E-mail Marketing Open and Click-Through Rates Worldwide

Welcome back!

Back in March 2009, we reviewed how to measure the click-through rate (CTR) of your e-mail permission marketing campaign with Google Analytics, so I believe it would be very useful to now provide you a benchmark to compare your collected CTRs. For Internet startups, these will be critical benchmarks.

Earlier this July 2009, eMarketer just released a list of e-mail marketing open rates worldwide, by industry and list size for the second half of 2008.

But before I show you these e-mail marketing open rates, let’s review some e-mail permission marketing fundamentals that you must gather:

  1. Number of e-mails sent
  2. Number of opened e-mails
  3. Number of bounced e-mails
  4. Number of unsubscriptions ( You MUST provide this option! Remember that we are doing e-mail permission marketing. No permission = no e-mail.)

With these metrics you will determine:

  1. Delivery rate = (number of e-mails sent – number of e-mails bounced) / number of e-mails sent
  2. Unsubscribe rate = number of unsubscriptions / number of e-mails delivered
  3. Open rate = number of opened e-mails / number of emails delivered
  4. Click-through rate (CTR) = number of clicks / number of e-mails opened

Once you have your open rate and CTR, now you can compare them to these benchmarks provided by eMarketer:

E-Mail Marketing Open and Click-Through Rates - eMarketer

 

E-Mail Marketing Open and Click-Through Rates - eMarketer

How well do you rank against these open and click-through rates?

Gamer Girls Give Consoles a Go

Ladies, grab your Wiimote!

Gamer Girls Give Consoles a Go - eMarketer

eMarketer projects $443 million will go toward in-game advertising spending this year in the US. But marketers should take note that women make up a substantial portion of the audience for that advertising.

Video gaming has grown increasingly popular among older players, other demographic groups and particularly women. This fact is a wake-up call for video game developers, as they are now focusing more on casual gaming.  The leader in this trend is the Nintendo Wii and this strategy has paid off as  in a study of U.S. Next-Generation Video Game Console Usage, for the Nintendo Wii, the % of total minutes used by female gamers is higher than that of its male counterparts in the 25 – 34, 35 -44, 45 – 54, and 55+ age ranges.

Women Playing More Games - eMarketer

According to eMarketer, in addition, 29% of total PC game players were women ages 25 to 54, the largest percentage of any group. Women ages 55 and up were 17% of the market, the third-largest behind men 25 to 54. Older women spent the second-highest number of minutes playing.

“Even with the increased competition from mobile and social network gaming, the console gamer segment added the most new participants to its ranks in the last year,” said Anita Frazier of The NPD Group.  Many of those new participants are women.

Although consoles such as the Wii, PlayStation 3 and Xbox 360 have Internet playing capability, most game play (62%) is still offline.

Think the highly advertised World of Warcraft is the highest played PC game in the U.S.? Think again. Solitaire (yes, you heard right: Solitaire) is the highest played PC game in the U.S. with 7,750,623 unique players in December 2008, dwarfing the 1,104,334 unique players of World of Warcraft in the U.S. in the same month. In PC gaming, the games that come prepackaged with many PCs (Solitaire, FreeCell, Hearts, Minesweeper and Pinball) are the ones with the most players.

What implications has this on marketers?

Do your homework!

Learn from Nintendo and become aware of casual gaming and the increase of female video players.  2 good places to start are:

  1. Meet the Digital Mom
  2. Digital Mom: A two-part report from Razorfish and CafeMom

Talking about Hispanics as a whole group is difficult

I’m a big fan of The e-Marketer Daily newsletter and on 06/26/09 I received two very interesting articles on the presence of U.S. Latinos on the web. The first one is titled Hispanics Online: No Mas E-Barrios and the second one is Looking at Hispanic Behavior Online.

The first article provides some interesting stats on Internet use in the U.S. by race/ethnicity.

Hispanics Online: No MౠE-Barrios - eMarketer

Hispanics make up 12.3% of the total US Internet population in 2009, and that number will increase to 13.9% in 2013. The U.S. Hispanic presence in the Internet is not only going to increase in quantity but also in quality as Hispanic U.S. Internet users are poised to have the highest purchasing power.

Hispanics Online: No MౠE-Barrios - eMarketer

Among marketing organizations, the competition to grab the U.S. Hispanic buck is intense.  Business Week’s Douglas MacMillan reported that of marketers that target minority groups, 95% tailor messages to Latin Americans, 76% target African Americans, and 38% focus on Asian Americans, according to a survey released in November by the trade group Association of National Advertisers (ANA) and marketing agency Mkgt. That’s up from 86%, 60%, and 35%, respectively, in 2003, according to the research.

This has a lot of implications for online marketers who want to be culturally sensitive, while being cost-efficient at the same time. The main problem, as Dr. Felipe Korzenny, Director of the Center for Hispanic Marketing Communication at the Florida State University, states, is that:

Hispanics have a lot of commonalities, and it’s OK to talk about a group that has these sorts of common roots and interests. It doesn’t work well to try to segregate people. I don’t think it works to say, “This is a site for Hispanics and this is a site for others.”

Forcing Hispanic U.S. Internet users into Hi5 (the most popular social network in Latin America and no, it’s not Google’s Orkut, that’s in Brazil) and Myspace versions in Spanish is not the correct strategy.  It’s all about personal choice, let the user decide what’s best for him or her.

That is the reason why MySpace has both—I mean having people having two sites, one in Spanish and one in English—but that doesn’t mean that the Spanish-language site is for Hispanics only, or that the English-language site is for non-Hispanics only. There’s a lot of overlap.

Mixed context in English and Spanish that is triggered by contextual cues appears to be savvy strategy, according to Dr. Korzenny. The good news:  when compared to other ethnicities, U.S. Hispanics do appear to consume more digital content.

When They Go Online, Hispanics Download - eMarketer

However, making any generalizations about U.S. Hispanics is always a mistake. The easiest example: location, location, location.

When They Go Online, Hispanics Download - eMarketer

If you use the same strategy in Miami, FL, that you used in Dallas, TX, you shouldn’t be surprised to get mixed results.  While U.S. Hispanics do share some commonalities, consider that Texas has a more predominant Mexican presence, while Florida has a more predominant Cuban and South American presence.  Put it this way: imagine if you were to use Canadian slang to target a British and Australian  audience, would it make sense? After all, they all speak English, right?  That’s the most common mistake of companies that purchase one-size-fits-all, prepackaged marketing solutions.

Marketers should never throw out the window marketing fundamentals when dealing with U.S. Hispanics.  There is no easy answer.  Only one thing is certain: do your homework, research, research, research.

Amazon Associates gives Hawaii the boot!

Yesterday I received an e-mail from the Amazon Associates Program informing me that my Associates account has been closed as of June 30, 2009. Here’s the e-mail itself:

Important Notice from the Amazon Associates Program - Posteingang - 'Yahoo! Mail'

Despite efforts from Hawaiian Amazon Associates throughout April 2009 and May 2009, Amazon decided to pull the plug on the Hawaiian Associates program.

The Motley Fool reports on a similar move of Amazon in North Carolina.

A Guide to Permission Marketing

For more info, check out:
  1. E-mail Permission Marketing: It Works!
  2. E-mail Permission Marketing Fundamentals
  3. How to Measure the CTR of Your E-Mail Permission Marketing Campaign with Google Analytics

A Guide to Permission Marketing





How to Solve a Harvard Business Case the idaconcpts Way

Today I’m taking a look at the Harvard Business Case #9-501-055 Cofidis.


Undergraduate and Graduate Business students: be sure to quote me! : )

According to the Harvard Business Publishing, these are the learning objectives of this case:

This case allows students to attempt to answer a myriad of questions. How do you treat a financial product from a marketing standpoint? What does marketing add to the generic consumer credit product? What are the determinants of consumer adoption for a new product? How do you combine product and communication strategies? What is the effect of sports sponsoring? How do you build a brand? How should your marketing strategy unfold over time and across borders to build and maintain a strong brand? Is marketing an acceptable activity or an attempt to fool people with products that they misinterpret? What is the role of freedom and control in a value proposition? How do all these soft marketing elements interact concretely to lead to a profit formula?

Here’s how I tackled this case.

Purpose

The main issues that the company faces are: 1) What would the ideal features be for the national commercial websites?  2) How could they make sure that they enhanced the Cofidis money making formula? 3) What should the concept of the Cofidis.com website be? Should Cofidis become the online broker or should there be a new online concept brand?  In the other hand, the company must make these decisions while considering the macroeconomic factors, the rates of recovery of outstanding loans, and cultural factors of each country it targets.

Recommended Solution or Course of Action
Cofidis should go ahead with its Internet expansion because it provides a suitable channel to strengthen its deal-making mechanisms.  A core competence from Cofidis is non-intrusiveness and the web provides a good place to further implement this policy, combined with greater disclosure of details about payment options.  However, I don’t think that Cofidis should risk creating a new website concept but rather reinforce the Cofidis brand.

Analysis
Being an online broker could work against them because they are providing increased market exposure to other competitors.  There is no clear future on how the Internet ingredient will drive up profits (particularly because there is no certainty how it will affect handling doubtful accounts); therefore, the company should not make such a big investment of reinventing the brand online but only strengthen it. I agree with Cofidis customizing each country website to the cultures of each nation.  It is particularly important that Cofidis pushes its brand by better positioning itself among popular European web search engines.  Cofidis ought to consider making strategic alliances with websites that cater the local preferences (e.g. bicycling websites in France).  It was interesting to see a lack of discussion of Web 2.0 type promotion.

The New Frontier of Experience Innovation

Welcome back!

Starting today, I’m going to complement my regular posts on online marketing and web analytics with review of current, relevant marketing topics.

Today, I took a look at:

Prahalad, C. K. and V. Ramaswamy (2003). “The New Frontier of Experience Innovation.” MIT Sloan Management Review 44(4): 12

 

Purpose of this Article

The purpose is that the manager focuses on value creation through innovation.  The authors do not offer best practices but new practices in creating an experience environment.  They challenge the assumption that just developing core competencies guarantees success.

The Central Message of the Reading?

Prahalad and Ramaswamy (2003) point out idea convergence and co-creation as necessary activities in value creation, which “is defined by the experience of a specific consumer, at a specific point in time and location, in the context of a specific event” (p.14).  This proposal challenges the current assumption that value creation is product-specific, centered around core competencies and company-centered.  “An experience environment can be thought of as a robust, networked combination of company capabilities (including technical and social capabilities) and consumer interaction channels (including devices and employees), flexible enough to accommodate a wide range of individual context-and-time-specific needs and preferences” (Prahalad and Ramaswamy, 2003, p. 15).

Just as “soft skills” are the buzz word in current management studies, “soft knowledge” is a buzz word in marketing studies.  “Soft knowledge” is solutions-based innovation that focuses on accumulated company expertise to create customer value.

Managerial Implications

Core competencies are no longer the goal, instead are now the means to create experience innovation because a technological capacity is only relevant when it fits the desire the consumer’s desire to improve an experience.  Convergence of consumer and designer roles, as well as business and technology roles, are key to the experience innovation economy.

 

Photo Sharing Websites

The top question that people ask me when people find out about my online marketing and web analytics blog, is how I came up with the name idaconcpts.  I really like words that are similarly written and understood in several languages, and ideas and concepts are two of them.  I played around with different variations of these words, until I realized that what my blog was truly about was putting ideas and concepts into e-commerce.  Therefore, putting these ideas and concepts would be put to work into commerce, or would put the “e” in e-commerce.  Hence, idaconcpts.


Yahoo! Flickr - 468x60

One of the best things of writing at idaconcpts.com is that I have a passion for analyzing photo sharing websites and my readers seem to share that passion with me.

idaconcpts stats 05_28_2009

Over 34% of the readership at idaconcpts follows the posts about the BIG 5 of photo sharing: Flickr, Photobucket, Snapfish, Shutterfly, and Slide.  Please note that I am limiting myself to websites (as opposed to desktop apps such as Picasa).  At the same time there will be debate about:

  1. why I am not including Myspace and Facebook (which obviously have major photo sharing activity),
  2. if I include photo printing services such as Shutterfly, why I don’t include major online photo printing services like Walmart and Costco, and
  3. if I am not including Picasa Web Albums, why am I selecting Slide, which obviously is not a photo sharing website, but rather a widget generator like Sprout Builder.

And my answer is that they are all great questions that I will tackle on future posts to come!

In the meantime, let’s continue the analysis of the BIG 5, which started back in November 2008 with the post Flickr versus Snapish versus Photobucket versus Slide versus Shutterfly and continued with the follow-up post Revisiting Flickr versus Snapish versus Photobucket versus Slide versus Shutterfly. In this posts we analyzed the traffic to these photo sharing websites through Google Ad Planner and Google Trends.  Today we will take a look through another great web analytics called Compete.

Compete is an awesome cloud computing web analytics tool that allows you access website activity info from any website.  The first killer feature of Compete is that it allows you to compare 5 websites side by side.  Even though Google Trends and Google Ad Planner do offer this service, Google Trends‘ information is quite limited, and Google Ad Planner’s information is limited to a handful of websites.

Here a couple snapshots of Flickr, Photobucket, Snapfish, Shutterfly, and Slide using Compete:

Site Comparison of flickr.com (rank #32), snapfish.com (#587), shutterfly.com (#668), photobucket.com (#34), slide.com (#172) | Compete-1

Site Comparison of flickr.com (rank #32), snapfish.com (#587), shutterfly.com (#668), photobucket.com (#34), slide.com (#172) | Compete

The second killer feature of Compete is that it allows you to take a look into the subdomains (finally!) of entered websites.  Google Trends does not (as of 05/29/2009) allow that feature, it only allows you to take a look at the web analytics of the home page.

Remember point 2 above? With this tool I can finally tap into finding out how much traffic from walmart.com goes into photos.walmart.com:

Subdomains for walmart.com | Compete

Finally, Compete allows me to post these simple little graphs, which previously I had to take a snapshot using Skitch and upload to my blog.  I still love Skitch, but this saves time!

What about an updated analysis of Flickr, Photobucket, Snapfish, Shutterfly, and Slide using Compete?

Dear reader, you already have a start with the post Flickr versus Snapish versus Photobucket versus Slide versus Shutterfly and its follow-up post Revisiting Flickr versus Snapish versus Photobucket versus Slide versus Shutterfly. Now with Compete, you can slice and dice the data in no time!

Best of luck in your research!

Permission E-mail Marketing Polling with LinkedIn Polls

Since February 2009, I’ve been talking about permission e-mail marketing here at idaconcpts.com because it turns regular e-mails into personal, relevant and anticipated messages.  An important part of the work of online marketers is polling because it provides greater insights to our questions and allows us to have better, more educated decision-making.

I have used Surveymonkey in the past and it works great but I have found that LinkedIn Polls allows polling to become more personal, relevant, and anticipated.

 

linkedin pollsLinkeIn Polls is one of the applications that LinkedIn launched in October 2008 and as all of these applications they are free but require you to have a registered account with LinkedIn.

To access LinkedIn Polls you need to first add the application to your LinkedIn profile:

LinkedIn_ Home

Creating a LinkedIn Poll is very simple and intuitive:

createapoll

You can submit your poll to either your 1st degree connections or a target audience of professionals in the U.S (this option is free for premium subscribers).  I would recommend to stick with the first option (targetting your first degree connections) because this makes your poll personal (“Hey Mike can you take a loot at this?”), relevant (“Susan, your input is important to me because I know your expertise in marketing while we worked together), and anticipated (Linkedin is a site for networking!).

An important caveat is that LinkedIn Polls is only as good as your networking power is already at LinkedIn.  However, don’t believe that I’m just talking about having several contacts, I’m also referring to the number of groups and associations that you belong to in LinkedIn.  If you’re active in several forums, you can get a lot of responses, and more importantly long threads of valuable qualitative data.

If you do have lots of contacts, LinedIn Polls has made it easy to segment by location and/or industry:

narrow

One of the most attractive feature of LinkedIn Polls is that it makes segmentation of your poll results a snap.  It provides attractive bar graphs by job title, company size, job function, gender, and age.

results1

results2

results3

One could easily argue that LinkedIn Polls needs options for cross-tabulation ,like Surveymonkey does, and further options for segmentations, but I strongly believe that this application is a great way to gather data fast and to create actionable bar graphs that you can e-mail to your colleagues.  More importantly it follows the fundamentals of permission e-mail marketing by making polls more personal, relevant and anticipated.