- Does my company need abandoned cart/browse campaigns if we’re not an ecommerce or retail marketer?
- Are reactivation campaigns worth it, or should I just cull unresponsive subscribers from our list?
- How much marketing automation do I need? Do I need an ESP or MA platform?
- Do multi-touch campaigns (like a welcome series) outperform single message-campaigns? Is the extra effort to create a series worth it?
- Would my company benefit from reputation management and delivery services? What’s it worth?
- Does dynamic content really pay off?
Last month we explored the first of two important digital marketing list subscriber metrics: CPA, the cost to acquire a new list member (see Part 1 here). I also presented a process for determining your maximum allowable CPA – that is, how much it’s worth paying or investing to acquire new subscribers on a name-by-name basis. This month we’ll explore various approaches to assigning economic value to every subscriber already on your list. Let’s start with the clearest way first: the Revenue-Per-Subscriber method also known as RPS.
I was just paid $16.56 for my email address. You read that right: CVS, the drug and pharmacy chain, paid upwards of $15 to acquire my email address. There I was in my local store buying about $40 worth of health and personal care items when they offered me an instant 20% savings on my purchase in exchange for my email address. So I gave it to the clerk, resulting in a discount of $8.28, which somehow (likely by mistake) was applied twice for a total savings to me (and cost to CVS) of $16.56. At two recent business events (which did not provide exhibitors and sponsors with attendee lists) I noticed exhibitors actually paying attendees cold hard cash in exchange for their email addresses. Yes, they were handing out the green stuff in a blatant, unmasked trade for data. One business coach offered passers-by $1 for a name and email address and $5 for a completed lead qualification questionnaire. At another event, an exhibiting sponsor held a stack of crisp, fresh dollar bills and asked each visitor if she would like $1 in exchange for her email address. Most attendees cruising the exhibits at these events happily gave up their email addresses and took the money!
In my ongoing series of email marketing conundrums, I couldn’t possibly overlook this one: declining email marketing open rates. Although much has been written on the subject, my goal is to provide you with not just a diagnostic checklist for investigating why open rates are falling nor to hand you a “best practices” list of what to do to reverse the decline, but to go beyond that by (most of all) giving you a “reality check” on the subject and presenting a new, more constructive way to see this situation, as well as a new mindset on email marketing performance measurement altogether. In short: while we do need to pay attention to declining open rates, there’s too much focus on them at the expense of more meaningful email marketing performance measures.
Today it’s not enough to know how an individual email campaign performed on a one-time basis. To learn whether or not your company is deriving true value from email marketing, you need the both broader and deeper perspectives offered by program- and list-level analyses. While standard email campaign performance metrics like delivery, open and click-through rates have their place, without looking beyond them the true impact of your email marketing – and opportunities for continuous improvement - will go undetected.
When it comes to measuring email marketing results, there’s plenty of undue obsession with tracking basic process metrics like deliverability, opens and clicks. While each of those measures is obviously important, it’s the bottom line contribution of email marketing to your business that ultimately matters most.