What email metrics do you use?

Vertical Response talks about email metrics that are useful on a dashboard.
Metrics are an ongoing challenge for all marketers. The underlying need for metrics is to evaluate how effective a particular marketing program is. Picking metrics involves understanding what the goal is for a particular program. If your goal is brand recognition then perhaps sales and click-through figures aren’t a good metric. If your goal is sales then opens is not as good a metric as average order value or revenue per email.
Measuring email success is important. But how you choose to measure it is a critical decision. Too many marketers just use canned metrics and don’t think about what they really want to know.

Motivating people
Filters and windmills

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Don't take my subscribers away!

Tom Sather has a good summary of the problems with inactive email addresses and why data hygiene is critical to maintain high deliverability. These recommendations are some of the most difficult to convince people to implement.
Some of my clients even show me numbers that show that a recipient that hadn’t opened or read and email in 18 months, suddenly made a multi-hundred dollar purchase. Another client had clear numbers that showed even recipients that didn’t open for an entire year were responsible for 10% of revenue.
They tell me I can’t expect them to let their customers go. These are significant amounts of money and they won’t let any potential revenue go without a fight.
I understand this, I really do. The bottom line numbers do make it tough to argue that inactive subscribers should be removed. Particularly when the best we can offer is vague statements about how delivery may be affected by sending mail to unengaged users.
I don’t think many senders realize that when they talk about unengaged users they are actually talking about two distinct groups of recipients.
The first group is that group of users that actively receive email, but who aren’t opening or reading emails from particular senders. This could be because of their personal filters, or because the mail is going to the bulk folder or even simply because they don’t load images by default. This is the pool that most senders think of when they’re arguing against removing unengaged users.
The second group is that group of users that never logs in ever. They have abandoned the email address and never check it. I wrote a series of posts on Zombie Emails (Part 1, 2, 3) last September, finishing with suggestions on how to fight zombie email addresses.
Unlike senders ISPs can trivially separate the abandoned accounts from the recipients who just don’t load images. Sending to a significant percentage of zombie accounts makes you look like a spammer. Not just because spammers send mail to really old address lists, but a number of spammers pad their lists with zombie accounts in order to hide their complaint rates. The ISPs caught onto this trick pretty quickly and also discovered this was a good metric to use as part of their filtering.
I know it’s difficult to face the end of any relationship. But an email subscription isn’t forever and if you try to make it forever then you may face delivery problems with your new subscribers.

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The Weekend Effect

Sending mail only Monday through Friday can cause reputation and delivery problems at some ISPs, even when senders are doing everything right. This “weekend effect” is a consequence of how ISPs measure reputation over time.
Most ISPs calculating complaint rate use a simple calculation. They measure how many “this is spam” clicks a source IP generates in a 24 hour period. Then they divide that number by how many emails were delivered to the inbox in the same 24 hour period.
The weekend effect happens when a sender sends on weekdays and not on the weekend thus lowering the number of emails delivered to the to the inbox. Recipients, however, still read mail on the weekend, and they still hit the “this is spam” button on the email. Even if the number of “this is spam” clicks is lower than a normal weekday, with no incoming email the rate of spam complaints goes above ISP thresholds. Even a very well run mailing program may see spikes in complaint rate on the weekends.
Now, when the ISPs are measuring complaint rates over time, they take the average of the average complaint rates. If the rates spike high enough on the weekend (and they can spike to the 1 – 3% range, even for a well run list), that can hurt the senders’ reputation.
The good news is that ISPs are aware of the weekend effect and take this into account when manually looking at complaints. The bad news is that not all of the major ISPs take this into account when programatically calculating reputation.
There isn’t very much senders can do to combat the weekend effect, except be aware this can happen and may be responsible for poor mailing performances on Monday. If you are seeing delivery problems you think may be a result of the weekend effect you can contact the ISPs and ask for manual review of your reputation. Some ISPs can provide manual mitigation for senders with otherwise clean stats. d

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Open rates climbing, click rates dropping

Ken Magill reported on a study published by Epsilon (pdf link) on Tuesday. This report shows open rates are climbing but click-through rates are falling.

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