Q1 2011 Email Trends and Benchmarks

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epsilon.com Research: June 2011 STRATEGY AND ANALYTICS / TARGETING / CREATIVE / TECHNOLOGY / DIGITAL Q1 2011 EMAIL TRENDS AND BENCHMARKS – PRESENTED B Y EPSILON AND THE EMAIL EXPERIENCE COUNCIL

Transcript of Q1 2011 Email Trends and Benchmarks

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epsilon.com

Research: June 2011

STRATEGY AND ANALYTICS / TARGETING / CREATIVE / TECHNOLOGY / DIGITAL

Q1 2011 EMAIL TRENDSAND BENCHMARKS –

PRESENTED BY EPSILON ANDTHE EMAIL EXPERIENCE COUNCIL

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EXECUTIVE SUMMARYThe Q1 2011 Email Trends and Benchmarks study shows an increase in open rates as well as a signicant

uptick in average volume per client rom the same time last year. The study also shows that the conversionrate o 3.0% is the strongest over a three year period, proving that email continues to be a strong channel

to drive revenue or brands.

This report delves into perormance trends by industry and by message type across industries. Openand click rates vary by message type and marketers should crat messaging with this data in mind and

leverage all email communications opportunities to build the customer relationship.

The Q1 2011 Email Trends and Benchmarks study is compiled rom 7.1 billion emails sent by Epsilon in

Q1 (January – March) 2011, across multiple industries and approximately 140 participating clients.This benchmark report should be used only as a guideline, since specics or each company will

drive results.

Q1 2011 OVERALL PERFORMANCE

• Open rates (23.3%) increased both quarter over quarter (by 5.6%) and year over year (by 4.2%).Five of the 13 reported industries saw at least a 5% increase in open rates over Q1 2010.

• Click rates (5.9%) decreased slightly from the same time last year (6.0%) but increased from theprevious quarter (5.1%).

• Average volume per client increased 5.7% from Q4 2010 and a whopping 39.2% from Q1 2010.

• The non-bounce rate (96.0%) increased compared to this time last year (94.7%) and remains steady.

• Click to conversion rates decreased 4.7% over last quarter but increased 26.5% over the samequarter last year. The 3.0% conversion rate is the strongest over a two year period.

• Median order sizes increased 4.0% over last quarter and 20.1% over the same quarter last year.

• With an increase in median order size and orders per email delivered, revenue per emailincreased 40.2% over Q1 2010 and increased 20.6% over Q4 2010.

STRATEGY AND ANALYTICS / TARGETING / CREATIVE / TECHNOLOGY / DIGITAL

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Epsilon’s non-bounce, open and click ratescontinue to drive strong results

l n pNon-Bounce Open rate Click-through

5.9%p

23.3%n

96.0%l

Q410 Q111Q309 Q409Q109 Q209 Q110 Q210 Q310

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6.2% 5.3% 5.4%pp pp

21.9% 22.0% 22.1% 22.0%

n n n n

93.5%94.8% 96.1%

l ll

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94.1%

22.2%

5.9%

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l

94.7%

22.4%

6.0%

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INDUSTRY PERFORMANCE

Business Publishing/Media General, Consumer Services General, Financial Services General, RetailSpecialty and Travel/Hospitality Travel Services had at least a 5% increase in open rates compared to

the previous year’s metrics.

Business Products and Services General, Consumer Services Telecom and Financial Services CC/Banks sawan increase of at least 5% in the click rate compared to the same quarter in 2010.

The highest open rates were in Financial Services General (37.4%) and Financial Services CC/Banks (32.9%).The highest click rate was Consumer Services Telecom (9.3%). Consumer Products CPG had the highest clickto open rate (53.8%), greatly exceeding all other industries.

STRATEGY AND ANALYTICS / TARGETING / CREATIVE / TECHNOLOGY / DIGITAL

Q1 11 North American Industry Average Sentper Client

Non-Bounce

Open Rate Click Rate Click toOpen Rate

Business Products and Services General 70.4% 95.3% 20.8% 5.7% 27.4%

Business Publishing/Media General -90.9% 97.2% 22.6% 5.5% 24.5%

Consumer Products CPG 29.0% 97.2% 16.5% 8.9% 53.8%

Consumer Products Pharmaceutical -78.4% 84.0% 24.0% 6.1% 25.6%

Consumer Publishing/Media General 39.4% 98.8% 15.2% 6.5% 43.0%

Consumer Services General 8.8% 95.3% 18.1% 3.9% 21.6%

Consumer Services Telecom -3.7% 97.6% 26.6% 9.3% 35.0%

Financial Serviced CC/Banks -1.2% 94.9% 32.9% 7.1% 21.5%

Financial Services General 24.5% 95.7% 37.4% 6.7% 18.0%

Retail Apparel 78.7% 98.9% 14.1% 3.9% 27.9%

Retail General 20.5% 97.4% 22.2% 5.2% 23.5%

Retail Specialty -64.3% 97.4% 20.6% 4.3% 20.9%

Travel/Hospitality Travel Services 1.2% 97.2% 26.3% 4.2% 16.0%

Red or green text indicates an increase (green) or decrease (red) over last year’s metrics that was over 5 %

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CAMPAIGN PERFORMANCE

The Q1 2011 Email Trends and Benchmarks also analyzed the message types and their performance metricsfrom email campaigns deployed through the DREAM platform. 66.7% of emails delivered by Epsilon were

categorized as marketing messages, down from 74.4% the previous quarter.

Key metrics varied by message type across the industries analyzed. Marketing messages fared wellin categories such as Business Publishing/Media General, Consumer Services General, ConsumerServices Telecom, Financial Services CC/Banks, and Financial Services General.

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Message Types by Industry

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Message Type Open Rate Click Rate CTOR  

Acquistion 13.61% 1.6% 11.9%

Editorial 24.26% 7.5% 30.9%

Marketing 17.21% 3.5% 20.3%

Other 21.66% 4.0% 18.3%

Research 18.19% 3.0% 16.5%

Service 37.51% 7.9% 21.2%

* Message types are based on emails deployed out of the DREAM platform anddened by the person(s) creating the campaigns which may not refect the samedenitions as your company

66.7% of emails delivered by Epsilon were categorized asmarketing messages, down from 74.4% the previous quarter

Industry Industry Category MessageType

OpenRate

ClickRate

Click toOpen Rate

% of TotalDeliveredin Industry

Business Products

and ServicesBusiness Products and

Services GeneralAcquisition 8.81% 1.1% 12.4% 2.2%

Marketing 12.37% 1.5% 12.2% 79.0%

Other 13.09% 2.5% 18.8% 18.2%

Research 3.52% 0.5% 14.1% 0.6%

Business

Publishing/Media

Business Publishing/

Media General

Acquisition 38.73% 9.3% 24.1% 0.2%

Editorial 23.47% 7.6% 32.5% 79.2%Marketing 46.63% 9.1% 19.5% 12.0%

Other 19.01% 9.2% 48.4% 8.6%

Research 12.42% 2.6% 21.1% 0.0%

Service 50.81% 17.4% 34.2% 0.0%

Consumer Products Consumer Products CPG Marketing 14.52% 3.6% 24.7% 100.0%

Other 54.66% 12.8% 23.4% 0.0%

Research

0.0%

Service6.5%

Editorial

1.3%

Acquisition.1%

% Delivered in Q1 2011

Marketing

66.7%

Other25.3%

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Industry Industry Category Message

Type

Open

Rate

Click

Rate

Click to

Open Rate

% of Total

Deliveredin Industry

Consumer Services Consumer Services General Marketing 31.87% 5.8% 18.3% 98.8%

Other 74.82% 20.3% 27.2% 1.2%

Consumer Services Telecom Marketing 20.74% 1.8% 8.9% 100.0%

Financial Services Financial Services CC/Banks Marketing 28.28% 3.2% 11.5% 18.1%

Other 37.26% 5.6% 15.0% 42.9%

Research 46.71% 20.6% 44.1% 0.0%

Service 37.78% 7.8% 20.6% 39.0%

Financial Services General Marketing 35.47% 3.3% 9.2% 69.0%

Other 54.22% 12.1% 22.3% 7.6%

Service 27.11% 5.2% 19.2% 23.3%

Retail Retail Apparel Marketing 10.36% 1.9% 18.0% 93.5%

Other 11.78% 3.1% 26.1% 6.5%

Service 71.68% 12.2% 17.0% 0.0%

Retail General Marketing 17.86% 3.9% 21.7% 59.3%

Other 15.37% 3.4% 22.1% 40.6%

Research 15.65% 6.1% 39.2% 0.0%

Service 51.01$ 16.8% 33.0% 0.0%

Retail Specialty Acquisition 53.51% 6.0% 11.3% 0.0%

Editorial 22.79% 5.9% 25.7% 0.1%

Marketing 13.80% 1.8% 12.8% 87.8%

Other 23.68% 4.6% 19.3% 9.5%

Research 67.58% 27.0% 39.9% 0.0%

Service 43.15% 19.4% 45.0% 2.7%

Travel/Hospitality Travel/Hospitality Travel Services Acquisition 23.07% 2.3% 10.0% 0.4%

Marketing 18.98% 3.2% 17.0% 99.3%

Other 41.83% 7.7% 18.4% 0.2%

Research 88.46% 3.1% 3.5% 0.0%

Marketing 63.20% 1.3% 2.1% 0.0%

STRATEGY AND ANALYTICS / TARGETING / CREATIVE / TECHNOLOGY / DIGITAL

Message Types by Industry (cont.)

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CONCLUSIONS

Relevance and timing are critical factors that boost email marketing campaign performance. Since eachindividual consumer has specic preerences and behaviors, relevance and timing will vary greatly by

individual. Thereore, the best perorming campaigns leverage data at the individual consumer level todrive campaign messaging, personalization, timing and frequency, channel of communication and othercomponents. With historically high email volumes it’s clear that inboxes are being inundated withmarketing messages. To resonate with customers, marketers need to remain relevant and ocus on

building a one-to-one relationship between the brand and the consumer.

STRATEGY AND ANALYTICS / TARGETING / CREATIVE / TECHNOLOGY / DIGITAL

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EpsilonCorporateHeadquarters4401 Regent BoulevardIrving, TX 750631-800-309-0505

[email protected]

epsilon.com

Email Experience CouncilDirect Marketing Association1120 Avenue of the AmericasNew York, NY 10036

Ali [email protected]

emailexperience.org