Bronto recently gave the old blog a facelift. One of the new features we added was a left navigation bar that included an “Ask the Expert” section (look to your left). Over the past two months, we’ve received many inquiries. Occasionally, we’ll pick one of the questions and dedicate a short blog post to answer it. Today is one such occasion.
An excerpt from a recent “Ask the Expert” question:
“How does this rate compare with that of my peers?”
The short answer is, “It depends.” When I provide clients with this answer, I pause, count to 3 in my head, and wait for their reply. It usually goes something like this: “Yeah, but…I mean…what are the averages?”
So, why does it depend?
Let’s say that your organization sends out 3 distinct campaigns per month (promotional, informational, educational). Would you expect the metrics to be the same for the 3 communications? What if they were targeted to 3 diverse demographic groups? Each message has a different goal, with different expectations; therefore, it’s unreasonable to assume that the metrics will be the same.
A Bronto example:
Bronto sends out a variety of email campaigns. One is a bi-weekly “A.M. News” which provides email marketing insight, tips, and tricks. We also send out our monthly company newsletter, “Bronto News.” Our open rates on the A.M. News have hovered between 50 and 70% over the past several months. The Bronto News has an open rate that is less than that. Should this be cause to panic? Of course not. The campaigns are sent to 2 different lists and are 2 very different communications…different goals…different expectations. Sure, we can calculate an average open rate, but what value does this really have? If an average is not relevant within an organization, how can we expect an industry average to be meaningful. Or what about a baseline for the entire email eco-system? It just doesn’t make sense.
Do averages matter?
As marketers, averages do matter. We continue to compare ourselves to our peers, to our industry, and to the community. You could argue that this is human nature. We crave that frame of reference. Often, compensation plans are based on “beating the average.” I get it. So, “it depends” may not cut it. We all want industry numbers*. The averages (what are peers are doing) serve as a baseline. How do we know that we are “doing good?” Simple, if we are doing better than other marketers in our industry, right? Stats are just that. Stats.
Sidebar:
Think about gasoline prices over the years. If you were paying $3.00/gallon in 2000 (when the average was half of that), you’d say you were paying too much. What about now? Personally, I’d welcome the “low” price of $3.00. The point is, averages give you a frame of reference, but do not tell the entire story.
Trends, anomalies, patterns
Back to email marketing metrics. I’d propose that while the average metrics of your peers are important, they should only be used as a guideline. That’s all. Spend your time setting your own standards. Then, for each campaign, perform a mini variance analysis. Compare each campaign to the standards. Look for trends, anomalies, patterns. R.J. Taylor agrees. So do the folks at SilverPop. Anna B. of “Adventures in Email Marketing” has an interesting take as well, along with some great resources.
An example of open rates - some questions to ponder
Let’s use open rates as our example. Say your average/standard open rate over the past 3 months has been 22%. Your last campaign had a 14% open rate. Seems to be a fairly large delta (36% less). Let’s explore the possible reasons for the discrepancy. Begin by asking yourself the following questions:
- Did I send to the same list?
- Did I send at the same time?
- How did the Subject Line compare to past campaigns?
- Did I change the From Name?
- What is different about this campaign?
Answers to this short list may provide some insight into the drop in open rate. A similar line of questioning should occur for other metrics (click-through, conversion).
Remember: If you want to increase your metrics, send relevant, timely email to subscribers who’ve asked to receive it. Pretty straightforward, right?
DJ Waldow
Account Manager at Bronto
*If you are still itching for industry statistics, EmailStatCenter.com - “The Leading Authority on Email Marketing Metrics” - has some numbers that you may whet your appetite: Conversions and Email Response Metrics.
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