Utilizing Metrics to Build your Business Case and Enhance Performance

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1 Utilizing Metrics to Build your Business Case and Enhance Performance Simms Jenkins Founder & Principal BrightWave Marketing & StatCenter.com

2 Today s Agenda Current State of Marketing Metrics Selling Marketing with Statistics Using Metrics to Enhance Performance Metric Resources

3 Background 5 year old Marketing Services Boutique Firm Specialize in creating, auditing, enhancing and managing marketing programs that cut costs, drive revenue and build relationships Recognized as one of the leading service firms in the industry Featured in dozens of industry publications, including Bloomberg TV Created, with the eec, StatCenter.com, leading research and metric portal for marketing practitioners Contributor to imediaconnection, dozens of industry related articles One of the top 21 marketing information sources - Marketing Reports.com Forthcoming book on marketing best practices and tactics Platinum Member & Silver Sponsor of Experience Council BrightWave Marketing s appearance on Bloomberg TV

4 BrightWave Marketing Clients

5 State of Marketing Metrics

6 State of Marketing Metrics StatCenter.com s First Annual State of Metrics Survey conducted August - October % of marketers measure results 56% measure immediately after campaigns while 48% and 44% measure weekly and monthly, respectively only 18% measure annually Survey respondents said it was very important to measure campaigns in order to improve results Respondents ranked metrics by importance : 1. Click Through Rate 2. Deliverability 3. Conversions 4. ROI 5. Open Rate 6. Revenue 7. Total Subscribers 8. Forwards Only ½ of marketers are using metrics for budgeting/forecasting purposes Biggest Metrics Challenge = Lack of standardization

7 Selling Marketing

8 has Reached Mass Adoption has reached almost universal penetration, with 97% of consumers & 94% of marketers using the channel - Forrester, 2007 Nearly 170 million people in the U.S. will use in emarketer, % of marketers choose marketing as the most important advertising media they planned to use in Datran Media, % of marketers plan to increase spending on marketing in Alterian, % of retailers surveyed are building bigger opt-in lists and 64.7% are conducting more campaigns than a year ago - Internet Retailer, 2007

9 Reaches the Big Spenders People who buy products advertised in s spend 138% more than those who don't - Forrester Research, % of consumers use to engage in and determine the value of a relationship with a company - JupiterResearch, % of the shoppers surveyed said they used s to make purchases; 50% said had some influence on their shopping habits - Return Path, % of consumers who open and read marketing messages are also likely to purchase other items on impulse - Forrester Research, % of consumers who think is a great way to find out about new products or promotions are willing to pay a premium for products that save them time and hassles - Forrester Research, % of subscribers will go "out of their way" to patronize a company whose programs they like - Quris, 2006

10 Marketing Delivers ROI For every dollar spent on marketing in 2007, marketers can expect an estimated $48.29 ROI. -- DMA, 2007

11 Marketing Delivers ROI Marketing Outperforms Other Media delivers one of the lowest costs per order 's ROI index is 70 percent higher than any other direct-response marketing vehicle - DMA, % of marketers surveyed said that they thought 2007 ROI for will increase over last year. - Datran Media Research, "The Marketing Survey: Looking Forward" 45% say best performing online advertising tactic is ing your inhouse list - CMO Council, 2006 B2C marketers will spend 11% of total marketing budget on marketing in DMA, Nov 2006 B2B marketers will allocate 6.5% of their marketing budget to marketing in DMA, Nov 2006 $80 $70 $60 $50 $40 $30 $20 $10 $- $7.00 Cost per Order $17.47 Affiliate Programs $26.75 Paid Search $71.89 Banner Ads Source: Shop.org, State of Retailing Online 2007 report Sept. 2007

12 Using Metrics to Enhance Performance

13 Metrics Indicate Lack of Analysis 70% of respondents said they apply basic or no analysis to any of their campaigns. -- Alterian, 2007

14 Ideal State - The Metrics Scorecard Establish goals upfront - revenue, page view, in store traffic, conversions, retention, subscribers, etc. Create a monthly scorecard Benchmark against industry Focus on ROI go beyond click throughs and open rates A high open rate with zero sales is irrelevant Evaluate newsletters and promotional mailings differently Revisit goals and results Remarket based on metrics Recommended Metrics for Success Overall Goal Success Metric Industry Average COMPANY current state COMPANY desired state a) Drive Revenue Revenue NA $10,000,000 $22,500,000 a) Drive Revenue ROI $57.25 $20.00 $40.00 a) Drive Revenue Conversion Rates.13% 0.50% 1% a) Drive Revenue Value of Subscribers NA $2.00 $3.00 (# of subs/revenue) b) Customer Loyalty Total Subscribers NA 5,000,000 7,500,000 b) Customer Loyalty Unsubscribe Rate.29% 0.15% < 0.10% b) Customer Loyalty Customer Frequency (average monthly visits/average monthly unique visitors) b) Customer Loyalty Customer Retention (% of site visitors returning to website) c) Brand, Product, Feature Awareness c) Brand, Product, Feature Awareness c) Brand, Product, Feature Awareness NA NA NA Begin to track, initial goal should be 25% Open Rate 20.77% 26% 30% Click Through Rate % 12% Deliverability % 97%

15 Metrics Indicate Creative Challenges Fewer than 50 percent of marketers create s that render appropriately - Experience Council, % of online customers routinely block images - MarketingSherpa, 2007 One in five s are invisible and ineffective due to blocked images - Experience Council, % of marketers surveyed said that creative optimization had the most impact on campaigns - Datran Media Research, 2007

16 Without Image Suppression

17 With Image Suppression On

18 Without Image Suppression

19 Optimized for Image Suppression

20 Creative Optimization Guidelines Be concise with a clear call to action above the fold Consider fact that many are starting to view s on BlackBerrys or other mobile devices Limit graphics Ensure call to action and links are formatted as text. Avoid postcard style messages. Add a link so readers can view the message as a Web page 6-10 links generate the highest response - Silverpop, 2006

21 Creative Optimization

22 Metrics Indicate Targeting Opportunity Engaging your audiences in more relevant communications increases net profits by an average of 18 times over broadcast mailing. -- Jupiter Research, 2006

23 Targeting Misses the Mark 46% of internet users say commercial s they receive are not targeted to their needs - emarketer, 2006 ¼ of marketers surveyed are sending broadcast campaigns with no differentiation or targeting - Jupiter Research, 2006 Only 65% are using limited personalization, such as using a customer's name, and limited segmentation, such as demographic targeting or using geo-targeting to identify a local store - Jupiter Research, 2006 Only 11% of marketers send targeted campaigns that use a customer's purchase history, click-stream activity, or other data to send a relevant, targeted offer - Jupiter Research, 2006 Other Areas To Target & Test By Domain/ISP, Customer vs. Prospect, responder vs. non responder

24 The results say target! How targeting affects campaign performance 35% 33% 30% 26% 27% 25% 20% 15% 10% 20% 9.5% 9.3% 9.3% 14% Open Rate Average CTR Average Conversion Rate 5% 0% 1.1% Untargeted Broadcast s 2.3% Lifecycle messaging campaigns 2.3% User-triggered campaigns 3.9% Clickstreambased campaigns Source: Jupiter 2006

25 Metrics Indicate Blind Spot In Campaigns Only 15% of companies that sent opt-in messages answered subscriber responses to their own s - BrightWave Marketing, September % of queries went unanswered when reviewing eretailers response during customer service - Talisma, September 2007

26 Close the Loop Don t Forget s Place in the Customer Communication Loop Audit your campaigns and website Revaluate where replies/inquiries go Automate Consider CAN-SPAM Issues Consider Missed Sales Opportunities Consider Brand Damage

27 Metrics Indicate Need for Centralization Only 38 percent of executives said their messaging endeavors are centralized in one location, with 24 percent citing that six or more departments manage it separately. -- Jupiter Research, 2007

28 Why Centralize? Maintain Coordination & a Holistic View of Metrics Manage Frequency & reduce churn Standardize from lines & subject lines Maintain brand cohesiveness & a messaging strategy Ensure CAN-SPAM Compliance

29 Metrics Resources

30 Benchmarking & Research Sources Bronto 14 industry verticals Open, CT & Delivery eec Groundbreaking studies on timely issues eroi Quarterly & Seasonal Studies Internet Retailer Frequent detailed metrics from the retail world Lyris Quarterly Deliverability Reports ReturnPath Seasonal Consumer & Deliverability Studies Silverpop Ongoing series of topical user based studies

31 StatCenter.com StatShare free newsletter 40 Categories Hundreds of Metrics User Generated Metrics Searchable Database

32 Retail .Blogspot Detailed Reports Daily trends on top retailers

33 Questions & Answers Simms Jenkins BrightWave Marketing & StatCenter.com

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