Metrics Panel Final

Beyond Open Rates: Using Metricsto Drive Performance Improvement : 

Beyond Open Rates: Using Metrics to Drive Performance Improvement

Slide2: 

'People commonly use statistics like a drunk uses a lamp post; For support rather than illumination.' Mark Twain

Your Guides to Metrics Illumination: 

Your Guides to Metrics Illumination Doug Williams Director, eCommerce Sierra Trading Post Cliff Seltzer CEO PureSend Dela Quist Founder andamp; CEO Alchemy Worx Loren McDonald CMO J.L. Halsey (EmailLabs, Lyris, Sparklist, EmailAdvisor, ClickTracks, Hot Banana)

There’s More to Life, Than Open Rates (lamp post): 

There’s More to Life, Than Open Rates (lamp post) Open Rates …and your CEO doesn’t care

Stepping Back - Email Metrics: How We Use Them: 

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?

“OCBUS” - The Basic Foundation: 

'OCBUS' - The Basic Foundation Open rates Click-through rates Bounce rates Unsubscribe rates Spam complaints Why do we focus on the basics……? 'OCBUS' – Free inside every email software solution!

…But Look a Bit Deeper, or Risk Being Fooled: 

…But Look a Bit Deeper, or Risk Being Fooled Keen insight is NOT obvious Metrics can be misleading Your base is constantly changing Understand root drivers Focus on your goals - industry benchmarks are just a guide

Differentiate Process from Output Metrics: 

Differentiate Process from Output Metrics Open rates Bounces Delivered Click-through rates Revenue Orders Demos/Downloads Lifecycle steps Process Output Think differently about metrics

Corporate Balanced Scorecard: 

Corporate Balanced Scorecard

Balanced Email Marketing Scorecard (BEMS): 

Engagement/ Relationship Campaigns/ Time BEMS Balanced Email Marketing Scorecard (BEMS) Conversion Activity Financial/ ROI Message Level List Growth/ Health Deliverability

For Example, What’s the Total Impact of Frequency: 

For Example, What’s the Total Impact of Frequency 5 times per month 12 times per month Revenue – Churn – Reputation….

Retailer – Increased Frequency: 

Retailer – Increased Frequency Unsubscribes and spam complaints went through the roof

Financial Impact of Increased Mailings: 

Financial Impact of Increased Mailings

Metrics Can Make You Fly!: 

Metrics Can Make You Fly! List opt-in conversion rate (audience poll) List churn and hurdle rates Link share of email (link concentration) Click Activity Rate (avg clicks per subscriber) Initial subscriber engagement drop-off rate Subscriber activity/Active Subscriber Rate To more metrics and beyond….. The most interesting metrics may not be standard email software reports…and require some additional effort….

Slide15: 

Doug Williams Director, eCommerce Sierra Trading Post

Our Beloved KPIs: 

Our Beloved KPIs Total revenue (of course!) $/email (value of promotion andamp; segment) Email margins (profitability of promotions) Top clicked links (value of email content)

Our Beloved KPIs (con’t): 

Our Beloved KPIs (con’t) 0-6 mos list growth (effectiveness of opt in website messaging, subscription process and/or list generation ad campaigns) 0-6 mos unsub rate (new subscriber engagement) Deliverability (potential ISP and/or DNS problems) Monetary value of the email database (working on this one)

The “Golden Egg” Balancing Act: 

The 'Golden Egg' Balancing Act Revenue 'The CFO wants HOW much money from each email blast??' Incentives vs. brand value proposition (the 'revenue drug addiction') Cadence What frequency can our customers handle? Can best buyers absorb a higher frequency? What about older buyers and inquiries? Relevancy vs. touches (RFM-P) Why don’t we ask them? What frequency can your production team handle? Unsubscribe rate Is there a relationship between frequency and increase in unsub rate? Law of diminishing returns Future incremental revenue vs. immediate gratification (see point 1!)

Dr. Williams’ Ecommerce Metric Maxim: 

Dr. Williams’ Ecommerce Metric Maxim This applies to any ecommerce metric… Data is powerful, but meaningless… unless it is properly analyzed, wisely interpreted, and packaged into a sound decision. Corollary: I am a marketer, not a rocket scientist. Please keep it clear and simple!

Segmentation: A Key to Good Metrics: 

Segmentation: A Key to Good Metrics Product Category Brand

Segmentation Examples: 

Segmentation Examples Lifetime Value (Best Buyers) Catalog Co-Marketing

Slide22: 

Cliff Seltzer CEO and Co-founder

More Data / Less Data: 

More Data / Less Data In the Offline World, Deliverability is a given… GREAT…Less Metrics For You!!! Postage + USPS = Mailbox Delivery

Less Data: 

Less Data After Mailbox Delivery, You are On Your Own So What Happened?? Augh!!! I Need Data

Having More Means Worrying About More: 

Having More Means Worrying About More More Uncertaintity… More Time Pressures More Accurate More Data More Metrics More Cuts More Late Nights Enter Email Marketing This is Good…Be Happy

Cutting Your Data: 

Cutting Your Data This Makes Sense…we can pinpoint Blocks Filtering Rendering Type of Mailbox Deliverability is Often Cut by Receiving Domain But we need to keep going. We must look at Loren’s 'BEMS' andamp; Doug’s 'KPI’s' by Receiving Domain

Cutting By Receiving Domain: 

Cutting By Receiving Domain Gmail, Yahoo, and AOL, etc. offer up different customer bases…maybe we should market by this demographic Create a mail program around the results of your 'Process' Metrics, by Receiving Domain Cut your 'Output' Metrics by Receiving Domain.

Cutting By Receiving Domain: 

Cutting By Receiving Domain Email Marketers are lucky to have both the breath andamp; depth of campaign data Those who leverage such data will clearly succeed Data from 'fictional' campaign - 'May Specials', sent May 5, 2007 Its not always what it seems. Even 'old school metrics' cut differently can shed lots of light

Slide29: 

Dela Quist CEO Alchemy Worx

Interactivity or Click Quotient: 

Interactivity or Click Quotient

Customer based metrics - Reach: 

Customer based metrics - Reach

Customer based metrics - Frequency: 

Customer based metrics - Frequency

Customer based metrics - Recency: 

Customer based metrics - Recency Customer based metrics - Recency

“Get With the Program, Emailers”: 

'Get With the Program, Emailers' Final Words Hone your Excel skills Allocate enough time Focus on your end goals Understand drivers Have fun/Go crazy

Slide35: 

Q andamp; A