2011 Informz Inc Association Email Marketing Benchmark Report

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    The Informz 2011Association

    Email Marketing

    Benchmark Report

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    2011 Association Email Marketing Benchmark Report Informz, Inc

    Table of Contents

    Introduction

    Email Marketing Metrics

    Key Findings

    Results

    Overall Association Metrics

    Results by Email Type

    Results by Country of Sender

    Results by Association Type

    Results by Email Client Usage

    Results by Length of Subject Line

    Results by Number of Links

    Results by Number of Recipients

    Results by Time of Day Sent

    Results by Day of Week Sent

    Effects of Personalizing the Subject Line

    Conclusion

    About Informz

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    Introduction

    Email marketing has become one of the primary ways that associations

    communicate with members, and has proven to be both a cost-efficient and

    highly-effective tool. However, with the struggling economy and increasing

    demands on members time, optimizing email marketing campaigns has becomemore important than ever.

    Informz, the leading provider of email marketing solutions for the association

    industry, has performed a study on our association client base to provide email

    marketers from member-based organizations benchmarking information for their

    email programs. This study should help you to understand what metrics you

    should be analyzing when reviewing your email marketing program, what goals

    you can set based on similar organizations, and how your email marketing

    program is performing.

    This report includes a summary of email marketing metrics collected from over500 large and mid-sized associations that used the Informz email marketing

    platform in 2010. These associations, located in the United States, Australia,

    New Zealand, Canada and United Kingdom, sent over 400 million emails in 2010

    consisting of newsletters, appeals, surveys, and event related emails.

    Email Marketing Metrics

    Four key metrics are used in this report: delivery, open, click and unsubscribe rates

    Delivery Rate is the percentage of emails that were not reported back to Informz

    as having been bounced or blocked.

    Open Rate is the percentage of delivered emails that were reported back to

    Informz as having been opened. If the text version of an email is read it is not

    counted. Likewise if an HTML email is read with the images turned off, it is not

    counted. However, if an email is opened with images off, but a link is clicked, the

    email is counted as being opened. Open rate only includes unique subscribers.

    Multiple opens by one subscriber only count once.

    Click Rate is the percentage of opened emails that are clicked by the recipient.Clicking on a link in a text email will not count as a click. Click Rate only includes

    unique subscribers. Multiple clicks by one subscriber only count once.

    Unsubscribe Rate is the percentage of recipients who unsubscribed from a

    particular mailing.

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    Key Findings

    The Informz Association Email Marketing Benchmark Report analyzed the results

    from 400 million emails sent by over 500 large to mid-sized associations. The key

    findings from this study are as follows:

    The timing of email had little affect on open and click results. Day of week had

    less than a 1% difference in result among the days.

    Tactics that affected the targeting and relevancy of content had the most

    significant impact on results. Smaller target groups outperformed emails with

    larger target groups, with the smallest groups of under 50 recipients receiving

    an average open rate of 60%.

    Event emails outperformed all other types of emails averaging a 40.73% open

    rate and a 15.46% click rate.

    Appeal-based emails underperformed, receiving the least amount of opens and

    the most number of unsubscribes. Possibly meaning these email often go to

    large groups, outdated lists and lack value to the recipient.

    61% of emails were received and read using desktop email software, a number

    that decreased from the previous year, while web and mobile device usage

    increased.

    Mobile readership of email has more than doubled in 2010, from 6% to 13%,

    with the iPhone being the dominate device being used.

    Associations in this study achieved an email delivery rate above 95%, higher

    than the email marketing industry average high of 92%.

    Medical industry associations outperformed other associations with an average

    57.07% open rate on emails.

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    Results

    Overall Association Metrics

    The following chart displays the average delivery, open, click, and unsubscribe

    rate from 400 million emails sent by over 500 associations in the United States,Australia, New Zealand, Canada and United Kingdom.

    Notes:The highest open rate recorded by an email sent to at least 1,000 people was

    83.5%. The email informed recipients that their session proposal was selected for

    an upcoming conference.

    0

    20

    40

    60

    80

    100

    97.51%Delivery

    35.18%Open

    18.42%Click

    0.048%Unsubscribe

    average

    rate

    Overall Association Metrics

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    Results by Email Type

    For the purpose of this study the subject line of emails were analyzed to

    determine the email purpose and then segmented by category. The categories

    of emails are: Newsletter, Event, Appeal, and Survey. It was found that the

    delivery rate did not vary with the purpose of the email, so only open andclick rate results are displayed.

    Notes:

    While the results of the study show that event mailings have the highest open

    rate, they also have the lowest click rate. It can be concluded that while people lik

    to be notified about events, they often do not register for them immediately.

    From this chart, you can see that emails sent consistently, such as newsletters,

    resulted in higher open rates. While consistency in time of day and subject line

    may lead to increased brand awareness, it also can lead to complacency. This iswhere your subject line is most important. If you experience a decrease in the

    results of your weekly or monthly newsletter, try testing out new subject lines.

    A fresh subject line that helps recipients understand what value and content they

    will find inside the email can help your email stand out in a crowded inbox and

    lead to higher open rates. This study also shows that click-thru rate is higher in

    newsletters and one hypothesis is that recipients are willing to click on links when

    there isnt a direct commitment, such as fundraising attempts.

    0% 10% 20% 30% 40% 50%

    Survey

    Appeal

    Event

    Newsletter

    Metrics Based on Email Type

    35.22%

    34.36%

    40.73%

    15.46%

    26.66%

    16.56%

    28.84%

    22.75%

    Click

    Open

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    Notes:The results show that the unsubscribe rate varied greatly depending on the

    type of email being sent. Emails containing surveys only lead to half as

    many unsubscribes as an appeal, while event emails also came in well under

    newsletters and appeals. Although newsletters tend to be opt-in, due to the

    frequency of them, individuals may overlook them if they do not find the

    information relevant or valuable, and therefore, unsubscribe. To reduce

    unsubscribes, make sure the information is relevant and personalized to the

    recipients. Avoid sending the same newsletter content to everyone on your list.

    Segment recipients by things like past click-thrus, job function, interest area,

    or demographic information and then create targeted newsletter content forthose groups. Relevancy is the number one tool to help fight list fatigue and

    unsubscribing.

    0.000%

    0.010%

    0.020%

    0.030%

    0.040%

    0.050%

    0.021%Survey

    0.032%Event

    0.037%Newsletter

    0.047%Appeal

    Unsubscribe Rate Based on Email Type

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    Results by Country of Sender

    Based on the physical location of the association, email marketing results were

    split into USA, Australia, and Canada for analysis. Other countries were omitted

    because there were less than 30 clients located in those countries. Delivery rate

    did not vary between countries, so it has been omitted from the chart.

    0% 5% 10% 15% 20% 25% 30% 35% 40%

    Australia

    Canada

    USA

    Metrics by CountryClick

    Open

    30.60%

    20.41%

    39.43%

    24.50%

    35.53%

    17.96%

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    Results by Association Type

    0% 20% 40% 60% 80% 100%

    0% 20% 40% 60% 80% 100%

    D e l i v e r y

    Business and Industry Associations

    Banking

    Farming

    ManufacturingTourism

    Retail

    Medical

    Education

    Other

    Banking

    Farming

    Manufacturing

    Tourism

    Retail

    Medical

    Education

    Other

    O p e n

    C l i c k

    Banking

    Farming

    Manufacturing

    Tourism

    Retail

    MedicalEducation

    Other

    32.37%

    34.66%

    23.95%36.47%

    23.68%

    34.78%

    33.67%

    32.36%

    98.3%

    97.14%

    97.09%

    95.05%

    95.61%

    97.57%

    97.86%

    97.47%

    19.60%

    32.23%

    19.29%

    19.19%

    13.57%

    14.71%27.90%

    20.28%

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    0% 20% 40% 60% 80% 100%

    0% 20% 40% 60% 80% 100%

    Delivery

    Professional & Trade Associations

    Open

    Click

    Legal

    Medical

    Accounting

    Architecture

    Engineering

    Insurance

    Management

    Real Estate

    Marketing

    Government

    EducationOther

    Legal

    Medical

    Accounting

    Architecture

    Engineering

    Insurance

    Management

    Real Estate

    Marketing

    GovernmentEducation

    Other

    Legal

    Medical

    Accounting

    Architecture

    Engineering

    Insurance

    Management

    Real Estate

    Marketing

    Government

    Education

    Other

    97.80%

    98.68%

    97.65%

    95.51%

    97.35%

    98.24%

    97.61%

    98.10%

    97.58%

    97.64%

    97.29%97.27%

    29.35%

    57.07%

    30.38%

    31.34%

    20.13%

    35.25%

    34.79%

    38.83%

    29.97%

    36.36%30.92%

    32.44%

    19.68%

    10.30%

    16.83%

    20.73%

    20.27%

    18.92%

    25.22%

    19.49%

    20.60%

    25.25%

    25.60%

    21.21%

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    Notes:

    The results from this study should provide a general baseline to compare your

    current statistics. However, it is important to remember that every audience is

    different. Therefore, when conducting tests and analysis be sure to also consider

    your organizations past analytics to see if improvements have been made.

    Associations in this study achieved an email delivery rate above 95%, higher than

    the email marketing industry average high of 92%. Medical industry associations

    received the highest average email open rates with an impressive 57.07%, and

    Engineering and Manufacturing associations reported the lowest open rates, less

    than 25%. When looking at open rates, a text version open is not reported in

    this study. With technical audiences it is common to have a higher percentage of

    text version recipients, lending importance to analyzing email engagement and

    conversion rates.

    Engagement rates such as open and click-thrus are a result of how relevant

    the message is for the recipient. Interestingly, Farming industry associationsreported the highest click-thru rates with an average of 32.23%. To increase

    engagement rates, it is important to utilize stored data, such as past behaviors,

    to customize your message and the experience for your members.

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    Results by Email Client Usage

    Informz is able to determine the email client or program used to view any emailthat is recorded as being opened by Informz.

    The first chart shows the relationship between desktop software (Outlook, LotusNotes), web-based (Gmail, Yahoo, Hotmail) and mobile email clients (iPhone, iPad,Android). It should be noted that emails opened in a web browser on a mobiledevice are considered mobile and not web-based. Also, mobile devices that donot display HTML are not reported here.

    Notes:Understanding what your recipients are using to read your emails can help youto create an effective email design to best engage your readers. Desktop software

    continues to dominate, however the study shows that mobile readership of emailhas more than doubled in the past 12 months alone. With the growing popularityof smartphones, this number is expected to continue to rapidly increase. Emailrenders quite differently on a mobile device than it does on a PC, and to add tothe challenge, all mobile devices differ in how they render email. Therefore, it isimportant to consider your mobile audience and alter your design to meet theirneeds (subject line length, graphics, and link placement).

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    December 2009 June 2010 December 2010

    Opens by Type of Email Client

    Web Based Email

    Desktop Software

    Uncertain

    Mobile Device

    67% 24% 6% 6% 63% 26% 9% 6% 61% 25% 13% 6%

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    0%

    10%

    20%

    30%

    40%

    50%

    December 2009 June 2010 December 2010

    Email Client with Most Significant Changes

    Outlook 2007

    Outlook 2000/2003

    iPad

    iPhone

    43% 14% 6% 0% 37% 16% 8% 1% 31% 17% 10% 2%

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    Outlook2000/2003

    Outlook2007

    Apple Mail Outlook2010

    ThunderbirdLotus-Notes

    Desktop Email Client Usage

    31.5% 17% 8% 2.5% 2% 1%

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    0%

    1%

    2%

    3%

    4%

    5%

    6%

    2.8%AOL

    3.7%Gmail

    4%Hotmail

    5.1%Yahoo

    Web Based Email Client Usage

    0%

    2%

    4%

    6%

    8%

    10%

    12%

    2%iPad

    1%Android

    10%iPhone

    Mobile Email Client Usage

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    Notes:

    Desktop software continues to dominate in the area of email client usage.

    The most significant changes were seen with the usage of desktop software,

    specifically Outlook 2003 and Outlook 2007. Usage of Outlook 2003 has rapidly

    declined while adoption of the 2007 version of the program is increasing.

    Adoption of Outlook 2010 is also slow, as the results show it constitutes only

    about 2% of the opens in December 2010.

    Results by Length of Subject Line

    Notes:

    Email subject line is your first impression and aside from the email from address,

    is one of the most important factors in determining if your email is read by a

    recipient or not. Vague, consistently misleading, or static subject lines often can

    cause emails to be overlooked. It is also important to be aware of how yoursubject line reads if truncated. Long subject lines often get cut off and can take

    on a different meaning or lose the intended message, therefore shorter subject

    lines are recommended. On desktops, subject lines should be no more than 50

    characters; mobile devices even shorter, less than 30 characters.

    0%

    10%

    20%

    30%

    40%

    50%

    69

    Open Rate Based on Subject Line Length

    Open

    Percentage

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    Results by Number of Links

    Notes:

    Having many links in an email provides the reader increased opportunities

    to click on a link, and therefore can increase the click-thru percentage. When

    deciding which links to place and where, utilize your click-thru reports from

    previous emails sent to see where your audience is more likely to click. Try

    testing different strategies like making images, buttons, and text clickable

    options for recipients.

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    1 2 34 57 815 1630 3150 5170 >70

    Click Rate Based on Number of Links on the Email

    Click

    Percentage

    14%13%

    16%19%18%

    21%

    24%

    27%

    33%

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    Results by Number of Recipients

    Notes:

    This study shows that the open rate and click rate decrease with the more

    recipients included in a mailing. The highest open rate results are achieved with

    micro targeting of fewer than 50 people. The smaller the recipient list, the more

    customized the message tends to be; thereby supporting the notation that

    relevancy has a significant effect in engagement levels and ROI.

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    250k

    Metrics Based on Number of RecipientsClick

    Open

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    Results by Time of Day Sent

    Notes:

    This study has found that emails sent in the morning hours have received the

    highest open rates, meanwhile the highest click rates are found in the afternoon.

    The increase in clicks towards the end of the day may signify that as staff is

    preparing to end the typical work day, they are more willing to take action on an

    email. If no action is taken on an email in the morning it can get lost among the

    myriad of emails that are sent throughout the day. Analyzing the time of day in

    which your audience is most likely to take action, can help you further customize

    the time in which you plan to send important emails.

    0%

    10%

    20%

    30%

    40%

    50%

    Morning Mid-Day Late Afternoon Night

    Metrics Based on Time of Day SentClick

    Open

    41.49% 15.32% 34.19% 19.15% 32.62% 20.41% 30.58% 18.89%

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    Results by Day of Week Sent

    One of the most common questions asked by email marketers is, when is the

    best day to send my email? This study analyzes the mailing results by day of the

    week, Monday Friday.

    Notes:

    Interestingly, this study shows that there is very little change in open or click rate

    based on the day of the week the mailing is sent. Meaning that day of the week

    has little impact on the results of a mailing; whereas the other studies show that

    content and relevancy impact your email program more.

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    40%

    Monday Tuesday Wednesday Thursday Friday

    Email Metrics Based on Day of Week SentClick

    Open

    34.82% 18.03% 34.15% 18.55% 33.95% 18.73% 33.20% 19.33% 35.45% 19.11%

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    Effects of Personalizing the Subject Line

    0%

    10%

    20%

    30%

    40%

    50%

    Survey Appeal Event Newsletter

    Open Rates Based on Subject Line Personalization

    Personalization

    No Personalization

    35.22% 38.45% 26.66% 27.78% 40.73% 29.76% 28.84% 33.59%

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    40%

    Australia U.S.

    Open Rates Based on Subject Line Personalization

    Personalization

    No Personalization

    30.60% 32.60% 35.53% 30.83%

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    Notes:

    Organizations have been utilizing personalization within the body of an email

    for several years and it has now become a tactic that is almost expected

    by readers. However, personalizing the subject line is something that few

    organizations have been testing. Only approximately 1% of emails sent by

    Informz contained personalized subject lines in 2010 and only the US and

    Australia produced enough data to be analyzed for this study. Therefore,

    it should be noted that these results are not based on a significant source

    of data, however give a glimpse into a technique that should be tested as

    a tool to increase engagement with recipients.

    Conclusion

    The purpose of this study was to provide industry specific metrics to association

    email marketers enabling them to have a better understanding as to:

    what metrics to analyze when reviewing email marketing programs

    what goals to set based on similar organizations how their email marketing program is performing

    It is important to remember that the results from this study should only provide

    a general baseline to compare your current statistics. When considering analysis o

    your own email marketing program it is best to use these results in combination

    with your organizations past email marketing campaign results, as well as an

    understanding as to your specific audience and their needs.

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    About Informz

    Since 1997 Informz has been dedicated to serving the association and nonprofit

    industries by offering powerful online marketing tools built to meet the unique

    challenges faced by these organizations.

    Email is a Science

    Web-based technologies from Informz enable personalized, highly-targeted

    communications coupled with real-time reporting features designed to reach the

    inbox and drive results. Sending the right message to the right people at the

    right time is achieved through email relevancy and your organizations ability to

    leverage its database. Your successful marketing and communications depends

    on reaching the inbox and engaging subscribers. Simply stated, targeted email

    communications improve your response rates, and better response rates increase

    your messages impact.

    The Informz DifferenceIn addition to on-demand product support, you deserve one-on-one, up-to-date

    email marketing guidance relevant to your unique needs, built upon strong

    relationships and reliable collaboration. In order to maximize your success,

    your exclusive eMarketing Advisor is always ready to assist throughout the

    development, publishing, and measurement of your email campaigns. Devoted

    to your professional success, Informz combines state-of-the-art technology

    with our trusted eMarketing Advisors to bring you products and services that

    fit with your marketing goals.

    Through dynamic targeting, intelligent deliverability, precision reporting,seamless integration, and expert Advisors, Informz truly is the way to know

    email marketing.

    Informz has been a great email marketing tool; providing

    great analytics, great customer service and an easy

    to use product. Informz is now our core email marketingsolution from emails and newsletter to surveys and

    alerts; it has become essential in our business.

    ~Chris Ma, Australian Veterinary Association