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.

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Failed delivery of permission based email

A few weeks ago, ReturnPath published a study showing that 20% of permission based email was blocked. I previously discussed the definition of permission based email and that not all the mail described as permission based is actually sent with the permission of the recipient. However, I only consider this a small fraction of the mail RP is measuring, somewhere in the 3 – 5% range. What happens with the other 17 – 15% of that mail? Why is it being blocked?
There are 3 primary things I see that cause asked for and wanted email to be blocked.

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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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When an open is not a sign of interest

A lot of people, including myself, are using opens as one of the measures of engagement. This, as a general rule, is not a bad measure. However, there are people who will open email not because they’re interested in it, but because they know it is spam.
Take, for instance, the email address I acquired in 1993. Yes, I still have this address. I stopped using it to sign up for lists in 1999 and stopped using it for most of the rest of my mail around 2001. This address, though, is on any number of spam mailing lists. The spam that gets through is usually sent by hard-core spammers. The ISP that hosts that mailbox uses Communigate Pro to filter mail, so much of the casual spam is filtered.
Generally, if I open an email (and load images or click through) on that account it is only in order to track down a spammer. For instance, I’m getting a lot of spam there from affiliates offering me the opportunity to purchase printing services for a very low price. I have actually been opening the mail, and clicking through. But I’m not clicking through because I’m interested in purchasing. I’m clicking through to see if my reports to abuse@ printer are resulting in any action against the spammers. (They’re not).
The thing is, though, I know that by clicking through on ads, I’ve now been promoted by the spammer to the “clicks on emails! it’s a live address!” list. Which only means I’m going to get more spam from them. Lucky me.
Using clicks and opens as a measure of engagement isn’t necessarily bad. But when using them you have to understand the limitations of the measurement and that what you may think it’s telling you isn’t actually what it’s telling you.

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