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Deals, Discounts and Deliverability Guy Hanson Director, Response Consulting, Return Path March 19, 2012

Deals, Discounts and Deliverability

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Presentation at the Daily Deals Summit Europe by Guy Hanson, Director Response Consulting at Return Path

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Page 1: Deals, Discounts and Deliverability

Deals, Discounts and DeliverabilityGuy HansonDirector, Response Consulting, Return Path

March 19, 2012

Page 2: Deals, Discounts and Deliverability

Agenda

Introduction Email Deliverability Matters Mobile Email Also Matters Watch Your Reputation! Daily Deal Intelligence Groupon Success

Page 3: Deals, Discounts and Deliverability

Making Email Better on a Global Scale

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

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

Page 4: Deals, Discounts and Deliverability

Email is great for developing loyal customers and active subscribers.

72%Percentage of companies rate email as 'excellent' or 'good' for return on investment.

Source: Econsultancy "Email Marketing Census 2011" (2011)

Page 5: Deals, Discounts and Deliverability
Page 6: Deals, Discounts and Deliverability

No Inbox. No Click.No ROI.

Page 7: Deals, Discounts and Deliverability

Email Deliverability: Latest Benchmark

Europe

North America

Asia Pacific

Central/Latin America

Global

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%

86.4

79.3

66.5

71.6

75.9

5.6

7.4

5.2

18.1

9.1

8.0

13.3

28.3

10.3

15.0

InboxBulkMissing

Source: Return Path Deliverability Benchmark Report, 2H11

Page 8: Deals, Discounts and Deliverability

Email Deliverability: Europe Average

Source: Return Path Deliverability Benchmark Report, 2H11

Nearly 14% of legitimate email never reaches European consumer inboxesThat’s nearly 3 out of every 20 emails sent!

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Email Deliverability: by Country

Source: Return Path Deliverability Benchmark Report, 2H11

France

Germany

Italy

Spain

UK

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

91.1

81.3

90.0

77.8

83.0

5.7

13.7

4.4

4.6

7.0

3.2

5.0

5.7

17.7

10.0

INBOXBULKMISSING

European Deliverability, 2H11

Page 10: Deals, Discounts and Deliverability

Email Deliverability: Daily Deal by country

Source: Return Path Deliverability Benchmark Report, 2H11

Country Daily Deal Inbox Placement Rate

Cross-Industry Benchmark Index

98.3% 79.3% 124

92.2% 77.8% 119

97.7% 91.1% 107

86.1% 83.0% 104

90.2% 90.0% 100

74% 81.3% 91

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Mobile Email Matters

Page 12: Deals, Discounts and Deliverability

The Growth of Mobile

Source: Return Path Mobile Study 2012

Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-110%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

webmaildesktopmobile

Page 13: Deals, Discounts and Deliverability

The Growth of Mobile

Source: Return Path Mobile Study 2012

Page 14: Deals, Discounts and Deliverability

Mobile Opens: what you need to know

Source: Return Path Mobile Study 2012

+ = 97%

Page 15: Deals, Discounts and Deliverability

Why do my good emails get

blocked?

Page 16: Deals, Discounts and Deliverability

It’s All About Reputation (and Sender Behavior)!

List Hygiene

Complaints

IP PermanenceEngagement

Message Quality

Infrastructure

Page 17: Deals, Discounts and Deliverability

ISPs use your sender reputation to make filtering decisions. A

poor reputation means, your email will get

blocked.

Page 18: Deals, Discounts and Deliverability

Impacting Factors for Email Filtering

Page 19: Deals, Discounts and Deliverability

You’re in Control of Your Reputation

Page 20: Deals, Discounts and Deliverability

Reputation Scores

Average Reputation Score

95.5

Average Inbox Placement

Low 90%

Page 21: Deals, Discounts and Deliverability

Reputation Scores

Average Reputation Score

84.6

Average Inbox Placement

Low 80%

Page 22: Deals, Discounts and Deliverability

Daily Deal Email Intelligence

Page 23: Deals, Discounts and Deliverability

Behavioural Metrics

Activity Average Read Rate

Average Spam Rate

>= 10 messages 16% 5%

>= 100 messages 15% 8%

>= 1,000 messages 14% 12%

“The three metrics that are most likely to reduce your IPR are: complaint rate, spam trap hit rate and unknown user rate. People can’t complain about email they don’t receive. Complaints hurt marketers when their email IS getting delivered. A high complaint rate with a high delivered rate is an indication that your delivered rate will soon start dropping if you don’t make fixes, fast.”Return Path Sender Reputation Report, 2011

Panel Data For Daily Deals Sector

Delegate Email Programs 4% - 31% 1% - 5%

Page 24: Deals, Discounts and Deliverability

Behavioural Metrics

Message Type Average Read Rate Average Spam Rate

Password reset 75% 2%

Order confirmation 66% 1%

Welcome email 37% 5%

Newsletter email 25% 4%

Daily Deals Service Emails

Language Variations“Coupon” 25% 6%

“Voucher” 17% 1%

Page 25: Deals, Discounts and Deliverability

Behavioural Metrics

Message Type ARR Index ASR Index

“Money” 19% 119 3% 60

“Discount” 18% 113 3% 60

“Free” 16% 100 8% 160

“Save” 15% 94 12% 240

Daily Deals Offer Emails

“Valentine’s Day” 17% 106 4% 80

“Mother’s Day” 24% 150 23% 460

“Sex” 15% 94 2% 40

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Daily Deal Case Study

Page 27: Deals, Discounts and Deliverability

Leading Deal-of-the Day Site

Challenge Solution Results

Subscribers who don't receive a timely morning email announcing that day's deals have less opportunity to take advantage of Groupon's limited-time offers.

Due to volume (over 1 billion emails sent monthly in North America alone), throttling (e.g. delivery speeds were slowed down by receiving servers) at some major ISPs.

Return Path Certification Test

Selected a small market and used two different IPs to send email to 70,000 subscribers each day for two weeks

Measured impact on ensuring the delivery of email to subscribers' inboxes during key times and to measure any increase in open rate, click rate and impact on purchases

2% better open rates

Increased click-through rates of 6%

Certified mail send speed was 40% faster, translating into lower operation costs realized by a smaller number of deferrals caused by throttling, and better control over the time its subscribers receive their daily offers.

“Sending our mail through Return Path Certified IPs allows us to know 98%+ of our emails are being delivered to inboxes on time. There is no question in our mind – Return Path Certification is an investment with a significant return for our business.”

John BecvarSr. Dir. Relationship Management

Groupon

40 % Increase in Delivery Speed; Increased Response Rates

Page 28: Deals, Discounts and Deliverability

Let’s Connect!

Guy HansonDirector, Response [email protected]

returnpath.net/

@ReturnPath@GuyHanson