Measuring Email Marketing

Effectiveness:

The Statistics that Really Matter

Vacation Rental Managers AssociationVacation Rental Managers Association

October 2013October 2013

Robert Gray, Visual Data SystemsRobert Gray, Visual Data Systems

Web Design, Online Marketing & Web Design, Online Marketing & Reservation System Integration Reservation System Integration

for the Vacation Rental and for the Vacation Rental and Related Industries for Twenty Related Industries for Twenty

Years.Years.

Visual Data SystemsVisual Data Systems

2012 Email Statistics2012 Email Statistics

• 4,959,000 Emails Sent4,959,000 Emails Sent• $24,350,862 = Client Online Revenue $24,350,862 = Client Online Revenue from Emailfrom Email• $165.92 Average ROI$165.92 Average ROI• Consultation, Strategy, Design, Delivery Consultation, Strategy, Design, Delivery and Analysisand Analysis

• Why?Why? • The Really Important Statistic - ROIThe Really Important Statistic - ROI• Basic Email Marketing StatisticsBasic Email Marketing Statistics• Advanced StatisticsAdvanced Statistics• Random Stats on EmailRandom Stats on Email• Get The Stats You NeedGet The Stats You Need• QuestionsQuestions

Why?Why?

• BETTER Communications with Clients & BETTER Communications with Clients & ProspectsProspects• BRAND AwarenessBRAND Awareness• ADVERTISE Specials/DiscountsADVERTISE Specials/Discounts• Spur the Consumer to ACTIONSpur the Consumer to ACTION• Build LOYALTY through Specific Build LOYALTY through Specific MessagingMessaging

$To Make Money$$To Make Money$

ROI:ROI:RETURN on INVESTMENTRETURN on INVESTMENT

Are You Making Money?Are You Making Money?

Counting RevenueCounting Revenue

1. What Revenue are you 1. What Revenue are you attributing to an email attributing to an email campaign?campaign?2. What time range will 2. What time range will you use?you use?3. Generally you will 3. Generally you will count less $ than you count less $ than you should.should.

Basic ROIBasic ROI

$ Revenue/$ Expense = ROI$ Revenue/$ Expense = ROI

$50 - $200$50 - $200Based on List SizeBased on List Size

Average Cost of RentalAverage Cost of RentalOther FactorsOther Factors

33% Of Emailers Track33% Of Emailers Track

Vacation Rental Basic ROIVacation Rental Basic ROI

($ Revenue x Commission %) /($ Revenue x Commission %) /$ Expense = VR ROI$ Expense = VR ROI

$10 - $50$10 - $50Commission Rate VariesCommission Rate Varies

Vacation Rental Advanced ROIVacation Rental Advanced ROI

($ Revenue x Commission %) + Extras($ Revenue x Commission %) + Extras / $ Expense/ $ Expense

= ADV VR ROI = ADV VR ROI

List SizeList Size

• Not truly a StatisticNot truly a Statistic• Size does affect other Size does affect other metricsmetrics• Smaller List = Generally Smaller List = Generally More EngagedMore Engaged• Larger List = Less Larger List = Less PassionatePassionate

List GrowthList Growth

• Understand GrowthUnderstand Growth• Organic v. PurchasedOrganic v. Purchased• Per Day, Month, YearPer Day, Month, Year• Where It Comes FromWhere It Comes From

Open RateOpen Rate

Open RateOpen Rate

•Most Basic of Email StatisticsMost Basic of Email Statistics•Emails Opened/Emails SentEmails Opened/Emails Sent•Beacon Image Counts OpensBeacon Image Counts Opens•Subject Line Highest Determining FactorSubject Line Highest Determining Factor

•A/B TestingA/B Testing•Can Tell You Best Day/TimeCan Tell You Best Day/Time

Open RateOpen Rate

•Compare SegmentsCompare Segments•Negatives:Negatives:

•Text Based Email Clients Text Based Email Clients Are Not CountedAre Not Counted•Some Email Clients Count Some Email Clients Count Scans as OpenScans as Open

•Benchmark = 27.7%Benchmark = 27.7%•90% Track This Statistic90% Track This Statistic

Open RateOpen Rate

Click Through Rate (CTR)Click Through Rate (CTR)

Click Through Rate (CTR)Click Through Rate (CTR)

• Direct Response Direct Response • Calls to ActionCalls to Action• CTR = Total Clicks / Emails SentCTR = Total Clicks / Emails Sent• Object is to GET THEM TO YOUR Object is to GET THEM TO YOUR WEBSITEWEBSITE

Click Through Rate (CTR)Click Through Rate (CTR)

• Measure each Call To ActionMeasure each Call To Action• A/B Testing & Heat MapsA/B Testing & Heat Maps• Benchmark = 2.8%Benchmark = 2.8%• 92% Track This92% Track This• See Also: Clicks Per LinkSee Also: Clicks Per Link

Bounce RateBounce Rate

Bounce RateBounce Rate

• # Non Deliverable Emails / Total Sent# Non Deliverable Emails / Total Sent• Soft Bounce: Inbox Full, Email Too Large, Soft Bounce: Inbox Full, Email Too Large, Server BusyServer Busy• Hard Bounce: Permanently UndeliverableHard Bounce: Permanently Undeliverable• 5 Soft Bounces with No Actions Becomes 5 Soft Bounces with No Actions Becomes Hard BounceHard Bounce• Benchmark: S = 0.7% / H = 0.6%Benchmark: S = 0.7% / H = 0.6%

Opt OutsOpt Outs

Opt OutsOpt Outs

• # Opt Outs / Total Sent# Opt Outs / Total Sent• People who CHOOSE Not to Receive your People who CHOOSE Not to Receive your emails anymoreemails anymore• No longer interestedNo longer interested• Purchased somewhere elsePurchased somewhere else• Not what they expectedNot what they expected• Messaging wrongMessaging wrong• Delete these People Delete these People •Benchmark: 0.2%Benchmark: 0.2%

Complaint Rate (SPAM)Complaint Rate (SPAM)

Complaint Rate (SPAM)Complaint Rate (SPAM)

• # Complaints / Total Sent# Complaints / Total Sent• People who hit the SPAM/JUNK ButtonPeople who hit the SPAM/JUNK Button• Can harm your future deliverability rateCan harm your future deliverability rate• Benchmark: 0.05%Benchmark: 0.05%• Why?Why?• DonDon’’t Remember / Didnt Remember / Didn’’t Subscribet Subscribe• Over Emailing / Under EmailingOver Emailing / Under Emailing• DidnDidn’’t Recognize Sendert Recognize Sender

Bonus Slide - Avoid Spam TrapsBonus Slide - Avoid Spam Traps

•Spam-like words: Free, guarantee, credit card, sex etc.•Red text : No RED Text•ALL CAPITAL LETTER•Incomplete information: reply email address, physical address, web site URL, Phone # •Excessive punctuation !!!, ???, $$$•Excessive use of "click here" especially in all capital letters •No "From:" address •Misleading (or missing) subject line: Always match your subject line to your email content and never employ spam tactics like leaving the subject line blank or using Re: so that the recipient thinks it is a reply to a previous email.

AdvancedAdvanced

• Read Rate: Read Rate: •% of Emails that get marked as % of Emails that get marked as ‘‘readread’’ in in an email clientan email client• Each email client does this differentlyEach email client does this differently• BACN: Email you want but not nowBACN: Email you want but not now• Revenue Per Email Sent (33% Track)Revenue Per Email Sent (33% Track)• Social Share Percentage (18% Track)Social Share Percentage (18% Track)

Random FactsRandom Facts

•21% of email recipients report email as Spam, even if they know it isn’t

•43% of email recipients click the Spam button based on the email “from” name or email address

•69% of email recipients report email as Spam based solely on the subject line

•35% of email recipients open email based on the subject line alone

•17% of Americans create a new email address every 6 months 

Random FactsRandom Facts

•30% of subscribers change email addresses annually

•If marketers optimized their emails for image blocking, ROI would increase 9+%

•84% of people 18-34 use an email preview pane

•People who buy products marketed through email spend 138% more than people that do not receive email offers

•44% of email recipients made at least one purchase last year based on a promotional email

•35% of business professionals check email on a mobile device 

How Do I Get These Stats / RecapHow Do I Get These Stats / Recap

•  Your Email Provider Should Provide At Least the Most Basic of Statistics and Should HELP you analyze & strategize

• Revenue Attributed to Email is Hardest to Quantify

Robert GrayRobert GrayRobertG@VDSYS.com410-964-8665 ex 264410-964-8665 ex 264