Session Presentation

1. Use the Right Metric
For the Right Job
Adam Holden-Bache
Dela Quist
Luke Glasner
Ryan Hofmann

2. Difference in Metrics
Traditional Metrics vs. EEC SAME Project Metrics
Traditional: EEC SAME:
Delivered Accepted Accepted = Any email not
rejected by a server
Open Render Render = Total number of
times an HTML email is
displayed (full open or preview
pane)

3. Accepted vs. Delivered
• Accepted means the email reached the recipient’s server, not just
that it left the sender’s server
• Accepted does not include bounces, Delivered does
• Accepted does include messages delivered to spam/junk or those
that are missing, as those messages were not bounced

4. Render vs. Open
• A Render identifies an HTML open with images on. An Open could
mean a view of any message such as HTML with images off or even
a text message that received a click-through.
• Total Confirmed Opens includes renders PLUS counts from clicks
on any link in messages such as HTML images off or a text version.

5. When to use SAME Metrics
• When accuracy matters
• When knowing if you reached the inbox matters
• When HTML vs. non-HTML views is important
• When comparing campaign metrics to other campaign metrics

6. SAME Metrics Goals
• Common set of industry-wide metrics definitions
• Establish usable benchmarks for marketers
• Allow for consistent metrics reporting across
platforms
• Provide accuracy for metrics shared between
platforms

7. Life Cycle Email Marketing
eMarketer, "Keeping Customers Loyal with Targeted Email" February 14,2011
http://www.emarketer.co/Article.aspx?R=1008233&dsNav=Rpp:25,Ro:-1,N:706-405&xsrc=GeographyPanel

8. Life Cycle Email Marketing
 A Lifecycle email program starts
with the Welcome Message
 Post Purchase Programs help to
build engagement and increase
loyalty, great for selling
consumables.
 A lifecycle program typically ends
with a Win-Back effort before
giving up on the customer
eMarketer, "Customer Lifecycle Email Campaigns See Better Engagement"
June 30,2011 http://www.emarketer.tv/Article.aspx?R=1008471

9. Life Cycle Email Marketing
Common goals of a lifecycle program:
• Move prospects along the sales cycle to
customers
• Increase order rates or re-order rates
• Increase customer loyalty
• Increase value of customer
• Increase lifespan of customer
Begin by mapping the life cycle of an email
customer or the steps in the sales process.

10. Life Cycle Email Marketing
Use engagement indicators, such as purchases or site logins, in addition to
opens and clicks when determining to remove a subscriber.
 Often subscribers that are reading, but do not respond are not captured in open/click metrics.
Remove
Emotionally
Unsubscribed?

11. Calculate Your Subscriber Lifespan
Determine segment or overall subscriber average lifespan in 3 steps:
1. For each subscriber, calculate the number of days between join
date & date of most recent open/click = lifespan of the subscriber
(you can also use weeks or months).
2. Use excel to find the mean (average) and standard deviation for
lifespan either overall or by segment.
3. Take your mean 2 standard deviations, this range represents
the lifespan of 95% of subscribers.
Once you find your range for average lifespan, you’ve discovered two
points in time for time based engagement triggers.
Tip: If your standard deviation is large (above 7-10 units) then you
may wish to use a confidence interval of the mean instead.

12. Metrics to Track in a Lifecycle Program
• Re-order rate of email program members vs. average
company re-order rate or re-order rate of non-members.
• Determine your Email Lifespan: Join Date – Date of most
recent action driven by email (click, open, site login, etc.)
• Compare performance for subscribers in the lifecycle email
program vs. those not in the program. Is the difference
Significant?
• Use the Analysis ToolPack in Excel to run the tests.
http://office.microsoft.com/en-us/excel-help/about-
statistical-analysis-tools-HP005203873.aspx.
• Aim for a confidence level above 90%.

13. Influence of Email
• Last-Click Attribution
– Indicator of how well your email campaigns do at Email Subscribers
directly converting subscribers
Email Openers
• Revenue Participation Attribution
– Subscribers who opened or clicked through the Email Clickers
email, but whose last click came through another
channel such as search, display or affiliates
Email
– How big is your gap between Last Click and
Revenue Participation? Last-Click
– Does your email program have a better value
proposition vs. other channels?
• Impression Attribution
– Subscribers who do not open or click and come to
your site (or store) through other channels
– Impression effect of just being in the inbox
• Measure and benchmark with each of these
attribution methodologies to understand
gaps and opportunities

14. Attribution: Knowing Where To Look
DMA / fast.MAP Email Tracking Study

15. Attribution: Email’s Nudge Effect

16. Attribution: Sales Via Email From Send Time

17. Attribution: Sales Via Email From Last Click

18. Reach & Frequency
Client sent one email per month, except in May and August when they sent two

19. Reach & Frequency: Open Rates Don’t Matter

20. Reach & Frequency: Open Rates Don’t Matter
60.00%
50.00%
40.00%
Open Reach
30.00%
Click Reach
Open Rate
20.00%
Click Rate
10.00%
0.00%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
16,000
14,000
12,000
10,000
8,000 Previous Openers
New Openers
6,000
4,000
2,000
-
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

21. Reach & Frequency: Impact On Sales

22. Reach & Frequency: Impact On Sales

23. Reach & Frequency: Impact On Web Traffic

24. Value of a Subscribed Lead/Prospect
Do you want answers to the following questions?
– Which subscription source is my most/least profitable?
– How much am I willing to spend to generate a new lead?
– How long does it take for a lead generation efforts to break even?
– How valuable are subscribers who sign-up on my website?
– How have site changes impacted the volume of onsite signups per
day?
– How have new business processes increased in-store signups per
day?
– How does the value of a subscriber change over time? For a lead
that subscribes today, how valuable do I expect them to be in 3
months? 1 year? 2 years? 5 years?

25. Methodology
Step 1 Step 1 Example SQL
Identify all email addresses SELECT emailAddress
that were a lead or a ,customerId
prospect on the date that ,emailSubscriptionDate
they subscribed to your email ,firstOrderDate
communications. ,subscriptionSource
,acquisitionCost
FROM …
WHERE ((emailSubscriptionDate <
firstOrderDate)
OR firstOrderDate IS NULL)
• If you have a defined cost-per-lead for any specific subscription sources, this would be
the acquisition cost.
• The acquisition cost for onsite, in-store, or other company sources (excluding
sweepstakes) should be considered a sunk cost, and calculated as $0.00.
• If you don’t know the subscription source for any of your subscribers, you may leave
that out of the analysis, but you should start collecting this data ASAP for future use.

26. Methodology
Step 2 Step 2 Example SQL
Sum the historical SELECT emailAddress
revenues, gross profits and ,emailSubscriptionDate
acquisition costs and net ,subscriptionSource
profit from all email ,SUM(itemQty * price) AS revenue
addresses identified in Step ,revenue - SUM(costs) AS grossProfit
1. ,SUM(acquisitionCost) AS acquisitionCost
,grossProfit - AS netProfit
FROM step1SampleDataset
…
GROUP BY 1, 2, 3
• Due to the major variations in how individual businesses calculate
revenue, costs, gross profit, and allocate marketing spend, this has
been simplified to illustrate the basic calculation.

27. Methodology
Step 3 Step 3 Example SQL
Sum the revenue and net SELECT emailSubscriptionDate
profit by email subscription ,subscriptionSource
date by subscription source. ,COUNT(emailAddress) AS countEmails
,SUM(revenue) AS revenue
,SUM(netProfit) AS netProfit
FROM step2sampleDataset
GROUP BY 1, 2
• The resulting data set from step 3 can then be exported into an Excel pivot
table or other BI or statistical application for analysis, trending, etc.

28. How long does it take for a lead
generation source to break even?
• Leads from Week 32 are now breaking even at Week 52; it takes about 20
weeks for leads from Lead Source A to break even and start generating
positive net profit
• How does this compare to other sources?
• What can we do to get this down to 13 weeks?

29. How valuable are subscribers
that signup on my website?
Time Since Average Net
Email Signup Profit Per Email
90 Days $0.24
180 Days $0.52
1 Year $1.08
2 Years $1.88
5 Years $8.97
• After 1 year, onsite email signups have generated $1.08 in net profit
per email address
• Now that you know the value, what can you do with it?

30. How have site design changes impacted
the volume of onsite email signups?
• Week 7: New footer design with more prominent signup form: +73%
• Week 16: Signup form added to New Untracked homepage: +19%
• Weeks 25-32: Lost NU homepage form placement: -18%
• Weeks 44-52: Seasonal traffic increase, no changes

31. Setting & Achieving Subscriber Goals
• What is your goal for onsite subscribers?
• Set a target:
– % increase over your current baseline, or
– Benchmark to 3% of monthly site visitors
• Make the plan
– List of website projects to achieve the target
• Measure your progress
– Develop automated reporting to track your subscriber growth
against your target
• Optimize
– Better creative, stronger calls-to-action, enhanced site
placement, improved program value proposition

32. Thanks For Attending Today
Questions, Comments or Feedback? Contact Us.
Adam Holden-Bache Dela Quist
@AdamHoldenBache @DelaQuist
adam.holden-bache@masstransmit.com dela@alchemyworx.com
704-706-2670 x200 678-954-4762
Luke Glasner Ryan Hofmann
@Lukes_Tweets @ryanhofmann
lglasner@glasner.com rhofmann@responsys.com
201-855-MAIL (6245) Ryan’s Number