Finding the proverbial “pot-o’-gold” at the end of the rainbow in your email marketing metrics can be harder than finding the real thing. Trying to connect the dots and find insight within your data is difficult, especially when you aren’t certain how to analyse your data.Batch and blast email marketing isn’t targeted enough but, focusing on individual campaign metrics is too narrow. Observe a wider set of metrics to figure out what is really happening with your programs and leverage your data to segment and target more effectively. Here are four types of analysis to help you get to the end of your email marketing rainbow.
What You Should Be Measuring:
1. Campaign Trends
Single data points are an indicator but you need to take a longitudinal view. Graph your metrics over time and compare these to industry benchmarks. Look for a trend line and ask yourself what is happening and why. Recognize that averages can be deceiving. Email is a highly sensitive medium and there can be significant variances between sectors.
Did You Know? The top quartile of marketers typically generate 2x to 3x the results of the bottom quartile. Email leaders (top quartile) have a much tighter variance in results and their campaigns perform more consistently.
2. Activity & Behaviour
It is important to know who in your subscriber base is active. Is your 6% Click-through Rate (CTR) from the same people each time? You may be surprised to learn that up to 40%-50% of your email list may be inactive (have not opened or clicked over the last 6 months). Each year between 17%-40% of your active base turns from active to inactive.
You should closely examine the engagement level of your different subscriber segments. Drill into key differences in their profiles and track their migration to other segments. There can be a lot of movement between segments and it’s critical to have a good understanding of your top 20%. You can look at your subscriber behavior in four different ways; Clickstream, Loyalty, Social, and Shopping Activity.
3. Quantify Dollar Value
MarketingSherpa states that email has a Return on Investment (ROI) of 40:1! While measuring the bottom line attribution of email programs can be challenging, an easier way of measuring the financial impact of email marketing is to quantify the dollar value of an email address.
Using transactional data and control groups, Inbox Marketer has proven that opted-in customers generate 8-30% more profits than offline customers. One of our loyalty clients tracked their email opt-ins and the email recipients had a significant lift in shopping frequency which, generated almost $30 of incremental operating margin per email address over a 12 month period. On an annual basis, the email program generated $50 of margin for every $1 invested in email. Armed with the value of an email address, the client made the business case to grow their list and as a result, they tripled the number of opt-ins in 2 years.
4. Impact on Customer Retention
The holy grail of marketing measurement is retention because retention is the most powerful lever. In certain industry sectors a 5% increase in retention can generate a 30-70% increase in profits! One of our clients proved that their email programs have generated a 2-4% retention lift.
The Pot-O’-Gold at the End of the Rainbow
Simple measurement and reporting is okay for a topline assessment of an email program. However, eLeaders have a broader and more detailed scorecard to dig deeper into insights and generate better ROI.
Looking to take your email program to the next level? Download our latest Email Marketing Benchmark Report today and get the latest in email metric trends and benchmarks.