Creative That Works:

Transcription

1 From First Click to Lifetime Customer Creative That Works: An Evaluation of Opens and Click Rates Associated with Various Creative Elements

2 CREATIVE THAT WORKS: An evaluation of opens and click rates associated with various creative elements Have you seen the movie Gone in Sixty Seconds? If you thought the time it takes professional thieves to drive away with expensive cars is unbelievably fast, realize it s a virtual lifetime when it comes to grabbing the attention of recipients. users even those who asked to receive messages from you will give you only a three- or four-second glance before hitting the delete button. In fact, a poorly executed campaign can do more harm than good. JupiterResearch found that 16 percent of consumers report forming negative opinions about a company because of newsletters or promotions they received. 1 What does it take to get recipients to stick with your message? What enticements work best and which layouts boost clicks? Where should you place the logo, and how many links are too many; how many are too few? To help marketers identify creative elements that can really engage current and prospective customers and improve results, Silverpop undertook a comprehensive study of both and messages, evaluating a variety of creative elements and comparing open and click rates. The study revealed some interesting and surprising results. The study evaluated the following elements: Content of the From line Subject line content Location of logo Ratio of text to images Various design layouts Number of links Type of links (text vs. image) Presence and location of navigation bar Inclusion of lifestyle photography Feature offers Location of call-to-action Key Findings Silverpop s Creative That Works study found the following: Messages that included the company name or brand in the subject line had significantly higher open rates as much as a 12 percentage point increase. Overall, text-style links averaged nearly a 3 percentage point greater click rate than image-style links. When navigation bars were included in messages, those positioned on the left side of creative formats showed much higher click rates than when the bar was located elsewhere. For marketers, the best location for the navigation bar was at the top. Placing the call-to-action above the fold is critical for marketers, lifting average click rates by 3.5 percentage points. Surprisingly, it didn t make a significant difference in the click rate for messages. A somewhat counterintuitive finding in the study showed that s in a postcard format generated high average click rates, while messages in newsletter formats generated high click rates. s with the call-to-action below the fold recorded average click rates 58% lower than those with the call-to-action positioned above the fold SILVPOP ( ) 2009 Copyright Silverpop. All rights reserved. The Silverpop logo is a registered trademark of Silverpop Systems Inc. 2

3 Methodology This comprehensive study was completed by a team of Silverpop marketing analysts under the auspices of the company s Strategic Services Group. The team collected, compiled and analyzed data on 612 s sent by 430 companies to 100 or more recipients. Messages were sent between mid-april and mid-august, Reports of opens and click rates were evaluated to identify creative elements that work best. When reporting the improvement in response rates, this study will provide two calculations for some circumstances. The first will be the difference in percentage points a jump to 12 percent from 10 percent is an increase of 2 percentage points. Where warranted to make the difference clear, it also will be expressed as a percentage increase. So if a company sent out 10,000 messages and obtained a 10 percent open rate, 1,000 messages would be opened. Increasing the open rate by 2 percentage points would mean 1,200 s would be opened, for a 20 percent increase. Figure 1: and Messages Calculating the Art of is a valuable part of most companies marketing programs. MarketingSherpa reports in its Marketing Benchmark Guide 2006 that on average, companies spend 13 percent of their total marketing budget on marketing. 2 Internet Retailer magazine reports that remains an important marketing tool for online retailers, often considered among the more sophisticated marketers. Nearly half of e-retailers rate as more effective than other marketing. 3 The magazine also reported in August 2006 that just over half of retailers participating in its monthly survey said that 6 percent or more of their sales are generated by campaigns, and an impressive 25 percent said they generate more than 11 percent of sales through . 4 The competition for space in the inbox is intense and growing. Online users receive an average of 35 s a day, 5 while business recipients average nearly 100 a day. 6 Additionally, consumers are becoming increasingly selective about which s they will open and which they will click on. Forrester Research found that online households receive, on average, permission-based messages from just six different companies, and 45 percent of those households don t plan to sign up for any more anytime soon. 7 24% 76% In order to more fully engage with customers and prospects and capture a greater share of online sales, many marketers see the need to take their programs to the next level. Faced with increasing competition to capture customer attention, marketers are beginning to focus on the creative aspects of their messages, and in particular, on optimizing that creative specifically for the medium. In fact, 76 percent of marketers say one of their top priorities is to develop creative copy and designs that work. 8 Figure 2: HTML vs. Text 97% HTML Text Research conducted by Silverpop can help ensure that new practices marketers put into place will prove to be beneficial. Silverpop s Creative That Works study helps identify creative best practices to consider implementing to improve marketing results. Silverpop reviewed and analyzed 612 messages from 430 companies sent between mid-april and mid-august, The study evaluated and compared 147 messages and 465 s. (See Figure 1: and Messages.) The vast majority of the messages were HTML. (See Figure 2: HTML vs. Text.) s selected for the study were those sent to 100 or more recipients. The average send to recipients was 28,820 compared to 906,045 for lists SILVPOP ( ) 2009 Copyright Silverpop. All rights reserved. The Silverpop logo is a registered trademark of Silverpop Systems Inc. 3

4 Creative Elements That Boost Open Rates Figure 3: Subject Line Content Recipients must first open your message in order to be dazzled by your copy and imagery. Average open rates for the s evaluated in Silverpop s Creative That Works study were 27 percent. There was no significant difference between and s. Both Brand/Company Name & Product Name No Brand/Company Name or Product Name 12% 16% 2 28% Content of the From line It s long been considered a best practice to clearly identify who the message is from by including the company name or product in the From line, and nearly all (92 percent) of the s reviewed included such information. Surprisingly, the sample of s in the study without a company name or product in the From line posted a slightly higher open rate, at 29 percent, compared to 27 percent for messages that did include branding. Product Name Brand/Company Name 22% 26% 34% 39% 0% 10% 20% 30% 40% Figure 4: Average Open Rates of s Based on Subject Line Content Of those without branding in the From line, a little over half used a person s name, which generated an even stronger open rate of 30 percent, on average. Subject line content JupiterResearch found that 35 percent of subscribers open messages because of what s contained in the subject line. 1 Silverpop found in its study of hundreds of subject lines that most marketers wisely include the company name and/or brand. More than half (55 percent) of marketers included the brand and/or company name in the subject line compared to 46 percent of marketers, who are slightly more likely to include product names in subject lines. (See Figure 3: Subject Line Content.) Both and campaigns that included the brand or company name in the subject line had significantly higher open rates. s had an average open rate of 32 percent compared to just 20 percent for messages without branding in the subject line. s with the brand or company name in the subject line enjoyed open rates of 29 percent on average, compared to 22 percent without branding. (See Figure 4: Average Open Rates of s Based on Subject Line Content.) The difference in open rates is substantial. For companies, the 12 percentage point increase translates to 60 percent more opens. For companies, the 7 percentage point jump averaged 32 percent more opens when branding was included in the subject line. So for example, if a company sent out 50,000 messages with an open rate of 20 percent, 10,000 s would be opened. Bumping that rate up to 32 percent with the addition of branding in the subject line increases the opens to 16,000. Both Brand/Company Name & Product Name No Brand/Company Name or Product Name Product Name Brand/Company Name 20% 22% 24% % 29% 32% 0% 10% 20% 30% 40% Including the company name or brand in the subject line resulted in open rates 32 percent to 60 percent higher than messages without that branding SILVPOP ( ) 2009 Copyright Silverpop. All rights reserved. The Silverpop logo is a registered trademark of Silverpop Systems Inc. 4

5 Location of logo In addition to including the company name or brand name in the subject line, many marketers include the company logo within the . Where they position the logo varies dramatically. And positioning can be important when many online users glance at s first in the preview pane. Some studies have found the usage of preview panes to be widespread, with as many as seven out of 10 users with clients that offer preview panes stating they always use them. 9 Following traditional print concepts, the majority of marketers place their logos in the top left-hand corner of the message. The next most-popular spot is top right. A surprisingly large percentage of companies 11 percent don t include their logo anywhere within the message. (See Figure 5: Location of Logo.) In evaluating average click rates for s with logos in various positions, it s clear to see that placing the logo below the fold generates even less interest among a target audience than not including any logo at all. (See Figure 6: Average Click Rates Based on Logo Location.) Are Pictures Really Worth a Thousand Words (or Clicks)? JupiterResearch reports that, despite the fact that most online users have HTML-capable clients, the presence of artwork in messages doesn t have a substantial effect on response rates. 1 Silverpop s Creative That Works study tends to bear that out. Ratio of text to images The majority of (54 percent) reviewed as part of Silverpop s study was all or mostly text, while 40 percent was fairly equal in the ratio between text and images. (See Figure 7: Ratio of Text to Images.) Not surprisingly, no marketers sent messages that were mostly images. (See Figure 8: Examples of s With Varying Amounts of Text and Images.) In terms of generating increased click rate activity, ers found a slightly higher value to images than did ers. While all-text messages generated a 4.7 percent click rate on average, mostly image-oriented messages achieved a 7.1 percent average click rate. Below the Fold Middle of Message No Logo Top Center Top Right Top Left Below the Fold No Logo Top Center Top Right Middle of Message Top Left Mostly Images All Text Mostly Text Equal Text & Images Figure 5: Location of Logo 4% 6% 10% 11% 14% % 58% 0% 10% 20% 30% 40% 50% 60% Figure 6: Average Click Rates Based on Logo Location 3.0% 3.2% 5.4% % 5.8% 0% 1% 2% 4% 6% Figure 7: Ratio of Text to Images 0% 14% 2 32% 39% 41% 48% 0% 10% 20% 30% 40% 50% SILVPOP ( ) 2009 Copyright Silverpop. All rights reserved. The Silverpop logo is a registered trademark of Silverpop Systems Inc. 5

6 Figure 8: Examples of s With Varying Amounts of Text and Images All Text Text and Images Equal Mostly Images Mostly Text For marketers, text-heavy messages actually achieved much higher click rates than those that were equal text and images. All-text messages had a 5.4 percent click rate compared to only a 3.5 percent click rate for those that included an equal amount of images. (See Figure 9: Comparison of Click Rates Based on Ratio of Text to Images.) All-text messages had 54 percent higher click rates than those with equal amounts of text and images. Mostly Images All Text Mostly Text Equal Text & Images Figure 9: Comparison of Click Rates Based on Ratio of Text to Images 0% % 4.8% 5.4% % 0% 1% 2% 4% 6% 7% 8% SILVPOP ( ) 2009 Copyright Silverpop. All rights reserved. The Silverpop logo is a registered trademark of Silverpop Systems Inc. 6

7 Various design elements Figure 10: Examples of Design Layouts Despite the growing influence of online marketing, many marketers still seem to approach design with a print-oriented style. For them, the classic direct mail styles still hold sway. In evaluating design layouts, Silverpop classified messages into seven different categories. 1 column 2 or more columns of equal size 2 or more columns of varied size Letter Newsletter Varied cell blocks Postcard 1 Column 2 Columns Equal Size (See Figure 10: Examples of Design Layouts.) Among ers, the postcard design has remained a favorite, especially among marketers. (See Figure 11: Types of Layouts for and Messages.) Most surprisingly, when an evaluation of the impact of layout style on click rates was calculated, it appears that marketers would be better served by the classic postcard style long the darling of consumer marketers. And by comparison, marketers interested in boosting click rates should take a long look at newsletter-style copy and layouts. (See Figure 12: Average Click Rates for Various Layout Styles, and Figure 13: Average Click Rates for Various Layout Styles.) 2 or More Unequal Size Columns Postcard postcard-style s received the highest average click rates; newsletterformat s generated more clicks than the popular postcard style. Letter Newsletter Perhaps postcard-style s received higher click rates on average for marketers because of their novelty among recipients. Whatever the reason, JupiterResearch has found that only 12 percent of subscribers overall said a single postcard-like image influences them to click. There are demographic differences according to Jupiter, however. Twenty-five percent of respondents ages 18 to 24 said this creative element inspired a click the highest among any age group. In comparison, only 9 percent of subscribers ages 55 and more said these image-centric messages resonated with them. 1 Varied Cell Blocks SILVPOP ( ) 2009 Copyright Silverpop. All rights reserved. The Silverpop logo is a registered trademark of Silverpop Systems Inc. 7

8 Figure 11: Types of Layouts for and Messages Varied Cell Blocks Postcard 10% 16% 36% Newsletter 1 11% Letter 8% 16% 2 or More Columns of Varied Size 10% 21% 2 or More Columns of Equal Size 1 Column 26% 22% 0% 10% 20% 30% 40% Figure 12: Average Click Rates for Various Layout Styles 2 or More Columns of Equal Size 1.1% Letter 3.0% 1 Column 2 or More Columns of Varied Size 3.4% 4.0% Newsletter 5.4% Varied Blocks Postcard 7.9% 7.9% 0% 1% 2% 4% 6% 7% 8% Figure 13: Average Click Rates for Various Layout Styles Letter 3.4% Varied Blocks 4.4% 1 Column 2 or More Columns of Equal Size % Postcard 2 or More Columns of Varied Size Newsletter 6.2% 6.7% 7.1% 0% 1% 2% 4% 6% 7% 8% SILVPOP ( ) 2009 Copyright Silverpop. All rights reserved. The Silverpop logo is a registered trademark of Silverpop Systems Inc. 8

9 Number of links While it might sound logical that the more links you stuff into your messages, the higher your click rate will be, there does appear to be a limit after which click rates drop off. While most ers included from one to three links in messages, some eager marketers crammed more than 10 into their promotional s. marketers tended to include a few more links (averaging 2.5 links per ) than did postcard-loving marketers (average 2 links). When it comes to links, the magic number for high click rates appears to be between six and 10. Adding more links actually deteriorates results. (See Figures 14 through 17: Percentage of and s with Various Numbers of Links and Average Click Rates.) A small number of marketers primarily financial institutions didn t include any links in their s. This is generally a way banks and other organizations work to safeguard recipients against phishing attacks. Figure 14: Percentage of s with Various Numbers of Links Figure 15: Average Click Rates Based on Number of Links % 1 12% 2 5.1% 2 12% 3 6.0% 3 18% 4 3.7% 4 9% 5 2.0% 5 7% 6 to % 6 to 10 18% >10 4. >10 19% 0% 1% 2% 4% 6% 0% 10% 1 20% Figure 16: Percentage of s with Various Numbers of Links Figure 17: Average Click Rates Based on Number of Links % 2 3.9% % 3 8% 4 5.0% % 5 6% 6 to % 6 to 10 20% >10 6.6% >10 2 0% 10% 1 20% 2 0% 1% 2% 4% 6% 7% 8% SILVPOP ( ) 2009 Copyright Silverpop. All rights reserved. The Silverpop logo is a registered trademark of Silverpop Systems Inc. 9

10 Type of links (text vs. image) Not only the number but the style of links can have an impact on click rates. While it s not surprising to learn that marketers tend to use text links more frequently, marketers do as well. (See Figure 18: Type of Links Found in s.) With many clients failing to render images properly, using text links can help ensure recipients can actually see where to click. P.S. Don t delay. We re offering a huge tuition savings now, but it may only be available for a limited time, so hurry! Go to our Enrollment page to start now. Enroll Now While marketers are well served by text-only links, marketers have higher click rates with s that feature images or images and text both. (See Figure 19: Average Click Rates for s with Various Types of Links.) Obviously, all else being equal, the clearer you can make the action you want recipients to take, the likelier it will be that they will comply. Again, is generally glanced at and decisions are made quickly. Visually highlighting links helps readers navigate to the key element in your message the s with text links call-to-action. If text links received 83 percent more are used, a different-color type is strongly recommended. Placing a button link clicks than did those with image links. next to a text link is also beneficial. Presence and location of navigation bar While a majority of s (77 percent of those evaluated in Silverpop s study) don t contain navigation bars, those that do have differing click rates based on bar position. Again, following well-established print design traditions, marketers tend to position navigation bars along the top. While that spot works for marketers, marketers are best served by navigation bars on the left-hand side. (See Figures 20: Presence/Location of Navigation Bar, and 21: Average Click Rates Based on Navigation Bar Location.) Inclusion of lifestyle photography Learn More Creative directors at advertising agencies notoriously love the lifestyle shot. Photography that captures the mood of the product is expected to draw attention to the offer and increase response rates. With marketing, the ability to measure the impact of such design elements is far easier than with print advertising. (See Figure 22: Samples of Lifestyle Photography.) Both Text Image None Text Image Both Left Side Right Side Bottom Top Left Side Right Side Bottom Top Figure 18: Type of Links Found in s 27% % 6% 4% 0% 10% 20% 30% 40% 50% 60% 70% Figure 19: Average Click Rates for s with Various Types 5.7% 5.7% 3.1% 6.4% 2.7% 6. 0% 1% 2% 4% 6% 7% Figure 20: Presence/Location of Navigation Bar 0% 2% 2% 11% 16% 0% 10% 1 20% Figure 21: Average Click Rates Based on Navigation Bar Location 0.0% % 7.1% 6.2% % 6.4% 0% 2% 4% 6% 8% 10% SILVPOP ( ) 2009 Copyright Silverpop. All rights reserved. The Silverpop logo is a registered trademark of Silverpop Systems Inc. 10

11 Figure 22: Samples of Lifestyle Photography As you would imagine, Silverpop found more than marketers using lifestyle photography in their promotional messages. (See Figure 23: Percentage of s Including Lifestyle Photography.) And ultimately, the decision by marketers is a solid one. The Silverpop study found that average click rates for s that include lifestyle photos are actually lower than those that do not. (See Figure 24: Average Click Rates for s With and Without Lifestyle Photography.) Perhaps business readers want to read the facts regarding product benefits, while consumers prefer to see images that depict products in use. Feature offers In most campaigns, the goal is to engage recipients and create some kind of reaction purchase a product, download a white paper, register for a seminar, learn more about an organization, etc. Both and marketers employ a variety of feature offers to entice recipients to click. Some offer multiple offers in one . Still others 40 percent of the companies studied offer no call-to-action. Of companies that did include a feature offer in their messages, top choices to entice recipient action included a percentage off the purchase price, a dollar amount off, and a free gift. (See Figure 25: Featured Offer.) Few companies in this study offered free shipping. Figure 23: Percentage of s Including Lifestyle Photography 27% 38% 62% 7 Yes 0% 10% 20% 30% 40% 50% 60% 70% 80% Figure 24: Average Click Rates for s With and Without Lifestyle Photography 4.1% % 6. 0% 1% 2% 4% 6% 7% No With Without SILVPOP ( ) 2009 Copyright Silverpop. All rights reserved. The Silverpop logo is a registered trademark of Silverpop Systems Inc. 11

12 While companies are more inclined to offer a percentage off the purchase price, a dollar discount seems to appeal marginally more to recipients. s with dollar-off features generated click rates 1 percentage point higher than those offering percent discounts. However, s that included the offer of a free gift with purchase recorded the highest average click rates at 6 percent. (See Figure 26: Average Click Rates for s with Various Offers.) Free Gift Percent Off Figure 25: Featured Offer 2 24% 2 28% The findings indicate a company wishing to boost click rates by as much as 45 percent can do so by offering discounts in dollars rather than percentages. Apparently shoppers are more interested in receiving $2 off a $10 purchase than getting a 20 percent discount. Click rates for s offering a specific dollar amount off were 45 percent higher than those offering a percent discount. Dollar Off Prize Drawing Multiple Offers Free Shipping 2 21% 19% 1 12% 11% 0% 0% 10% 20% 30% Figure 26: Average Click Rates for s with Various Offers Location of call-to-action Best practice has long recommended placing the call-to-action above the fold, and the vast majority of marketers comply. (See Figure 27: s with Call-to-Action Above the Fold.) For marketers, that is clearly critical in boosting click rates. Surprisingly, the Silverpop study found little decline in click rates for messages that required customers to scroll down. (See Figure 28: Average Click Rates for s with Call-to-Action Above the Fold.) Conclusion Free Gift Multiple Offers Dollar Off Prize Drawing Percentage Off Free Shipping 1.8% 3.8% % % 0% 1% 2% 4% 6% At the end of the day, successful marketers know it takes the right product and the right price targeted to the right audience at the right time. But still, all marketers struggle with the creative elements incorporated in making customers aware of their company, products and services. It is, in effect, the icing on the cake, and fancy icing sells a lot of pretty bland cake. Relevancy is still the key, but beyond that, certain creative elements can help engage recipients and improve the level of awareness necessary to attract customer interaction. Silverpop s Creative That Works study underscores the importance of the following best practices: Include the company name or brand in the subject line. Include both text and image links to attract attention and boost click rates. Lifestyle photography attracts consumers and can yield higher click rates. There is such a thing as too many options. Silverpop s study found that, past a certain point, the greater the number of links in a message, the lower the click rate. Yes No Figure 27: s with Call-to-Action Above the Fold 26% 30% 70% 74% 0% 10% 20% 30% 40% 50% 60% 70% 80% Figure 28: Average Click Rates for s with Call-to-Action Above the Fold % % Above Fold Below Fold 0% 1% 2% 4% 6% 7% SILVPOP ( ) 2009 Copyright Silverpop. All rights reserved. The Silverpop logo is a registered trademark of Silverpop Systems Inc. 12

13 Placing the call-to-action above the fold is critical for all marketers, but especially for companies. If you re using the same format over and over again, consider making a switch. Silverpop s study found that s in a postcard format had the highest average click rate, whereas companies had highest average click rates for newsletter formats. Developing compelling creative isn t easy, and it isn t inexpensive. When developing a new creative approach for your marketing campaigns, remember to remain consistent with your overall brand image. If customers suddenly begin to see s in their inbox with a drastically unfamiliar look and feel, they may quickly delete them or report them as spam without even realizing they re from your company. Keep in mind that what works best for one company may be disastrous for another. Test a sub-segment of your target audience with new creative to determine what strongly engages your customers. Footnotes 1. Marketing Content Best Practices, JupiterResearch, November Marketing Benchmark Guide 2006, MarketingSherpa, E-Retail Survey Report, Internet Retailer, February Small Investment in Marketing Creates Big Return, Internet Retailer, September The Anatomy of the Inbox, JupiterResearch, July Radicati Group, April The End of List Growth, Forrester Research, November Marketing Summit Planning Questionnaire, MarketingSherpa, September Preview Panes and Disabled Images, Labs, November 2005 Figures 1. and Messages 2. HMTL vs. Text 3. Subject Line Content 4. Average Open Rates of s Based on Subject Line Content 5. Location of Logo 6. Average Open Rates Based on Logo Location 7. Ratio of Text to Images 8. Examples of s with Varying Amounts of Text and Images 9. Comparison of Click Rates Based on Ratio of Text to Images 10. Examples of Design Layouts 11. Types of Layouts for and Messages 12. Average Click Rates for Various Layout Styles 13. Average Click Rates for Various Layout Styles 14. Percentage of s with Various Numbers of Links 15. Average Click Rates Based on Number of Links 16. Percentage of s with Various Number of Links 17. Average B2 C Click Rates Based on Number of Links 18. Type of Links Found in s 19. Average Click Rates for s with Various Types of Links 20. Presence/Location of Navigation Bar 21. Average Click Rates Based on Navigation Bar Location 22. Samples of Lifestyle Photography 23. Percentage of s Including Lifestyle Photography 24. Average Click Rates for s With and Without Lifestyle Photography 25. Featured Offer 26. Average Click Rates for s with Various Offers 27. s with Call-to-Action Above the Fold 28. Average Click Rates for s with Call-to-Action Above the Fold To find out more about Silverpop s Engage solution and how it can benefit your company, please contact us toll-free at 1-866/SILVPOP ( ) or us at info@silverpop.com. Visit us at SILVPOP ( ) 2009 Copyright Silverpop. All rights reserved. The Silverpop logo is a registered trademark of Silverpop Systems Inc. 13