Quarterly benchmark report

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1 Quarterly benchmark report Q April, May, June An Experian Marketing Services benchmark report

2 Q benchmark report Q executive summary...1 Spotlight on: for mobile acquisition...2 Q benchmark volume...6 Year-over-year volume comparison...6 Volume variance YOY Q versus Q Volume variance quarter-to-quarter...7 Performance analysis...8 All industry...8 Business products and services...9 Catalogers...9 Consumer products and services...10 Media and entertainment...10 Multi-channel retailers...11 Publishers...12 Travel...12 Methodology...12 Mobile trends opens and clicks by platform opens and clicks by device...14 Appendix I: Metrics definitions...15

3 Q April, May, June Q executive summary The following report details the overall marketing trends for the second quarter of 2014 as well as the key performance indicators (KPIs) that shaped the success of Experian Marketing Services clients programs over the past two years. volume rose by 16.8 percent in Q compared to Q Unique open rates were 17.5 percent in Q ahead of 16.3 percent in Unique click rates were 2.1 percent in Q2 2014, declining slightly from 2.3 percent in Q Revenue per was $0.10 in Q compared to $0.11 in both Q and Q However, average order values were consistent year-over-year at about $192. In this month s spotlight on section we look at how brands are using for mobile acquisition: Dedicated mobile acquisition s can significantly boost mobile opt-ins, providing as much as 86 percent of monthly mobile sign-ups and increasing overall list size by as much as 32 percent. Including mobile calls-to-action in ongoing campaigns is also an effective mobile acquisition technique. Daily mobile sign-ups are up to 3 times higher when s include mobile-related banners, calls-to-action, or sidebars with links to opt-in forms. To optimize the cross-channel benefits of these two channels, mobile landing pages should be used to capture addresses. Page 1 An Experian Marketing Services benchmark report

4 Quarterly benchmark report Spotlight on: for mobile acquisition plays a key role in mobile acquisition. As noted in the recently published Mobile marketing best practices guide from Experian Marketing Services, using to acquire mobile subscribers should be part of every mobile promotional, customer service and rewards program. subscribers are a readymade audience to opt-in to a mobile program, as these subscribers have already shown interest in a brand. With over 50 percent of s being opened on mobile devices, there is a strong likelihood that many subscribers will be interested in receiving mobile messages and offers as well. The mobile dedicated It is important to note that list sizes are often significantly larger than mobile list sizes, given the maturity of the channel. Mobile lists tend to be more difficult to initially acquire due to the personal nature of the devices. However, mobile messaging list sizes now range from tens of thousands to multiple millions of phone numbers. Though list size may be smaller, mobile subscribers tend to be highly engaged, and when subscribed to both and mobile messaging, are likely to be among a brand s most valuable customers. Much as we saw in the early stages of social media, s specifically encouraging mobile sign-ups can be the most effective tools for adding subscribers to the new marketing channel, and growing a customer base over time. Dedicated mobile s can drive over 86% of monthly mobile acquisition 100% 80% 67.4% 86.4% 75.6% 78.5% 60% 40% 20% 28.1% 0% Case 1 Case 2 Case 3 Case 4 Case 5 Source: Experian Marketing Services Dedicated opt-ins as % of monthly opt-ins Page 2 Quarterly benchmark report: Q Apri, May, June

5 Q April, May, June There are two main formats for mobile dedicated s: Text to short code call-to-action Simple opt-in process direct from mobile device Single opt-in user flow Limited CRM data collection opportunities Link to web opt-in form Multi-step enrollment process for users via web form Double opt-in process upon form submit Opportunity for data collection and subscriber profiling Opportunity for device detection Page 3 An Experian Marketing Services benchmark report

6 Quarterly benchmark report For s dedicated to mobile signups, the number of mobile subscribers acquired was typically around 1 percent of the volume sent. While this may seem like a low response rate, it actually represented an increase of between 15 and 32 percent in the overall mobile list size for these brands. For the cases in this study, the dedicated mobile acquisition mailings were sent once a month or once every other month. The first mailing generated the highest number of mobile sign-ups, while the next month s mailing generated 40 percent to 50 percent more new mobile subscribers. Some of the subsequent mailings also included general offers in their creative, as well as a major section asking subscribers to sign up for mobile. These dual purpose mailings did just as well in obtaining subsequent mobile subscribers. It is important to test both the timing and content of your campaigns to optimize mobile acquisition for your brand. Mobile calls-to-action Just like social media icons, shop now buttons and other features, a mobile callto-action should be a standard feature in your design and creative. Growing your mobile list requires continuously promoting the program. Our case studies have found that daily mobile sign-ups are up to 3 times higher when s include mobile related banners, calls-to-action, or sidebars with links to opt-in forms. Page 4 Quarterly benchmark report: Q Apri, May, June

7 Q April, May, June Leveraging mobile to capture new subscribers Conversely, there are a variety of highly effective mobile strategies that can be used to acquire subscribers. Forty-four percent of our 2014 State of Cross-Channel Marketing Survey respondents cited mobile (SMS, apps, or mobile web) as an acquisition source for addresses. Acquisition of addresses via SMS can provide a streamlined method for capture in stores and has yielded impressive results for many brands. Several clients utilizing this method have acquired more than 50,000 addresses within a six month period. Consider a user experience like the one below for capturing addresses in-store via SMS and a mobile landing page: Source: Experian Marketing Services and mobile acquisition recommendations Send dedicated mobile acquisition s: Whether you are presenting a text to short code call-to-action or a link to a subscribe form, dedicated mobile s can significantly increase your mobile list. Links to web opt-in forms: Collecting additional information with an opt-in form can provide data for further targeting and offer segmentation. Include mobile calls-to-action in ongoing campaigns: Mobile calls-to-action should become a standard feature in your design to continuously encourage subscribers to receive your mobile messages. Capture sign-ups on mobile landing pages: and mobile lend themselves well to cross-channel acqusitions and promotions. Each channel can be used to support the other and combine to provide dynamic, complimentary elements of a well-run digital marketing program. Page 5 An Experian Marketing Services benchmark report

8 Quarterly benchmark report Q benchmark volume Year-over-year volume comparison The following benchmarks report on the year-over-year (YOY) trends for Q compared to Q This quarter, volume rose by 16.8 percent compared to the same quarter last year. Volume variance YOY Q versus Q % Volume variance by industry Q2 to Q2 (2014 vs 2013) 27.7% 26.4% 20% 18.6% 18.5% 16.8% 10% 9.5% 5.8% 0% 1.6% Business products and services Catalogers Consumer products and services Media and entertainment Multi-channel retailers Publishers Travel All industry Catalogers had the highest gain in volume, as one hundred percent (100%) of brands increased mailings in Q2 2014, while media and entertainment had the second highest volume gain with 61 percent of brands showing year-over-year volume increases. Business products and services brands had a small year-over-year increase in volume, as brands split 50/50 for increases and decreases in volume. Seventy-one percent of multi-channel retailers, 67 percent of consumer products and services, 54 percent of publishers and 47 percent of travel brands had increases in year-over-year volume. Page 6 Quarterly benchmark report: Q Apri, May, June

9 Q April, May, June Volume variance quarter-to-quarter 20% 19% Volume variance Q2 compared to Q1 by industry 2013 and % 6% 12% 8% 10% 7% 9% 9% 6% 7% 7% 8% 0% 2% 1% 1% -10% -8% Business products and services Catalogers Consumer Media and products entertainment and services Multi-channel retailers Publishers Travel All industry Q to Q Q to Q In a change from 2013, business products and services had the largest quarterto-quarter increase in volume of all of the industries. Page 7 An Experian Marketing Services benchmark report

10 Quarterly benchmark report Performance analysis In order to enhance our understanding of what s happening by industry, we have created views of all Q2 year-over-year metrics for 2014 versus Positive change Minimal change Negative change All industry Q2 All industry year-over-year performance analysis In Q2 2014, total and unique open rates were higher than those seen in Q2 2013, as more than 56 percent of brands had significant increases in year-over-year open rates. Click rates were lower year-over-year, as 70 percent of brands had a significant decrease in click rates in Q compared to Q Open rates and average order values were fairly constant in Q2 compared to Q1 2014, but click and transaction rates declined. Q compared to Q all industry performance analysis Page 8 Quarterly benchmark report: Q Apri, May, June

11 Q April, May, June Business products and services Q2 Business products and services year-over-year performance analysis Sixty percent of business products and services brands had statistically significant increases in open rates. Click rates remained the same year-over-year. Catalogers Q2 Catalogers year-over-year performance analysis While year-over-year volume increased for catalogers, open rates were higher in Q2 2014, as 57 percent of catalogers had statistically significant increases in open rates in Q compared to Q Although transaction rates declined, year-over-year revenue per remained the same as average order values rose in Q Bounce rates increased, but the 1.4 percent rate for catalogers is still much lower than the 2.3 percent all industry average bounce rate for Q Page 9 An Experian Marketing Services benchmark report

12 Quarterly benchmark report Consumer products and services Q2 Consumer products and services year-over-year performance analysis Open rates rose for consumer products and services, as 55 percent of brands had statistically significant year-over-year increases compared to Q Declining click rates were seen as 70 percent of consumer products and services brands showed statistically significant lower year-over-year click rates in Q In spite of lower click rates, year-over-year revenue per and average order values rose in Q Media and entertainment Q2 Media and entertainment year-over-year performance analysis In spite of a large year-over-year volume increase, media and entertainment brands enjoyed increases in open rates as 70 percent of brands had statistically significant increases in Q compared to Q Click rates also increased for media and entertainment brands, but the results were mixed as 50 percent had significant increases, while the others had declines. Page 10 Quarterly benchmark report: Q Apri, May, June

13 Q April, May, June Multi-channel retailers Q2 Multi-channel retail year-over-year performance analysis Sixty percent of the multi-channel retail brands had statistically significant yearover-year increases in total and unique open rates in Q Transaction rates, revenue per and average order values all had minimal year-over-year changes. Trend to watch: Fall or autumn Starting in early summer, subject lines for fall fashions, travel opportunities and events start appearing in s. We looked at 45 brands that used the words fall and autumn in their campaigns from June through October, While fall was used more frequently, campaigns with the word autumn in the subject line had over 6 percent higher unique open rates than campaigns with the word fall (18 percent unique open rate for autumn compared to 16.9 percent for fall ). Test using autumn in your subject lines for this upcoming season. Page 11 An Experian Marketing Services benchmark report

14 Quarterly benchmark report Publishers Q2 Publishers year-over-year performance analysis Open rates for publishers in Q matched Q Click rates declined with two-thirds of publisher brands showing a statistically significant year-over-year decrease in click rates in Q Travel Q2 Travel year-over-year performance analysis While open rates showed a minor decline for the travel vertical in Q2 2014, the results are actually mixed as 58 percent of brands had statistically significant increases in opens compared to Q Unique click results were also mixed with 32 percent of brands either matching last year s rates or showing statistically significant increases in click rates in Q Methodology Experian Marketing Services quarterly benchmarks are based on analysis of major marketing trends and key performance indicators across seven major verticals: Business products and services, catalogers, consumer products and services, media and entertainment, multi-channel retailers, publishers and travel. Data analyzed within these benchmarks are from client brands within the United States and Canada that have opted to participate in this study. All metrics reflect average performance at 14 days after the s have been sent. Page 12 Quarterly benchmark report: Q Apri, May, June

15 Q April, May, June Mobile trends opens and clicks by platform Q opens and clicks by platform Forty-eight percent of total opens occurred on a mobile phone or tablet in Q This is a slight drop from the 50 percent seen in Q The majority of opens occurred on mobile phones or tablets for catalogers, consumer products and services and multi-channel retailers. Only multi-channel retailers had 50 percent or more of their total clicks occurring on mobile phones or tablets. Business products and services, travel and publishers still receive most of their opens and clicks on desktop devices. Page 13 An Experian Marketing Services benchmark report

16 Quarterly benchmark report opens and clicks by device Q opens and clicks by major device types The totals for opens and clicks by device type may not add up to 100 percent as there is a small percent of other devices not included in the chart. Catalogers had the highest percentage of tablet use (18 percent of opens and 13 percent of clicks). The iphone was most popular for multi-channel retailers with 38 percent of s opens and 27 percent of clicks occurring on an iphone. Page 14 Quarterly benchmark report: Q Apri, May, June

17 Q April, May, June Appendix I: Metrics definitions Total opens: All opens recorded for the mailing including multiple opens by the same subscriber. Total open rates are (total opens/received). Unique opens: The number of unique subscribers that have opened an HTMLformatted message. Unique open rates are (unique opens/received). Total clicks: Every click on a tracked link, including multiple clicks by a given subscriber. Total click rates are (total clicks/received). Unique clicks: The number of unique subscribers who have clicked on any link. Unique click rates are (unique clicks/received). Click-to-open rates: Unique clicks as a percentage of unique opens (unique clicks/ unique opens). Transaction rates: Overall percentage of transactions as related to delivered messages (transactions/received). This metric only includes data for clients who have implemented Experian Marketing Services Track to Purchase functionality. Transaction-to-click rates: Percentage of transactions compared to the number of unique clicks (transactions/unique clicks). This metric only includes data for clients who have implemented Experian Marketing Services Track to Purchase functionality. Average order value: Average total amount for each transaction. This metric only includes data for clients who have implemented Experian Marketing Services Track to Purchase functionality. Revenue per delivered: Average amount earned for each delivered (total order/received). Bounce rates: The percentage of subscribers that did not receive a mailing because their addresses hard bounced (bounce/sent). Unsubscribe rates: This reflects the total number of subscribers lost as a result of users unsubscribing from the mailing (unique unsubscribers/received). Page 15 An Experian Marketing Services benchmark report

18 Experian Marketing Services 955 American Lane Schaumburg, IL experian.com/marketingservices Intelligent interactions. Every time Experian Information Solutions, Inc. All rights reserved Experian and the Experian marks used herein are trademarks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners. 08/14

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