What email metrics do you use?

Vertical Response talks about email metrics that are useful on a dashboard.
Metrics are an ongoing challenge for all marketers. The underlying need for metrics is to evaluate how effective a particular marketing program is. Picking metrics involves understanding what the goal is for a particular program. If your goal is brand recognition then perhaps sales and click-through figures aren’t a good metric. If your goal is sales then opens is not as good a metric as average order value or revenue per email.
Measuring email success is important. But how you choose to measure it is a critical decision. Too many marketers just use canned metrics and don’t think about what they really want to know.

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Standard Email Metrics

The EEC has been working on standardizing metrics used in email marketing. They have published a set of definitions for different terms many email marketers use. They published their Support the Adoption of Email Metrics (S.A.M.E) guide in June.
Under the new EEC definitions an open is measured when either a tracking pixel is displayed or a user clicks on any link in the email, including the unsubscribe link. Open rate is defined as the number of opens (either unique or total) divided by the number of accepted emails. Accepted emails equals the number of emails sent minus the number of emails rejected by the ISP for any reason.
The authors do caution, however, that even their measurements may under count the number of email subscribers that actually open or read an email. Some readers don’t load images or click on links but happily read and digest the content being sent. Others may not click on a link but actually visit a website or brick and mortar store to purchase something based on the email.
Overall, I think the definitions created by the S.A.M.E. group accurately reflect the things they want to measure within the limits of what is actually measurable. Their definitions won’t affect conversations in the short term, but are likely to drive change to standard terminology over the longer term. I do strongly encourage people to grab a copy of their document and see how their definitions compare with your current measurements.

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Delivery Metrics

Last week ReturnPath published a study that shows 20% of permission based email fails to be delivered to the inbox. For this study, ReturnPath looked at the mail sent by their mailbox monitor customers and counted the number of deliveries to the inbox, the number of deliveries to the bulk folder and the number of emails that were not delivered.
At US ISPs 21% of the permission based emails sent to the ReturnPath probe network did not make it to the inbox. 3% of the emails sent went to the bulk folder and 17% did not make it to the mailbox at all.  MSN/Hotmail and Gmail were the worst ISPs to get mail to. They each failed to deliver more than 20% of the mail that was sent to them. At Canadian ISPs, even less of the mail made it to the inbox, primarily because primus.ca is such a large portion of the Canadian market and they use Postini as a filter. Postini is a quite aggressive filter and takes no feedback from senders.
ReturnPath’s take home message on the survey is that one set of metrics is not enough to effectively evaluate a marketing program. Senders need to know more about their mailings than they can discover from just the bounce rate or the revenue rate or response rate or open rate.
There are a lot of reasons an email doesn’t get to the recipient’s inbox or bulk folder. Mail can be hard blocked at the MTA, and rejected by the ISP outright. Mail can be soft blocked at the MTA and the ISP can slow down sending. Sometimes this is enough to cause the sending MTA to stop attempting to deliver the mail, thus causing mail to not show up. Both of these types of blocks are usually visible when looking at the bounce rate.
Some ISPs accept mail but then fail to deliver it to the recipient. Everything on the sender end says the ISP accepted it for delivery but the ISP just drops it on the floor. This is the type of block that a mailbox monitoring program is best able to identify.
Despite all the discussions of numbers, many marketers are still not measuring the variables in their email campaigns. Ken Magill wrote today about a study released by eROI that indicates more than a third of marketers are not doing any testing on their mailings.
Now, both of these studies are done in an attempt to sell products, however, the numbers discussed should be making smart senders think about what they are measuring in regards to their email campaign, how they are measuring those factors and what the measurements mean.

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Don't take my subscribers away!

Tom Sather has a good summary of the problems with inactive email addresses and why data hygiene is critical to maintain high deliverability. These recommendations are some of the most difficult to convince people to implement.
Some of my clients even show me numbers that show that a recipient that hadn’t opened or read and email in 18 months, suddenly made a multi-hundred dollar purchase. Another client had clear numbers that showed even recipients that didn’t open for an entire year were responsible for 10% of revenue.
They tell me I can’t expect them to let their customers go. These are significant amounts of money and they won’t let any potential revenue go without a fight.
I understand this, I really do. The bottom line numbers do make it tough to argue that inactive subscribers should be removed. Particularly when the best we can offer is vague statements about how delivery may be affected by sending mail to unengaged users.
I don’t think many senders realize that when they talk about unengaged users they are actually talking about two distinct groups of recipients.
The first group is that group of users that actively receive email, but who aren’t opening or reading emails from particular senders. This could be because of their personal filters, or because the mail is going to the bulk folder or even simply because they don’t load images by default. This is the pool that most senders think of when they’re arguing against removing unengaged users.
The second group is that group of users that never logs in ever. They have abandoned the email address and never check it. I wrote a series of posts on Zombie Emails (Part 1, 2, 3) last September, finishing with suggestions on how to fight zombie email addresses.
Unlike senders ISPs can trivially separate the abandoned accounts from the recipients who just don’t load images. Sending to a significant percentage of zombie accounts makes you look like a spammer. Not just because spammers send mail to really old address lists, but a number of spammers pad their lists with zombie accounts in order to hide their complaint rates. The ISPs caught onto this trick pretty quickly and also discovered this was a good metric to use as part of their filtering.
I know it’s difficult to face the end of any relationship. But an email subscription isn’t forever and if you try to make it forever then you may face delivery problems with your new subscribers.

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