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9/18/2012 1 Section Title State of the Email Marketing Industry Speaker Loren McDonald VP, Industry Relations Twitter: @LorenMcDonald Google+: +LorenMcDonald

Email Marketing Certification DMA2012

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Page 1: Email Marketing Certification DMA2012

9/18/2012

1

Section Title State of the Email Marketing Industry

Speaker

• Loren McDonald– VP, Industry Relations

– Twitter: @LorenMcDonald

– Google+: +LorenMcDonald

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Email is Strong

Opt‐in Everywhere

Automation

ContentInactives

Design for Mobile

Q & A

Agenda

1. Industry performance is strong - email still rocks

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Email is thriving by ALL accounts!

Email is bringing in $40.56 for every dollar spent on it.

Source: DMA

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User Base Still Growing

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20.1% Open Rate ‐ Average

43.7% Open Rate ‐Top Quartile

8.0% Open Rate ‐ Bottom Quartile

Open Rate – Select Industries (WW) 

Vertical

Retail

Leisure, Sport & Recreation

Media

Banks / Fin. Services

Mean

17.12%

16.18%

20.91%

22.62%

Top Quartile

30.60%

32.61%

47.98%

48.91%

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5.2% Click‐through Rate‐ Average

16.6% WW: CTR ‐Top Quartile

0.7% CTR ‐ Bottom Quartile

CTR – Select Industries (WW) 

Vertical

Retail

Leisure, Sport & Recreation

Media

Banks / Fin. Services

Mean

3.09%

2.31%

8.87%

3.46%

Top Quartile

6.21%

5.29%

31.67%

9.88%

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19.3% Click‐to Open Rate‐ Average

40.0% CTOR ‐Top Quartile

6.7% CTR ‐ Bottom Quartile

2. Capturing opt-ins and data everywhere your customers are

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Popovers: A Bit Annoying –But They Work!!!

Pop‐overs = 200‐400% lift

16

38% of Americans would rather

clean their toilet than create another

Username/password combination!

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What types of data are available?

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Facebook Timeline Email Sign Up

Tablet/Kiosk Opt‐in Collection

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SMS to Email Opt‐in

• POS• Garden Center Tips

• Video Alerts• Return/Info. center

• Store Signage• Events

QR Codes to Email Opt‐in

• POS• Garden Center Tips

• Video Alerts• Return/Info. center

• Store Signage• Events

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State of QR Code Usage/Awareness – Still A Little Early

3. The shift from broadcast to automation + behavior

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Pounding isn’t the answer, because…

…Hope is not an marketing strategy.

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Individual relevance is increasingly the key to deliverability

Manual

Automated

Response Rates/Engagement

Marketin

g Soph

istication

Behavior‐basedMessages(Multi‐Track)

Time‐based Messages(Drip, Simple Nurture)

Targeted Mailings based on Segmentation 

Mass Mailing to a broad database  

Broadcast to BehaviorBto1IndividualMessages

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Relevant Emails Rock!

Note: Metrics and salary costs based on JupiterResearch executive survey. Broadcast assumes $3 CPM, and all others assume $4.5 CPM. All assume $89 AOV, 50 percent product margin, and 2.8 million pieces of mail per month.

9x

Low Volume, High ROI!

59.8 %BatchCampaigns

40.2%TriggeredCampaigns95.9 %

Batch Campaigns

4.1%TriggeredCampaigns

Sales GeneratedVolume of Emails sent

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Demo‐graphics

Behavior

Automation

Explicit data

Implicit data

Programs – Mass Personal

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Browse Behavior

Browse Behavior

Customer viewed “Joint Supplements” landing page Sent SmartFlexFinder email

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Message A – 1 day after

Message B – 3 days after

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Message C – 5 days after

DEMCO Cart Results

Cart Email ADay 1

Cart Email BDay 3

Cart Email CDay 5 AVERAGE

Open Rate 40% 39% 32% 37%

Click-to-Open 44% 47% 28% 41%Click-thru-Rate 18% 18% 9% 15%Conversion Rate 22% 15% 24% 20%Sales/email $8.60 $8.40 $5.04 $7.46

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4. Content and personality plays a bigger role

[get pur‐suh‐nl]

1. Marketing content that speaks with a “human” voice.

2. Targeted, personally relevant messaging based on consumer preferences, demographics and behavior.

3. Dude, lose the corporate speak.

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• Aaron -Real person• Service tone• 50% conversion rate

“Human” Cart abandonment

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Let Customers Do the Selling

30+% Increase in Orders and Sales

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How‐to video

46

Important Dates Reminder Email

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Your dates trigger an email…

21 days before occasion

Personalised with name

Occasion w/ date

Coupon code

10% Off

31% CTRHighest revenue generating email

5. Inactives become the biggest challenge

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Inactives Are a HUGE IssueInactives Are a HUGE Issue

Typical Actives vs. Inactives Ratio

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Impact of InactivesLost potential revenue

Inefficiencies/Reduced ROI 

Fuzzy metrics

Potential reduced deliverability

Hypothetical Revenue LossActives Inactives

# Subscribers 250,000 200,000

Average Revenue Per Email Delivered $0.12

4 X week X 53 weeks ~ 212 emails $6.4M

Potential Lost Revenue $5.1M

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Reactivation & List Cleansing

• Data cleansing by implementing a Re Engagement Program• Contacts who have  had no mailing activity for 9 months• Have not opted in within the last 3 months

Re‐engagement Email 1

Birmingham Airport: Hello There!

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3 weeks later…Re‐engagement Email 2

Birmingham Airport: We Miss You!

2 more weeks later…Final Email

Birmingham Airport: Details deleted

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Data Cleansing

Upon receiving Email 3 contacts are  track routed to ‘To Be Removed from Database’ track and then get purged by the client

Upon receiving Email 3 contacts’ profiles get date stamped under ‘Inactive’ date database field which makes them easy to query off

The best reactivation strategy 

is to minimize inactives 

to begin with.

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Typical Reactivation Rate: 1%‐2%

High Performers: 10%+

Automate: Activate Early InactivesNew subscribers don’t 

open/click first XX messages/X weeks

Move these early inactives into “activation” track

Send survey, different offers; best of, diff subject lines, 

testimonials, etc.

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Opt‐in process

Expectation mgmt.

Welcome / Onboarding

Targeted / Relevant Content

Preference mgmt.

Minimize!

6. Designing for mobile is no longer optional

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Going Mobile / Screensize‐apalooza

Q4 2010

Smartphone Sales Pass PC Sales

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U.S. Smartphone Penetration –Nielsen 2/2012

369M2016

Source: Gartner, April 2012

Tablets…

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35% of email subscribers are opening your emails on their 

mobile device!

Where is Your Email Being Read?

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So Context Means…

Scannable

Singular calls to action

Larger fonts

Single columns

Bullet‐proof / large CTA buttons

Design for touch …

Old mouse New mouse

The New Design Challenge

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Source: StyleCampaign.com, Litmus

Do Your Email’s Have the Touch?

Know Your Audience

Source: Unica Corporation/Pivotal Veracity

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Mobile64% higher 

CTR

Regular

A/B test sent to frequent mobile openers

Thanks / Q & A

Loren [email protected]

@LorenMcDonaldGoogle+: LorenMcDonald

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Anatomy of an Email

Marketing Program

• Introductions

• Rules

• State of the Email Industry & Top Challenges

• Foundational Program Overview – Acquisition

– Welcome

– Promotion

– Transactional

– Opt-Out

• Conclusion

Agenda

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Teach you how to optimize your foundational programs so that you can be effective at advanced strategies

Goal for Today

You are here

You need to be here

100k

50k

25k

Ground Level

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• Industry Experience – Director, Email Marketing & Acquisition at

Sears Holdings – Responsible for East Coast Operations at

Responsys – Director, Email Marketing & Online

Advertising at infoGROUP, Inc

• Thought Leadership

– DM News : Email Gets Personal (Cover Story)

– Keynote address – March 2012, EEC12 – Recent Article: Changing Consumer

Perceptions of the Email Channel, Simms Jenkins - bit.ly/RP_P1

– Co-Chair of the EEC List Growth & Engagement Roundtable

– Member of:

Ryan Phelan Vice President, Strategic Services

Various Email Discussion Groups on:

Hello, my name is Ryan

Hello, my name is Damian

What I do

• Oversee Strategy, Creative, Deliverability, Integration, Accounts and Campaign Management

• Focus on retention marketing

• If I do my job, then we have a lot of happy clients with great email programs

Thought Leadership

• Speaker at Email Insider Summit 2011 and 2012, Email Evolution 2012, Casual Connect 2012

Damian Borichevsky SVP, Professional Services PulsePoint

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• Opinions are welcome

• This is a discussion, not presentation

• You know your business, share it

• All opinions, debates, questions, leaps of faith, gut feelings are valid

Rules

What’s really happening out there

A Look at the Marketplace

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Dispel the myth

Why do marketers believe that every message we send evokes this reaction?

Marketing Rationalization

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Challenges for Email Marketers

• Deliverability – Challenges with Yahoo!

across the industry

– Changes in how “Spam” is defined

• Relevancy and the a relationship to the consumer

• Time, Resources, Money and Smart Marketing

STOP THE INSANITY!

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1,000 consumers were surveyed…

• U.S. Based Consumers

• 77% own a smartphone

• Selected ages between 18 and 45

• 79% were employed

• Diverse ethnic mix

• 77% earned $35,000+

• 35% live in urban area; 65% in suburb

How many email addresses do

you have?

© Digital River Inc. , Source: BlueHornet Online Email Behavior Survey, Feb 2012 n=1,000

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How many times a day do you

check your personal email?

© Digital River Inc. , Source: BlueHornet Online Email Behavior Survey, Feb 2012 n=1,000

Why do you sign up for email?

© Digital River Inc. , Source: BlueHornet Online Email Behavior Survey, Feb 2012 n=1,000

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Change must happen

Consumers will continue to grow weary of the email onslaught

What is Engagement Marketing?

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Engagement Marketing

The combination of customer disclosed preference with behavioral based data to form an actionable picture of the customer that allows the marketer to answer the needs of the consumer through active communication.

Simply put, engagement

marketing is selling

without looking like you’re

selling

Giftcertificates.com

Primary message is thankful, not BUY, BUY, BUY!

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Getting on the path to success

Foundational Email Programs

Email Program Development

Low Hanging Fruit: Those quick fixes that can correct a programs

bad path. Revenue Impact: Minimal

Foundational Programs: Those programs that are common and

expected from the consumer Revenue Impact: Substantial

Strategic Planning: Advanced programs that rely on big data

and progressive thinking. Revenue Impact: Extreme

Calls To Action, Cadence, Design, Capture, Opt-In, Shopping Cart, Product Placement, Rules and Legislation

Welcome, Transactional, Opt-Down, Basic Acquisition, Basic Segmentation, Promotional, Cadence Guidelines, List Usage Rules, Testing

Persona Development, Cluster Analysis, Next Logical Product, Behavioral Segmentation, Attitudinal, Dynamic Messaging, Shopping cart abandonment, Transactional Messaging,

Video in Email, Preference Center Phase 2, Segmentation, Differentiated Welcome Messaging, Social Messaging

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Agenda • Foundational Program

Optimization

– Acquisition

– Welcome

– Promotion

– Transactional

– Opt-Out

Providing the food for your program

Acquisition

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Acquisition Defined

Generically…

• Acquisition (a-kwə-ˈzi-shən): coming into possession or

control of often by unspecified means (Merriam-Webster)

In the context of Email…

• Subscriber Acquisition (səb-ˈskrīb-ər a-kwə-ˈzi-shən):

Convincing people to provide both their email address

and their consent for you to distribute content to that

address. (Borichevsky-Phelan)

Where Should You Look?

• Who are you trying to acquire?

• What are you willing to pay for a subscriber?

• How fast are you trying to grow?

• Where is your quality vs. quantity slider?

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Channel Options

• Email – Effective…if you do it right

• Display – Make sure you are contextually targeting your ad

• Social – Very cost effective, but be wary of adding a bunch of

people who just want to win something

• Co-Registration – Make sure you find a white hat provider

• Appending – Not a best practice – You are assuming consent

What should you collect?

• Email address – get this before you ask for

anything else to reduce drop-off

• Only ask for data that you will use

• On subsequent screens, ask for secondary and

tertiary information

– Demographics

– Interests

• Offer additional subscriptions

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When to Act

• It’s a strategy, not a tactic

• Don’t wait until your existing list shrinks to

nothing to start thinking about acquisition

• Constantly have a line in the water

• Set multiple lines around key events – Holidays if you are in retail

– Big PR announcements

– Other brand building campaigns

A real world example – New York Magazine

Doing it Right

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Give yourself a few chances

Quick and to the point

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Once you get a bite…

Expectations

Options

Go Social

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A real world example – Permission Data Co-Reg

Doing it Right

Main Registration Path

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Co-Registration Options

Think of it as a first date

Welcome

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Now What?

• Once you get an email and consent, what should

you do?

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Why are you yelling??

• This is a crucial time…

– Your subscriber is online

– You can direct them to their inbox to look for your message

– Your brand is top of mind

– They are expecting to hear from you

And make sure it’s a 10

• Welcome messages typically enjoy great open rates

• This is your only chance to make a first impression

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What to include

• Clear branding that will match the bulk of your campaigns

• Well thought-out, concise copy

– Welcome them to your program

– Set expectations, especially for the first week

– Talk about value…

Membership has its privileges

• Your subscription better offer some value. This is your first chance to tell them about it.

– Relevant content

– Relevant promotions

– Relevant updates

(See the theme???)

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Goals for your Welcome Program

1. Establish your branding

2. Drive engagement

3. Promote your program’s value

4. Set expectations

5. Retention

6. Provide value

Some examples of what to do

Doing it right

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Make it a Series

• Appropriate when you have a lot of content – send smaller, easily digestible pieces

• Repetition builds habits

• Multiple sends increases likelihood of at least one open

• 3 to 5 messages over the first week is not overwhelming

In any investment, you expect to have fun

and make money.

-Michael Jordan

Promotion

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Why do we send email?

• The underlying goal of all email marketing programs is the same…

Show me the Money

• Email is about providing good content…

– So people create more impressions on your site

• Email is about building our brand…

– So people buy more of your product

• Email is about providing value through transactional messages…

– So your service is more valuable and people remain customers and spend more money

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What Makes it “Promotional”

• A message is considered promotional or commercial if the message has a primary purpose of advertising or promoting a commercial product or service

Core Components - Header

• Assume that your from address and subject line are the only parts of your message that someone will see.

– Let them know what is inside

– Make it relevant

– Don’t waste characters overpersonalizing

– Don’t send from “[email protected]

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Doing it Right – Subject Lines

• 40% off pants tonight! Happy hours are here again (Banana Republic)

• Dinner Out Tonight - $25 Gift Certificate for Just $4 (RetailMeNot)

• Rory McIlroy Trusts Titleist to Capture Deutsche Bank Championship

(Titleist)

• Everyone wants one of these

(HockeyMonkey)

• You deserve a bag you can’t live without (eBags)

Not Quite There – Subject Lines

• Ideas for you

– Vague

– I have a feeling these are probably ideas for everyone, not just me

• Big Savings on New Cars

– Sounds like a cars salesman…

• Damian, here are your top deals of the week

– Personalization adds nothing here

– Travel site should have said “Top Deals from Austin for the week”

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Core Components - Branding

• If it’s a 3rd party promotion, keep your branding prevalent

• Keep the core offer as high on the screen as possible

• Don’t have all your branding in images

Core Components - Offer

• Balance of text and images

• You have less than 5 seconds…make it obvious

• Strong Call To Action and several placements

• Create a sense of urgency

• Dazzle them with numbers (50% Off, 2 for 1)

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Finding the Balance

• A great program has a balance between promotional, content and transactional messages

• Your subscribers will tell you where that balance should be

• It is different for everyone

Some examples of what to do

Doing it right

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Banana Republic

• Clear branding

• 40% offer jumps off the page

• Links to web

• Clever theme

• Urgency

The New Yorker

• Good text to image balance

• Pre-header

• Social sharing featured

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Southwest

• Southwest branding, partner offer

• Tied to a transaction

• Subject identifies it as a promotional message

Enabling everything else you want to do while adding huge value to the subscriber

Transactional

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The Money Tree Does Exist

Transactional Email

• Look to HTML based emails that provide all relevant information

• Transactional messages have +60% open rate and can represent significant revenue

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20% promotional content space

Amazon.com

• Gift Cards is the only promotional message

– They pioneered the cross sell

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Starbucks

Perfect opportunity for cross sell to coffee, cups or gift certificates

Norton/Symantec

Upgrade to a suite product

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Costco

• Why not try to sell me 5,000 asprin

McAfee

Text? Really?

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Wine.com

No glasses, no similar wines

Transactional Based Email Programs

Pro

du

ct

Rec

om

me

nd

atio

n

Ab

and

on

C

art

Dynamic product

recommendation

s enhance both a

promotional and

transactional

message

NLP Triggers

Replenishment

Survey

Stra

tegy

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Groupon

OMG – so excited…for 5 seconds

Browse Remarketing

Stop with the Kitchen Sink marketing tactics

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Let me out of here!

Opt-Out

From the voice of the consumer

Why would you unsubscribe from an email list?

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What are the primary reasons for unsubscribing from an email list?

© Digital River Inc. , Source: BlueHornet Online Email Behavior Survey, Feb 2012 n=1,000

From the voice of the consumer

Could a company change your mind when you have decided to opt-out?

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Would you opt-down if given the

option when unsubscribing?

© Digital River Inc. , Source: BlueHornet Online Email Behavior Survey, Feb 2012 n=1,000

Opt-Down

• Provides the consumer a choice of communication based on common reasons for attrition

– Frequency

– Relevancy

– Subscription Choice

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We miss you!

Bonus: Win-Back Programs

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What is a Win-Back Program

Win-Back programs are inactive customer engagements designed to re-activate the customer to an active communication relationship

Why should I care?

The landscape has changed dramatically based on reductions in force and changes in ISP business models • Rules for engagement

– Active engagement – Reactive suppression of inactive – Relevancy

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Deliverability Risks

As subscribers age, their emails change, especially when we see inactivity. We recommend a short window of engagement with consumer to protect

your overall deliverability.

Low Risk

2012 2011 2010 2009 2008

Deliverability Risk

Med Risk High Risk Critical Risk Low Risk

Win-Back Programs

• Sample process is a series of 3 emails over a short period of time

• Short term Win-Back can be 1 or 2 emails

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Win-Back Programs

• Non-Offer Based – Content sites

• Offer based – Aggressive

– Limited duration

– Exclusive coupons to prevent viral coupon use

– Segment that population out of the normal stream

What to do next

Putting it all Together

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Your To-Do List

1. Compare your acquisition program to your overall program objectives

2. Make sure you take advantage of engaged subscribers during that first week to ten days

3. Find the right balance of promotional messages 4. Take advantage of transactions to send highly engaging

messages 5. Be smart about keeping your list clean. Don’t send to

people who tell you they don’t want to hear from you. 6. Review all aspects of you program, all the time.

Contact

Damian Borichevsky

[email protected]

Ryan Phelan

[email protected]

Page 85: Email Marketing Certification DMA2012

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Master The World of Email Lists And DatabasesFine tune, take action and transform lists and databases into high‐performance business drivers

AgendaState of Affairs

Acquiring Subscribers

The Quest for Data

Fine‐tuning Your List into a High Performance Business Driver

Maintaining a Healthy List 

Monetizing your List Through Other Means

Closing: Resources, Exam Prep, Feedback

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2

State of Affairs

• Email still rocks• The shift from broadcast to automation• “Inactives” are the #1 deliverability challenge• Designing for mobile is no longer optional• List rental is going old school• Programmatic buying for email newsletter advertising

How can I add new prospects / customers to my database effectively?

Streamline the signup processBest practices for permissionSet proper expectationsAcquisition channels and methods

Acquiring Subscribers

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Acquiring New Subscribers

Website registration is still #1

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Three Methods To Increase Opt‐in

• The problem: There is a better way to introduce new users to your service than imposing registration on them before they get to the main features.

• Make registration easy, intuitive and valuable for the customer.

• Give the customer control of how much information they want to share with you.

• Start with basic questions and ask for deeper information gradually.

Make Registration Easy• Make the sign‐up box ubiquitous.

• Offer Social Connect:

– Facebook

– LinkedIn

– Twitter

– Yahoo

– WordPress

• Remove unnecessary fields

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Registration Value Proposition

• Clearly explain the benefits of registering and the value that you intend to provide through your email program

• Set expectations about what the customer can expect from your email program

• Make sure your emails deliver on that promise

Best Practices for Permission

The old saying that double opt‐in is best may be true for some, but for others it can be harmful to growth

Create less friction by reducing the user’s responsibility for permission, but be aware of the cost.

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Building Your List

Building Your List• Growth Hacking (Virality)

– “If you create content that stirs emotions, causes laughter or inspires recipients in some practical or meaningful way; they will probably want to share it with others in their life." Tom O'Leary 

• Buying has risks• Go organic!• Location, location, location• Increase the value proposition of registering• Customer acquisition methods and channels

– Focus on the audience– Focus on the channel– Focus on the creative and message

Bring it all together; a consistent message and creative elements targeted to the right audience, through proper channels that set the right tone for your brand.

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Four types of dataEnhancing your dataExample: Welcome program with enhanced dataPreference centers

The Quest for Data

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The Quest for Data

Segmentation is primarily driven from four types of data

Four Types of Data• Endemic

- Data unique to a particular record - e.g. B2B -Job title, company name, vertical industry; Demographic info

• Transactional- Data captured during any transaction an opt-in has with your brand- e.g. financial, opt-in landing page, subscriber’s IP address

• Behavioral- Data captured during any interaction with subscriber- e.g. website clicks, email clickthroughs, calls into technical service

• Computed- Data is the outcome when one or more variables are used to create a

third variable- e.g. The distance to subscriber’s home from your retail store, RFM

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Enhancing Data

• Third-party profile append

• Progressive profiling tactics for

self-stated attributes

• Device and engagement

patterns from raw tracking data

• Advanced attribution analyses

Welcome Program With Enhanced DataThe ChallengeCustomers are heavily engaged at the onset of a subscription, a time when marketers know the least about the customer

The SolutionLeverage a real-time data append and interactive content elements to better understand new subscribers, creating a more relevant and effective Welcome experience

The ResultA relevant first-impression is delivered to the customer creating a greater likelihood of ongoing engagement long-term

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Step 1Customer Subscribes

Step 2Data is submitted and run real‐time against an integrated third‐party database to overlay available demo/psychographic data elements

Step 3All data elements are passed into the appropriate database

Step 4The first Welcome Message in a defined series is triggered

Step 5Content is generated dynamically based on the third‐party data provided ‐ if no match exists a default communication will be sent

Step 6An Interactive Poll will also be delivered within the content of the first message to collect additional profile information about the customer. Questions will be dynamically generated and driven by presence or lack of overlay data

Step 7Upon response to the Poll, data submitted will be written back to customer database for future targeting

Step 8Remainder of series will be automatically deployed – including content and poll questions dynamically served up and driven by previous engagement or lack thereof

Welcome Program With Enhanced Data

Preference CentersIn addition to demographics and attitudes, include:

• A way to declare communication preferences: type, frequency, device (e.g., mobile-friendly)

• A clear and easy way to unsubscribe (or subscribe) from all mailings

• A mechanism for password change

• A mechanism for email change of address

• Drive targeted communications with this self‐reported menu of “likes” and “dislikes”

• Only ask for information you plan to use

• Determine how much control you can give recipients without offering an unmanageable number of preferences

• Evolve preference options along with your segmentation opportunities

• Occasionally ask customers to refresh their preferences, as preferences change over time

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Success starts with segmentationPopular segmentation strategiesTailoring to the customer lifecycleTriggered emailsIndividual exercise

Fine-tuning Your List into a High Performance Business Driver

Success Starts with Segmentation

Like learning money saving 

tipsI look forward to coupons

Evaluate purchasing options

Enjoy reading what the CEO 

thinks I recently changed jobs

The good news is most marketers realize not all subscribers are alike

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Popular Segmentation Strategies

Use segments to– Understand how 

different groups within your email database respond

– Provide your audiences with appropriate content and offers

Case Study

ChallengeNeeded to send 2 million emails/day with precisely targeted promotions

SolutionImproved email targeting with data mining for more customized and personalized emails

ResultIncreased from 3‐5 sales events per day  to 18 per day across 7 categories based upon subscriber engagement

7% increase in subscriber engagement with 12% increase in open rates and 25% increase in click‐through rates

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Case Study

Campaign Objective

Drive member engagement and purchase conversion.

Campaign Strategy

Targeted email that notifies members that their favorite brand is back, two hours before event launches.

Key Metrics Tracked 

Open Rates, Click‐through rates, Purchase Conversion, Revenue/Email Delivered.

Case StudyDescription

Triggered email alerting members when their favorite brands are back on HauteLook.

Goal

Drive purchase/repeat purchase and engagement.

Target Audience

Members who have purchased or carted an item from targeted brand.

Frequency  ‐ Daily

Why it works

• One‐to‐one marketing. It doesn’t get much more relevant than this! 

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Case Study

ResultsCompared to category‐level targeted emails, brand affinity emails drive:

• 52% more opens• 32% more clicks• 2x more purchases/click• 3.5X higher revenue/email delivered

What’s NextScale and automate this campaign!

Opens Clicks Click to Purchase Rev/Email Delivered

52% 32%

216%

343%Brand vs. Category Level Targeting

Tailoring to the Customer LifecycleAcquisitionAcquisition ConversionConversion GrowthGrowth RetentionRetention ReactivationReactivation

1 2

34

1. Email Appends

2. Preference Centers

3. Subscription Management

4. Mobile Acquisition

1. Email Appends

2. Preference Centers

3. Subscription Management

4. Mobile Acquisition

5. Welcome Programs

6. Shopping Cart Abandonment

7. Landing Pages

8. Click-stream Triggered Messages

5. Welcome Programs

6. Shopping Cart Abandonment

7. Landing Pages

8. Click-stream Triggered Messages

5

67

8

9. Welcome Programs

10.Enhanced Transactional Email

11.Sharing to Social Networks

9. Welcome Programs

10.Enhanced Transactional Email

11.Sharing to Social Networks

9

10101111

12. Editorial Wrapping

13. Lifecycle Programs

14. Surveys

12. Editorial Wrapping

13. Lifecycle Programs

14. Surveys

1212

13131414

15.Reactivation Programs

16.List Hygiene

17.Win-back Programs

15.Reactivation Programs

16.List Hygiene

17.Win-back Programs

1515

16161717

Acquisition Conversion Growth Retention Reactivation

1 2

34

1. Email Appends

2. Preference Centers

3. Subscription Management

4. Mobile Acquisition

5. Welcome Programs

6. Shopping Cart Abandonment

7. Landing Pages

8. Click-stream Triggered Messages

5

67

8

9. Welcome Programs

10.Enhanced Transactional Email

11.Sharing to Social Networks

9

1011

12. Editorial Wrapping

13. Lifecycle Programs

14. Surveys

12

1314

15.Reactivation Programs

16.List Hygiene

17.Win-back Programs

15

1617

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Case Study

ChallengeMature email list with 60%+ unengaged (no opens, clicks, site browses) in last 12 months

SolutionTarget unengaged segment with enticing subject line and compelling offer

TestSubject Line A: “Save an additional 10% for a limited time only.”

Case Study

Results• Customers responded to a valued customer message over generic

• Subject line test generated a 10% lift 

• A 15% offer increased CTO ratio by 2.3%  

What’s NextScaled and automated ‐‐Win‐Back has become a regular at Travelocity

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Triggered Emails

A single or series of emails created by a defined set of rules based on dates, events or behaviors that are automatically sent to a subscriber

Consistently achieve higher open rates due to timing and relevancy

Popular Triggered Campaigns

11%

13%

16%

17%

22%

24%

26%

32%

48%

54%

63%

Shopping cart abandonment

Triggered based on website behavior

Event countdown

Win back/ reengagement

Date triggered (e.g. renewals, reorder)

Activation (e.g. how to)

Upsell (e.g. product recommendations)

Post purchase (e.g. product review)

Transactional (e.g. bills, receipts)

Thank you

Welcome

Source: ©2011MarketingSherpa Email Marketing Benchmark Survey Methodology: Fielded July 2011, N=2,735

63% of marketers send automated welcome email messages

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Effectiveness of Relevancy Improving Tactics

Triggered emails are the top

relevancy tactic

Case Study

ChallengeWanted to convert Active Shoppers to “Purchasers” by sending triggered low fare alerts for price drops, targeting consumers who previously shopped but didn’t book their trip

Solution• Leverage triggered‐alerts• Feature relevant offers based on a specific city pair and date combination

• Integrated relevant cross‐sell offers with built‐in search functionality

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Case Study

ResultsWhile a small fraction of overall email volume, this email drives 12% of overall bookings

2‐3x of average email open and click‐through rates

Low Fare Alert generates conversions that are 300% ‐ 400% higher than other conversion programs

Individual Exercise

• List data points you store that could help drive segmentation

• Write down 3 new segments your company is not targeting today and develop a high‐level plan for how you would target them

• Consider:– Demographics– Geography– Psychographics– Business and Behavioral History, including Lifecycle– Trigger opportunities

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What is a healthy list?Is your list healthy?Methods to improve your list healthCase study

Maintaining a Healthy List

Less Email is Being Delivered (Inbox)

ReturnPath, The Global Email Deliverability Benchmark Report, 2H 2011

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State of Affairs

ReturnPath, The Global Email Deliverability Benchmark Report, 2H 2011

What is a Healthy List

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The three indicators of a healthy list

Revenue Engagement Growth

Is My List Healthy?

Focus on Engagement

• Inbox Placement Rate (IPR) is the rate at which the ISPs deliver the mail received from you to their customers’ mailboxes

• IPR is determined by your sender reputation, which can largely be measured at SenderScore.org

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It’s all About Sender Reputation...

* Silverpop & ReturnPath Keynote, 2012

According To Return Path..

Return Path, The Sender Reputation Report, 2011

Senders with better reputation metrics have cleaner lists.  Unknown User rates above 1% for legitimate email is considered problematic.

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More Fun Metrics

• Average Complaint Rate: <0.18• Average Open Rate: 8%• Average List Depreciation: 20% annually• IP reputation and how to measure

– SenderScore.org– Senderbase.org

How to improve the health of a list

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List Hygiene

List Hygiene

• The Unengaged

• Send more mail. Like rain, the more you mail the cleaner your list becomes.  But at what cost?   

• Sign up for feedback loops and remove complaints and hard bounces

• 3rd party validation and hygiene

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Managing Preferences

Consider opt‐down options to let subscribers put your emails on pause

List Hygiene – ExampleBACKGROUND• Major company in the publishing industry who sends1‐3 million emails a day• Regular (bad) habit of purchasing lists• Ended up with 40% bounce rate which triggered a spamhouse listing as 

someone who buys lists or does appending• ISP's decide how they want to deal with you but most ISP's use the spamhouse SDL 

listing to just block you outright...  even internationally

IMPACT• Blocked!

– 30% of hotmail blocked– 75% of yahoo blocked– Also blocked at comcast and gmail

• Spent a lot of time and money remediating these issues– Cut back frequency to unengaged subscribers and took 8 months to clean it up

THE BOTTOM LINE• Spam is about 80‐90% of emails sent. Purchased address have the same problems 

as a piece of spam ‐‐ the email was not requested.  • If you end up on a Spamhouse listing, even those recipients who DO want email 

from you will not get your messages.• Easier to start off right than try to get back to right. 

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Monetizing your List

The Email Advertising Opportunity

Email Ad Opportunity

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NewsletterAds

Dedicated List Rental 

Offer

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Hybrid Newsletter / Dedicated

Other Monetization Methods

• Monetize data assets– Connect audience intelligence across channels – Online/Offline/cross‐property 

data aggregation, segmentation, etc.– Monetize data assets any way you want – you sell, we sell, public, custom, 

private, etc.– Provide seamless media integration for data activation– Access to marketers/buyers

• Affiliate links• Facebook retargeting ads?

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Contact

Amanda HinkleStrategy Team Lead, [email protected]‐421‐7125

Craig SwerdloffFounder & CEO, [email protected]‐648‐6838@swerd

Exam Questions

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Acquiring Subscribers

• What is the #1 most effective method to drive list growth?• What is more effective, incented or non‐incented site 

registration for driving list growth?• Does Facebook Social Connect provide email by default?• What is the #1 most important disclosure at signup?• True or false: Collect as much information as you can during 

the email signup process so you can more effectively target your communications moving forward– False

• Name a common email permission type– Any one of the following will work: Single, Double, Pending

The Quest For Data

• Name the four classifications of data discussed in the class– Endemic, behavioral, transactional, computed

• Who is the regulatory body governing CAN‐SPAM?– The FTC

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Fine‐Tuning Your List

• The majority of organizations report being able to segment subscriber data based on what transactional data type?– Purchase history

• Name the five stages in the customer lifecycle– Acquisition, conversion, growth, retention, reactivation

• Name the type of message that is created by a defined set of rules based on dates, events or behaviors and are automatically sent to a subscriber.– Triggered

• What is the most popular type of triggered campaign?– Welcome

Maintaining a Healthy list

• True or False: Immediately remove individuals from your email file if they have not clicked a message in the past 12 months.– False

• According to Return Path, what % of mail is being delivered into the inbox?  – 25%, 75%, 50%, 100%?

• How much does the average list depreciate in size per year?• What % of “unknown users” or hard bounces does Return Path say is 

problematic?• What the average rate of complaints for senders?  

– 2%, 1.6%, 0.16%, or 2.6%• What is the generally accepted average open rate?  

– 5%, 10%, 8%, 12%• Fill in the blank: Opt‐down is an alternative you could offer to a customer 

opting ___.– out

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Monetizing your List

• According to Return Path, what % of mail is being delivered into the inbox?  – 25%, 75%, 50%, 100%?

• How much does the average list depreciate in size per year?

• What % of “unknown users” or hard bounces does Return Path say is problematic?

• What the average rate of complaints for senders?  – 2%, 1.6%, 0.16%, or 2.6%

• What is the generally accepted average open rate?  – 5%, 10%, 8%, 12%

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Email MarketingPart 4: Produce Engaging

Creative, Every Time

1

dma2012.org

In this session you will learn:How to use a foundation email best practice principles to craft the most engaging content for your email program, campaign and individual message.

Using these guidelines will ensure optimal performance for your email, whether your audience is interacting with your message in a traditional desktop environment or an on-the-go mobile device.

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dma2012.org

CreativeBest Practices

Effective Email Content

In this session we will cover:

• Understanding the Channel• Defensive Design• Copywriting Tips• The Mobile Inbox

• Layout• Animation• Video• Teasers• Dialogue Starters• Cross-Channel Tips

What makes good email creative?

The Email Channel

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dma2012.org 5dma2012.org

Magazine Layout

Direct Mail Postcard

Acknowledge the Channel• What works for print does not

translate well into email

• Recipients don’t often view the email in its entirety, they scroll through micro experiences and scan copy looking for highlights

• Print relies heavily on imagery, email can’t always count on that creative element to tell its story

• Size matters, emails download progressively, viewers miss out on content in heavy files

dma2012.org 6

The principles of web design often apply to email, but with notable exceptions

• Email clients are very restrictive and lack standards, rendering fidelity is a challenge

• Rich media including forms, scripting and Flash won’t work properly and can effect deliverability

• Don’t worry! We will cover what you can do soon

Website

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The Inbox MindsetWords to work byAn email is like a store window; it needs to reveal just enough to compel visitors to enter and explore• Interacting with an email is different from browsing online

• Viewers aren’t necessarily looking for something

• Email recipients need to be engaged quickly and be pulled vigorously through the content

Viewers will take 2-5 seconds to decide if the email message is relevant

dma2012.org

vv

8

Embrace email best practices, otherwise...

you design this…

but your audience experiences this!

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1. Defensive Design2. Copywriting 3. The Mobile Inbox

Let’s talk about three key email best practice topics:

Defensive Design

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Default Image Suppression

email client default images on? default links on? default changeable?

AOL 9.0 software no no yes

AOL.com, AIM.com web yes yes yes

Gmail web no yes yes

Hotmail web yes yes yes

Lotus Notes software yes yes yes

.Mac web yes yes no

Outlook 2009, 2010 software no yes yes

Yahoo web no yes yes

The trend towards disabled images is growing

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• 9 of 10 users have a preview pane • 7 of 10 say they frequently or always use

it• Up to 60% of desktop viewers have

images blocked and the trend is growing• Up to 50% of users don’t make a habit of

scrolling

• People generally read right left to right, top to bottom

• The reading order is typically headline, bullet, CTA, then paragraph copy

• Remember, mobile devices clip heavy files

Optimize for the Preview Pane

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Optimize for the Preview PaneEvery recipient should be able to answer the following three questions whether or not images are blocked:

• WHAT do you want me to do?• WHY should I do that?

• WHO are you?

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Three ways to beat disabled images

Smart Work Around Tips

Images disabled

Images enabled

1. Use HTML instead of graphical text2. Include preheader and alt tags3. Employ the Bulletproof Button

Images enabled

Images disabled

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Optimize for the (Mobile) Preview Pane

• Many of the most popular mobile devices display images by default

• You must answer the who, what & why question in a smaller space

• Heavy messages can be clipped

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HEADER

PREHEADER

NAVIGATION

TABLE OF CONTENTS

PRIMARY MESSAGE

SECONDARY MESSAGE

TERTIARY MESSAGE

RECOVERY MODULE

FOOTER

• Preheader • Header• Navigation• Table of Contents

(preview pane banner)• Primary message• Submessage(s)• Side rail• Recovery module• Footer

Email Anatomy

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• Snippet text appears in Outlook and Gmail• Only 21% of major retailers have optimized their email for snippet

Email Anatomy

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Email Anatomy• Preheader • Header• Navigation• Primary message• Submessage(s)• Recovery module• Footer

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Email AnatomyMapping a hierarchy is a great place to start, but don’t stop there! Use it as a framework for compelling and creative content.

Copywriting

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Subject Lines

Subject line best practices can vary depending on the audience, test and refine based on your audience’s response

• Optimize length for limited preview space• Be specific about the content in the email• Test what works

– Personalization– Brand name– Mention product and/or category– Benefit of opening email– Urgency / deadlines– “Teasers” that tempt subscribers to open– Call out big savings

dma2012.org 22

• Headlines should be short and punchy

• Use bullet points for maximum scannable

• Include action language within body copy, and hyperlink those words or phases

• Take the landing experience into account, your conversion metrics will thank you

Craft Effective Copy

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dma2012.org 23

Calls-to-Action

The 3c’s of calls-to-action:1. Clear2. Concise3. Clickable

• Keep it short (10-20 characters)• Create urgency with words like “Now”• Set expectations: tell the user where

they’ll be taken whey they click• Use specific action verbs

dma2012.org 24

Copywriting Make-Over

Longchamp Your Very Own Le Pliage Longchamp’s famous foldable nylon bag is now completely customizable. Take your pick of sizes from a petite clutch to a hefty weekender, then choose the colors, handles, hardware, and, of course, the monogram. Comes in 15 colors.

Now Longchamp’s famous foldable nylon bagis  completely customizable

Design Your Bag Now

beforebefore

afterafter

email sample

Your Longchamp®, Your StyleNow Longchamp’s famous foldable nylon bagis completely customizable

• Choose from petite clutches to a hefty weekenders

• Pick your own handles & hardware• Select from one of 15 colors• Don’t forget your monogram

Design Your Bag Now

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The Mobile Inbox

dma2012.org 26

Mobile Optimization

- Shorten subject lines

- Set scale to screen

- Streamline content

- Think “fat fingers”, enlarge fonts & add whitespace to clickable regions

- Consider one column layout view

- Increase color palate contrast

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dma2012.org 27

Responsive Layout• Responsive layout is a

new approach to the mobile inbox conundrum

• Using the CSS rule ‘@media’ to read screen dimensions we are able send one file but display a unique layout for each experience

• This technique works best on native mail apps for each device

Mobile Device ViewDesktop View

dma2012.org

• Optimize the preview pane payload, answer the three W’s without relying on images

• Each email needs a clear hierarchy, map the anatomy of the message before diving into design and copy

• Copy be scannable, remember the 3C’s of calls-to-action

• Consider the mobile experience, edit for the small screen

Best Practices Summary

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dma2012.org 29

Now that we understand the foundation of email best practices, let’s learn how to make a message that activates your audience!

Effective ContentCrafting engaging creative

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dma2012.org 31

The “S” Curve Layout

• Lay the groundwork for the next scroll

• Use image placement to create dynamic flow

• Draw viewers through micro experiences with a flowing curved layout

dma2012.org 32

Horizontal Scroll Layout

• Horizontal emails are perfect for mobile touch screen interaction

• Crop content to encourage exploration• Panoramic layouts match well with the luxury

brand experience

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dma2012.org 33

Modular Content Layout• Template modules allow you to test content

dma2012.org 34

Animation• Simple and easy way to

stand out in the inbox

• Gifs supported by nearly every email client

• Creates a richer experience and drives engagement

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dma2012.org 35

Animation Accents• Draw attention to important details, such as offers and gift guides• Act as small accent to delight users, great with seasonal themes

dma2012.org 36

Animation as Feature• Motion can tell a story

quickly• Jazz up simple promos with

a fun theme• Compliment the overall

brand experience

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dma2012.org 37

Animation for Personalization• Personalization is a great

way to pop out in the inbox• Easy way to convey a benefit• Increases the surprise and

delight factor

dma2012.org 38

Video Spoofs• Demonstrate products

• Instruct viewers

• Preview web content

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dma2012.org 39

Video Simulations• Effective way to use the power of

motion without the worry of deliverability and play back issues

• Create a memorable brand experience that stands out

• Kick off a media rich cross-channel campaign

dma2012.org 40

Embedded Video• Send video directly to

the inbox

• Unless protocols are set properly the experience may suffer

• Several services help facilitate the compressions and delivery of video to the inbox

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dma2012.org 41

Teasers• Interrupt the normal flow

of an email

• User teaser content to prompt exploration

• Try a unique take on brand voice

dma2012.org 42

• Opportunities to share

• Surveys and polls

• Request for feedback or ratings

• Customer reviews and quotes

Dialogue Drivers

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dma2012.org 43

• Email can be a great promotional tool for your social acquisition and lifecycle goals

• Social can be a great channel for research for your email content

– What’s most active on your Facebook page, Twitter feed, YouTube channel or Pinterest boards?

– Social channels are an easy way to gauge interest in a topic

– Look at your customer’s behaviors in social to customize email content per user or segment

• Remember that your email exists in a larger social landscape, make it part of the conversation

Cross-Channel Tip

dma2012.org

• Ensure that your message is built on a solid best practice foundation

• Email is the beginning, content should drive to next step

• Motion drives engagement, test different approaches to find the best response rate

• Use dialogue drivers to open up the conversation

• Leverage the social channels to read your audience and draw content assets

Content Summary

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dma2012.org 45

Bonus Round!

Email Creative AssessmentLet’s judge some emails!

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dma2012.org 47

Non-Optimized Creative Optimized Creative

PREVIEWPANE

PREVIEWPANE

Email Creative Assessment

dma2012.org 48

PREVIEWPANE

PREVIEWPANE

Email Creative Assessment

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dma2012.org

Email Creative Assessment

49

iPhone iOS scales content

Android OS smartphone –top left view & ‘Images on’

iPhone iOS

Non-Optimized Optimized

dma2012.org 50

Email Creative Assessment

• Clarity of message• Strength of calls to

action• Use of whitespace• Message hierarchy

Compare and Contrast

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Thank You!Lynn Baus

Creative Director, [email protected]

@lynnbausmktg

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The Art and Science of Email Testing

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Training Goals

Agenda• Getting started • Setting up a test• What to test• Common testing pitfalls• Tools for testing• Wrap up

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Why Test? • Gain insights quickly • Measureable• Learn and improve • More ROI! 

How to establish the foundation for a successful testing program

7 Steps to Getting Started

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#1 Get Executive Buy-in

#2 Make it a Team Effort

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#3 Gather Data• Analytics platform• Social Media sites • Search keywords • Customer data fields available • Your own knowledge • Teammates 

#4 Establish the Infrastructure

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#5 Track and Share Results

#6 It’s OK to Miss the Mark

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#7 There is no such thing as a bad test

…..it needs to be implemented correctly.

7 Steps to Getting Started

1. Get Executive Buy‐in 2. Make it a Team Effort3. Gather Data4. Establish the Infrastructure5. Track and Share Results6. It’s Ok to Miss the Mark7. There is no such thing as a bad test

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Setting Up a TestHow to set up an email test correctly

Determine Your Objective

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Establish a Hypothesis

Define the Success Metric

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Sample Success Metrics

1. Inbox Placement Rate2. Open rate3. Click thru rate4. Conversion rate 5. Revenue generated (total; per subscriber)6. Shares/forwards 

Determine Test Audience 1. Randomized sample 2. Test cells of the same size3. Ensure the cells are statistically significant

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Statistical Significance

Sample size = (Z squared *p(1‐p))/c squared 

• where:– Z = Z value (e.g., 1.96 for 95% confidence level)– p = percentage picking a choice, expressed as decimal (0.5 used for 

sample size needed)– c = confidence interval, expressed as decimal (e.g., 0.04 = ±4)

Statistical Significance• The confidence level tells you how sure you can be. It is expressed as a 

percentage and represents how often the true percentage of the population who would pick an answer lies within the confidence interval. Most researches use the 95% confidence level.

• The confidence interval is the plus‐or‐minus figure usually reported in newspaper or television opinion poll results. For example, if you use a confidence interval of 4 and 47% percent of you sample picks an answer you can be 'sure' that if you had asked the entire relevant population between 43% (47‐4) and 51% (47+4) would have picked that answer.

• Population Size: How many people are there in the group your sample represents. Population size is only likely to be a factor when you work with a relatively small and known group of people

• The larger your sample, the more sure you can be that their answers truly reflect opinion of the population.

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Too Many Numbers??

Online Sample Size Tools

NOTE: 2,000 ‐3,000 individuals per test cell is a good general rule 

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Implement emails that test hypotheses

Run the Test

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Analyze the Results

Send the Winner

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Test. Improve. Test Again.

Testing Checklist1. Determine the objective2. Establish a hypothesis  3. Define the success metric 4. Determine test audience 5. Implement test emails6. Run the test 7. Analyze results8. Send the winner

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What to Test

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Testing Theories

JUST TEST

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What to Test: Categories

Easiest Tests

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Subject Lines

Subject LinesSubject Line Open  Click The Renault Mégane GT rolls out  15% 25%Introducing the New Mégane GT  24% 23%The New Mégane GT hits the road  0% 0%The New Mégane GT and GT Line, bring it on!  0% 20%Tight, taut and tuned!  70% 86%

Subject Line Open  Click The Renault Mégane GT rolls out  15% 25%Introducing the New Mégane GT  24% 23%The New Mégane GT hits the road  0% 0%The New Mégane GT and GT Line, bring it on!  0% 20%Tight, taut and tuned!  70% 86%

Stats above measured in terms of upliftwhen measured against worstperforming cell.

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Other Subject Line Tests• Length of subject line• Offer/discount 

– aggressive, limited duration, exclusive

• Keywords • Inclusion/exclusion (i.e., price) • Tone (formal vs. playful) • Format (question vs. statement) 

Placement of CreativeMetric Open ClicksImage before copy 100 100Copy before image 101 102Metric Open ClicksRPC : Image before copy

100 100

RPC : Copy before image

100 100

Metric Open ClicksNon‐RPC : Image before copy

100 100

Non‐RPC : Copy before image

105 107

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Placement of CreativeContent Variation

Open Rates(Base Index 

= 100)

Click Rates(Base Index 

= 100)

Offer Above 

Facebook Promotion

113 107

Facebook Promotion Above Offer

100 100

Metric Open ClicksBefore refresh 100 100After refresh 102 197

Creative Refresh

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Other Creative Tests • Content

– Sequence– Tone/style – Headlines – Length– Copy

• Vocabulary (e.g., free vs. no cost) • Use of punctuation• Tag line• Guarantees• Testimonials• Call‐outs• Use of all CAPS

Images• Size• Position • Number of images • Text only vs. HTML 

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Call to Action• Location • Color • Size/Shape • Language• Text link vs. button • Contrast

Timing• Time of Day • Day of Week • Month of Year • Seasonality • Holidays 

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More Difficult Tests

From: RenaultSport [[email protected]]To: Guy HansonCc:Subject: Renault Clio: Vive le Va Va Voom

From: RenaultSport [[email protected]]To: Guy HansonCc:Subject: Guy - Renault Clio: Vive le Va Va Voom

Personalization

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Personalization

Female Segment

Male Segment

Gender

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Localization

Additional Tests • Existing Customer Data 

– Interests – Age – Personas 

• Video – Static images vs. animated gif vs. imbedded

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Most Difficult Tests

46%

38%

16%

66%

29%

5%

Active InactiveCampaign Response

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Metric Open ClicksRegular newsletter 100 100With email follow‐up 185 238With SMS follow‐up 172 460

There was a 100% uplift in call centreactivity from combined approach

Follow-Up Communication

Metric Open ClicksEmail only 100 100Email following initial DM 101 228

Multi-Channel

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Metric Opens ClicksNo previous interest in Dubai 100 100

Previous interest in Dubai 187 307

Transactional Behavior

Additional Tests• Audience Segments• Lifecycle Stage • Purchase and Response Behavior  • Triggered Campaigns • Offers 

– Pricing, type of offer, % of vs. reduced price

• Device   • Frequency/Cadence

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Testing Outside the Email

Common Testing PitfallsWhat to avoid to run a successful testing program

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Pitfall #1: Timing

Pitfall #2: Hidden Variables

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Pitfall #3: Unintended Consequences

Pitfall #4: Interpreting Results Too Soon

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Pitfall #5: Not Statistically Relevant

Pitfall #6: Testing More than 2 Variables Incorrectly

• Limit the total number of multivariate combinations to 25 or fewer

• Use multivariate testing for refining and optimizing an existing design

• Decide which elements are most worthy of inclusion • Preview all combinations  

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Multivariate Example• Scenario: 

– 2 subject lines– 2 copy version– 2 image types 

• How many cells needed?• How big should each test cell be if we have a file of 250,000?  

• How many total subscribers will be in the test audience? 

Multivariate Example

8 cells needed for this test 

Cell  Subject Line Images Copy

1 No Price  Small Image Long copy 

2 No Price  Large Image Long copy 

3 No Price  Small Image Short copy

4 No Price  Large Image Short copy 

5 Price Included Large Image Long copy 

6 Price Included Large Image Short copy

7 Price Included  Small Image Short copy

8 Price Included Small Image Long copy 

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Multivariate Example• 8 cells X 2378 = 19024 individuals needed 

Tools for Testing

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Sample Testing Plan

Sites for Inspiration

• Which Test Won (www.whichtestwon.com)• Abtests.com (www.abtests.com)• A/b ideafox(www.visualwebsiteoptimizer.com/ideafox.php)

• Marketingexperiments.com• Your competition

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Testing Tools• Your ESP Platform• Your Web Analytics Platform

• Google Content Experiments• Adobe Test&Target• Webtrends Optimize

Sample Size Calculators•Creative Research Systems http://www.surveysystem.com/sscalc.htm•Raosofthttp://www.raosoft.com/samplesize.html•Macorrhttp://www.macorr.com/ss_calculator.htm

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Review

Set Yourself Up for Success

1. Get Executive Buy‐in 2. Make it a Team Effort3. Gather Data4. Establish the Infrastructure5. Track and Share Results6. It’s Ok to Fail 7. There is no such thing as a bad test

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Build a Successful Test1. Determine the objective2. Establish a hypothesis  3. Define the success metric 4. Determine test audience 5. Implement test emails6. Run the test 7. Analyze results8. Send the winner

Watch out for Pitfalls1. Timing2. Hidden Variables  3. Unintended Consequences4. Interpreting Results too Soon5. Statistical Relevance6. Testing more than 2 Variables

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Just Test!

Questions?

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Stand Out from the Crowd

[email protected]

Over a Decade of Email Expertise• Leader in email monitoring, deliverability,

certification, and anti-phishing solutions

• 300+ dedicated email professionals

• Offices in New York, Denver, San Francisco, London, Paris, Hamburg, Sydney, and Sao Paolo , Toronto

Proven Data Infrastructure• Over 2 billion inboxes comprise our

certification program

• 26 million IPs scored daily by Return Path

• Nearly 300 ISP partners globally

Delivering Measurable ROI• Over 12 years of shaping and driving

the email ecosystem

• Serving over 2,000 leading brands across retail/eCommerce, publishing, social media and financial services sectors

Sampling of our clients

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Thank you! Julia Peavy

Director, Response [email protected]

@julia_peavy

Page 185: Email Marketing Certification DMA2012

Testing Results Executive Summary Sample

Objective: To generate more revenue from the weekly sales emails.

Hypothesis: Including some benefit copy next to the image will increase revenue generated.

Success Metric(s): Revenue generated.

Approach: Test cell A received the image only with no benefit copy. Test cell B received creative that includes benefit copy.

Results: Test cell B generated $7,432.32 in total revenue with an average order value of $103.23.

Insights:

Page 186: Email Marketing Certification DMA2012

Creative with benefit copy:

View this email as a webpage | Please add [email protected] to your address book.

Feature 1

Feature 1 Image

Morbi dapibus, est sit amet porttitor convallis

Massa tellus tempor quam, a lacinia orci

Lacus sed tellus. Duis malesuada posuere

Your account: trpr01128610

Status: Platinum

Feature 2Tuesday thru Wednesday get a

30% bonus on your first purchase

up to $600 Rules and conditions

Feature 3

Image

Feature 3

How it works copy.

Morbi dapibus, est sit

amet porttitor convallis Massa tellus tempor

quam, a lacinia orci

lacus.

Rules copy. Massa

tellus tempor quam, a

lacinia orci lacus sed.

Duis malesuada osuere

sed tellus duis.

Promotion 1 Image

Promotion 1

Morbi dapibus, est sit amet porttitor

convallis Massa tellus tempor quam.

How it works

Content

Content Image

Morbi dapibus, est sit

amet porttitor convallis

Massa tellus tempor

quam, a lacinia orci lacus.

Lacus sed tellus.

Brand

ActionPromotion 2Morbi dapibus, est sit amet porttitor convallis.

Morbi dapibus, est sit amet porttitor convallis Massa tellus tempor quam, a lacinia orci

lacus. Lacus sed tellus. Duis malesuada posuere.

Page 187: Email Marketing Certification DMA2012

Creative with no benefit copy:

View this email as a webpage | Please add [email protected] to your address book.

Feature 1

Feature 1 Image

Morbi dapibus, est sit amet porttitor convallis

Massa tellus tempor quam, a lacinia orci

Lacus sed tellus. Duis malesuada posuere

Your account: trpr01128610

Status: Platinum

Feature 2Tuesday thru Wednesday get a

30% bonus on your first purchase

up to $600 Rules and conditions

Feature 3

Image

Feature 3

How it works copy.

Morbi dapibus, est sit

amet porttitor convallis Massa tellus tempor

quam, a lacinia orci

lacus.

Rules copy. Massa

tellus tempor quam, a

lacinia orci lacus sed.

Duis malesuada osuere

sed tellus duis.

Promotion 1 Image

Promotion 1

Morbi dapibus, est sit amet porttitor

convallis Massa tellus tempor quam.

How it works

Content

Content Image

Morbi dapibus, est sit

amet porttitor convallis

Massa tellus tempor

quam, a lacinia orci lacus.

Lacus sed tellus.

Brand

ActionPromotion 2Morbi dapibus, est sit amet porttitor convallis.

Morbi dapibus, est sit amet porttitor convallis Massa tellus tempor quam, a lacinia orci

lacus. Lacus sed tellus. Duis malesuada posuere.

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Date Test Group A Test Group B

Test Element  Test Element A Test Element B Test Cell Size  2,500                                   2,500                                            # Bounce Backs 24                                         13                                                 % Bounce Backs 1.0% 0.5%# of Opens 265 315Open Rate 10.7% 12.7%# Unique clicks 151                                       102                                               Unique Click Through Rate 6.1% 4.1%# Total clicks 175 125Total Click Through Rate  7.1% 5.0%# of Conversions 50 72Conversion Rate  2.0% 2.90%Total Revenue Generated $5,224.00 $7,432.32Average Order Value $104.48 $103.23

Element being Tested (subject line, creative, CTA button, etc.) Test 1 ‐ Name of Test 

Page 189: Email Marketing Certification DMA2012

Date Segment Campaign Name Testing Element Subject Line Winner Qty Sent Bounced Bounce % Complaints Complaint %Net Qty Delivered

Opens Open % ClicksClick‐to‐Open %

Click‐to‐Del %

Unsubs Unsub % ConversionsConv‐Mail 

%Conv‐Open %

Key Learning