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Yesmail’s Email Marketing Compass:
The Subscriber Domain Edition
TABLE OF CONTENTS
Introduction........................................	pg. 3	
Purchase Behavior Metrics.............	pg. 4 - 5
Mobile Metrics....................................	pg. 6 - 8
Subscriber Activity Metrics.............	pg. 8 - 10
Subscriber Tenure Metrics..............	pg. 10 - 11
Subscriber Domain Metrics............	pg. 11 - 13
Resources.............................................	pg. 14
Glossary................................................	pg. 15

pg. 2
EXECUTIVE SUMMARY:

In many industries, Q4 performance has great implications for the overall success
of a brand’s email marketing program. With the holiday season behind us, Yesmail
Interactive takes a look at over 6.4 billion emails sent in Q4 and identifies the most notable
performance metrics and marketing trends that defined the final quarter of 2013. In
addition, we investigate the hotly debated relationship between subscriber engagement
and the email domain they belong to.

KEY FINDINGS:
Introduction

Purchase Behavior:
In Yesmail’s Q3 Email Marketing Compass, we focused on customer purchase behavior
and identified the importance of the mobile path-to-purchase. In Q4 2013, the mobile
consumer was more relevant than ever. The number of mobile orders generated by email
went up by 58%, and the mobile sales closed as a result of an email click increased by 52%
from Q3 to Q4*.

Mobile:

Mobile email opens and clicks showed consistent growth quarter over quarter, while
hybrid email viewership continued its downward trajectory as consumers increasingly
showed preference for a single platform to interact with email. In Q4, 55% of all email
opens happened on a mobile device, a 5% increase over Q3. In the same period, hybrid
email viewership dropped by almost 40%, indicating a notable shift in subscriber
behavior.

Subscriber Activity:

Subscriber activity and email volume are generally expected to grow during the busy
holiday shopping season. Consequently, the number of active database subscribers
increased by almost 4%, while the number of marketing emails they received, grew by
9% in Q4. This finding, while not surprising, corroborates the trend identified in previous
Email Marketing Compass reports that higher emailing frequency (between 4-7 emails
weekly) consistently yields a higher number of active subscribers.

Subscriber Tenure:

This report is based
on 6.4 billion emails
sent in Q4.

Findings in Q4 solidified what most marketers already know: new subscribers are active
at a considerably greater rate than existing ones. However, marketers may need a new
approach in order to grow and capitalize on this most engaged segment of their database.
The number of new subscribers, who were active within 90 days of subscription,
increased by 20% in Q4, while the overall number of new subscribers surprisingly
decreased by 11% over Q3.

Subscriber Domain:

With its modest 10 years of existence, Gmail is a relative newcomer to the family of
freemail giants, compared to veterans like AOL (est. in 1991), Hotmail (est. in 1996) and
Yahoo! (est. in 1997). However, Gmail subscribers make up a significant part of marketers’
databases and, perhaps surprisingly, boast a significantly higher active subscriber rate
than do the remaining 3 leading Internet Service Providers (ISPs): AOL, Yahoo! and
Hotmail. Gmail subscribers make up 14% of marketing databases across all industries.
However, in Q4, 19% of Gmail subscribers had been active within the last year, compared
to 10% for AOL, 12% for Hotmail, and 14% for Yahoo!.

*All data and insights are based on the same client set, measured and analyzed over Q3 and Q4 of 2013.

pg. 3
PURCHASE BEHAVIOR METRICS:

As consumers grow more comfortable purchasing on their mobile devices, marketers who
use email as a driver of revenue continue to see a significant lift in purchases completed
on a mobile device. In addition, the increase in mobile purchases seems to be tied to a
definitive mobile device preference, as tablets are edging smartphones out as the purchase
device of choice.

Purchase Behavior

Q4 Revenue

18%

Increase by Platform

52%

Desktop

Number of
Orders

Mobile

82% 18%
41%

All Industries

Orders
Smartphone

Desktop | Mobile

59%

Orders
Tablet

Number of
Mobile Orders
by Device

24%

iPhone

59%
iPad

16%

Android
Phone

0%*

Android
Tablet

*Under 1% of mobile orders were completed on a device, not
operating with iOS or Android system

•	 With 59% of all mobile orders driven by email completed on a tablet, tablets continue to
grow as the preferred mobile device for purchasing, showing more than 4% growth in Q4.
			

– iPad continues to account for 99.9% of tablet orders.

•	 In Q4, the number of mobile orders went up by 58% and accounted for over 18% of all
orders placed as a result of a marketing email, a 13% increase over Q3.
•	 Conversions, defined as purchases completed as a result of an email click, predictably
showed an overall increase in Q4 with desktop conversions growing by 11% and mobile
conversions jumping by 23% across all industries.

pg. 4
Purchase Behavior Findings:

Q4 delivered the expected seasonal lift in overall revenue, number of orders, and repeat
purchasers as the holiday season went into full swing. What’s worth noting, however, is
that those lifts were not created equal and differed considerably between the desktop and
mobile platforms.

Purchase Behavior

The Continued Ascent of Mobile
The increase in mobile revenue and number of orders placed on a mobile device far
outpaced their desktop counterparts, thus solidifying the continued growth of mobile
adoption and further highlighting the importance of the mobile path-to-purchase. Mobile
revenue generated by email went up by almost triple the rate of desktop revenue (52% vs.
18%), while growth in mobile conversion rate outpaced desktop conversion rate by more
than 2-to-1 (23% vs. 11%). This interesting disparity in growth rate could mean that the
holiday season has given marketers the necessary boost to implement key mobile-first
digital strategies to successfully engage their on-the-go audience from the first touch
(email), through landing & ecommerce pages, check-out, and cross-selling transactional
messaging. By continuing to invest in their mobile marketing efforts through the use of
mobile-first mobile strategies, marketers have the opportunity to turn first-time mobile
purchasers into repeat mobile purchasers.

Q4 Increase in Email-Generated Revenue

Mobile

Desktop

52%
18%
The Tablet: the Ultimate Device for the Mobile Path-to-Purchase
While email-generated desktop orders grew by 29% in Q4, the number of orders completed
on a mobile device jumped by 58%. Tablet orders increased by 65% since Q3 and made
up almost 60% of mobile orders in Q4. In 2012, many received tablets as gifts during the
holidays and it appears many used them to complete their own holiday shopping, thus
contributing to the notable growth of the tablet as the preferred mobile purchasing device.
Less Is More: Growth in Repeat Purchaser Rate Accounts for Lower Average Order Value
Interestingly, quarter-over-quarter, there was an overall decrease in average order value.
In Q4 the desktop average order value decreased by 8.6%, while mobile went down by a
relatively modest 3.6%. One possible contributor to this decline is the increase in repeat
purchaser rate observed in Q4. The desktop repeat purchaser rate increased by 17.4% and
mobile increased by 2.3%. While repeat purchases translate to a higher conversion rate,
they can also account for a lower average order value. For instance, especially during the
holidays, many subsequent orders placed by the same purchaser tend to be add-ons to the
original order, and have a smaller order size. It is also possible that follow-up cross-sell
messaging contributed to add-on orders of smaller value thus, driving the average order
value down, but boosting the number of orders, as well as revenue in Q4.

pg. 5
MOBILE METRICS:

Interaction with email on a mobile device continues to trend upwards. While many have
projected that mobile adoption is reaching the point of saturation, and is thus slowing
its growth, the trending data available from the last three quarters of 2013 would suggest
otherwise.

2013 MOBILE OPENS*
49%
Q2

Mobile

52%

55%

Q3

2013 MOBILE CLICKS*

Q4

32%

35%

37%

Q2

Q3

Q4

*As a percentage of all email opens and clicks.

•	 In Q4, 55% of email opens and 37% of clicks happened on a mobile device,
accounting for a 13% increase in mobile opens and 16% increase in mobile clicks
between June and December 2013.
•	 Email viewership preference has continued to shift significantly in Q4 with hybrid
email viewers registering an almost 40% decline since Q3, and an overall 72% decline
since Q2 of 2013.*
•	 In Q4, mobile-only email viewers grew by 10%, registering an overall increase of 64%
between June and December 2013.
•	 The ratio of Apple to Android mobile clicks and opens remained unchanged over the
last three quarters of 2013, at 82% and 17%, respectively.
•	 Interestingly, in Q4 both desktop and mobile click-to-open rates registered a decline
of 2.7% and 5.7% respectively, due to opens increasing at a much higher rate than
clicks.
*Hybrid Viewership is defined as subscribers who view emails on both mobile and desktop devices
interchangeably.

Email Opens and Clicks by Industry
Industry

Mobile
Click

CTO
Desktop

CTO
Mobile

B2B
Consumer Services
CPG
Entertainment
Financial Services
Healthcare
Hospitality/Travel
Insurance
Marketing/Advertising
Publishing
Retail/Wholesale
Technology

pg. 6

Mobile
Open
48.3%
58.1%
49.8%
53.8%
54.0%
41.0%
57.3%
53.4%
37.8%
43.8%
60.1%
50.3%

28.4%
46.6%
28.5%
16.2%
19.1%
23.2%
37.9%
45.6%
19.6%
26.6%
44.4%
27.9%

16.4%
31.0%
24.5%
53.3%
12.3%
37.4%
16.6%
35.7%
16.2%
29.0%
19.0%
10.5%

7.0%
19.6%
9.9%
8.9%
2.5%
16.3%
7.5%
26.2%
6.5%
13.5%
10.1%
4.0%
Mobile Behavior Findings:
The Hybrid Email Viewer: a Dying Breed
While the fact that mobile opens and clicks continue to rise at a consistent pace is not
surprising, it is compelling to know that email subscribers are now more likely to view
emails exclusively on their mobile devices. In only 6 months, the number of mobileonly email viewers has increased at a rate, almost inversely proportional to the decline of
hybrid viewership over the same period. This extreme preference reversal can stem from a
number of factors:
•	 More people own smartphones today than did six months ago.
•	 Increasing reliance on a single device for every aspect of life:
		 –	 While mobile-only email viewership has jumped by 64% between June and December
		 of 2013, desktop-only viewership has also increased, albeit by a modest 5%.
Mobile

•	 Existing smartphone users continue to develop a higher dependency on their mobile
device by shifting their preferences.
•	 Rapid adoption of tablets over desktops as devices of choice for everyday life.

Email Viewership by Platform Quarter-over-Quarter
100%

8%

14%

30%

50%

45%
30%

39%

0%

40%

41%

Q2 2013

Q3 2013

Q4 2013

Q4 Email Viewership by Platform by Industry
Industry

B2B
Consumer Services
CPG
Entertainment
Financial Services
Healthcare
Hospitality/Travel
Insurance
Marketing/Advertising
Publishing
Retail/Wholesale
Technology
pg. 7

Desktop
Only

Mobile
Only

Hybrid

46%
39%
48%
45%
47%
55%
38%
45%
52%
47%
36%
46%

52%
48%
45%
49%
51%
42%
54%
50%
42%
42%
55%
44%

1%
13%
7%
6%
2%
3%
8%
4%
6%
10%
9%
10%
Mobile by the Numbers
Apple and Android continue to dominate the
mobile space at exactly the same ratio during
most of 2013. The consistency of the mobile
market division is remarkable in and of itself
with Apple accounting for 82% of all mobile
events (opens & clicks) each quarter between
June and December of 2013. Together, Apple
and Android continue to account for almost
99% of all mobile events.

The Tail of
After the much buzzed-about release
of the touchscreen Blackberry phone,
the provider has experienced an overall
decline of 52.5% between June and
December of 2013, representing only
0.08% of all mobile events in Q4.

Mobile

Tablets
Tablet users are almost exclusively iPad owners, and account for 31% of the Apple mobile
user base. This by-device division of Apple users is a striking contrast to Android which
has a tablet user base of only 1%.

Subscriber Activity

Mobile Device Usage by Operating System

31%

69%

1%

99%

Did You Know?
The publishing sector leads the way in terms of tablet usage. 35% of
all mobile clicks and opens happen on a tablet (vs. the 25% average
across all industries). This ratio can in part be attributed to an
increasing number of online publishers producing content to be
consumed on an iPad.

SUBSCRIBER ACTIVITY:

With a few exceptions, subscriber activity is generally expected to rise during the holiday
shopping season when consumers are typically closer to converting. However, having the
right targeted content becomes a key factor in the amount of lift in subscriber activity.

•	 The number of active subscribers increased by almost 4% in Q4. While still an increase,
this growth rate is lower than the 5% jump in active subscribers from Q2 to Q3.
		 *Active Subscriber Rate = Percent of subscribers who have opened/clicked on an email in the last 90 days.

•	 Average opens per opener increased by 6.5%, while clicks per clicker marginally
decreased.
•	 Message frequency increased by almost 10% in Q4 .
			 – Marketers sending between 4-6 messages a week continue to garner the highest
			 percent of active database subscribers.

pg. 8
Subscriber Activity Findings:

In Q4, marketers are often mailing at a higher volume in order to reach a larger audience
by expanding the customer segments they mail to, or to reach their current subscriber
segments more frequently with the hope that more touches will translate to more
conversions.
The Message Relevance Phenomenon
Even though active subscriber rates went up in Q4, open and click rates continued on a
downward trend, registering a decline since Q3. What this finding essentially means is
that the number of subscribers opening an email increased, but the number of actions
they took did not.
While the number of opens per opener went up by 6.5% in Q4, the number of clicks per
clicker stayed essentially the same. This trend implies that, even though consumers seem
to be amenable to higher frequency of messaging, the content they are offered is falling
short of their expectations to receive customized and relevant offers.
Subscriber Activity

Conclusion: Higher cadence doesn’t hurt engagement as long as content is relevant
enough to the subscriber for opens to translate to clicks.
Key Database Metrics by Industry
Industry

B2B
Consumer Services
CPG
Entertainment
Financial Services
Healthcare
Hospitality/Travel
Insurance
Marketing/Advertising
Publishing
Retail/Wholesale
Technology

Active
Subscribers

Avg. # Emails
per Opener

Avg. Opens
per Opener

Avg. Clicks
per Clicker

1%
6%
6%
6%
7%
17%
16%
3%
5%
15%
13%
9%

1
*13
2
3
1
1
2
1
5
5
5
2

1
19
5
5
3
3
5
2
4
9
8
4

1
7
2
2
1
2
2
2
2
3
3
1

*As previously defined, Consumer Services industry pertains to largely exclusively online services that rely on
email as their primary revenue driver. Examples include Groupon, Gilt Groupe, Match.com, etc.

Deeper Dive: Frequency
In previous Email Marketing Compass reports, we noted an interesting and somewhat
counter-intuitive connection between the frequency of a marketer’s emails and the active
subscriber rate of their database. The trend we discovered and have substantiated over
the last three quarters of 2013, stipulates that email engagement improves with every
additional message sent per week. Based on the graph below, a marketer
Emails Weekly

Active Subscribers*
4%
9%
11%
15%
14%

pg. 9

*As percentage of entire database.
who mails between 4 and 6 times per week, achieves quadruple the active subscriber
rate of a marketer who mails once per week. However, the tipping point occurs when
marketers exceed the one-email-per-day mark, at which point the active subscriber rate
starts trending downward.

SUBSCRIBER TENURE:

As overall subscriber activity generally grows during the holiday season, the activity
levels in each subscriber segment are also expected to rise. However, the lift in activity for
recent subscribers (within 90 days), varies significantly from that of mature ones (between
3-12 months) and those who have been in a marketer’s database for over a year. These
variations reveal interesting implications for marketers.

Subscriber Activity
Subscriber Tenure

20%

Q4 Engagement for new
database subscribers
(within 90 days)

•	 Unexpectedly, the number of new subscribers in marketers’ databases dropped by 11%.
•	 Engagement for the mature subscriber segment (opted in 3-12 months ago) increased
by 7% and for subscribers with over a year of database tenure, by 6%.
•	 On average, only 14% of all subscribers have been active (opened/clicked) in the last year.

Subscriber Tenure by Industry
Industry

Subscribed within
last 90 days

Subscribed 3-12
months ago

Subscribed over
a year ago

6%
3%
3%
7%
8%
5%
9%
7%
1%
5%
8%
3%

27%
9%
7%
47%
36%
37%
20%
24%
15%
19%
15%
10%

67%
88%
90%
46%
56%
58%
71%
69%
85%
76%
77%
87%

B2B
Consumer Services
CPG
Entertainment
Financial Services
Healthcare
Hospitality/Travel
Insurance
Marketing/Advertising
Publishing
Retail/Wholesale
Technology

Subscriber Tenure Findings:
The Engagement Sweet Spot: New Subscribers
It’s not news to marketers that new subscribers are generally more engaged than existing
ones. However, this finding is more relevant than ever during the holiday season.
Compared to Q3, Q4 showed a 20% increase in new subscribers who became active within
the first 90 days of subscription. This suggests that consumers who opt-in during the
Q4 period have a stronger intent to engage. It is therefore critical to have a solid opt-in
strategy executed by or before Q4. For instance, welcome messages, which are a brand’s
calling card when new subscribers opt into an email program, should be tested along with
all relevant elements of creative, and optimized prior to Q4. Extra points for those who
customized their welcome messages for holiday shoppers.
pg. 10
The Disconnect: While engagement for new subscribers increased by 20% in Q4, the
number of newly acquired subscribers went down by 11%. This decline suggests that
people may be starting to opt into marketers’ email programs in Q3 in order to prepare for
Q4 gift giving season. This amplifies the importance of having an easy and convenient
opt-in process year-round.
Strategy Alert: The discrepancy between the number of new subscribers and the
engagement they boast reveals an area of opportunity for marketers who may reap great
benefits from executing subscriber acquisition campaigns in Q4. This tactic could yield a
higher number of active subscribers who are engaged from the get-go due to the pressing
holiday season timeline.
Subscriber Activity by Industry
Never
opened/clicked

Subscriber Tenure
Domain

Last opened/clicked
within last 90 days

Last opened/clicked
3-12 months ago

Last opened/clicked
over a year ago

86%
80%
72%
74%
76%
51%
45%
71%
77%
58%
65%
70%

Industry

1%
6%
5%
9%
7%
17%
32%
3%
4%
16%
12%
9%

4%
5%
7%
7%
7%
13%
13%
7%
4%
10%
7%
6%

9%
9%
16%
10%
10%
19%
10%
19%
15%
16%
15%
15%

B2B
Consumer Services
CPG
Entertainment
Financial Services
Healthcare
Hospitality/Travel
Insurance
Marketing/Advertising
Publishing
Retail/Wholesale
Technology

SUBSCRIBER DOMAIN METRICS:

In the last couple of years, Internet Service Providers (ISPs) have implemented a number of
controversial changes to their freemail services. One is the institution of Gmail tabs, which
has been largely discussed for its perceived adverse effect on customer engagement and
the way subscribers interact with email.
Overall Database Domain Composition (Mailable Users Only)
100%

8.2%
14.2%

•	 The four major ISPs, AOL, Yahoo!, Gmail, and
Hotmail, make up over 60% of marketers’
databases.

14.7%

		 – Yahoo! users make up almost a quarter of 	
	
databases.

23.2%

•	 With 11% of all domain subscribers being active
in the last 90 days, Gmail boasts the most
engaged user base among the 4 major ISPs.
•	 Alternatively, at 79%, AOL has the largest base
of subscribers who have never been active.

Others*

39.8%

•	 Gmail users accounted for 43% of all new
subscribers in Q4 – up from 39% in Q3.

0%
*This category includes regional &
international ISPs, corporate accounts, etc.
pg. 11
Domain Findings:
Subscription Tenure by Domain
Celebrating its tenth year since their beta release, Gmail is no longer the new kid on the
block. Its user base has grown extremely quickly, closing in on the other freemail giants
such as Hotmail and Yahoo!. However, the relative novelty of Gmail, compared to the
other leading ISPs, is obvious when looking at how long different domain users have been
subscribed to a marketer’s database.
Over 32% of Gmail users opted into marketers’ databases within the last year while this
number is less than 21% for AOL, Hotmail and Yahoo!.
Subscriber Tenure by Domain
Domain

Subscribed within
last 90 days

Subscribed 3-12
months ago

Subscribed over
a year ago

3%
9%
8%
4%

8%
23%
13%
13%

89%
67%
83%
82%

AOL
Gmail
Hotmail
Yahoo!
Domain

In addition, Gmail users accounted for 43% of all new subscribers in Q4, which is more
than 7 times the number of AOL users, over double that of Hotmail, and still significantly
ahead of Yahoo!. Based on this trend, it is likely that the proportion of Gmail users in
marketers’ databases will continue to increase at a consistent pace.
New subscribers (opted-in within Q4) by Domain

7%

AOL

18%

HOTMAIL

32%

YAHOO!

43%

GMAIL

Engagement by Domain
Gmail is the undisputed top performer in terms of engaged subscribers. In Q4, 19% of
Gmail users had been active within a year, compared to 10% for AOL, 12% for Hotmail, and
14% for Yahoo!.
Though an increase in subscriber activity during the holiday season is to be expected,
engagement (opened/clicked in the last 90 days) with Gmail users increased by 25%
between Q3 and Q4 – by far the largest margin.
Subscriber Activity by Domain
Domain

AOL
Gmail
Hotmail
Yahoo!

pg. 12

No
Activity

Activity within
last 90 days

Activity 3-12
months ago

Activity over
a year ago

79%
70%
75%
72%

6%
11%
7%
8%

4%
8%
5%
6%

11%
12%
12%
14%
Considering that Gmail is the unequivocal leader in subscriber engagement among the
four major ISPs, it is likely that recent changes the ISP has implemented, such as Gmail
Tabs and image hosting, have minimal impact on overall user engagement. Though these
changes impact the way consumers interact with emails within their Gmail accounts,
there are too many individual user variables to definitively determine if the effect is
negative. Based on Q3 and Q4 by-domain engagement metrics, Gmail has consistently
produced the most active subscriber base.

STANDARD METRICS:

Email volume predictably grew in Q4 as many marketers, especially in the retail industry,
rely on Q4 to reach year-end projections. As overall volume and subscriber activity rate
increased, however, open and click rates declined.

•	 Volume sent increased by 18.6% between Q3 and Q4.
•	 Overall delivery rate for Yesmail clients increased slightly in Q4, reaching an average of
almost 98%.
•	 Overall open rates decreased by 3%.
Domain
Standard Findings: Q4 is typically the most challenging in terms of email deliverability as
marketers tend to increase send volume and expand targeting to reach a larger audience
during the holidays. As major ISPs are constantly changing deliverability rules and
requirements, it is notable that inboxing in Q4 has not been negatively impacted by risky
year-end sending practices. In fact, inboxing rates increased slightly from Q3, most likely
as a result of better deliverability strategies deployed in preparation for Q4 higher sending
volumes and target audience expansion.
More Active Subscribers, Less Frequent Activity
Perhaps unexpectedly, open and click rates showed a decline in Q4. One potential
explanation for this decline is the continuous rise in mobile usage. For a number of
devices and operating systems, the default “images off” mode prevents the detection of
email opens. This can significantly impact overall open rate. In addition, due to this
default setting which shows email content without images, once an email is opened,
subscribers are less inclined to click, thus contributing to a lower click rate.

Industry

Delivery
Rate

Bounce
Rate

Open
Rate*

Unique
Click Rate

Total
Click Rate

Click to
Open Rate

Unsubscribe
Rate

B2B

86.8%

13.1%

17.5%

1.4%

2.1%

8.4%

0.4%

Consumer Services

97.3%

2.6%

12.6%

2.1%

3.1%

16.9%

0.0%

CPG

97.9%

2.9%

17.3%

2.1%

2.9%

12.0%

0.1%

Entertainment

94.8%

5.1%

16.0%

1.6%

4.8%

9.9%

0.1%

Financial Services

95.1%

4.8%

23.7%

0.9%

1.6%

3.9%

0.1%

Healthcare

91.6%

8.3%

17.5%

3.5%

5.0%

19.9%

0.1%

Hospitality/Travel

97.5%

2.5%

18.5%

1.5%

2.1%

8.3%

0.0%

Insurance

96.9%

3.1%

25.7%

5.6%

7.8%

21.9%

0.3%

Marketing/Advertising

83.5%

16.1%

8.5%

0.7%

1.1%

8.0%

0.1%

Publishing

97.0%

2.9%

16.1%

2.5%

3.8%

16.0%

0.0%

Retail/Wholesale

98.7%

1.9%

13.2%

1.3%

1.8%

10.2%

0.1%

Technology

98.9%

1.1%

20.9%

1.1%

1.6%

5.4%

0.1%

*Yesmail does not count multiple opens as part of an email’s open rate. Open rate is calculated solely based on
unique opens.
pg. 13
WHY STOP HERE?

At this point, marketers unquestionably recognize the definitive importance of mobile
optimization, database segmentation, and targeted email campaigns. Of course, all of
these are easier said than done. In each of Yesmail’s Marketing Compass reports, we’ve
been providing resources for marketers to take their email programs to the next level.
Mobile Optimization & Design:

[WEBINAR]
Mobile-First Email

[WHITEPAPER]
Mobile Email Design:

[INFOGRAPHIC]
Mobile Email Strategies for

Strategies: Thinking
Beyond Just Design

Marketing Fit for the
Small Screen

the Holiday Season

[BLOG POST]
Customer
Segmentation 101

[BLOG POST]
You’ve Segmented your
Database, Now What?

[BLOG POST]
3 Tips to Avoid Deliverability
Issues During the Holidays

[BLOG POST]
Dirty Database: the Flat
Tire on the Road Trip
to Deliverability

[WHITEPAPER]

[WHITEPAPER]

Using Email Behavioral
Data to Engage and
Reactivate Your Customers

The Email Marketing Guide

[BLOG POST]
Keep an Eye Out! Five
Digital Trends Impacting

Database Segmentation:

Resources
[WEBINAR]
Ready, Set, Segment! Using
Email Behavioral Data to Target
Customers and Drive Engagement
Email Deliverability & List Hygiene:

[WHITEPAPER]
End the Nightmares!
10 Email Deliverability
Myths Debunked
Email Programs:

Marketers in 2014

Domain:

pg. 14

[BLOG POST]
What Gmail’s new
sorting feature means

[BLOG POST]
Images Now Showing
on Gmail

[BLOG POST]
Yahoo! Releasing Inactive
Email Addresses
GLOSSARY:
Purchase Behavior:
	
	
	
	
	
	
	
	
	
	
	
	
	
	

%	Desktop Revenue = $ Desktop Revenue/$ Total Revenue
%	Mobile Revenue = $ Mobile Revenue/$ Total Revenue
%	Desktop Orders = Number of Desktop Orders/Total Number of Orders
%	Mobile Orders = Number of Mobile Orders/Total Number of Orders
Desktop Conversion Rate = Number of Desktop Orders/Number of Clicks on Desktop
Mobile Conversion Rate = Number of Mobile Orders/Number of Clicks on Mobile
Repeat Purchaser Rate Desktop = (Number of Desktop Orders-Number of Desktop
Purchasers)/Number of Desktop Purchasers
Repeat Purchaser Rate Mobile = (Number of Mobile Orders-Number of Mobile
Purchasers)/Number of Mobile Purchasers
Desktop Avg Order Value = $ Desktop Revenue/Number of Desktop Orders
Mobile Avg Order Value = $ Mobile Revenue/Number of Mobile Orders
%	Orders Smartphone = Number of Smartphone Orders/Number of Mobile Orders
%	Orders Tablet = Number of Tablet Orders/Number of Mobile Orders

Mobile:
Glossary

	
	
	
	
	
	
	
	
	

% Mobile Opens = Mobile Opens/Total Opens
% CTO Desktop = Unique Clicked Desktop/Opened Desktop
% CTO Mobile = Unique Clicked Mobile/Opened Mobile
% Desktop Only = Proportion of email viewers who only used desktop to interact
with email
% Mobile Only = Proportion of email viewers who only used mobile to interact
with email
% Hybrid = Proportion of email viewers who switched between mobile and desktop
to interact with email

Subscriber Activity:
	
	
	
	
	
	
	

% Mailable Database = Total Mailable Users/Total Users
% Active Subscribers = Proportion of database subscribers with opens clicks in the
last 90 days
Avg # Emails per Opener = Number of emails an active subscriber received in
the last 90 days
Opens per Opener = Number of opens per active subscriber in the last 90 days
Clicks per Clicker = Number of clicks per active subscriber in the last 90 days

Standard:
	
	
	
	

pg. 15

Open Rate = Opened/Delivered
Total Click Rate = Total Clicks/Delivered
Click-to-Open Rate = Unique Clicks/Opened
Unsubscribe Rate = Unsubscribed/Delivered
We power intelligent customer interactions. We give you the insights
to recognize and understand your customer to deliver contextually
relevant digital communications – while respecting their preferences
and privacy. We help marketers evolve their customer relationships
through intelligent interactions via technology, insights, and services
in a near real-time multichannel environment. We help you compete
in the age of the customer.

For more information, visit www.yesmail.com.

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Yesmail's Email Marketing Compass: The Subscriber Domain Edition

  • 1. Yesmail’s Email Marketing Compass: The Subscriber Domain Edition
  • 2. TABLE OF CONTENTS Introduction........................................ pg. 3 Purchase Behavior Metrics............. pg. 4 - 5 Mobile Metrics.................................... pg. 6 - 8 Subscriber Activity Metrics............. pg. 8 - 10 Subscriber Tenure Metrics.............. pg. 10 - 11 Subscriber Domain Metrics............ pg. 11 - 13 Resources............................................. pg. 14 Glossary................................................ pg. 15 pg. 2
  • 3. EXECUTIVE SUMMARY: In many industries, Q4 performance has great implications for the overall success of a brand’s email marketing program. With the holiday season behind us, Yesmail Interactive takes a look at over 6.4 billion emails sent in Q4 and identifies the most notable performance metrics and marketing trends that defined the final quarter of 2013. In addition, we investigate the hotly debated relationship between subscriber engagement and the email domain they belong to. KEY FINDINGS: Introduction Purchase Behavior: In Yesmail’s Q3 Email Marketing Compass, we focused on customer purchase behavior and identified the importance of the mobile path-to-purchase. In Q4 2013, the mobile consumer was more relevant than ever. The number of mobile orders generated by email went up by 58%, and the mobile sales closed as a result of an email click increased by 52% from Q3 to Q4*. Mobile: Mobile email opens and clicks showed consistent growth quarter over quarter, while hybrid email viewership continued its downward trajectory as consumers increasingly showed preference for a single platform to interact with email. In Q4, 55% of all email opens happened on a mobile device, a 5% increase over Q3. In the same period, hybrid email viewership dropped by almost 40%, indicating a notable shift in subscriber behavior. Subscriber Activity: Subscriber activity and email volume are generally expected to grow during the busy holiday shopping season. Consequently, the number of active database subscribers increased by almost 4%, while the number of marketing emails they received, grew by 9% in Q4. This finding, while not surprising, corroborates the trend identified in previous Email Marketing Compass reports that higher emailing frequency (between 4-7 emails weekly) consistently yields a higher number of active subscribers. Subscriber Tenure: This report is based on 6.4 billion emails sent in Q4. Findings in Q4 solidified what most marketers already know: new subscribers are active at a considerably greater rate than existing ones. However, marketers may need a new approach in order to grow and capitalize on this most engaged segment of their database. The number of new subscribers, who were active within 90 days of subscription, increased by 20% in Q4, while the overall number of new subscribers surprisingly decreased by 11% over Q3. Subscriber Domain: With its modest 10 years of existence, Gmail is a relative newcomer to the family of freemail giants, compared to veterans like AOL (est. in 1991), Hotmail (est. in 1996) and Yahoo! (est. in 1997). However, Gmail subscribers make up a significant part of marketers’ databases and, perhaps surprisingly, boast a significantly higher active subscriber rate than do the remaining 3 leading Internet Service Providers (ISPs): AOL, Yahoo! and Hotmail. Gmail subscribers make up 14% of marketing databases across all industries. However, in Q4, 19% of Gmail subscribers had been active within the last year, compared to 10% for AOL, 12% for Hotmail, and 14% for Yahoo!. *All data and insights are based on the same client set, measured and analyzed over Q3 and Q4 of 2013. pg. 3
  • 4. PURCHASE BEHAVIOR METRICS: As consumers grow more comfortable purchasing on their mobile devices, marketers who use email as a driver of revenue continue to see a significant lift in purchases completed on a mobile device. In addition, the increase in mobile purchases seems to be tied to a definitive mobile device preference, as tablets are edging smartphones out as the purchase device of choice. Purchase Behavior Q4 Revenue 18% Increase by Platform 52% Desktop Number of Orders Mobile 82% 18% 41% All Industries Orders Smartphone Desktop | Mobile 59% Orders Tablet Number of Mobile Orders by Device 24% iPhone 59% iPad 16% Android Phone 0%* Android Tablet *Under 1% of mobile orders were completed on a device, not operating with iOS or Android system • With 59% of all mobile orders driven by email completed on a tablet, tablets continue to grow as the preferred mobile device for purchasing, showing more than 4% growth in Q4. – iPad continues to account for 99.9% of tablet orders. • In Q4, the number of mobile orders went up by 58% and accounted for over 18% of all orders placed as a result of a marketing email, a 13% increase over Q3. • Conversions, defined as purchases completed as a result of an email click, predictably showed an overall increase in Q4 with desktop conversions growing by 11% and mobile conversions jumping by 23% across all industries. pg. 4
  • 5. Purchase Behavior Findings: Q4 delivered the expected seasonal lift in overall revenue, number of orders, and repeat purchasers as the holiday season went into full swing. What’s worth noting, however, is that those lifts were not created equal and differed considerably between the desktop and mobile platforms. Purchase Behavior The Continued Ascent of Mobile The increase in mobile revenue and number of orders placed on a mobile device far outpaced their desktop counterparts, thus solidifying the continued growth of mobile adoption and further highlighting the importance of the mobile path-to-purchase. Mobile revenue generated by email went up by almost triple the rate of desktop revenue (52% vs. 18%), while growth in mobile conversion rate outpaced desktop conversion rate by more than 2-to-1 (23% vs. 11%). This interesting disparity in growth rate could mean that the holiday season has given marketers the necessary boost to implement key mobile-first digital strategies to successfully engage their on-the-go audience from the first touch (email), through landing & ecommerce pages, check-out, and cross-selling transactional messaging. By continuing to invest in their mobile marketing efforts through the use of mobile-first mobile strategies, marketers have the opportunity to turn first-time mobile purchasers into repeat mobile purchasers. Q4 Increase in Email-Generated Revenue Mobile Desktop 52% 18% The Tablet: the Ultimate Device for the Mobile Path-to-Purchase While email-generated desktop orders grew by 29% in Q4, the number of orders completed on a mobile device jumped by 58%. Tablet orders increased by 65% since Q3 and made up almost 60% of mobile orders in Q4. In 2012, many received tablets as gifts during the holidays and it appears many used them to complete their own holiday shopping, thus contributing to the notable growth of the tablet as the preferred mobile purchasing device. Less Is More: Growth in Repeat Purchaser Rate Accounts for Lower Average Order Value Interestingly, quarter-over-quarter, there was an overall decrease in average order value. In Q4 the desktop average order value decreased by 8.6%, while mobile went down by a relatively modest 3.6%. One possible contributor to this decline is the increase in repeat purchaser rate observed in Q4. The desktop repeat purchaser rate increased by 17.4% and mobile increased by 2.3%. While repeat purchases translate to a higher conversion rate, they can also account for a lower average order value. For instance, especially during the holidays, many subsequent orders placed by the same purchaser tend to be add-ons to the original order, and have a smaller order size. It is also possible that follow-up cross-sell messaging contributed to add-on orders of smaller value thus, driving the average order value down, but boosting the number of orders, as well as revenue in Q4. pg. 5
  • 6. MOBILE METRICS: Interaction with email on a mobile device continues to trend upwards. While many have projected that mobile adoption is reaching the point of saturation, and is thus slowing its growth, the trending data available from the last three quarters of 2013 would suggest otherwise. 2013 MOBILE OPENS* 49% Q2 Mobile 52% 55% Q3 2013 MOBILE CLICKS* Q4 32% 35% 37% Q2 Q3 Q4 *As a percentage of all email opens and clicks. • In Q4, 55% of email opens and 37% of clicks happened on a mobile device, accounting for a 13% increase in mobile opens and 16% increase in mobile clicks between June and December 2013. • Email viewership preference has continued to shift significantly in Q4 with hybrid email viewers registering an almost 40% decline since Q3, and an overall 72% decline since Q2 of 2013.* • In Q4, mobile-only email viewers grew by 10%, registering an overall increase of 64% between June and December 2013. • The ratio of Apple to Android mobile clicks and opens remained unchanged over the last three quarters of 2013, at 82% and 17%, respectively. • Interestingly, in Q4 both desktop and mobile click-to-open rates registered a decline of 2.7% and 5.7% respectively, due to opens increasing at a much higher rate than clicks. *Hybrid Viewership is defined as subscribers who view emails on both mobile and desktop devices interchangeably. Email Opens and Clicks by Industry Industry Mobile Click CTO Desktop CTO Mobile B2B Consumer Services CPG Entertainment Financial Services Healthcare Hospitality/Travel Insurance Marketing/Advertising Publishing Retail/Wholesale Technology pg. 6 Mobile Open 48.3% 58.1% 49.8% 53.8% 54.0% 41.0% 57.3% 53.4% 37.8% 43.8% 60.1% 50.3% 28.4% 46.6% 28.5% 16.2% 19.1% 23.2% 37.9% 45.6% 19.6% 26.6% 44.4% 27.9% 16.4% 31.0% 24.5% 53.3% 12.3% 37.4% 16.6% 35.7% 16.2% 29.0% 19.0% 10.5% 7.0% 19.6% 9.9% 8.9% 2.5% 16.3% 7.5% 26.2% 6.5% 13.5% 10.1% 4.0%
  • 7. Mobile Behavior Findings: The Hybrid Email Viewer: a Dying Breed While the fact that mobile opens and clicks continue to rise at a consistent pace is not surprising, it is compelling to know that email subscribers are now more likely to view emails exclusively on their mobile devices. In only 6 months, the number of mobileonly email viewers has increased at a rate, almost inversely proportional to the decline of hybrid viewership over the same period. This extreme preference reversal can stem from a number of factors: • More people own smartphones today than did six months ago. • Increasing reliance on a single device for every aspect of life: – While mobile-only email viewership has jumped by 64% between June and December of 2013, desktop-only viewership has also increased, albeit by a modest 5%. Mobile • Existing smartphone users continue to develop a higher dependency on their mobile device by shifting their preferences. • Rapid adoption of tablets over desktops as devices of choice for everyday life. Email Viewership by Platform Quarter-over-Quarter 100% 8% 14% 30% 50% 45% 30% 39% 0% 40% 41% Q2 2013 Q3 2013 Q4 2013 Q4 Email Viewership by Platform by Industry Industry B2B Consumer Services CPG Entertainment Financial Services Healthcare Hospitality/Travel Insurance Marketing/Advertising Publishing Retail/Wholesale Technology pg. 7 Desktop Only Mobile Only Hybrid 46% 39% 48% 45% 47% 55% 38% 45% 52% 47% 36% 46% 52% 48% 45% 49% 51% 42% 54% 50% 42% 42% 55% 44% 1% 13% 7% 6% 2% 3% 8% 4% 6% 10% 9% 10%
  • 8. Mobile by the Numbers Apple and Android continue to dominate the mobile space at exactly the same ratio during most of 2013. The consistency of the mobile market division is remarkable in and of itself with Apple accounting for 82% of all mobile events (opens & clicks) each quarter between June and December of 2013. Together, Apple and Android continue to account for almost 99% of all mobile events. The Tail of After the much buzzed-about release of the touchscreen Blackberry phone, the provider has experienced an overall decline of 52.5% between June and December of 2013, representing only 0.08% of all mobile events in Q4. Mobile Tablets Tablet users are almost exclusively iPad owners, and account for 31% of the Apple mobile user base. This by-device division of Apple users is a striking contrast to Android which has a tablet user base of only 1%. Subscriber Activity Mobile Device Usage by Operating System 31% 69% 1% 99% Did You Know? The publishing sector leads the way in terms of tablet usage. 35% of all mobile clicks and opens happen on a tablet (vs. the 25% average across all industries). This ratio can in part be attributed to an increasing number of online publishers producing content to be consumed on an iPad. SUBSCRIBER ACTIVITY: With a few exceptions, subscriber activity is generally expected to rise during the holiday shopping season when consumers are typically closer to converting. However, having the right targeted content becomes a key factor in the amount of lift in subscriber activity. • The number of active subscribers increased by almost 4% in Q4. While still an increase, this growth rate is lower than the 5% jump in active subscribers from Q2 to Q3. *Active Subscriber Rate = Percent of subscribers who have opened/clicked on an email in the last 90 days. • Average opens per opener increased by 6.5%, while clicks per clicker marginally decreased. • Message frequency increased by almost 10% in Q4 . – Marketers sending between 4-6 messages a week continue to garner the highest percent of active database subscribers. pg. 8
  • 9. Subscriber Activity Findings: In Q4, marketers are often mailing at a higher volume in order to reach a larger audience by expanding the customer segments they mail to, or to reach their current subscriber segments more frequently with the hope that more touches will translate to more conversions. The Message Relevance Phenomenon Even though active subscriber rates went up in Q4, open and click rates continued on a downward trend, registering a decline since Q3. What this finding essentially means is that the number of subscribers opening an email increased, but the number of actions they took did not. While the number of opens per opener went up by 6.5% in Q4, the number of clicks per clicker stayed essentially the same. This trend implies that, even though consumers seem to be amenable to higher frequency of messaging, the content they are offered is falling short of their expectations to receive customized and relevant offers. Subscriber Activity Conclusion: Higher cadence doesn’t hurt engagement as long as content is relevant enough to the subscriber for opens to translate to clicks. Key Database Metrics by Industry Industry B2B Consumer Services CPG Entertainment Financial Services Healthcare Hospitality/Travel Insurance Marketing/Advertising Publishing Retail/Wholesale Technology Active Subscribers Avg. # Emails per Opener Avg. Opens per Opener Avg. Clicks per Clicker 1% 6% 6% 6% 7% 17% 16% 3% 5% 15% 13% 9% 1 *13 2 3 1 1 2 1 5 5 5 2 1 19 5 5 3 3 5 2 4 9 8 4 1 7 2 2 1 2 2 2 2 3 3 1 *As previously defined, Consumer Services industry pertains to largely exclusively online services that rely on email as their primary revenue driver. Examples include Groupon, Gilt Groupe, Match.com, etc. Deeper Dive: Frequency In previous Email Marketing Compass reports, we noted an interesting and somewhat counter-intuitive connection between the frequency of a marketer’s emails and the active subscriber rate of their database. The trend we discovered and have substantiated over the last three quarters of 2013, stipulates that email engagement improves with every additional message sent per week. Based on the graph below, a marketer Emails Weekly Active Subscribers* 4% 9% 11% 15% 14% pg. 9 *As percentage of entire database.
  • 10. who mails between 4 and 6 times per week, achieves quadruple the active subscriber rate of a marketer who mails once per week. However, the tipping point occurs when marketers exceed the one-email-per-day mark, at which point the active subscriber rate starts trending downward. SUBSCRIBER TENURE: As overall subscriber activity generally grows during the holiday season, the activity levels in each subscriber segment are also expected to rise. However, the lift in activity for recent subscribers (within 90 days), varies significantly from that of mature ones (between 3-12 months) and those who have been in a marketer’s database for over a year. These variations reveal interesting implications for marketers. Subscriber Activity Subscriber Tenure 20% Q4 Engagement for new database subscribers (within 90 days) • Unexpectedly, the number of new subscribers in marketers’ databases dropped by 11%. • Engagement for the mature subscriber segment (opted in 3-12 months ago) increased by 7% and for subscribers with over a year of database tenure, by 6%. • On average, only 14% of all subscribers have been active (opened/clicked) in the last year. Subscriber Tenure by Industry Industry Subscribed within last 90 days Subscribed 3-12 months ago Subscribed over a year ago 6% 3% 3% 7% 8% 5% 9% 7% 1% 5% 8% 3% 27% 9% 7% 47% 36% 37% 20% 24% 15% 19% 15% 10% 67% 88% 90% 46% 56% 58% 71% 69% 85% 76% 77% 87% B2B Consumer Services CPG Entertainment Financial Services Healthcare Hospitality/Travel Insurance Marketing/Advertising Publishing Retail/Wholesale Technology Subscriber Tenure Findings: The Engagement Sweet Spot: New Subscribers It’s not news to marketers that new subscribers are generally more engaged than existing ones. However, this finding is more relevant than ever during the holiday season. Compared to Q3, Q4 showed a 20% increase in new subscribers who became active within the first 90 days of subscription. This suggests that consumers who opt-in during the Q4 period have a stronger intent to engage. It is therefore critical to have a solid opt-in strategy executed by or before Q4. For instance, welcome messages, which are a brand’s calling card when new subscribers opt into an email program, should be tested along with all relevant elements of creative, and optimized prior to Q4. Extra points for those who customized their welcome messages for holiday shoppers. pg. 10
  • 11. The Disconnect: While engagement for new subscribers increased by 20% in Q4, the number of newly acquired subscribers went down by 11%. This decline suggests that people may be starting to opt into marketers’ email programs in Q3 in order to prepare for Q4 gift giving season. This amplifies the importance of having an easy and convenient opt-in process year-round. Strategy Alert: The discrepancy between the number of new subscribers and the engagement they boast reveals an area of opportunity for marketers who may reap great benefits from executing subscriber acquisition campaigns in Q4. This tactic could yield a higher number of active subscribers who are engaged from the get-go due to the pressing holiday season timeline. Subscriber Activity by Industry Never opened/clicked Subscriber Tenure Domain Last opened/clicked within last 90 days Last opened/clicked 3-12 months ago Last opened/clicked over a year ago 86% 80% 72% 74% 76% 51% 45% 71% 77% 58% 65% 70% Industry 1% 6% 5% 9% 7% 17% 32% 3% 4% 16% 12% 9% 4% 5% 7% 7% 7% 13% 13% 7% 4% 10% 7% 6% 9% 9% 16% 10% 10% 19% 10% 19% 15% 16% 15% 15% B2B Consumer Services CPG Entertainment Financial Services Healthcare Hospitality/Travel Insurance Marketing/Advertising Publishing Retail/Wholesale Technology SUBSCRIBER DOMAIN METRICS: In the last couple of years, Internet Service Providers (ISPs) have implemented a number of controversial changes to their freemail services. One is the institution of Gmail tabs, which has been largely discussed for its perceived adverse effect on customer engagement and the way subscribers interact with email. Overall Database Domain Composition (Mailable Users Only) 100% 8.2% 14.2% • The four major ISPs, AOL, Yahoo!, Gmail, and Hotmail, make up over 60% of marketers’ databases. 14.7% – Yahoo! users make up almost a quarter of databases. 23.2% • With 11% of all domain subscribers being active in the last 90 days, Gmail boasts the most engaged user base among the 4 major ISPs. • Alternatively, at 79%, AOL has the largest base of subscribers who have never been active. Others* 39.8% • Gmail users accounted for 43% of all new subscribers in Q4 – up from 39% in Q3. 0% *This category includes regional & international ISPs, corporate accounts, etc. pg. 11
  • 12. Domain Findings: Subscription Tenure by Domain Celebrating its tenth year since their beta release, Gmail is no longer the new kid on the block. Its user base has grown extremely quickly, closing in on the other freemail giants such as Hotmail and Yahoo!. However, the relative novelty of Gmail, compared to the other leading ISPs, is obvious when looking at how long different domain users have been subscribed to a marketer’s database. Over 32% of Gmail users opted into marketers’ databases within the last year while this number is less than 21% for AOL, Hotmail and Yahoo!. Subscriber Tenure by Domain Domain Subscribed within last 90 days Subscribed 3-12 months ago Subscribed over a year ago 3% 9% 8% 4% 8% 23% 13% 13% 89% 67% 83% 82% AOL Gmail Hotmail Yahoo! Domain In addition, Gmail users accounted for 43% of all new subscribers in Q4, which is more than 7 times the number of AOL users, over double that of Hotmail, and still significantly ahead of Yahoo!. Based on this trend, it is likely that the proportion of Gmail users in marketers’ databases will continue to increase at a consistent pace. New subscribers (opted-in within Q4) by Domain 7% AOL 18% HOTMAIL 32% YAHOO! 43% GMAIL Engagement by Domain Gmail is the undisputed top performer in terms of engaged subscribers. In Q4, 19% of Gmail users had been active within a year, compared to 10% for AOL, 12% for Hotmail, and 14% for Yahoo!. Though an increase in subscriber activity during the holiday season is to be expected, engagement (opened/clicked in the last 90 days) with Gmail users increased by 25% between Q3 and Q4 – by far the largest margin. Subscriber Activity by Domain Domain AOL Gmail Hotmail Yahoo! pg. 12 No Activity Activity within last 90 days Activity 3-12 months ago Activity over a year ago 79% 70% 75% 72% 6% 11% 7% 8% 4% 8% 5% 6% 11% 12% 12% 14%
  • 13. Considering that Gmail is the unequivocal leader in subscriber engagement among the four major ISPs, it is likely that recent changes the ISP has implemented, such as Gmail Tabs and image hosting, have minimal impact on overall user engagement. Though these changes impact the way consumers interact with emails within their Gmail accounts, there are too many individual user variables to definitively determine if the effect is negative. Based on Q3 and Q4 by-domain engagement metrics, Gmail has consistently produced the most active subscriber base. STANDARD METRICS: Email volume predictably grew in Q4 as many marketers, especially in the retail industry, rely on Q4 to reach year-end projections. As overall volume and subscriber activity rate increased, however, open and click rates declined. • Volume sent increased by 18.6% between Q3 and Q4. • Overall delivery rate for Yesmail clients increased slightly in Q4, reaching an average of almost 98%. • Overall open rates decreased by 3%. Domain Standard Findings: Q4 is typically the most challenging in terms of email deliverability as marketers tend to increase send volume and expand targeting to reach a larger audience during the holidays. As major ISPs are constantly changing deliverability rules and requirements, it is notable that inboxing in Q4 has not been negatively impacted by risky year-end sending practices. In fact, inboxing rates increased slightly from Q3, most likely as a result of better deliverability strategies deployed in preparation for Q4 higher sending volumes and target audience expansion. More Active Subscribers, Less Frequent Activity Perhaps unexpectedly, open and click rates showed a decline in Q4. One potential explanation for this decline is the continuous rise in mobile usage. For a number of devices and operating systems, the default “images off” mode prevents the detection of email opens. This can significantly impact overall open rate. In addition, due to this default setting which shows email content without images, once an email is opened, subscribers are less inclined to click, thus contributing to a lower click rate. Industry Delivery Rate Bounce Rate Open Rate* Unique Click Rate Total Click Rate Click to Open Rate Unsubscribe Rate B2B 86.8% 13.1% 17.5% 1.4% 2.1% 8.4% 0.4% Consumer Services 97.3% 2.6% 12.6% 2.1% 3.1% 16.9% 0.0% CPG 97.9% 2.9% 17.3% 2.1% 2.9% 12.0% 0.1% Entertainment 94.8% 5.1% 16.0% 1.6% 4.8% 9.9% 0.1% Financial Services 95.1% 4.8% 23.7% 0.9% 1.6% 3.9% 0.1% Healthcare 91.6% 8.3% 17.5% 3.5% 5.0% 19.9% 0.1% Hospitality/Travel 97.5% 2.5% 18.5% 1.5% 2.1% 8.3% 0.0% Insurance 96.9% 3.1% 25.7% 5.6% 7.8% 21.9% 0.3% Marketing/Advertising 83.5% 16.1% 8.5% 0.7% 1.1% 8.0% 0.1% Publishing 97.0% 2.9% 16.1% 2.5% 3.8% 16.0% 0.0% Retail/Wholesale 98.7% 1.9% 13.2% 1.3% 1.8% 10.2% 0.1% Technology 98.9% 1.1% 20.9% 1.1% 1.6% 5.4% 0.1% *Yesmail does not count multiple opens as part of an email’s open rate. Open rate is calculated solely based on unique opens. pg. 13
  • 14. WHY STOP HERE? At this point, marketers unquestionably recognize the definitive importance of mobile optimization, database segmentation, and targeted email campaigns. Of course, all of these are easier said than done. In each of Yesmail’s Marketing Compass reports, we’ve been providing resources for marketers to take their email programs to the next level. Mobile Optimization & Design: [WEBINAR] Mobile-First Email [WHITEPAPER] Mobile Email Design: [INFOGRAPHIC] Mobile Email Strategies for Strategies: Thinking Beyond Just Design Marketing Fit for the Small Screen the Holiday Season [BLOG POST] Customer Segmentation 101 [BLOG POST] You’ve Segmented your Database, Now What? [BLOG POST] 3 Tips to Avoid Deliverability Issues During the Holidays [BLOG POST] Dirty Database: the Flat Tire on the Road Trip to Deliverability [WHITEPAPER] [WHITEPAPER] Using Email Behavioral Data to Engage and Reactivate Your Customers The Email Marketing Guide [BLOG POST] Keep an Eye Out! Five Digital Trends Impacting Database Segmentation: Resources [WEBINAR] Ready, Set, Segment! Using Email Behavioral Data to Target Customers and Drive Engagement Email Deliverability & List Hygiene: [WHITEPAPER] End the Nightmares! 10 Email Deliverability Myths Debunked Email Programs: Marketers in 2014 Domain: pg. 14 [BLOG POST] What Gmail’s new sorting feature means [BLOG POST] Images Now Showing on Gmail [BLOG POST] Yahoo! Releasing Inactive Email Addresses
  • 15. GLOSSARY: Purchase Behavior: % Desktop Revenue = $ Desktop Revenue/$ Total Revenue % Mobile Revenue = $ Mobile Revenue/$ Total Revenue % Desktop Orders = Number of Desktop Orders/Total Number of Orders % Mobile Orders = Number of Mobile Orders/Total Number of Orders Desktop Conversion Rate = Number of Desktop Orders/Number of Clicks on Desktop Mobile Conversion Rate = Number of Mobile Orders/Number of Clicks on Mobile Repeat Purchaser Rate Desktop = (Number of Desktop Orders-Number of Desktop Purchasers)/Number of Desktop Purchasers Repeat Purchaser Rate Mobile = (Number of Mobile Orders-Number of Mobile Purchasers)/Number of Mobile Purchasers Desktop Avg Order Value = $ Desktop Revenue/Number of Desktop Orders Mobile Avg Order Value = $ Mobile Revenue/Number of Mobile Orders % Orders Smartphone = Number of Smartphone Orders/Number of Mobile Orders % Orders Tablet = Number of Tablet Orders/Number of Mobile Orders Mobile: Glossary % Mobile Opens = Mobile Opens/Total Opens % CTO Desktop = Unique Clicked Desktop/Opened Desktop % CTO Mobile = Unique Clicked Mobile/Opened Mobile % Desktop Only = Proportion of email viewers who only used desktop to interact with email % Mobile Only = Proportion of email viewers who only used mobile to interact with email % Hybrid = Proportion of email viewers who switched between mobile and desktop to interact with email Subscriber Activity: % Mailable Database = Total Mailable Users/Total Users % Active Subscribers = Proportion of database subscribers with opens clicks in the last 90 days Avg # Emails per Opener = Number of emails an active subscriber received in the last 90 days Opens per Opener = Number of opens per active subscriber in the last 90 days Clicks per Clicker = Number of clicks per active subscriber in the last 90 days Standard: pg. 15 Open Rate = Opened/Delivered Total Click Rate = Total Clicks/Delivered Click-to-Open Rate = Unique Clicks/Opened Unsubscribe Rate = Unsubscribed/Delivered
  • 16. We power intelligent customer interactions. We give you the insights to recognize and understand your customer to deliver contextually relevant digital communications – while respecting their preferences and privacy. We help marketers evolve their customer relationships through intelligent interactions via technology, insights, and services in a near real-time multichannel environment. We help you compete in the age of the customer. For more information, visit www.yesmail.com.