Hi there,

In the final blog in both the "Analysis" phase, and in fact of the full 6 part series, we will revisit the demo data results in Sage CRM, have a short summary of the "Analysis" phase and look at some next steps.

 

Revisiting the "Time/Management Event" campaign results:

Of the 36 people on the initial target list, 34 mails were submitted, 31 sent and 5 bounced. There were 27 unique opens and 34 unique clicks, with 68 clicks in total.

The first thing to notice from these headline statistics is the high bounce rate (5/31 = 16%). In December 2010 Mailchimp undertook a comprehensive analysis of their email marketing campaigns, scanning over 570 million emails sent predominantly by SMBs (about 70% of their base have 1-10 employees). These stats* revealed that the highest soft-bounce rate by industry was 6.94% for "Social Networks and Online Communities" and 6.3% for hard bounces (in the "Health and Fitness" industry). So 16% is clearly too high. Using Mailchimp's data as a benchmark, Panoply should be aiming for a software industry average of a maximum of 2% for soft bounces and a maximum of 3% for hard bounces. In reality, the bounce rate should be 0%, which is more than achievable if you engage in regular list cleansing.

The next point of interest is the unique opens and clicks rate. While the bounce rate wasn't particularly impressive, the open rates for Panoply are exceptionally high (opens: 27/31 = 87%). According to Epsilon's 2011 Q1 benchmarks study (over 7 billion emails sent), open rates were on average 23.3%, so they are clearly getting a great response from their target audience. Similarly the unique click rate (34/34 = 100%) would suggest that if this was a real-life scenario, Panoply would appear to have an outstanding knowledge of this customer segment and had sent very relatable, focused content. In fact, given that the email was clicked on 68 times (i.e. twice per recipient who had submitted an email address), you would also conclude that Panoply had done a significant amount of pre-screening regarding the time/expense management event, such that the sending of the mail campaign was pretty much a formality.

 

Summary

The analysis stage of the email marketing programme is a vital process that should be given plenty of time and consideration. This process should consist of 2 parts; firstly a detailed evaluation of the delivery of the programme versus the goals set out at the start. Secondly, using the comprehensive metrics provided by Sage E-marketing for Sage CRM. In the latter case it is important to understand what these metrics mean, what the use cases are for each, which one best reflects business objectives, and how to draw appropriate conclusions from the data supplied. Generally speaking the clickthrough rate, open rate and deliverability rate are the most tracked in industry, however over time the objective should be to employ more value-added metrics, such as assessing the value of each email address or email list.

 A final point should be made on ROI - it is widely recognised that email marketing can deliver a high ROI. However it is important to use a balanced approach when deciding what the company objective is, and how you measure campaign success. While email marketing is cost-effective compared to other channels, to realise its full value you still need to manage your list and track bottom-line growth attributable to a particular campaign.

 

Next Steps

At this stage the 6 phases of the email marketing programme have been completed. The next step in the process is to feed the results, analysis and learnings back into the programme design, thereby ensuring continuous improvement and compliance with best practice. Consistent application of this process will greatly enhance your email marketing campaigns and deliver both ROI and tangible benefits to the bottom line.

I hope that you have now gotten a clearer picture as to the best-practices employed to capture value with email marketing. Good luck with your future campaigns, and make sure you try Sage E-marketing for Sage CRM soon!

 

David

Follow me @ Sage_CRM_DavidR

 

*http://mailchimp.com/resources/research/email-marketing-benchmarks-by-industry/