Only


None Less than 1%

1% to 5%

5.1% to 10%

10.1% to 15%

15.1 to 20%

20.1% to 25%

25.1% to 30%

30.1% to 35%

35.1% to 40%

40% or greater

Not sure

0%

5%

10%

15%

20%

25%

1%

7%

21%

16%15%

10% 10%

5%3% 2%

3%5%

Percentage of Overall Revenue Attributed to Email Marketing - 2014

Question Asked: What percentage of your overall revenue is attributed to your email marketing initiatives?Source: The Relevancy Group, LLC/Executive Marketer Survey n=374 11/13, US Only, Mid-Market & Enterprise Respondents


EMAIL MARKETING CONTINUES TO BE THE WORK HORSE OF THE DIGITAL ECONOMY

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THE MARKETING ORGANIZATION REMAINS SILOED DRIVING INTEGRATION AND MEASUREMENT CHALLENGES

My compensation and incentives are tied only to the marketing per-formance of the channels that I am responsible for

We practice marketing response attribution to ensure that offline response is attributed back to the appropriate marketing channel

Each marketing channel operates independently with no central or common collaboration

Our marketing department is rewarded with common personal incen-tives

Our marketing programs are tightly coordinated across all marketing channels

There is central ownership of our marketing programs across all marketing channels

We manage customer contact frequency to ensure customers get a limited set of messages across all marketing channels

Our marketing department shares common goals

0% 10% 20% 30% 40% 50%

14%

17%

17%

18%

24%

32%

32%

44%

Marketing Department Organizational Structure

Overall

Question Asked: From the following list, please select the statement or statements that best represent how your marketing organization operates?Source: The Relevancy Group, LLC/Executive Marketer Survey n=374 11/13, US Only, Mid-Market & Enterprise Respondents Copyright © 2014 The Relevancy Group, LLC. All Rights

Reserved.

Coordinating marketing across departments and corporate brands

Coordinating campaigns across channels

Having adequate IT support for marketing applications

Managing our marketing offers across multiple campaigns

List turnover

Creative content development

Managing the frequency of messages across all marketing channels

Lack of budget to appropriately fund our program

Having adequate staffing resources to manage our programs

Analyzing campaign results

0% 5% 10% 15% 20% 25% 30%

19%

19%

20%

20%

21%

21%

21%

22%

24%

26%

Top 10 Challenges When Developing Email Campaigns

Question Asked: What are your greatest challenges when developing email marketing campaigns?Source: The Relevancy Group, LLC/Executive Marketer Survey n=374 11/13, US Only, Mid-Market & Enterprise Respondents


Cross-Company Coordination, Analysis and Integration Top Marketer Challenges

Question Asked: Which of the following customer data attributes has your company used to segment audiences for email marketing campaigns within the last six months?Source: The Relevancy Group, LLC/Executive Marketer Survey n=374 11/13, US Only, Mid-Market & Enterprise Respondents


Customer profitability

Open rate on previous email marketing offers

Frequency of purchase regardless of channel, conversion rate

Transaction activity/Purchase behavior

Frequency of customer service contacts

Customer spending

Click-throughs on previous email marketing offers

Customer satisfaction survey data

Geographic data

Demographic data

0% 10% 20% 30% 40% 50% 60%

22%

22%

22%

28%

29%

26%

28%

39%

43%

44%

26%

31%

31%

32%

33%

36%

40%

45%

51%

51%

Marketers are Missing Segmentation Opportunities

Data Attributes Used For Segmentation

Enterprise Mid Market

None of the above

We have robust data hygiene and de-duplication processes for data management

We practice data house holding to understand multiple customer/accounts within a single household

We use multiple channel specific databases to store our customer data

We utilize predictive customer analytics

We track acquisition costs by channel

We store our client data in the same schema for all marketing channels

We measure lifetime customer value

We centralize customer data from across channels to recognize the customer in a single record

We know the value of our email subscribers/value of an email address

We use email address as a unique customer identifier

We have a centralized data repository for our client data

0% 10% 20% 30% 40%

5%

16%

17%

20%

20%

23%

27%

28%

29%

30%

36%

38%

Email Marketer Customer Data Man-agement

Question Asked: Please select the statement or statements that best describe how you manage your customer data?Source: The Relevancy Group, LLC/Executive Marketer Survey n=374 11/13, US Only, Mid-Market & Enterprise Respondents


Majority of Marketers Are Challenged By Data Centralization

None of the above

We utilize an SMS short code for mobile opt-in

We measure lift vs. control

We utilize triggered, multi-wave, lifecycle marketing across multiple channels

We conduct multi-variant testing

We use paid search to grow our marketing database

We have launched a mobile application for our clients (e.g. iPhone, iPad, Android, etc.)

We target our customers utilizing life-stage marketing tactics

We conduct A/B testing for email marketing

We have begun utilizing QR (Quick Response) codes

We utilize dynamic content

We use video in email campaigns

We target our customers based on web-site behavior

We place offers or ad content in transactional email marketing messages

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%11%

10%

11%

17%

18%

23%

18%

21%

23%

21%

21%

27%

25%

29%

8%

19%

20%

18%

22%

25%

33%

31%

28%

32%

36%

31%

35%

38%

Email Marketing Tactics

Enterprise Mid MarketQuestion Asked: Please select the statement or statements that best describe the email marketing tactics that you regularly utilize?Selected Response = Currently UtilizeSource: The Relevancy Group, LLC/Executive Marketer Survey n=374 1/13, US Only, Mid-Market & Enterprise Respondents


Application Challenges Prevent Marketers From Embracing Proven Tactics

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MARKETERS ASPIRE TO INCREASE THE RELEVANCY OF THEIR MAILINGS THROUGH MULTIPLE TACTICS

Centralizing our marketing applications into one suite

Integrating into social channels

Improving response attribution

Improve integration to other systems

Centralizing customer data, make it actionable

Hire more staff

Increase relevancy with dynamic content

Utilize real-time data

Optimizing thru greater use of analytics

Improving segmentation and targeting

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

22%

24%

26%

27%

28%

28%

29%

36%

39%

39%

Top Priorities for Enterprise Marketers

EnterpriseQuestion Asked: Which of the following customer data attributes has your company used to segment audiences for email marketing campaigns within the last six months?Source: The Relevancy Group, LLC/Executive Marketer Survey n=374 11/13, US Only, Enterprise Respondents (Top Ten Shown)

Subscriber is dormant, shows no behavior after a certain period of time

Post purchase offer

Customer contact at offline locations, store, call center, etc.

Messages based on rules related to customer value

Customer changes or updates preference center

Welcome message (triggered after subscriber opts-in)

0% 10% 20% 30% 40% 50% 60%15%

16%

16%

16%

21%

25%

29%

28%

32%

31%

49%

23%

23%

30%

31%

30%

32%

32%

37%

33%

46%

56%

Email Marketer Trigger Campaign Uti-lization

Enterprise Mid Market

Question Asked: From the following list please select which types of automated trigger campaigns that you currently utilize.Source: The Relevancy Group, LLC/Executive Marketer Survey n=374, 11/13, US Only, Mid-Market & Enterprise Respondents


Increased Use of Automation Will Drive Revenue

RESOURCE CONSTRAINED MARKETING DEPARTMENTS NEED TO BETTER UTILIZE AUTOMATED MESSAGING

Less than 10%

11% to 20% 21% to 30% 31% to 40% 41% to 50% 51% to 60% More than 60%

0%

5%

10%

15%

20%

25%

30%

35%

31%

25%

21%

10%

5% 4%3%

Percentage of Automated/Triggered Messages

Question Asked: What percentage of the messages that you send are automated, as in triggered messages based upon customer behavior?Source: The Relevancy Group, LLC/Executive Marketer Survey n=374 11/13, US Only, Mid-Market & Enterprise Respondents Copyright © 2014 The Relevancy Group, LLC. All Rights

Reserved.

Question Asked: What technology do you currently use to manage your email marketing?Source: The Relevancy Group, LLC/Executive Marketer Survey n=374 11/13, US Only, Mid-Market & Enterprise Respondents


Multiple SaaS/Hosted Email Service Providers (ESP)

Vendors packaged solution deployed on premise

Outsourced to a SaaS/Cloud Email Service Provider (ESP)

Combination of SaaS/Cloud ESP and on premise solutions

Email marketing solution that we built in-house

0% 10% 20% 30% 40%

11%

26%

28%

30%

31%

Email Marketing Technology Deployed By Marketers

Marketers Are Primed For A Solution From A Single Vendor

WHAT SHOULD DRIVE VENDOR SELECTION?

•YOUR REQUIREMENTS AND YOUR ROADMAP

•DATA INTEGRATION, INTEGRATION TO KEY SYSTEMS

•UNDERSTANDING YOUR STAFFING NEEDS, MANY DO NOT UTILIZE SERVICES

•ABILITY TO MEET AND EXCEED SPECIFIC “DAY IN THE LIFE” REAL WORLD USE CASES


ON AVERAGE, ON-PREMISE MARKETERS DRIVE 30% HIGHER MONTHLY REVENUE THAN OUT-SOURCED SENDERS

Out-Sourced On-Premise$0

$100$200$300$400$500$600$700

$504$605

45%62%

Average Monthly Revenue and Deliver-ability – Outsourced vs. On-Premise

Marketers

DeliveryRevenue

Question Asked: For each of the following email metrics, please select what your average metric is for these performance measures (Delivery, Open, Click, Conversion, Average Order Value), Applied average monthly send size, 8.3mm/mo. Source: The Relevancy Group Executive Survey, n=418 9/12, United States Only


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SUMMARY

• Understand and address the mobile adoption and utilization of your audience and adapt your messaging to that

• Determine the value of your email address, organize and incentivize the marketing department around common goals

• Centralize data and look to solutions that allow ease of integration of multiple data sources

• Leverage automation and triggers to improve efficiencies and effectiveness

• Test utilizing customer data to improve the relevancy and performance of your mailings

• Detail requirements, particularly data integration when selecting a partner vendor.

Momentum and the Challenges of Today’s Email Marketing

Jose Santa Ana, Director of Product MarketingMay 29, 2014

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Message Systems: The Leader in Messaging

20%

Sampling of Key Clients

Social Networking

Daily Deals

TelcoFinancial Services

Consumer Technology

Travel and Hospitality

Publishing and Media

Hosting and SaaS

Email / Marketing Services Providers

The Momentum Digital Messaging Solution

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Easily Access Back-End Enterprise Systems

Momentum Bridge• Full library of APIs

• Event-triggered, timely messages

• Dynamic and personalized

• Mobile-enable business processes

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Flexible, Intelligent Messaging

Momentum Platform• Fastest, most scalable messaging

server

• High-Performance Message Generation

• Policy Manager, Intelligent Routing

• Cross-Channel Conversations

• Customer Preference Management

• Adaptive Delivery

• Support for Business Rules

• High Availability Clustering

• Carrier Grade Security

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Engage Them Whenever, Wherever They are

Momentum Mobile• Single or cross-channel messaging

• Channel translations

• Individualized or broadcast messages

• Two-way messaging

• Device and token management

• Push for iOS, Android, Windows

• Partnership with mBlox for SMS

Momentum Analytics

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Messaging Data

CustomerData Warehouse

Real Time Reporting

User-Friendly Interface

Easy Integration

Big Data

Performance

In Summary

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Momentum addresses the challenges of analysis, coordination and integration – for maximum customer engagement

Thank you!

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• @messagesystems

• #DMNWEBCAST

Follow us on Linkedin:

• Message Systems

Visit Us

• www.messagesystems.com

Contact Us

• [email protected]

http://www.messagesystems.com/

mailto:[email protected]

Thank You

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The Relevancy Group877.972.6886 | www.relevancygroup.com On Twitter @relevancygroup

David Daniels – CEO & Co-Founder [email protected] Twitter @emaildaniels

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The State of Email

Marketing

Transcript of The State of Email