Email Marketing Benchmarks: New 2007 Research on Effective Email Marketing Tactics Tuesday, February 27, 2007 Anne Holland, President MarketingSherpa, Inc. Research Drawn From: Stefan Tornquist, Research Director MarketingSherpa, Inc. © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 1 Facts not opinion: MarketingSherpa Methodology Data for our reports, case studies and newsletters is gathered from the following research sources: 1. 2. 3. 4. Survey of Email Marketers – 3,637 in November 2006 Lab tests and partnered research “Best of” research from dozens of expert sources including research firms, usability labs, elite vendors, etc. In-depth interviews for case studies – 600+ Research Drawn From: © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 2 First the good news… 50% B-to-C © 2006 MarketingSherpa Inc. B-to-B 40% 42.4% 40.0% 35.6% 30% 29.1% 20% 18.2% 13.6% 10% 10.9% 1.9% 6.8% 1.7% 0% Research Drawn From: The impact of email is declining significantly. The impact of email is slowly declining. The impact of email isn't noticeably changing. The impact of email is increasing slowly. The impact of email is increasing significantly. © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 3 #1. Growing Your List Monthly list growth Monthly list attrition Annual list growth 40% 37% 30% 25% 20% 22% 10% 6.0% 5.3% 3.9% 0% Research Drawn From: -10% -2.1% -2.90% -3.2% B-to-B B-to-C Large lists © 2006 MarketingSherpa Inc. © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 4 Test Registration/Opt-In Forms Research Drawn From: Source: Optimost for MarketingSherpa, November 2006 © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 5 #2. Tests That Work Best High ROI Landing page copy Medium ROI 43.2% A/B testing - email offers 40.7% Subject line tests 40.0% A/B testing - email creative 34.4% Landing page creative (images, formatting) 33.6% Low ROI 32.4% 24.3% 51.9% 7.4% 45.0% 15.0% 59.4% 6% 54.3% 12.1% Research Drawn From: Text only messages 13.8% 0% © 2006 MarketingSherpa Inc. 44.8% 20% 40% 41.4% 60% 80% 100% © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 6 #2. Landing Page Test Example Research Drawn From: © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 7 #3: Improving Delivery Research Drawn From: Adelphia Reputation 44% Content 56% CompuServe Reputation 100% Content 0% Mail.com Reputation 100% Content 0% USA.net Reputation 78% Content 22% AOL Reputation 100% Content 0% Cox Reputation 50% Content 50% MSN Reputation 32% Content 68% Verizon Reputation 86% Content 14% ATT Reputation 90% Content 10% Earthlink Reputation 77% Content 23% Netscape Reputation 88% Content 12% Yahoo! Reputation 80% Content 20% Bell South Reputation 97% Content 3% Gmail Reputation 100% Content 0% NetZero Reputation 90% Content 10% Cablevision Reputation 79% Content 21% Hotmail Reputation 40% Content 60% RoadRunner Reputation 100% Content 0% Comcast Reputation 85% Content 15% Mac.com Reputation 83% Content 17% SBC Reputation 79% Content 21% Source: ReturnPath, Sender Reputation Causes Email Delivery Issues 83% of the Time, September 2006 © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 8 The B-to-B Delivery Challenge © 2006 MarketingSherpa Inc. Commercial filtering applications or appliances 61% 80% Client-side filtering applications (Norton, McAfee, etc.) 27% 58% Private blacklists maintained by your organization alone 37% 41% Public blacklists maintained by people outside your organization 34% 35% Open source filtering applications (SpamAssasin, etc.) 10% 14% Research Drawn From: 2004 (ReturnPath) 9% None 2006 0% 0% 15% 30% 45% 60% 75% 90% Source: MarketingSherpa and KnowledgeStorm, Behind the Firewall: B-to-B Email, November 2006 and ReturnPath, Corporate Spam Filter Monitor Industry Study, July 2004. © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 9 Email Reputation Management & Affiliate Marketing Compliance Failures by Category Total Failures CAN SPAM Failure Rate From Line Accuracy 574 57.40% No Postal Address Provided 229 22.90% Bad Unsubscribe Option 158 15.80% Subject Line Relevancy 80 8.00% Sent through Open Relay 1 0.10% Sent to Harvested Email 0 0.00% Sent to Forged Email Headers 3 0.30% Research Drawn From: Source: Lashback Inc. for MarketingSherpa, November 2006 © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 10 #4. Improving Design Research Drawn From: © 2006 MarketingSherpa Inc. Source: MarketingSherpa and Eyetools, November 2006 © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 11 Are Consumers Viewing Images? 60% % with images blocked by default 50% 48% 40% 37% 36% 30% 20% 10% Research Drawn From: 0% 18-34 35-54 55 and over © 2007 Marketingsherpa Inc. Source: MarketingSherpa with SurveySampling International, January 2007 © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 12 #5. Is Mobile Marketing in Your Near Future? We don't see mobile applying to us in the near future. 51.8% We're following mobile marketing, but won't be allocating resources in 2007. We've allocated resources to test mobile marketing in 2007. For the first time, we've allocated budget for mobile marketing campaigns in 2007. 29.4% 7.6% 1.9% We've already spent money on mobile, but 0.3% won't be allocating budget on it for 2007. Research Drawn From: We've already spent money on mobile, and will be doing so again in 2007. © 2006 MarketingSherpa Inc. 4.3% 0% 15% 30% 45% © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 60% 13 #5. Deep Fried Mobile Goodness Research Drawn From: © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 14 How to get your own copy: Our research team welcomes feedback and/or questions. feedback@Marketing Sherpa.com Research Drawn From: MarketingSherpa, Inc. 499 Main Street Warren, RI 02885 (877) 895-1717 Outside the U.S.(401) 247-7655 233 charts & eight Eyetracking heatmaps All new results data from 3,637 reallife marketers' campaigns For more information or to order call 877.895.1717 or http://2007EmailBenchmarks.MarketingSherpa.com http://www.MarketingSherpa.com © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 15 Meet us in Miami March 4-6th! 650 email marketers 25+ advanced Case Studies 4 Interactive Labs on measurement, design, list growth & triggered email Bootcamp training day Delivery clinic Networking parties, meals & lounge Research Drawn From: Call (877) 895-1717 or http://2007EmailMktgSummit.MarketingSherpa.com © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 16 eMail & Web Analytics Integration: Optimizing Results Click to edit Master title style “Plug & Play” Online Marketing Research Drawn From: Click to edit Master subtitle style Mikel Chertudi Sr. Director Online Marketing Omniture © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 17 Need for eMail & Web Analytics Integration “… the ability to track the responder’s behavior not only to the landing page of a … but also from there through the Web site to ultimate sale, hesitation, or outright cart abandonment. This tracking is critical to testing modifications in the construction and targeting of the email that might improve results.” IDC Research Drawn From: Worldwide Web Analytics Software Applications 2006 - 2010 Forecast and Analysis: 2005 Shares and Current Out look in the Year of Integration June, 2006 © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 18 Non-Integrated eMail Metrics Integrated eMail & Web Analytics Metrics Research Drawn From: © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 19 Illuminations Case Study Challenges: Limited ability to target email remarketing efforts based on site visitor behavior Difficulty in identifying the impact of cart abandonment on revenue Separate interfaces required to generate comprehensive reports regarding marketing initiatives Solution: Integrated Responsys Interact® with Omniture SiteCatalyst Results: Track response activity from email click-through to Web site conversion, at both the campaign and individual levels Drawn Unprecedented optimization of email marketing performance and Web Research From: site conversion rates Actionable information in a single, accessible location, enabling the company to drive additional revenue immediately © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 20 eMail – Web Analytics Integration Benefits Marketers are now enabled to optimize e-mail remarketing based on qualitative site behavior segments beyond the traditional open, click, and conversion quantities to those who: only visited the site, but didn’t take further action viewed specific pages (i.e. product/service info) abandoned the shopping cart (with which products) or lead form purchased with varying dollar values and product quantities or provided varying degrees of lead information Research Drawn From: © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 21 Q&A Contact Info: Mikel Chertudi Sr. Director Demand & Online Marketing mchertudi@omniture.com Research Drawn From: © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 22