Industry Update: February 2012

2012 is well under way and we’ve been busy spreading fresh ideas and keeping tabs on exciting new developments in email marketing. In this pick of recent web articles, we’ve highlighted news of an important step forward in email security and some new thoughts on A/B split testing. Plus Loren McDonald from Silverpop’s two-part interview with Alchemy Worx CEO Dela Quist sees some typically trenchant opinions expressed on topics such as email frequency, subject line and ‘the nudge effect’.

Joining forces against phishing
An important new working group, DMARC.org, has been set up to further combat phishing by improving methods of blocking bad email. Sam Massiello, General Manager at Email Security Specialists Return Path, expresses his confidence that this coalition of companies, including AOL, Google, Microsoft and PayPal, will make email business more secure than ever.

Alchemy Worx view
It is no surprise to see the banks involved in this new standard. The reduction in phishing messages that this new working group aims to achieve should serve to further increase the confidence in email marketing.
Read the article

To remove or not to remove?
Is your organisation too quick to remove inactives from its database? In the second part of the Silverpop interview, Dela Quist tells Loren McDonald of his dismay at being removed from databases as a consumer himself, and how it highlights the importance of ‘the nudge effect’ in cultivating customers over a long period. He is also typically outspoken on the topic of subject lines, once again going against the accepted wisdom and arguing, “the shorter the subject line, the less likely you are to convey meaning.” He concludes with some strong words regarding marketers’ “visceral fear that the public hates getting email”. “Ecommerce thrives on email,” he says. “If we can get that message out, everyone would love what they do.”
Read the article

Is less really more?
In the first part of this interview with the Silverpop blog, Alchemy Worx CEO Dela Quist tells Loren McDonald why he still feels marketers should be sending more emails, not less. “The challenge is not ‘How do I send less?’,” Quist argues. “It’s ‘How do I get my list to tolerate more?’” He also challenges the trend among marketers towards reducing email volume, arguing that email frequency becomes less of a problem, the better the customer’s perception of the brand.
“How they feel about the email program is actually driven by how they feel about the brand,” he says. “Email is the tail, not the dog.”
Read the article

Testing, testing
How can your email campaigns best benefit from A/B split testing? That’s the question addressed by Alchemy Worx Marketing Director Riaz Kanani in this feature for the DMA website. In particular, he focuses on manual testing, which is often presumed to be costly and complex compared to automatic testing, but which can be far more useful if you have a specific need, or want to test something that is unique to your organisation. Kanani explains how different approaches are better suited to different amounts of data and sample sizes, and stresses the importance of being patient, letting your campaign run its course before you jump to conclusions.
Read the article

How to develop an email test plan in 5 easy steps

Clearly defined testing programmes are the benchmark of accurate, finely-tuned email campaigns. They help increase the revenue you can generate from your email marketing activities, which is, after all, the ultimate goal.

To ensure your testing continues to pay off in the long run, follow these 5 simple steps to help you develop an effective programme.

1. Define your hypothesis

Investing the time up front to clearly define what you’re hoping to achieve through testing helps focus your efforts, and will keep you on track throughout the process. At this stage, don’t be constrained by practical issues. You can consider the restrictions of resources, data and technology later – at this point just focus on your ideals.

Once you have a clear idea of your objectives, brainstorm the influential factors you feel could have an impact on them.

Your email objectives might be defined by:

  • Opens
  • Clicks
  • Purchases
  • Revenue
  • Unsubscribes

Your influential factors could include anything from:

  • Day of the week the email is sent
  • Week of the month the email is sent
  • Subject line length
  • Keywords in the subject line
  • Types of content
  • Message frequency
  • Email design and images

The combination of these two lists will form the basis of your hypothesis.

If you want more of a steer, there’s plenty of material available online that can help – from research to case studies. By all means have a look at these, but it’s important you try testing influential factors for yourself. No two brands have the same market, selling points or subscriber base, so it’s important not to rely too heavily on the findings of others.

Tip: Involve as many stakeholders as you can at this early, defining stage.

2. Mine your historical data

Your historical data contains a wealth of information that will help you achieve your test objectives. To pick an example: if you’re trying to find out which days of the week have the biggest impact on the revenue your newsletter campaign generates, analyze your data over the past 12 months. Chances are you’ll have sent mailings on different days throughout the year, and this data could help minimize the number of tests you need to carry out.

You may discover that, say, Wednesdays are your best weekday, so you’ll probably only need to test this against Saturday and Sunday to reveal your optimal day of the week overall.

Diving into your historical data can also be a quick way to identify potentially influential factors that you haven’t even considered. You may find, as we did here at Alchemy Worx, that there is a significant relationship between subject line length and your click-to-open rate – and this presented us with another opportunity to fine-tune our hypothesis.

Tip: If you’re able to analyze your historical data at an individual subscriber level, you may be able to identify segments of subscribers who behave in similar ways. Finding significant groups of subscribers with the same behaviour patterns for purchase and engagement is likely to present strong opportunities – but only if you carry out a few tests on them.

3. Design your test plan

The next stage is to set out your test methodology. Are you carrying out A/B-split tests, multi-variant tests, or test-and-send? And what’s your test schedule going to look like?

We have found the best way to approach this is to take a long-term view. We therefore recommend developing a test plan that entails making small, regular changes to your campaign, then only producing analysis after a long period. This will give you more reliable results.

We also recommend splitting your campaign into test cells, then analyzing the results well after the activity has finished as the first actions are typically not representative of the whole list.

Keep in mind the potential gains versus the resources required to implement your tests. Testing often means duplicating the amount of work required when sending each campaign, depending on the type of test. A creative test, for example, will be much more time-consuming than a data or timing test, and it’s essential to consider practicalities at this stage.

Once you have prioritized your test factors, you will need to define your sample size. This will dictate how many factors can be tested each week, month and year.

Tip: You may be able to achieve efficiencies in the testing process by using dynamic content, personalization or triggered campaigns based on a date field in your data. But remember, this may require additional data work up front, and make reporting more time consuming.

4. Deploy your campaigns

Having taken any resource constraints into account during the planning stages, you can now deploy your campaigns using the schedule you have produced in your test plan.

Tip: Develop a naming structure for your test campaigns, which will ensure your post-campaign analysis will be as easy as possible. Keep in mind that your campaign code may be visible to recipients on your hosted version, image locations or file names.

5. Analyze your results

Wait as long as you can after the campaign has been deployed to analyze the results. Two weeks afterwards is a good starting point, but a month is better, depending on your brand and subscriber purchasing patterns.

Use your original hypothesis as the benchmark for analysis – and conversely the process of analysis might cause you to question some of your thinking in the hypothesis. And so the process goes full circle.

It’s not over yet, though. The results from each of your tests can now be used to fine-tune your hypothesis, give you fresh ideas for looking into your historical data and possibly re-prioritise your test plan. So it’s back to step one to start the cycle all over again.

Industry Update: August 2011

From split tests to customer engagement, we’ve scoured the web this month to bring you our take on the smartest email thinking online. We discuss articles by Tim Watson, Jeanne Jennings and Mark Brownlow, while Alchemy Worx CEO Dela Quist takes a fresh look at subject lines in his latest seminar.

Split Decisions
Tim Watson tells us how to decide on test cell sample size for split tests without the need for complex formulas.

Alchemy Worx view
Testing is a critical aspect of email marketing, but you need to be patient. By waiting as long as you can to analyse results, you’re more likely to know what to expect when you eventually roll out your campaign.
Read the article.

Tracking revenue per email
Jeanne Jennings discusses the value of calculating RPE, and asks why so few organisations are prepared to do the maths.

Alchemy Worx view
When calculating ROI is too problematic, RPE is an effective way to evaluate the success of your campaigns and to set stretch targets for future performance.
Read the article

Attention please!
Want ideas on how to remove attention barriers from your email campaigns? Mark Brownlow serves up an excellent list of tactics to ensure your recipients remain engaged.

Alchemy Worx view
Setting expectations during the sign-up process – and then meeting them – is the key to maintaining engagement. Yet when recipients fail to open four messages in a row, less than 1% will re-engage and a reactivation campaign should be considered.
Read the article

Top 6 email mistakes – and how to avoid making them

Problem 1: Spelinge misteakes

  • typos in company names
  • industry terms spelt incorrectly
  • incomplete subject lines like “July newsletter – [enter topic]” or “TBC”

The fix:

Make sure a human proofs subject lines, company names and any industry specific terms thoroughly. Your ESP will most likely have an inbuilt spelling checker for your email content but don’t rely on it exclusively.

An extra pair of eyes is a great help here.

Don’t accept copy without a subject line, and never enter anything in the subject line field that isn’t customer friendly.

Problem 2: Getting personalisation wrong

  • Dear First Name…
  • Dear Mr Robert…
  • Dear ,…
  • , welcome to your July Newsletter…

The fix:

Always set up default personalisation that will apply to any gaps you have in your data.

List hygiene techniques and regular data cleansing will not only improve your personalisation but will also help reputation too.

Problem 3: Rendering issues

  • gaps between images
  • broken HTML
  • problems appearing with existing code

The fix:

The answer to rendering issues – which can be a particular problem in Gmail and Hotmail – is to test:

Ensure your HTML follows best practice – and make sure you keep your templates updated by reviewing them regularly. For instance, emails we viewed in Gmail often showed gaps between the images which a “display:block” setting can avoid.

Manually test rendering in all combinations of email client and browser to spot problems. And be sure to keep your list of combinations up to date.

Remember to test regularly to identify changes to the way email clients work – for example, the recent Gmail changes. This should include regular maintenance of any triggered campaigns you’re running.

Problem 4: Out of Date Content

  • offer deadline is in the past
  • links to out of stock products

The fix:

Don’t waste your clicks. Most ESPs will provide link validation that can tell you the URL exists, but not whether it’s the right link. So check each link manually – close to sending time! – to make sure you’re directing clickers to the right location.

Remember your automatic messages too. Audit your transactional and triggered messages regularly to ensure the content is still current, the links work and they’re still rendering correctly.

Problem 5: Receiving the same message multiple times

  • overlapping data lists
  • getting both A and B versions of a split-test

The fix:

Work out a hierarchy for your lists and then make sure each data selection excludes other lists you’re emailing at the same time. Even better, dedupe your data on- or offline ahead of the time.

In our survey of email mistakes, we were surprised at the number of times we’d receive two or more (sometimes even 10!) copies of the same email. This is poor practice all round.

Not only does it create a poor customer experience, but it also costs you. Email may be a supremely inexpensive way of contacting customers, but unnecessary duplicate costs will still impact your ROI.

Problem 6: Special characters not displaying

  • missing currency signs
  • squares instead of symbols

The fix:

Make sure whoever prepares your HTML checks the code before it’s uploaded to the ESP. The quality of ESP validation varies from ESP to ESP, and it’s much easier to fix something before you start.

Look out for missing £, ! and ? when you proof your email too. Often these problems won’t show up in spelling checkers.

What works best as a guideline for sourcing images for your email creative: “pretty” or “pretty informative”?

They say a picture is worth a thousand words. But which picture? Here at Alchemy Worx we wanted to test the performance of images that contribute to a recipient’s understanding of the content of an email. Specifically, we wanted to know what works best when sourcing imagery to accompany editorial content – the pretty or the pretty informative?

Which of these images featured on the highest performing version of the newsletter?

Vote now to see which test won, as well as the results from our other image test.

Optimise your email campaign with A/B split testing

The key to A/B split testing in email is patience. Wait as long as you can to analyse results and you’re more likely to get a true picture of what will happen when you roll out your eventual email campaign.

Does your ESP provide split testing?

Marketers and ESP sales teams often sell email deployment tools with built-in A/B split testing software on the basis that they will make your programs run with the minimum amount of resource.

The A/B split testing functionality varies by platform, from running the entire split test and deploying the “winning” campaign automatically, to simply splitting the data into 2 random sets.

As with most tools, A/B split testing software tends to be generic. If you have a specific need or want to test something that is unique to your organisation, then the manual approach is often the best method, and it’s not half as difficult as you might think…

How do I go about manual A/B split testing?

To ensure that your findings are robust and easy to implement, start with your test plan. Once you’ve decided what you’re going to test, there are 3 main areas you need to consider: data, set up and analysis.

How do I split my data?

To test the impact of one variable on another, a random selection is the best choice for most marketers – essentially splitting your list in half.

Only have a small amount of data? Plan on breaking the analysis down into smaller groups, such as demographic groups. Make sure that you have equal and sufficient representation in each group.

Alternatively, if you believe that one approach is likely to deliver significantly higher returns, you may choose to only keep a small sample for one variable, and send the majority of addresses the alternate option.

How big does a representative sample need to be?

The answer depends on a number of factors:

  • primarily, how statistically viable you need the results to be
  • your objectives
  • how many factors you are testing

There are differing opinions on sample size, but it is smaller than you would think. The sample size used to predict the general election is based on just 2000 people, for instance, although over 27 million people actually vote.

You can choose your sample size scientifically by using a sample size calculator. You can find one easily – just type “sample size calculators” into a search engine.

How to use a sample size calculator:

Say you wanted to test for how many people would open your email if you sent it to 10,000 people and you wanted the accuracy of your answer to be within 5% either way. That means your final answer is going to be an interval, like 25-35%.

So how many people do you need to sample? Here’s how to find out:

  1. Find a sample size calculator online, like this from creative research systems or this from Raosoft
  2. Choose the size of the interval you want as your answer – in this example it’s 5%
  3. Type in the population – in this case it’s 10,000
  4. Choose how certain you want to be. You can never have total certainty, but most calculators let you choose 95% (pretty sure) or 99% (very sure, which means you’ll need to use a larger sample)
  5. Press calculate and the calculator will give you your sample size. For this example you can be pretty sure by sampling 624 people.

So if 10% of your sample open your email, you can be pretty sure that you’ll get a 5-15% open rate when you send it out to 10,000 people.

How do I set up my mailings?

Once you’ve split your data, all you need to do is set up your mailings.

If you plan on delving deeper into your results to profile different segments, the best way may be to set the messages up as one campaign and analyse the data offline after the campaign has finished.

Though this approach requires some additional data work initially, it will keep your campaigns organised within your platform and ensure your future regular campaign reporting remains consistent.

You could opt to:

  • test different subject lines, content or creative by using dynamic content
  • test a variety of send days by setting up a triggered campaign, based on a field you add to your data
  • determine the most effective deployment time, if your list is large enough, by implementing your campaign very slowly

Extra tip: track how you split your campaign and make sure that you can identify which subscribers received which test.

How do I analyse the results?

It can’t be stressed enough: you must let your campaign run its course. We’d advise any results gathered in less than 2 days will probably turn out to be inaccurate as the testing continues. Depending on your purchasing cycle, you may need to wait as long as a month. Then, gather as much information to include as you can – this can be anything that you can attribute to an email address, such as revenue, or even web stats.

To determine the impact of each of your tests, you can then layer this information over your sent, delivered, opened and clicked activities for each email address.

Based on your hypothesis, you will then be able to easily see which campaign met your objectives best. Look at all possibilities. By splitting the data in different ways (which is easier to do offline), you may uncover some surprising findings that could guide future testing or campaign development.

Testing your way to a rapid ROI

Clearly defined testing programmes are the benchmark of accurate, finely-tuned email campaigns. They help improve the revenue you can generate from email marketing – and that’s the ultimate aim after all.

These 10 handy tips will help you develop your testing programme effectively. Implement them into your testing activity and see the difference it makes…

1. Make use of your historical data

Increase your open rates by using historical data. For example, if you’re trying to find out which days of the week have the most impact in terms of open rates, check your old data. Chances are you’ll have already mailed out on 5 out of the 7 days and can judge when your next emails should go out to maximise impact.

2. Work out what you want to test – develop a hypothesis

Define what you are testing for. This could be:

  • open rates
  • click rates
  • purchases
  • revenue
  • unsubscribers

Then decide the factors you want to know the impact of. These could be:

  • day of the week the email is sent
  • week of the month the email is sent
  • subject line length
  • common words in subject line
  • types of content
  • message frequency

3. Compare like for like…

Attribute differences to the specific factor you are testing by splitting your testing across multiple campaigns. Testing more than one factor on any one campaign will confuse results.

4. Take on common assumptions

There’s plenty of material out there to tell you what factors are influential, including research, published articles and case studies. By all means review these, but try testing influential factors yourself.

No two brands have the same market, product offering and subscriber base, so don’t miss out on genuine opportunities for improvement!

5. Segment your list into groups who behave in similar ways

While it would be easier and more profitable if your subscriber base had the same behaviour patterns for purchase and engagement in your activity, they simply don’t.

You can analyse the size and value of subscriber groups and calculate the point where developing campaigns for new groups fails to generate a worthwhile return by breaking your mailing list down into groups – through interests, spending or interaction patterns.

6. See the campaign through and then analyse the results

We always recommend splitting your campaign into test cells, then analysing the results well after the activity has finished. Usually two weeks after is a good starting point, but a month is better, depending on your brand and subscriber purchasing patterns.

7. Include revenue results for a full, complete picture

Opens and clicks are very useful and provide a good level of guidance, but for most marketers the main objective is to generate sales. Make sure you include revenue in your test period analysis.

8. Don’t expect quick wins

The best way to approach testing is with a long term focus. Make small, regular changes to your campaigns and then look at the improvements after a longer period. This will give you more reliable results. Don’t start trying to double your revenue by tweaking your template!

9. Think outside the box (of your campaign)

Use factors outside the scope of your activity, like the impact of the position of your opt-in / subscription link.

10. One last thing… NEVER stop testing

It’s a fact of life – things change over time. Your competitors, customers, general spending patterns and everything in between will alter and evolve. Even if you tested a certain factor a year ago, test it again to make sure it’s still the right approach.

With these top 10 tips under your belt, you’re all set to test effectively. Good luck!

New ways to look at email testing

In this Q&A, Dela Quist shows that the A/B Split email test is not the only way – or always the best way – to assess the effectiveness of your campaigns…

I need to do an email test – tell me a bit about A/B split testing.
The A/B split email test is the classic way email marketers test the performance of their new email activity. It looks at 2 different variables of email response, typically subject line, content or creative.
Most often the test will look at an email’s performance for just a short time period, to see which subject line / creative treatment etc achieves the best open and click rates. But at Alchemy Worx, we’ve seen that isn’t always the best way to assess which approach will be most successful overall.
So what’s the issue with A/B split testing?
The problem is that the short time period distorts the result. Again and again, our research shows that the test cell in the lead after a few hours rarely ends up as the most best performing cell after a few days, especially when sales are taken into account.
This is because the people who interact with an email first are a very specific subset of your customer base – very different to (and commercially less significant than) the sort of people who will interact with an email over an extended period.
Of course, there will be some people will be actively waiting for your email and will open immediately – but this is not typical behaviour. The usual behaviour is not to open the email at all, meaning there are no guarantees that the people who act first are going to act the same way through the length of the campaign.
Furthermore, although A/B split testing may uncover the best “average” approach, the reality is that there is no such thing as an average subscriber. When analysing your data, you may find that some things work best for some users, whilst another approach works better for others.
So how else can I test the impact of different factors?
It’s not as sexy, perhaps, but the most effective way to assess a new email campaign’s performance is to crunch historical data.
After all, a test – however sophisticated – is only a prediction. Analysing historical data, on the other hand, is to look at the factual record of what actually DID happen – and that should be the basis of analysis for future testing.
So use your historical data to check what you have already tested. You will most likely have sent mailings at different times of the day, different days of the week etc. Use that knowledge to fine-tune your future test plan, and only test what you need to test.
Analyse your individual subscriber’s behaviour to group subscribers into segments of people who respond in certain ways. For example, it may be worthwhile developing an additional program for your active subscribers.

Top Tips
Some tried-and-trusted methods to reinvigorate interest in your email activity:

  • Make the most of what you already know about your subscribers by analysing your historical data.
  • Consider grouping subscribers into segments according to response.
  • If you’re A/B split testing, make sure to leave enough time to get truly representative results.

The Preview Pane

The people who receive your emails are most likely to examine its contents through a preview pane at the bottom of their inbox. So what should people see when you look at your email in their preview pane? And how can you make sure that your content gets the message across – however people choose to view it?

The most common setting for viewing emails is with a preview pane at the bottom of the inbox. To find out exactly which email clients your subscribers are reading your messages in, use the Fingerprint application.

As a basic rule of thumb, however, what works in almost all situations is to make sure that your content is accessible within the top of your message. Even if users are not using a preview pane the top will still be the first – indeed, often the only – part of your message they will see.

So what should people see of your email in their preview pane? At the very least your preview pane should include:

  • navigation bar
  • links to email contents
  • branding

The navigation bar will be similar to that on your website but optimized for your emails. Your website nav bar is a good place to start – but to optimise this prime part of your message real estate, make sure you keep an eye on your clicks and test different links and wording. As discussed in this month’s Talking Email, these functional links will most likely generate a higher proportion of revenue than other links in your messages.

Links to email contents: the most effective way to include as much content as possible within your preview pane is to provide hyperlinks that showcase and give easy access to segments further down in your message.

Branding – one of the most overlooked and undervalued advantages of regularly contacting your subscribers via email is the opportunity to reinforce your brand. Make sure your preview pane includes branding, both with images on and off, and that the overall look and feel of your message reflects your brand image. Poorly branded emails can adversely affect your reputation, both online and offline.

Images: many, many messages get sent out with large images at the top of the email. But with images turned off – as many recipients do – a big blank box with a red cross in the corner will be all your subscribers will see. Alt tags can help with this but even these will not be visible in some email clients. (Do make sure you get a copywriter to write your alt tags, however, so that they are useful and meaningful rather than simply “image 1″ or “boy with dog”.)

Always be sure to optimise the content of your preview pane for subscribers viewing your message with images disabled. Include text behind images, or use collapsible images. These solutions may cause other rendering problems, so make sure you test your rendering in all possible browser, application and client combinations.

Test, test and test again
You know your objectives, products and subscribers best. We’ve seen emails that completely go against all best practice get good results, although this is generally the exception rather than the rule. The only way to know for sure what works for you is to test.