Quarterly benchmark report
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- Marvin Johns
- 3 years ago
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From this document you will learn the answers to the following questions:
What did the abandoned carts contain?
What percentage of the volume variance was in 2014?
What did KPIs shape?
Transcription
1 Quarterly benchmark report Q January, February, March An Experian Marketing Services benchmark report
2 Q benchmark report Q1 executive summary...1 Spotlight on: Remarketing series...2 Q benchmark volume...7 Year-over-year volume comparison...7 Volume variance quarter-to-quarter...8 Performance analysis...9 All industry...9 Bounce rates...10 Business products and services...11 Catalogers...11 Consumer products and services...12 Media and entertainment...12 Multi-channel retailers...13 Publishers...13 Travel...14 Methodology...14 Mobile trends...15 Appendix I: Metrics definitions...16
3 Q January, February, March Q executive summary The following report details the overall marketing trends for the first 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 15.6 percent in Q compared to Q Unique open rates were 17.7 percent in Q1 2014, slightly ahead of the 17 percent seen in Unique click rates were 2.3 percent in Q1 2014, declining from 2.7 percent as seen in Q Revenue per was $0.11 in Q compared to $0.10 in Q4 2013, but down from the $0.12 last year. However, average order values rose by 7.2 percent yearover-year from $ to $ This month in the spotlight on section we looked at remarketing series: Sending second and third messages in an abandoned cart series provided over 50 percent additional revenue beyond what was received by the first abandoned cart mailing. Dynamically displaying customer-specific cart information within abandoned cart s generated the highest transaction rates. Including an offer in abandoned cart mailings boosted transaction rates in the first, second, and third messages of the series. Page 1 An Experian Marketing Services Benchmark Report
4 Quarterly benchmark report Spotlight on: Remarketing series The study details One of the recommendations made in our recent Remarketing Best Practices Guide was to send more than one abandoned cart mailing as part of a remarketing program. We are frequently asked about timing and content considerations for these additional messages. To look at these elements and understand just how effective an abandoned cart series can be, we looked at 18 brands that sent an abandoned cart series from January 2013 through January Series effectiveness Two-thirds of the brands in the study sent two abandoned cart s, while one-third sent three. All abandoned cart s had significantly higher revenue per than promotional mailings. $2.50 $2.00 The revenue per for each mailing in an abandoned cart series was well above the promotional mailing average $1.76 $1.90 $2.17 $1.79 $1.50 $1.00 $0.87 $0.50 $ in series 3 in series Promotional mlgs ($0.10) Source: Experian Marketing Services First mailing Second mailing Third mailing Brands sending a second abandoned cart reminder had a 50 percent increase in abandoned cart revenue compared to just their first abandoned cart mailing. Those sending three mailings saw a 56 percent increase in revenue compared to just sending the initial abandoned cart . Page 2 Quarterly Benchmark Report: Q January, February, March
5 Q January, February, March Series timing All of the brands in this study sent the first abandoned cart within one day of the online cart abandonment. During that first day, the mailings that were sent in real time had 62 percent higher transaction rates than mailings sent by bulk mail at a later time in the first 24 hour period (transaction rate of 2.0 percent for real-time compared to 1.23 percent for bulk first mailings). This lift in transaction rates for real-time vs bulk was not seen, however, in subsequent abandoned cart mailings. For brands sending two abandoned cart s, the second was sent on day 2, 3, 5, or 6, with day 3 being the most popular (five of the twelve brands mailed on the third day from abandonment). 3.5% 3.0% The second abandoned cart mailings that were sent on day 3 had the highest transaction rates 3.08% Transaction rates 2.5% 2.0% 1.5% 1.0% 0.5% 0.57% 1.02% 0.46% 1.24% 0.0% Day 2 Day 3 Day 5 Day % 2nd abandoned cart mlg Source: Experian Marketing Services 1st abandoned cart mlg Promotional mlgs Timing may not be the sole reason for the high performance of day three. Three of the five brands that mailed that day included an offer in the second mailing, which greatly increased the transaction rates for those mailings. Looking at abandoned cart series that included three mailings, we found the highest overall transaction rates were for s sent on days 1, 2, and 3 out of seven days. Page 3 An Experian Marketing Services Benchmark Report
6 Quarterly benchmark report 2.5% For the 3 part abandon cart series, the highest transactions rates were for the series with mailings sent on days 1,2, and 3 2.0% 2.05% Transaction rates 1.5% 1.0% 0.57% 0.71% 1.13% 0.5% 0.0% Days sent Transaction rates - 3 part series Source: Experian Marketing Services % Promotional mlgs Transaction rates 2.0% 1.8% 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% Average transaction rates for the 3 part abandoned cart series declined as the series progressed Day % Source: Experian Marketing Services Transaction rates Day 2, 3, or 4 Days sent 1.34% Promotional mlgs 0.44% 0.06% Day 6 or 7 Average transaction rates for each touch point of the three part series generally declined, but all stayed well above the 0.06 percent transaction rate for promotional mailings. Page 4 Quarterly Benchmark Report: Q January, February, March
7 Q January, February, March Should you include an offer? It is important to test whether or not an offer should be included in an abandoned cart . If a customer is already motivated to purchase, then an offer may not be necessary to close the sale. In our study, however, we found that including an offer in the first abandoned cart mailing boosted transaction rates by 54 percent (1.81 percent with an offer compared to 1.17 percent with no offer). As we saw with the two part series, including an offer later in the series can greatly boost transaction rates. Second and third mailings with offers had transaction rates that were 2.4 times higher than comparable mailings with no offers (1.74 percent with an offer compared to 0.72 percent without offer). The highest transaction rates for offers were for dollar-off offers (2.05 percent), followed by free shipping offers (1.87 percent) and percent off (1.15 percent). Make the message dynamic and personal Abandoned cart s that dynamically showed the actual customer cart had 25 percent higher transaction rates than abandoned cart s that just linked back to the brand s Website. Transaction rates 1.45% 1.40% 1.35% 1.30% 1.25% 1.20% 1.15% 1.10% 1.05% 1.00% 1.14% Link to brand website Abandoned cart s that dynamically showed the customer s cart had the highest transaction rates 1.27% Link to see cart 1.43% Dynamic cart shown Source: Experian Marketing Services We also recommend personalizing the subject line of the second or third mailing in an abandoned cart series with the customer s name. Series s with personalized subject lines had 12 percent higher unique open rates than series mailings without personalization (36.1 percent unique open rate with personalization compared to 32.3 percent without). Page 5 An Experian Marketing Services Benchmark Report
8 Quarterly benchmark report Key words in subject lines Looking at top unique open rates for abandoned cart mailings, we found different high performing key words or phrases in the subject lines of each set in the series. For the first mailing, forget was the key word: Did you forget something? The second mailing in the series had the best open rates with free shipping in the subject line: Get FREE SHIPPING before your cart expires! Complete performed best for the third mailing: How can we help you complete your order? Each of these key words or phrases had over 14 percent higher unique open rates than other abandoned cart mailings in the same step of the series. Abandoned cart series recommendations Send more than one Subsequent abandoned cart series s have consistently shown significant additional revenue beyond what was received by the first abandoned cart mailing. While some of the customers that respond to abandoned cart messages may eventually purchase from regular promotional campaigns anyway, having the orders in hand in the first few days after their online cart activity can only be seen as positive. We recommend expanding your abandoned cart program to become a series. Make your abandoned cart s as dynamic as possible: Showing the customer-specific cart within the provides the best transaction rates. Test including an offer: The high transaction rates for abandoned cart series messages with offers, particularly in the second and third messages sent, suggest that the offer may provide the tipping point for those customers who were initially hesitant to complete the purchase of the items in their cart. Page 6 Quarterly Benchmark Report: Q January, February, March
9 Q January, February, March Q benchmark volume Year-over-year volume comparison The following benchmarks report on the year-over-year (YOY) trends for the first quarter of 2014 compared to the first quarter of This quarter, volume rose by 15.6 percent compared to the same quarter last year (Q1 2013). Volume variance by industry - Q1 to Q1 (2014 vs 2013) 30% 28.5% 20% 10% 10.3% 13.9% 17.0% 18.8% 10.8% 15.6% 0% -4.3% -10% Business products and services Catalogers Consumer Media and products entertainment and services Multi-channel retailers Pubishers Travel All industry As seen in the past three quarters, catalogers had the highest gain in volume, as one hundred percent (100%) of brands increased mailings in Q While overall business products and services brands had a small year-over-year decrease in volume, 45 percent of the brands actually had volume increases. Seventy-one percent of multi-channel retailers, 82 percent of consumer products and services, 55 percent of publishers and 63 percent of travel brands had increases in year-over-year volume. Page 7 An Experian Marketing Services Benchmark Report
10 Quarterly benchmark report Volume variance quarter-to-quarter 0% -1% Volume variance Q1 compared to Q4 by industry 2013 and % -20% -6% -7% -6% -6% -13% -12% -15% -14% -15% -15% -15% -15% -19% -30% -32% -25% -40% Business products and services Catalogers Consumer products and services Media and entertainment Multi-channel retailers Pubishers Travel All industry Q to Q Q to Q Following the same pattern as last year, all industries had a decline in mailing volume in Q1 as compared to the previous holiday quarter (Q4 2013). Page 8 Quarterly Benchmark Report: Q January, February, March
11 Q January, February, March Performance analysis In order to enhance our understanding of what s happening by industry, we have created views that look at all metrics and compare Q1 year-over-year for 2014 versus Positive change Minimal change Negative change All industry Q1 All industry year-over-year performance analysis In Q1 2014, total and unique open rates were slightly higher than those seen in Q Click rates were lower year-over-year, as 65 percent of brands had a significant decrease in click rates in Q compared to Q With the lower volume of mailings sent in Q compared to Q4 2013, almost all metrics matched or were higher in Q1 than they had been in Q4. Q compared to Q all industry performance analysis Page 9 An Experian Marketing Services Benchmark Report
12 Quarterly benchmark report Bounce rates In Q1 2014, we noticed that year-over-year bounce rates rose, and there were large percentage increases in several of the industries. When reviewing bounce rates, it is important to keep in mind that the percentages are quite small, so that even a change of less than half of 1 percent can create a 300 percent year-over-year increase. To put the changes we saw for Q in perspective, we compared them to the average bounce rates per industry for the past two years (2012 and 2013) and found that the rates had only minor changes. While catalogers showed the largest percentage increase, they still had the lowest overall bounce rate of any of the industries. As ISPs move to shut down accounts more quickly, brands may find that bounce rates rise. Careful monitoring of list health can help ensure successful deliverability. Bounce rates - Q compared to average rates for the past 2 years 4% 3% Bounce rates - Q compared to average rates for the past 2 years 3.7% 3.6% 3.7% 3.4% 3.3% 3.2% Bounce rates 2% 1% 2.3% 2.2% 0.7% 1.1% 1.3% 1.1% 2.4% 1.7% 2.3% 2.3% 0% All industry Business products and services Catalogers Consumer Media and Multi-channel products and services entertainment retailers Publishers Travel 2012 to 2013 average Q Page 10 Quarterly Benchmark Report: Q January, February, March
13 Q January, February, March Business products and services Q1 Business products and services year-over-year performance analysis Over 68 percent of business products and services brands had statistically significant increases in open rates. While the overall unique click rate dropped by 8.9 percent, the number of brands with statistically significant increases in unique click rates actually equaled the number that showed a decline. Catalogers Q1 Catalogers year-over-year performance analysis While year-over-year volume increased for catalogers, open rates were higher in Q1 2014, and unique click rates matched those seen in Q Although transaction rates declined, year-over-year revenue per remained the same as average order values rose in Q Page 11 An Experian Marketing Services Benchmark Report
14 Quarterly benchmark report Consumer products and services Q1 Consumer products and services year-over-year performance analysis Open rates rose slightly for consumer products and services as 60 percent of brands had statistically significant year-over-year increases in open rates compared to Q Declining click rates were seen as two thirds 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 Q1 Media and entertainment year-over-year performance analysis While overall year-over-year click rates were lower in Q1 2014, the results were actually mixed, as 38 percent of brands had statistically significant increases in clicks compared to Q Page 12 Quarterly Benchmark Report: Q January, February, March
15 Q January, February, March Multi-channel retailers Q1 Multi-channel retail year-over-year performance analysis Over half of the multi-channel retail brands had statistically significant year-overyear increases in total and unique open rates in Q Transaction rates rose slightly, while revenue per and average order values matched those seen in Q Trend to watch: Graduation s While over 85 percent of graduation s were sent in time for May graduations, many schools have June graduation dates. Graduation s sent in June had 14 percent higher click-to-open rates and more than double the transaction-to-click rates of May graduation mailings in 2013, showing high engagement with graduation messages sent in June. Publishers Q4 Publishers year-over-year performance analysis Open and click rates for publishers in Q matched or surpassed the Q performance. Page 13 An Experian Marketing Services Benchmark Report
16 Quarterly benchmark report Travel Q1 Travel year-over-year performance analysis While open rates showed a decline for the travel vertical in Q1 2014, the results are actually mixed, as 57 percent of brands had statistically significant increases in opens compared to Q Unique click results were also mixed with 40 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 14 Quarterly Benchmark Report: Q January, February, March
17 Q January, February, March Mobile trends Q opens and clicks by platform Fifty percent of total opens occurred on a mobile device in Q The majority of opens occurred on mobile devices for catalogers, consumer products and services, media and entertainment, and multi-channel retailers. Media and entertainment and multi-channel retailers had 50 percent or more of their total clicks occurring on mobile devices. Business products and services and publishers still receive most of their opens and clicks on desktop devices. Page 15 An Experian Marketing Services Benchmark Report
18 Quarterly benchmark report 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 HTML-formatted 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 as: 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 16 Quarterly Benchmark Report: Q January, February, March
19 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. 05/14
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