Industry Update: September 2011

From copy length on landing pages to creating an engagement index, we’ve selected the pick of articles on the web to help you work more effectively. Plus tips on the best email marketing resources online and how to get a generous discount on this season’s key conference.

How long?
What works better for landing pages – long or short copy? Daniel Burstein explains how guidelines produced by MECLABS director Bob Kemper identify which is most effective.

Alchemy Worx view
Knowing what kind of copy will sell when customers arrive at your site is key. The same approach won’t necessarily work for both designer shoes and insurance. Test results show that short copy works for emotional purchases and longer copy for complex products. See where your products fit on the matrix.
Read the article

Is your audience engaged?
It is vital to understand how effective your emails are – for each mailing but also over time. Take a look at this suggestion from David Daniels about how to create an engagement index.

Alchemy Worx view
The simplicity of the index is its main selling point but also its biggest weakness. Seeing scores over time is helpful, especially as it uses a wide range of metrics. But it can also make it harder to diagnose deeper problems and move the focus away from the goal of greater interaction.
Read the article

Finger on the pulse
There are lots of email marketing resources out there but the trick is finding the best. Mark Brownlow has put together his personal recommendations of the most valuable sources of insights and advice.

Alchemy Worx view
A worthwhile and interesting list (and thanks to Mark for the Alchemy Worx mention). It demonstrates how healthy the debate around email marketing currently is. Blogs, community and Twitter are all included.
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

Growing your Opt-in Database

The effectiveness of your email marketing programme is heavily influenced by the size of your opt-in subscriber base. The more opt-in subscribers you have, the more interaction and ultimately revenue you can generate.

Data collection is the single most important factor in any email marketing programme. But while buying a database from eBay might give you millions of new email addresses, it definitely won’t improve your results. Indiscriminately increasing the size of your database is a futile exercise if you’re not focused firmly on quality.

Market forces

Companies such as Groupon have recently demonstrated the value of the email marketing database. The group discount firm is currently valued at around $30bn (£18.2bn) and its revenue for 2010 exceeded $700m (£426m). This is due in large part to the size – and quality – of its email marketing database.

Groupon ensures the quality of its lists by insisting that all users give contact permission before they are allowed to use the service, and clearly communicate the value of doing so. Groupon’s business model also supports data collection, based as it is on the sending of emails on a daily basis. There are definitely lessons to be learned from this approach.

Before you do anything set yourself a target for the number of opt-in subscribers via your website. Ask yourself these questions. How many visitors come to your website and what percentage of those visitors are opting in? Finally, set yourself a stretch goal based on your answers.

So how can you then encourage more customers to opt in to your database and give you permission to contact them?

Optimise online subscriptions

When it comes to improving the quality of your data, online is a great place to start – and optimising the subscription process can be highly effective.

  • Encourage opt-ins by making the subscription process as clear as possible. This re-enforces trust and gives potential customers a reason to subscribe.
  • When customers make a transaction, take the opportunity to encourage them to give permission to receive further marketing communications.

Drive offline customers online

Getting in touch with offline customers is often overlooked as a method of data collection. Yet this is a rich source of quality information. Collecting email permissions from offline customers – both actual and potential – opens up new and more direct channels of communication, and the appeal of using a more cost-effective purchasing method is a powerful USP.

  • Collect permissions at Point Of Sale, and send a follow-up email as quickly as possible.

How many people read Email-Worx on their mobile today?

It has been almost a year to the day, since we last took a look at how many of you read Email-Worx on your mobile. With all the hype about the impact of mobile on email design and the likely impact on email marketing strategy, we thought it was high time we took another look.How to find out your percentage of “mobile subscribers”?

To find out we signed up to ‘Fingerprint’ (though you could use ‘Mailbox IQ’) who provide email analytics. Then we added their snippet of HTML code to our last email “Developing a Content Strategy” and then tracked email client usage.

Which chart’s red segment do you think shows the proportion of mobile opens?

Developing a Content Strategy

One of the most challenging aspects of developing an email programme that delivers results is having valuable content for every message you send. Developing content that delivers value to your subscribers will ensure the long term success of your email marketing activity.

Here are some tips for developing your content:

Provide value – There is huge value in being able to contact your subscriber base regularly by email, so acknowledging this by giving something to your subscribers in return for their permission. ‘Value’ can be anything from special discounts only available to email subscribers, to useful information about topics related to your product offering. Sticky content like competitions, puzzles or quizzes are also a great way to generate interaction and open a two-way dialog with your subscribers. Time can also be a very valuable characteristic – make sure your email subscribers are the first to know about new product releases or upcoming events or sales.

Make the Value exclusive to email (at least for some period of time) and you will be delivering true value to your subscribers which will ensure they stay engaged for longer, and ensure your subscriber list grows by giving subscribers, and potential subscribers, a reason for being on your list.

Plan ahead – For newsletter programmes, and even ad-hoc mailings, having a plan for 6 or 12 months will ensure that you always have relevant content, and deliver regular messages to your subscriber base. Without regular contact, your database will very quickly lose value. If a subscriber receives a message from you but doesn’t remember giving you permission, they will be much less likely to respond, and may also report your message as spam.

Having a plan will also make it possible to serialize content and include teasers about upcoming content, which improve your open frequency.

Analyze – Look to your historic campaigns to find out what content is most popular, and effective in meeting your campaign objectives. One of email marketing’s greatest virtues is the knowledge you can build on your subscribers. Design your content to use landing pages, and build up significant behavioural data on your subscriber’s preferences and interests.

Categorize your links in different ways to gain a better understanding of the different groups of subscribers within your database. Including codes in your link tracking will make your analysis easier, and be sure to include revenue data and interaction over time in your analysis to get the complete picture of the impact of different content.

Segment – Use the knowledge you have built up in your click analysis to segment your database and target groups of subscribers with content that is specific to their interests. Theoretically, the only limit to the number of versions of a campaign is when the cost of producing the incremental version outweighs the additional revenue generated by that version, but be sure that you are maintaining regular contact with all your subscribers before you start developing additional versions

Understanding the impact of mobile on your email program: This changes everything

Litmus Launches Individual-level TrackingLast July we used Litmus Analytics to help us decide whether we should optimise Email-Worx for viewing on mobile devices. We found that only 3% of those opening that issue, did so on a mobile – certainly not enough to justify redesigning our templates. Although Litmus Analytics told us more about what devices and email clients our subscribers were using to open and read our email communications than we had known before, it left a huge question begging. Who were these people?

As you may know, the Alchemy Worx team are huge fans of subscriber or individual level analysis. It drives all our strategy. And without it, Litmus Analytics was a nice to have for us and by definition our client base.

So last week’s announcement that Litmus Analytics now includes individual-level tracking was very welcome indeed! According to Dela our CEO, “Litmus Analytics is no longer a nice to have for our clients. It’s a must have”.

With it we will now be looking to answer many of the questions that we and our clients have been trying to answer over the last 18 months

- How many subscribers open only on their mobile or PC?
- How many subscribers open on both their mobile and their PC and if so in what order?
- Do subscribers who open on both spend more or less?
- Which device works best for opens/click and purchases?
- Which devices/domains are subscribers more likely to open twice on?
- Do some subject lines work better on mobiles?
- Are there any other factors that influence the proportion of mobile opens in a campaign?

Knowing this may change the way we approach the mobile challenge, and if it makes us do things differently it will be from a position of knowledge and not speculation.

We would love to hear from anyone who would like to find out more about how to use the Litmus Application to optimise their email program or would like to share their experiences.

How do you send 1 million emails for $100, £60 or €80?

On Wednesday, Amazon Web Services announced the launch of the Amazon Simple Email Service (Amazon SES), which they describe as “a highly scalable and cost-effective bulk and transactional email-sending service for businesses and developers”.

They go on to say that Amazon SES will eliminate “the complexity and expense of building an in-house email solution or licensing, installing, and operating a third-party email service”.

Wow this sounds like a game changing development!

With 10 years’ experience in delivering email marketing campaigns using over 20 different email service providers, Alchemy Worx couldn’t resist the opportunity to register for the SES service to see if the service really is a game changer!

So does this mean you should ditch your current ESP or in-house email marketing system?

First, in order to access Amazon SES, you will need to have or register for an Amazon Web Services Account which you can do here.

Once signed in, you’ll be presented with an impressive selection of Amazon Web Services Products including Beanstalk, S3, EC2, VPC, CloudWatch, Elastic MapReduce, RDS, SNS. Initially quite a daunting prospect! To get to where you need to go the navigation path is ‘Products > Messaging > Amazon Simple Email Service (SES)’.

As a separate product, you will need to sign-up to it separately and then activate your account via phone callback and pin verification system.

Once activated, you now have access to the evaluation (sandpit) version of the service. In order to access to the full version, you are required  to fill out an additional application which can be found here.

So now you are all set to deploy your first email right? No, Not quite.

Amazon’s Simple Email Service is so called because sending a message is “as simple as calling a single API”. To call an API, you need Security Credentials configured for API authentication purposes.

Amazon Web Services (AWS) offer 3 special credentials in order to access applications and services within the AWS Cloud. These include Access credentials; Sign-In Credentials, and Account Identifiers.

At this point, it is already clear that plenty of technical knowledge if going to be required to send those emails. This is all before we get to the code required to actually send the email in the first place. You can read more about the developer guide here.

Any email marketing professionals expecting a user friendly front-end interface or desktop client to go with the $0.10 CPM which they can use to build and schedule sophisticated email campaigns will find……… there isn’t one!

Today, Amazon’s Simple Email Services are mainly designed to appeal to companies looking for a back-end solution for their transactional email messages or wanting to replace an ageing in-house email platform. If you currently deploy your email campaigns using a typical ESP, this service is unlikely to appeal to you.

When should I send my email campaign to get the best response?

When our clients ask this question, they are typically looking for a ‘time of day’ and ‘day of week’ that they can apply to every campaign they send. But unfortunately it’s never that easy…

• Is timing the most important factor in eliciting an interaction from your subscribers?

• Can you keep your hypotheses open to uncover unlikely insights?

• And is there a more effective way to test timing by using historical analysis?

From our experience, of all the things that you can test about your regular newsletter or offer-based email campaigns, time of day and day of week testing provide the least valuable insights.

A far greater number of people on your list are likely to buy because they have just been paid than the number of people who buy because you sent the email before 1pm on a Thursday. See more about the effects of payday in this past article.

It’s worth bearing in mind that we’re talking about regular ‘one-time’ or ‘push’ mailings here, those that are scheduled in your mailing calendar. When you create transactional or lifecycle emails, the time lapse before or after the event or lifecycle point can be critical, but we’ll talk about timing tests for those in a future issue.

Why do Subscribers Interact

Research on consumer motivations has shown that consumers’ personal motivations exert more influence than the time of day a message is sent. When Forrester asked “How much did each of the following influence you to open the emails you receive from companies?” Only 9% of consumers cited the time and/or day they received the message as having any influence.

By comparison the top four were:
Your interests – 59%
Your needs at the time – 51%
The sender – 48%
I like the company – 46%

Exact Target have also published a Channel preference survey which looked at usage patterns in email by time of day, it identifies an “email prime time” of maximum engagement between 8am and 11am.

Testing & the Problem with Averages

One of the most prevalent mantras in email marketing is TEST, TEST, TEST & TEST again; so there must be hundreds of marketers out there planning to roll out day of the week and time of day tests at this very moment. But is this the best approach?

Alchemy Worx has found if you really want to optimise send frequency; it is vital to target all behaviour not just the average, because not everyone on your list wants the same thing. This is also true of send time. If you conduct a standard day of the week test, all you will find out is the best day for your list and not what is best for any given individual or groups of individuals. For any given day of the week or time of the day that you could choose to send your campaign out, including 3 am Sunday night, there will be at least one person on your list who thinks that is the perfect time or day and one person who thinks that it is the worst time or day.

You Goldmine of Historical Data

An effective shortcut for any timing analysis will be to look back at what has happened over the past 12 months. Over that time period most companies will have sent messages on every day of the week most times of the day – often without prior intent to test. You will also have data on the full impact of your campaigns, by waiting for sales and revenue rather than relying only on immediate opens and clicks.

This historical data is a goldmine! Using this data, you can analyse the effect the time and day a message was received has had on the performance. At the very least you can confidently make your test plan more manageable by focusing on the most likely looking days or days where you do not have any data; best of all you will also have a benchmark to work from.

Our golden rule is this; before you test anything ask yourself if the answer (or part of the answer) is right under your nose in your historical data.

One of the other benefits of conducting a forensic audit of your historical data is that it can yield unanticipated and valuable additional benefits. In setting out to discover the best day of the week or time of day for our clients to send their campaigns out, we discovered that which week of the month a message was sent had a far greater impact on revenue than other temporal considerations!

Expanding your Analysis

Our in-depth analysis over the past 5 years has consistently shown that the best week of the calendar month for generating revenue (in the UK) is week 5!

Followed by:
Week 1
Week 4
Week 3
Week 2

Does your list also fit this pattern? Why not test this for yourself?

The reason for it is simple, most people feel richest just after payday, and in the UK, the majority of salaried people get paid between the 25th and 30th of each month.

Implementing your Findings

So if your campaign is monthly, aim to get your message out as soon as possible after payday – weeks 5 or 1 depending on the month. If at all possible try to avoid week 2 and to a lesser extent week 3.

If your campaign is weekly you may want to consider lower discounting or adding less value in weeks 5 and 1. Conversely if you need revenue in weeks 2 and 3 you will need a much stronger offer.

So back to the first point; if you also think about send time/day or week in terms of size of segment i.e. how many of the people on your list are likely to feel the same way about something or be in the same situation; a far greater number of people on your list are likely to buy because they have just been paid than the number of people who buy because you sent the email before 1pm on a Thursday.

Frequency in email marketing: can less really be more?!?

“Am I mailing my opt-in list enough?”

The great unspoken truth of email marketing is that mailing more makes more money. But email marketers fail to fully exploit this fact because they are afraid of being seen as spammers – a misconception for which we have only ourselves to blame…

In the last twelve months I’ve had over a dozen clients and prospects tell me that they would like to send more email – but they can’t get the budget because their boss thinks consumers hate email and/or get too much email.

Yet every single piece of research confirms that email is the Number One way that consumers would prefer to be contacted by the companies they buy from. It’s unobtrusive, it puts the subscriber in control, and it’s easy to process. In addition, all the people on your list have specifically given you their permission to send them stuff, and they can switch off that supply any time they like at the touch of a button.

Why are we so obsessed with the idea that sending less email is good while sending more email is bad?

Email is RFI, not RFM
The reason is that email marketing continues to be dominated by a DM worldview, with a focus on RFM (reach – frequency – monetary value) and a resulting fixation on relevance, timing and ever tighter targeting. In other words, what we are trying to do is to get our subscribers to open, click and buy from a higher percentage of our emails… by sending fewer and fewer messages! But, can less ever really be more?

Surely not. The great unspoken truth of email marketing is that if you send more email by increasing your reach (growing your opt-in list) and/or increasing your frequency (mailing your list more often) you significantly increase the likelihood of making a sale.

So, given that we know that sending 2 emails will generate a greater return then sending one, why don’t we spend our time working out how to send more email? Answer: Because we’re terrified of being labelled spammers! This attitude of fear and self-loathing among email marketers is the single biggest obstacle facing our industry today. We are, quite simply, our own worst enemy.

Brand marketers use the broadcast RFI model (reach – frequency – impact) all the time, for the simple reason that it has been proven to work, time and again. (And so, of course, do spammers, which may be where some of the fear comes from.) But when was the last time you saw a case study or presentation that focused on the effectiveness of increasing reach or send frequency?

In every other broadcast marketing medium, advertisers always try to push the boundaries of frequency to see how much messaging an audience will tolerate. Listen to a radio chart show with a dozen messages per hour from the same sponsor, and you’ll realise this frequency goes very high indeed. Yet no one accuses Microsoft of spamming the airwaves with Xbox ads.

Can you imagine any other industry – TV, Radio, Press, Search, Banner or even Billboards – suggesting that the way to stand out from the competition is by doing less??

At AlchemyWorx we strongly believe that email is under-exploited by marketers because of a conditioned – but entirely misplaced – fear of over-mailing. Whilst we certainly agree that there is a maximum threshold for email communications, most people are far too fearful to get anywhere near it by testing higher frequencies.

Instead, every best-practice document published preaches about the alleged Holy Trinity of segmentation/targeting, timeliness and relevance (or non-spammy behaviour). Email is the only channel where lower frequency is seen as good, and higher frequency is bad. The challenge is that it’s not consumers who have this view – it’s email marketers. Talk about turkeys voting for Christmas!

Of course, timing, targeting and relevance are important and should be done whenever and wherever possible. But see them as the means by which we get our subscribers to tolerate a greater frequency of contact – NOT as a reason to send less and less email.

More email works. Fact.