Metric

Engagement, Engagement, Engagement

I saw a headline today:
New Research from Return Path Shows Strong Correlation Between Subscriber Engagement and Spam Placement
I have to admit, my first reaction was “Uh, Yeah.” But then I realized that there are some email marketers who do not believe engagement is important for email deliverability. This is exactly the report they need to read. It lays out the factors that ISPs look at to determine if email is wanted by the users. Senders have to deal with vague metrics like opens and clicks, but the ISPs have access to user behavior. ISPs can see if mail is replied to, or forwarded or deleted without reading. They monitor if a user hits “this-is-spam” or moves the message to their junk folder. All of these things are signals about what the users want and don’t want.
Still, there are the folks who will continue to deny engagement is a factor in deliverability. Most of the folks in this group profit based on the number of emails sent. Therefore, any message about decreasing sends hurts their bottom line. These engagement deniers have set out to discredit anyone who suggests that targeting, segmentation or engagement provide for better email delivery and getting emails to the inbox.
There’s another group of deniers who may or may not believe engagement is the key to the inbox, but they don’t care. They have said they will happily suffer with lower inbox delivery if it means they can send more mail. They don’t necessarily want to discredit deliverability, but they really don’t like that deliverability can stop them from sending.
Whether or not you want to believe engagement is a critical factor in reaching your subscribers, it is. Saying it’s not doesn’t change the facts.
There are three things important in deliverability: engagement, engagement, engagement.

Meaningless metrics

I’ve been having some conversations with fellow delivery folks about metrics and delivery and bad practices. Sometimes, a sender will have what appear to be good metrics, but really aren’t getting them through any good practices. They’re managing to avoid the clear indicators of bad practices (complaints, SBL listings, blocks, etc), but only because the metrics aren’t good.
This made me laugh when a friend posted a link to a Business Insider article about how many website metrics aren’t useful indicators of the business value of a website. Then I found the original blog post referenced in the article: Bullshit Metrics. It’s a great post, you should go read it.
I’d say the concluding paragraph has as much relevance to email marketing as to web marketing.

Reporting email disposition

Most regular readers know I think open and click through rates are actually proxy measurements. That is they measure things that correlate with reading and interacting with an email and can be used to estimate how much an email is wanted by the recipients.
The holy grail is, of course, having ISPs report back exact metrics on what a user did with an email. Did the user read it? Did it stay open on their screen a long time? Did the user just mark it read or throw it away? What happened to the message. Marketers would love this information.
It’s unlikely the ISPs will ever provide this information to marketers. Take away all the technical challenges, and there are some significant ones there are still social challenges to making this data available. Current user contracts protect the privacy of the user, local laws prohibit sharing this data. And, there is the vocal group of privacy advocates that will protest and raise a big stink.
I’m not sure why email is gets the special treatment of expecting the channel owners to provide detailed disposition data. In no other direct marketing venue is that information collected or provided. TV stations can’t tell advertisers whether or not someone watched a commercial, fast forwarded through it or got up to grab a beer from the fridge. The post office can’t tell direct mail marketers whether or not a recipient read the mail or just dumped it in the big recycling bin the post office provides for unwanted messages. Billboard owners can’t tell advertisers how many people read the billboard.
Since we can’t get exact read rates from ISPs, what do we do? We look at proxy numbers.
Read rate directly measures who opened the message. Open rate is a proxy. It’s who displayed images in the message.
Read rate can be measured only by people who have access to the user’s inbox. The ISPs can measure read rate because they have full access to the mailbox, but this requires the user to access the mailbox through webmail or IMAP. Some third party mailbox addons can measure it, but this requires the cooperation of the mailbox owner. If the mailbox owner doesn’t install the reporting tool, then the 3rd party doesn’t have access to the data. Only groups with access to the end users mailbox can measure this rate.
Open rate can be measured by people who have access to the server images are hosted. Senders and ESPs and 3rd parties can measure it if they provide unique image IDs or tracking pixels in their emails. Open tracking does require the cooperation of the recipient – they have to have images on. No images on, no open tracking. Ironically, ISPs cannot measure open rate, because they have no access to the image hosting servers.
Click rate can be measured by people who have access to the server that hosts the website. The same people who can measure opens can measure clicks. Some ISPs can measure clicks, Hotmail used to pass every URL through a proxy they hosted and they could count clicks this way. AOL controls the client so they could measure number of clicks on a link. I’ve heard trustworthy folks claim that ISPs are measuring clicks and that they’re not measuring clicks (any of the Barry’s want to comment?).
Without controlling the inbox, though, senders have to rely on proxy measurements to judge the effectiveness of any particular campaign. But at least email marketers have proxies to use for measurement.

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.

When an open is not a sign of interest

A lot of people, including myself, are using opens as one of the measures of engagement. This, as a general rule, is not a bad measure. However, there are people who will open email not because they’re interested in it, but because they know it is spam.
Take, for instance, the email address I acquired in 1993. Yes, I still have this address. I stopped using it to sign up for lists in 1999 and stopped using it for most of the rest of my mail around 2001. This address, though, is on any number of spam mailing lists. The spam that gets through is usually sent by hard-core spammers. The ISP that hosts that mailbox uses Communigate Pro to filter mail, so much of the casual spam is filtered.
Generally, if I open an email (and load images or click through) on that account it is only in order to track down a spammer. For instance, I’m getting a lot of spam there from affiliates offering me the opportunity to purchase printing services for a very low price. I have actually been opening the mail, and clicking through. But I’m not clicking through because I’m interested in purchasing. I’m clicking through to see if my reports to abuse@ printer are resulting in any action against the spammers. (They’re not).
The thing is, though, I know that by clicking through on ads, I’ve now been promoted by the spammer to the “clicks on emails! it’s a live address!” list. Which only means I’m going to get more spam from them. Lucky me.
Using clicks and opens as a measure of engagement isn’t necessarily bad. But when using them you have to understand the limitations of the measurement and that what you may think it’s telling you isn’t actually what it’s telling you.

Failed delivery of permission based email

A few weeks ago, ReturnPath published a study showing that 20% of permission based email was blocked. I previously discussed the definition of permission based email and that not all the mail described as permission based is actually sent with the permission of the recipient. However, I only consider this a small fraction of the mail RP is measuring, somewhere in the 3 – 5% range. What happens with the other 17 – 15% of that mail? Why is it being blocked?
There are 3 primary things I see that cause asked for and wanted email to be blocked.

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.

Open rates climbing, click rates dropping

Ken Magill reported on a study published by Epsilon (pdf link) on Tuesday. This report shows open rates are climbing but click-through rates are falling.