Authors

The Email Research Center

Email Marketing Research

Email Marketing Research
The latest email marketing research, stats
and strategy from Morgan Stewart, ExactTarget’s
Director of Research & Strategy

Real Email Threat #3: Lax Permission

Tuesday, November 3, 2009 by Morgan Stewart
The issue of permission presents one of the greatest threats to the future of email marketing. According to data shared by Julie Katz at Connections ’09, consumers want greater control over email. They want control over SPAM, they want to be able to unsubscribe from email more easily, and they want greater control over the frequency of commercial email coming to their inboxes.

Click to Enlarge
 
In both 2008 and 2009 we asked consumers to indicate how acceptable it was for them to be contacted via email for “Promotional messages (i.e., sale, special offers) from companies whom you regularly conduct business, but have not specifically asked for ongoing information.” As we outlined in the 2009 Channel Preference Study, consumers’ attitude toward non-permission communications from known companies is souring quickly. In 2009, 50% of consumers considered these messages with unacceptable, nearly doubled from 26% in 2008. The belief that marketers can send email to their customers based on a ‘prior existing relationship’—the premise for email appends—is dead. Customers don’t want the practice to continue.

Click to Enlarge

Nevertheless, the industry continues to allow embarrassing practices like email appending and list rental. Not surprisingly, the only people that fully endorse these practices are those that profit directly from them. The rest of us squirm and manage to squeak out the words, “It can work, if you do it right.” However, few believe that it ever will be done right on a consistent basis. After all, we've been writing about this for quite a while.

There are three interrelated reasons for this. First, as I mentioned in my first post in this series, email is too easy and too cheap. It’s simply easier to do email appends and list rental incorrectly, using an opt-out model that has no regard for permission. The numbers are more impressive--and let's face it, big lists still sound better than little ones. Second, pricing models are still based on match rates and list sizes. These models favor sending to the masses, which in turn favor the opt-out model. Third, since there are still enough suckers out there who will pay to do it incorrectly, email append and list rental vendors have no incentive to change their revenue model. Given that opt-in revenue models are likely to be less lucrative, it won't change until the issue is forced.

But it may already be too late for email append and list rental companies.

While the industry has failed to police itself, two entities with the ability to make real changes have lined up with consumers. First, ISPs continue to serve the best interests of their customers by increasingly relying on reputation systems that include engagement measures such as opens and clicks to determine if messages should be routed to the spam folder (see What’s in store at the ISPs 2009-2010 from Pivotal Veracity). Second, Canadian Parliament continues to push forward Canadian Electronic Commerce Protection Bill C-27 which mandates an opt-in standard.

Comparatively, US CAN-SPAM laws are notoriously weak, making the joke that US CAN-SPAM laws say, “yes, you can spam consumers so long as they can opt-out.” Unfortunately,  Unfortunately, many companies use this law to condone their continued distribution of non-permission email. In short, the US Law falls short of meeting customer expectations—again more than half of consumers believe non-permission email is unacceptable, even when it's from a known company. This doesn’t support an opt-out standard. I interpret this as, “there is no excuse for sending email without the express consent of consumers. Period.”

Interestingly, in the same comparison of opt-in promotions from 2008 to 2009, there was no change. Consumers believe permission-based email is highly acceptable. In fact, given the choice, 75% of US consumers (see the 2009 Channel Preferences Study) and 74% of UK consumers (see Strategy Meets Customer Expectations) prefer to receive permission based promotional messages through email.

It’s simply that we need to draw a hard and fast line. Opt-in permission should be the only standard by which we live. Not supporting efforts to eliminate questionable practices in our industry reflects poorly on the industry as a whole. After all, as Matt Blumberg, CEO of ReturnPath, recently wrote, “What's good for consumers is great for direct marketers. Marketing is not what it used to be, the lines between good and bad actors have been blurred, and the consumer is now in charge.” Amen!

It's time we completely honor consumers' preference for an opt-in standard. We can no longer afford to lend any support, even passively through silence, those who don't.

Real Email Threat #2: The Specter of “Inbox Clutter”

Monday, November 2, 2009 by Morgan Stewart
There is a lot of talk about the sheer volume of email consumers receive. According to Forrester, 60% of consumers believe they receive too many email offers and promotions (Forrester, December 2008). Thus, it should also be no surprise Forrester also found 64% of consumers say they delete most email advertising without reading it and for them to conclude that consumers find marketing emails a burden.


 
According to MarketingSherpa, 32% of marketers see general inbox clutter as the biggest challenge to their success in email marketing (MarketingSherpa, Email Marketing Benchmark Survey, September 2008). In Customer Knowledge is Marketer Power, Forrester found that 90% of marketers who believe email will be less effective in 2 years believe the reason for this decline is “too much clutter in consumer inboxes,” while 59% believe “SPAM” will drive this decline.

Yes, inbox clutter is impacting the industry-wide success of email marketing. In fact, at the beginning of this year I the following prediction in our 2009 Marketing Almanac: “On average, we expect open rates, click-through rates, and conversion rates will decline in 2009 as subscribers’ inboxes are flooded with bad email from marketers trying to stay afloat.”

The latest DMA figures suggesting that the ROI from email marketing slipped again this year, down 3% from last year to $43,62, support this prediction. However, recently release open rate benchmarks from Epsilon suggest my prediction was wrong. They say open rates have increased slightly in each of the past 4 quarters. From Q2 2008 to Q2 2009 they report an increase from 18.8% to 22.2%. That’s an increase of 18%!

Okay, so the DMA says ROI is down 3% and Epsilon says open rates are up 18% over the past year. At the end of the day, all this suggests is that even if inbox clutter is having a negative impact, it isn’t having much of one on individual marketers.

Consider the following information presented by MarketingSherpa. 31% of consumers indicate that one of the reasons they unsubscribe or disengage from emails is related to inbox clutter. However, this is the third most common reason identified in this survey. The relevance and frequency of YOUR emails are much more important.



Thus, I call this threat the specter of ‘inbox clutter’. It's simply another myth that your emails are being crowded out by junk. Unless you plan on running an average or below average email program, none of this matters for you! If your program delivers value, your program will continue to thrive. The problem is not “out there” as the specter of inbox clutter suggests. More and more, the challenge is to create an above average program.

Real Email Threats #1 – It's Too Easy and Too Cheap

Thursday, October 29, 2009 by Morgan Stewart
Last week I addressed several misperceptions about the future of email and provided a list of recent statistics showing that the future of email looks bright. I also mentioned that there are real threats to the future of email.

I had the honor of moderating a panel at Connections titled “Research Survey Says!” On the panel were three of the smartest folks one could have the pleasure of working with: Julie Katz from Forrester, Rebecca Lieb from eConsultancy, and Stefan Tornquist from MarketingSherpa. With the assignment of presenting “relevant research” and a stacked deck of panelists, my job was simply not to mess it up. My strategy? Leave the topic really loose. I asked two simply questions, “What are the perceived threats to email?” and “What are the real threats to email?”

To my surprise, there was nearly unanimous consensus about the real challenges facing email. In summary, email is so easy and so cheap that even when used ineffectively, it still gets results. And that is a big, big problem since it makes it easy to send bad email.

According to research shared by Stefan Tornquist, email programs that do not follow best practices (e.g., batch-and-blast) are becoming less and less effective. In fact, these programs were half as effective in 2008 as they were in 2002. In contrast, programs that do follow best practices (e.g., segmentation, personalization) are slightly more effective today than they were five years ago.



While email experts have been talking about relevance for a long time, I have not seen it presented in a way that makes it this clear. It is not enough to send email. It is imperative for marketers to deliver authentic value to subscribers--and that is not easy!

This point is further supported by consumer-oriented research:
  • 58% of consumers say the primary reason they unsubscribed or simply stopped reading emails from businesses is because “emails were not relevant to me,” followed by 44% who said they “Received too many emails from the sender” (MarketingSherpa, Consumer Media Survey, Sept 2008)
  • 54% say most of the email ads they receive don’t offer them anything of interest (Forrester, “Winning Email Subscribers in a Down Economy” Dec 2008)
Earlier this year, I asked a professional triathelete to coach me in preparation for a half-marathon (we'll see how that goes before I sign up for a full marathon). In that time I have learned that while nearly everyone can run, the majority of people do not run well. I find myself cringing at the sight of people clodding around my neighborhood and placing unnecessary stress on their feet and knees. Only six months ago, that was me.

Email marketing is similar. Since nearly everyone who tries it sees some degree of success, many mistakenly believe they have it figured out. "Why bother with all that stuff the 'experts' preach?" Because if you don't listen and apply what they say, your glory days are behind you.  Your email program will grow less and less effective. It's all downhill from here.

This does not need to be the case. The success of your program is in your control. Commit your program to constant and never-ending improvement. Keep learning. Keep modifying. Keep delivering content your subscribers find valuable (not what you think is valuable). Do this and the value derived from your email program will continue to grow.

Real vs. Perceived Threats to Email: Part 1 - Addressing Misperceptions

Wednesday, October 21, 2009 by Morgan Stewart
The now infamous Wall Street Journal article announcing the death of email sparked a fire in the bellies of email marketers and social media gurus alike. The overwhelming response is that social media is not posing a significant threat to email. To date, all the signs seem to indicate that these two channels will continue to evolve together.

True, there are dissenting voices. However, I have found none that are backed by credible statistical data. Since there is no statistical validity in personal anecdotes, I don’t care (except for the value they provide in forming hypotheses to be tested in future research).  I care about what well-founded research tells us about the world at large.

Here is a list of the data sources I have located that reveal the truth about the current state of email use and email marketing:

Pew Internet & American Life: Online Activities Trends
  • 79% of Americans use the Internet 
  • 90% of online Americans use email, making it the most popular online activity
  • 57% of Americans check email daily

MarketingSherpa
  • 78% of users email friends a link to information they wish to share with friends over the internet.
  • 22% share through social media
  • MarketingSherpa’s research directly contradicts research released earlier this year from AddToAny, which suggested people share information twice as often through Facebook as they do through email. However, there were serious issues with the AddToAny research



USC Annenberg Digital Future Report
  • How Many Americans Are Using E-mail? -- Almost everyone who goes online uses e-mail (97 percent of all Internet users).
  • Regular Contact by E-mail -- E-mail users maintain weekly personal e-mail contact with an average of seven people in the current study, down from the peak of nine in 2006. Forty-nine percent of e-mail users said they maintain personal contact by e-mail on a weekly basis with five or more people.

Participatory Marketing Network
  • Email (26 percent) and text messaging (26 percent) are the activities least likely to be "given up for a week," followed by TV (15 percent), talking on phone (11 percent), visiting social networks (nine percent), reading magazines (seven percent) and visiting non social network sites (six percent).



Pontifelx / Harris Interactive Survey
  • 96% of online adults who have actually taken the step of providing brands personal information have shared their email addresses with marketers
  • 12% of online adults have been willing to share information like their Facebook user name or their Twitter handle with a brand in exchange for information or promotional offers

SmartBreif on Social Media

While not nationally representative, this poll is interesting in that is suggests even social media professionals are not significantly curtailing their use of email.
  • 59% of SmartBreif on Social Media readers (likely to have a heavy disposition toward social media use) report their use of email has stayed about the same despite the growth of social networks.
  • 28% are using slightly less often
  • 11% are using more often
  • 2% of these readers rarely use email



ExactTarget – Is Email Marketing Endangered?

We asked a question similar to the SmartBreif poll, however, the question excludes marketers—so it is a better representation of the population at large.
  • Net 25% of online consumers report using social networks more often over the past 6 months (42% using more often, 17% using less often)
  • Net 23% of online consumers report using email more often over the past 6 months (29% using more often, 6% using less often)
  • Net 21% of online consumers report using text messaging more often over the past 6 months (38% using more often, 17% using less often)
  • 71% of smartphone owners report sending more PERSONAL email on their smartphones than BUSINESS related email—it’s not all business.



ExactTarget – 2009 Channel Preferences Study
  • 57% of online consumers use email most often to send written messages to their friends, over text messaging (24%) and social networks (10%)
  • 75% of online consumers prefer to receive permission-based promotional messages through email—up 3.6% from 2008—followed by 17% who prefer direct mail promotions and 4% who prefer text promotions.
  • More than half of online consumers have made a purchase as the direct result of and email message they received, more than any other online communication channel.



Forrester Consulting – Customer Knowledge is Marketer Power
  • 34% of marketers believe email will become more effective over the next two years, 19% believe it will be less effective
  • Asked why marketers believe email will be more effective:
    • 74% believe their email communications are getting more relevant
    • 58% see email as an integral part of their multichannel activities
    • 44% believe customers prefer email as a marketing channel

That is not to say there are not threats to the future success of email. Stay tuned for part two where I share insights from a panel I moderated at Connections last week where Julie Katz from Forrester, Rebecca Lieb from eConsultancy, and Stefan Tornquist from MarketingSherpa were asked to share their takes on the real versus perceived threats to email marketing.

Is Mobile Email Driving Consumers to a Disappointing Experience?

Wednesday, October 21, 2009 by Morgan Stewart
As outlined in our recent whitepaper, Is Email Marketing Endangered?, Smartphones are a major force behind consumers increasing consumption of email. As such, the importance of mobile email for email marketers will continue to increase. While the solutions remain less than ideal, Mark Brownlow has done a wonderful job of summarizing the challenges of mobile email and linking to useful resources on the topic.

But getting mobile email to work is only the first step. Assuming your email is successful in getting consumers to your site, they need to be able to actually do something. This appears to be a challenge. According to new research from Equation Research commissioned by Gomez Inc., end users are disappointed with their mobile web experience.

Among findings of the report:

60% of consumers have encountered a problem when accessing a website from their mobile phone during the past 12 months

The number one reason cited was slow load times (73%). There are a number of factors that may impact load times that are out of marketers’ control. However, the other top reasons are all things that marketers should be able to test and rectify:
 
    * 51% experienced errors or crashes on the mobile site
    * 48% said formatting of the mobile site made it difficult to use
    * 45% had issues with the site functioning as expected

Among common formatting errors, the study identified content that is too large or too small for the screen, links that do not work, and overlapping or illegible text and graphics.

Poor mobile experiences impact brand perception

Consumers have high expectations of mobile sites—they should load quickly, look good, and function properly. The consequences of not meeting these expectations are also high. While it makes sense that consumers would be less likely to visit the site again (61%) and that they would visit a competitors site (40%), the negative impact on the brand at large is more alarming:

* 23% would be less likely to purchase from that company
* 19% would have a negative overall impression of the company
* 18% would be less likely to go to the company’s website on their regular computer

If mobile experiences impact consumers’ willingness to interact with companies at large, we can’t think of mobile as simply another channel. It is part of the communication landscape at large. It is not about developing mobile campaigns, it is about facilitating users ability to get the information they need at their convenience.

Thus, not only do optimizing mobile email and optimizing the mobile web go hand in hand, but both of these go hand in hand with optimizing our traditional email and web experiences as well. It’s all connected.

Take a look at the full report Why the Mobile Web is Disappointing End-Users.

54% of Marketers Caught Up in Channel Budget Battles

Tuesday, September 29, 2009 by Morgan Stewart
Last week, ExactTarget released a commissioned study from Forrester Consulting titled Customer Knowledge is Marketer Power.  To me, the most sobering statistic is that for 54% of marketers, “each channel they use competes with each other for budget.” Another 28% provided a neutral response to the question. Leaving only 18% that disagree with the statement.

Each channel we use competes with each other for budget

That these budget competitions are occurring is not a surprise to me, but what concerns me is what this leads to—debates about the relative value of each channel for the purpose of re-allocating budgets.

Marketers look to the pseudo-science of marketing attribution to help them resolve these questions and buzz about the topic is picking up again. Shop.org recently announced the creation of a new Online Marketing Attribution group, David Baker wanted a new attribution calculator for Christmas, and Ed Henrich (appropriately) wants to make sure email is included in the attribution equation.

The idea of attribution makes sense. The hope is that by properly attributing the influence of different marketing campaigns on actual conversions will allow marketers to spend their marketing dollars more appropriately. However, the reality of marketing attribution is mired in disagreements about how it should be done. As one marketing manager interviewed in Customer Knowledge is Marketer Power shared, “Multichannel efforts are hard to track. We’ll look at a sale, but it’s hard to determine whether it was the email or the catalog that closed the deal.”

In this age of marketing accountability, have our attempts to answer John Wanamaker’s conundrum about which half of his advertising dollars are wasted gone too far? Is it really necessary to know if it was the email or the catalog that closed the deal? Or do we simply need to know that both played a role and that fewer sales would have occurred if one or the other were to be eliminated?

Would love your thoughts as I continue to ponder…

5 Reasons You Should Know Your Subscribers Channel Preferences

Thursday, September 24, 2009 by Morgan Stewart
Today we are releasing the Marketing Preferences Research Bundle. This bundle includes 2 separate studies. The first, Customer Knowledge is Marketer Power, is a study conducted by Forrester Consulting and commissioned by ExactTarget. The second is the 2009 Channel Preferences Study conducted by ExactTarget.

Following the 2008 Channel Preferences Study, some had trouble understanding why we believe the notion of Channel Preference is so important. For that reason, we commissioned Forrester Consulting to look into it for us, and here is what they found:

Marketers who understand their customers' communication behaviors and preferences...
  1. are better equipped to approach emerging channels.
  2. have an easier time preserving their budgets.
  3. have a better grasp on social media.
  4. are more optimistic about traditional marketing channels.
  5. get better results!

Bonus: They are more likely to believe social media will be a strong marketing force for a long time, but as I have been saying for a while, they are less likely to see social media as something that will take away from email. It's the wrong debate.

The Marketing Preferences Research Bundle provides both sides of the story. On one hand, the study by Forrester Consulting get’s to why customer preferences are important. On the other, the 2009 Channel Preferences Study sheds new light on how consumers want marketers to communicate with them. Both offer a number of recommendations on what marketers should do about it. Get your copy of the Marketing Preferences Research Bundle.

Email and Text Coupon Use on the Rise

Thursday, August 20, 2009 by Morgan Stewart
We are in the midst of a recession and a massive shift in how the world consumes information at the same time. Consumers are cutting their spending due to their need to lower costs while there are more resources available to them to find ways to lower their costs through an ever growing array of online and digital tools.

And coupons are at the crossroads.

Yesterday, Mediaweek ran Scarborough: Text, E-Mail Coupons Growing in Popularity sharing new data from Scarborough Research about how U.S. households acquire coupons. Their highlights include:
  • 8.6 million (or 8 percent) of U.S. households currently acquire coupons via text messages and/or email.
  • Sunday newspapers are still the most popular way households obtain coupons at 51 percent
  • The top market for text and/or e-mail coupon users is Providence, R. I., where 12 percent of households obtain coupons via text or e-mail, followed by Washington, D.C.; Atlanta, Ga.; San Diego, Calif.; Austin, Texas; and Chicago, Ill., all at 11 percent.
  • 7 percent obtain coupons through internet sites, compared to 8 percent who acquire them through email and/or text

The full list was made available in a press release titled, More than 8.6 Million Households Obtain Coupons via Text Messages and/or Email.


Surprising to me is the finding that more households acquire coupons through text or email than they do through coupon sites, expecially given the meteoric increase in coupon site traffic last year. It just goes to highlight the increasing importance of usind email and text messaging to distribute coupons which was articulated well by Scarborough's Gary Meo, "Coupons received via text messaging are typically sent only to consumers who have opted in to receive them. This increases the relevancy of the offer and the potential for the consumer to act on that offer."

Twitter's Newest Revenue Model: Promote SPAM

Wednesday, August 5, 2009 by Morgan Stewart
While ideas come and go, some ideas are definitely worse than others. PC World ran a story this morning talking about a new Twitter venture called Sponsored Tweets.

The article, Twitter Sells Out explains, "Run by IZEA, a company that specializes in advertising via social networks, the service lets businesses pay "celebrities" to tout their product or personality." Reporter, Brennon Slattery, closes by writting, "Sponsored Tweets -- and services like it -- are damaging Twitter's already bruised reputation by turning it into an advertising spam-fest rather than an innovative tool connecting people."

I believe spam-fest is an understatement. To illustrate, I created a new Twitter account @GetSpammed. I have not provided anything to suggest who I really am, my Twitter handle is @GetSpammed, and the account has zero followers. I signed up for Sponsored Tweets and was presented with the following screen.



While the site promotes that you can have celebrities tweet on your behalf, I created this account as a non-celebrity interested in tweeting about "Adults Only" content--basically everything representing the worst spammer I could imagine. After completing the form, I was presented with the following confirmation.


I am not expecting to have a lot of requests to endorse products with this account (I wouldn't anyway). Advertisers can use a number of filters and selection criteria to determine who they invite to tweet on their behalf. Mashable covers these tools in more detail.

Nevertheless, the entire concept presents an overly simple business model spammers will be more than happy to follow:

  1. Get a ton of followers through any means necessary (there are already plenty of morally questionable tactics promoted consistently for this)
  2. Make yourself look credible by trimming down the people you follow in order to get your following:follower ratio to 1 or less
  3. Sign up to get paid and spam the heck out of your list for a quick buck
  4. Rinse and repeat with as many accounts as you can

There are plenty of people in the world willing to do the unethical for money. Sponsored Tweets not only enables, but promotes crying, "Come all ye spammers and use Twitter to make a quick buck."

Of course, there are some who would disagree with this assessment, believing that the social phenomenon will help weed out bad tweeters who abuse the system. How quickly we forget the monumental efforts email has made in order to combat spam. People get pretty creative when there is free money to be made.

The big question, is Twitter digging it's own grave by allowing this? I think it is, curious to hear your thoughts.

To learn more about ethically expanding your social media reach, read the whitepaper “Expanding the Reach of Email Through Social Networks Whitepaper.

Consumers' Most Valued Emails

Tuesday, August 4, 2009 by Morgan Stewart
Transactional confirmations are the most valuable emails to consumers according to data released by Borrell Associates Inc. and Merkle Inc. The data was shared in a feature article today on Internet Retailer called Hitting the inbox with valuable e-mail.

The most valuable emails

Yesterday, my colleague Megan Duckworth shared some thoughts on the upsell and cross-sell opportunities inherent in transactional messaging, along with some stats shared by an ExactTarget client.

Why do these messages work so well? Because unlike traditional newsletters or promotional mailings, they are not disposable. When sending transactional messages like order confirmations or shipping notices, you can be pretty sure your customers will open and see these messages. As Megan shared, don't miss this marketing opportunity.

Reporter Butchers Social Media Usage Statistics

Monday, August 3, 2009 by Morgan Stewart
On Friday, the Houston Chronicle ran Companies in new age of networking. Jeff Rohrs sent me a link to the article asking me to do a little digging into the opening statement:

"As social networking sites like Twitter and Facebook assimilate into our lexicon as verbs, companies faced with reduced communication budgets are realizing the value of engaging their employees and customers through Web-based interactive media.

A June survey conducted by The Internal Association of Business Communicators (IABC) and Buck Consultants reported almost 80 percent of organizations frequently use social media, outranking even e-mail."


The rest of the article contains excerpts from an interview with Julie Freeman, president of the International Association of Business Communications (IABC) talking about how ans why companies should participate in social networking. Which of course begs the question, if 80% of companies are already using it, then why the need to talk about the basics of social media? Simple, because they don't!

So, where is the problem? Well, the original press release from the IABC, Two Out of Three Communication Professionals Don't Think Twitter's Popularity Will Last, makes a lot more sense. Furthermore, the full report, Employee Engagement Survey, provides some interesting information on the current and future plans of how companies plan to use social media tools in communicating with internal employees.

Unfortunately, the Houston Chronicle is the latest to get caught up in the feeding frenzy around social media and email bashing. In doing so, they failed to grasp the incredible significance of an asterisk.



Reading this chart, you must take the little notation next to the channel that says (n=xx) into consideration. This tells you how many people answered the question and form the basis for the percentage in the chart. For social media, there is an additional asterisk saying that this was not listed as an option in the survey. However, 72 people wrote in social media as a way they used to communicate internally. Of the 72, 79% said they use this method frequently. So, about 57 of the 1,477 survey respondents frequently use social media for internal communication. This is about 4%.

Contrarily, 75% of 1,418 survey respondents said email is used frequently for internal communication. This is approximately 1,064 of the total respondents.

The survey provides absolutely zero basis for comparison between social media and email. Since email was an answer choice and social media was a write in answer, we can't compare them. The "outranking even email" comment is simply wrong.

Email is still the workhorse for internal employee communication. Blogs, discussion boards, internal social networks, and wikis are all being used more and provide very valuable tools. They haven't displaced email and they won't displace email for a long time. Beware statistics that support hype in spite of the facts (and common sense).

Email Open and Click Benchmarks

Friday, July 31, 2009 by Morgan Stewart
This week eMarketer released their second report of the month on email marketing open and click-through rate benchmarks.

If you missed them, here are the two articles:

E-Mail Marketing and Click-Through Rates
features benchmarks recently released from MailerMailer.

E-Mail Marketing and Click-Through Rates: Part II features benchmarks recently released from Epsilon.

Looking at the charts, it does not take much time to notice that the data is different. In many cases, it is VERY different. Consider:

Average Delivery Rates
  • MailerMailer says 99%
  • Epsilon says 94%

Average Open Rates
  • MailerMailer says 12.5%
  • Epsilon says 22.1%

Average Click-Through Rates
  • MailerMailer says 2.8%
  • Epsilon says 6.1%

To understand the differences, one must take into account their respective client bases. MailerMailer conducted their research based on 300 million emails sent from 3,000 clients over 6 months. Do the math and their average client is sending just under 17,000 emails per month.

Alternatively, Epsilon’s numbers are based on an analysis of 6 billion emails sent from 200 clients over 3 months. Their average client is sending approximately 10 million emails a month.

Epsilon clients send 600 times the number of emails MailerMailer clients send. No wonder they are different. Epsilon is focused on big senders. MailerMailer is focused on small senders.

So, what’s the benchmark?

Benchmarks in email marketing can be tricky. Considering the large and significant differences in the benchmarks published by MailerMailer and Epsilon, this should be crystal clear. Use these numbers as guidelines and nothing more!

I commend the authors of these studies, but all benchmarks I have ever seen (or published) are subject to scrutiny. Benchmarks such as these (generated from client data) are subject to the diversity of the client base. Benchmarks generated from surveys are subject to the reality that marketers (like all survey respondents) tend to report best-case scenarios.

Keep in mind than benchmarks represent the average. The university I attended is notorious for grading on a curve. So, if we performed average, you got a “C”--hardly worth writing home to mom and dad about. Shoot high by benchmarking yourself against the better averages.

With that in mind, here are some suggestions based on my experience of looking at benchmarks over time.

Delivery Rates

MailerMailer’s average delivery rate seems high to me… as an average. Epsilon’s 94% average seems low based on our data.

Companies getting A’s in deliverability are consistently at or above 99% deliverability.  Anything below 96% should be looked at with some scrutiny. Permission-based email marketers who send on a regular schedule do not tend to fall below the 96% threshold on a consistent basis.

Open and Click-Through Rates


MailerMailer’s averages are somewhat erratic, especially when looking at the benchmarks by industry. Looking at Banking and Finance open rate averages for example, one would not normally expect to see such wild swings between messages sent to a list of 500-999 compared to sends sent to 1,000 or more. This is likely due the their client base consisting of smaller senders. These swings are likely driven by individual senders who either consistently over or underperform instead of true variance by industry.





Epsilon’s numbers are more in line with what I typically see and would expect. They are also much more stable. Given a choice, benchmark your program against the Q1 2009 numbers presented in these charts.





If you are looking for ways to increase your click-through rate, sign-up for InSight and receive an email each month with the best tips and tricks to get the most out of your email marketing campaigns.

Facebook Sharing More Popular than Email Sharing?

Wednesday, July 22, 2009 by Morgan Stewart
I like mashable.com, but their post this week Sharing on Facebook Now More Popular than Sharing by Email is simply sensationism based on bad data. Clearly, we are fans of sharing through social networks as evidenced by our recent release of Social Forward and partnership with ShareThis!

The data referenced in the report comes from AddToAny, makers of a widget that allows people to share content through social networks and email and competitor with ShareThis! Based on their data 24 percent of content is shared through Facebook compared to only 11% that is shared through email.




Any study of this type is subject to the quality of the data it is evaluating. One need look no farther than comments posted on mashable.com to see the holes in this research.

Wei Zhu wrote, "As much as I like to see Facebook being listed as the most popular way for sharing, I suspect the method used by AddToAny grossly under counted sharing through email. Most people who share stories through email probably just copy the url and paste into their email directly, without using any widgets on the web page."

Correct. We definitely see more people sharing through Social Forward than we see sharing through email forward-to-a-friend. If people are going to share through email, they don't typically use forms, widgets, etc. They copy, paste, and send.

zackatoustra wrote, "The only thing we can conclude from that figures is that what is shared through AddToAny is mainly shared on Facebook. Nothing more."

Exactly, AddToAny's user base is not a representative sample of internet users. This data is specific to AddToAny's user base and not applicable to the general online population.

Finally, sensational data lends itself to sensational headlines and interpretations. Jason said it best, "Why didn't you give this the headline Digg Now Bigger Than Google? Would that have been any worse than the current headline?"




When Marketing Becomes a Service

Friday, July 17, 2009 by Morgan Stewart
Good marketing isn’t marketing at all—at least as marketing is commonly understood. Several months ago I interviewed a college student who said he hated email marketing. Noticing his Mac, I asked, “what about emails from Apple?” His response, “I love them! BUT that’s not marketing.”

Oprah Skyping VideoAccording to Teresa Becker, “we had several women mention that they learned about Skype and other technology from Oprah. If Oprah knows about it, then women will too!” But again, Oprah is not ‘marketing’ anything! She is merely sharing information with people who trust her. She provides a highly valued service.

Caitilin Landrigan wrote an excellent summary of what the catapult team heard from consumers during two days of interviews on the street. In her own words:

“There is some marketing wisdom I think we can glean from the perspectives of these consumers, other people like ourselves, who are seeking the products they need in a world of overabundant information being thrown at them from every corner.  To the career marketer, these observations may be common knowledge.  Our interviewees made it clear that people are very protective of their personal information.  Individuals do not want to receive email or text messages from unknown sources; such messages make them feel insecure.  Accordingly, consumers want to be the initiators in marketing relationships.  The individuals we interviewed who actually cashed-in on discounts they received were frequent shoppers who already demonstrated preferences for specific products.  They knew the companies they purchased from and wanted to maintain communication with them.   Thus, their consumer relationship was one built on trust and good reputation.  Third, consumers don’t want to be inundated with information. They want ‘to-the-point,’ relevant communication that isn’t annoyingly frequent.  Essentially, it appears to me that consumers desire the one-to-one relationship ExactTarget seeks to establish.  They appreciate the helpful recommendations and discounts companies like Amazon and Home Depot offer, because they know just who they are buying from, how their information and preferences are being used, and that professional (and ethical) boundaries exist to protect them.”

I’d say those are some pretty sharp insights, what do you think?

This post is the last part of a series on Consumer Perceptions of Marketing.

Previous post in series: Annoying Consumers with Too Many Emails

Annoying Consumers with Too Many Emails

Thursday, July 16, 2009 by Morgan Stewart
When one interviewee was asked if he had ever signed up to receive email newsletters he responded, “Yes, and I usually regret it.” Asked to clarify he went on, “I sign up for things thinking that I will get one or two emails every now and then, and then you start to be their best friend. I hate it! Don’t over communicate because that’s when I get angry.”

One Catapulter summarized the feedback she heard from consumers this way, “Consumers don’t want to be inundated with information. They want ‘to-the-point,’ relevant communication that isn’t annoyingly frequent.”

But how often is too often? When does the frequency of a program start to drive people away?

There are two ways I have seen used to measure this. First, measure engagement.. Looking at the percentage of emails consumers open—and the corresponding percentage of emails consumers click—can provide insight into the saturation level of your subscribers. If consumers continue to click through on emails, marketers using this method assume the subscriber is still satisfied. Generally, this is a safe assumption. However, there are downsides. It takes a good deal of effort to implement and stick with this type of segmentation. The marketer is supposed to pull back on frequency to segments where subscribers start to engage less often. This becomes difficult to do when others in the organization challenge the logic of limiting some mailings to a small segment of “highly engaged” subscribers.

The second method of limiting frequency is simply to ask. Video of the street interviews will serve as a supplement to a consumer survey fielded last month. In that survey, we found 64% of people said they were more likely to provide their contact information to companies that asked them about frequency. This is in essence a contract with the subscriber, which can generally be used to defend against the “why not send one more email?” question.

Either way, “how much email is too much?” is entirely in the mind of the recipient. What is too much for one subscriber is not enough for another.

Marketers wanting to take subscribers from the first-date (see Permission Makes All The Difference) to a relationship need to determine their frequency strategy. Moving to fast risks ending the relationship prematurely, while moving to slow allows the door to stay open for other suitors.

This post is part of a series on Consumer Perceptions of Marketing.

Previous post in series: Consumers Don’t Know What CAN-SPAM Is

Next post in series: When Marketing Becomes a Service


Consumers Don’t Know What CAN-SPAM Is

Wednesday, July 15, 2009 by Morgan Stewart
Email marketing’s PR challenges begin and end with spam. As our Catapult team hit the streets to talk with consumers, they heard nearly a hundred consumers express—each in their own way—that spam isn’t limited to penny stocks, Nigerian bank scams, and Viagra. “When referring to email marketing most people think of spam,” surmised Kristeen Hudson based on the interviews she conducted.

Spam is ‘junk mail’. It’s any communication where companies initiate contact and miss the mark. Even when permission is granted, sending relevant email can be a challenge. When unsolicited email is sent, it becomes nearly impossible to deliver something that the consumer interprets as relevant.

According to another new ExactTarget employee, Caitilin Landrigan, “When asked about spam, many people replied that they simply deleted the spam, because clicking the unsubscribe link would only confirm their address was active and increase spam quantities.” This perception continues despite the efforts of responsible marketers to comply with CAN-SPAM. But, could this legislation actually be part of the problem?

Very few of the consumers we interviewed knew that the US government had passed a law to combat spam. They had never heard the term CAN-SPAM. The question, “What is the CAN-SPAM act?” drew blank stares and wild guesses. Of the people interviewed, the only woman that was familiar with CAN-SPAM subsequently shared that her husband is a network administrator. Even if some consumers know what CAN-SPAM is, but by in large, they don’t know and they don’t care.

The disconnect lies in this simple reality, while still too many email marketers hide behind CAN-SPAM compliance—sending unsolicited email with the promise of honoring unsubscribes, the recipients aren’t aware of the rules marketers are playing by. Furthermore, the legal requirement to honor unsubscribes has been rendered impotent because consumers still think it will exacerbate their personal spam problem. That is why ISPs must hold emailers to a higher standard.

Fortunately, consumers do not consider all commercial email spam. In fact, most interviewees gloated about a couple of their personal favorites. The programs consumers consider relationship-worthy follow rules of online engagement that consumers do understand: Permission, respect, and relevance! Honor these and CAN-SPAM becomes a non-issue for email marketers.

This post is part of a series on Consumer Perceptions of Marketing.

Previous post in series: Permission Makes All The Difference

Next post in series: Annoying Consumers with Too Many Emails

Permission Makes All The Difference

Tuesday, July 14, 2009 by Morgan Stewart
Email marketing still has a big perception problem with consumers. As Kristeen Hudson, one of the Catapult team members who conducted interviews with consumers on the street shared, “Email marking and spam is one in the same to the general public and neither is looked upon very highly.” However, that does not mean that email is not appreciated. Kristeen continued, “When we asked people ‘What company does the best job of communicating with you?’ most people cited the companies that send them emails they wanted—not companies that had good TV commercials, print ads, or billboards. People really liked it when they received relevant emails with coupons or that talked about upcoming sales. These emails make them feel empowered and special.”

So, consumers think email marketing is spam, but coupons and special offers make them feel special? What gives? Caitilin Landrigan, another interviewer, shared this insight, “Several interviewees expressed that they did not like to be ‘marketed to’ and that they ignored advertisements in their email inboxes and social network accounts. However, most of the interviewees told us that they appreciated emails they had opted into from stores where they shopped frequently.  One man even told us that he had a ‘relationship’ with such stores, that he was the one who initiated contact, and that this made all the difference.”

When marketers initiate contact with consumers, it is spam. When consumers initiate contact with a company, they are indicating that there is the potential for a relationship. Even so, permission does not constitute a relationship. Extending the relationship analogy, getting a consumer to sign up for your program is like getting someone to say yes to a first date. If the relationship is to continue, there is still work to do.

This post is part of a series on Consumer Perceptions of Marketing.


Previous post in series: Consumer Perceptions of Marketing

Next post in series: Consumers Don’t Know What CAN-SPAM Is


Consumer Perceptions of Marketing

Monday, July 13, 2009 by Morgan Stewart
Two weeks ago, members of the Catapult Rotational Program traveled throughout the Midwest to conduct customer interviews about their perceptions of marketing—from email marketing, to sms marketing, to social media and direct mail.

They did incredible—nearly 100 interviews in 2 days! While the goal was to have them capture video footage, there was another, perhaps more important byproduct—these new ExactTarget employees got a personal introduction to the core tenants of SubscribersRule!

Fresh off the road, we asked Catapult team members to share their thoughts about what they heard from consumers. Check out observations on the following topics based on the experiences Teresa Becker, Caitilin Landrigan, and Kristeen Hudson.

 

•    Part 1: Permission Makes All The Difference
•    Part 2: Consumers Still Don’t Know What CAN-SPAM Is
•    Part 3: Annoying Consumers with Too Many Emails
•    Part 4: When Marketing Becomes a Service


Teens and Texting

Friday, July 10, 2009 by Morgan Stewart
Two recent eMarketer articles tout the potential for marketers in using text messages as a channel for communication with teens.

This week's article, "Teens Go Mobile for More Than Texts" highlights research from Nielsen showing how the number of text messages sent and received by teens has skyrocketed over the past two years while the number of calls has dropped slightly. This trend has clearly been aided by the increasing prevalence of unlimited texting plans offered by mobile carriers.



This follows another eMarketer article, "Mobile Texting Opportunities or Marketer (or Mobi Txt Opps)" where research from Deloitte showed that texting was the most common mobile activity among Millennials (age 14-25). The article goes on to highlight lots of other research that supports this reality and ends by saying, "Marketers attempting to get the attention of young people might do well to try and hook them by the thumbs."

This is flawed thinking! Why? Because the fact teens send and receive text messages frequently does not mean they want marketers to send them text messages. Last year we conducted survey research to identify the difference in preferences for personal communication (e.g., communication with friends and family) and communication from marketers. We combined this with observational research from the Center for Media Design to come up with the Messaging Behaviors, Preferences, and Personas Whitepaper. In that paper you can read about distinct personas for teens and college students.

The flawed logic says that because teens text a lot we should fire up our SMS marketing efforts. However, as far as the cell phone is concerned, texting is replacing phone calls. Two years ago, no one was suggesting the best way to market to teens was to call them, were they? Why not? Because phone calls are too personal. As one recent college grad we interviewed this week said, "Texting is for my friends, it's not for you!"

However, the consumers, even teens, still call you! That is why we have call centers and help desks. The same principle applies to texting. Yes, develop a texting strategy, but this strategy starts with responding to inbound texts from your consumers, or MO SMS (Mobile Originated SMS).