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STRATEGY AND ANALYTICS / TARGETING / CREATIVE / TECHNOLOGY / DIGITAL<br />

Q4 2010 EMAIL TRENDS AND<br />

BENCHMARKS –<br />

PRESENTED BY EPSILON AND<br />

THE EMAIL EXPERIENCE COUNCIL<br />

Research: March 2011<br />

epsilon.com


STRATEGY AND ANALYTICS / TARGETING / CREATIVE / TECHNOLOGY / DIGITAL<br />

EXECUTIVE SUMMARY<br />

The Q4 2010 <strong>Email</strong> Trends and Benchmarks study shows steady open rates in a number of<br />

industries. In addition, average volume per client through the holiday season increased from<br />

the previous quarter and the same time last year.<br />

This report also delves into message types and performance trends by industry. Certain<br />

types of email messages have higher open and click rates, therefore marketers need to<br />

leverage these opportunities to communicate with their key audience.<br />

The Q4 2010 <strong>Email</strong> Trends and Benchmarks study is compiled from 7.4 billion emails sent<br />

by Epsilon in Q4 (October – December) 2010, across multiple industries and approximately<br />

150 participating clients. This benchmark report should be used only as a guideline, since<br />

specifics for each company will drive results.<br />

Q4 2010 OVERALL PERFORMANCE<br />

• Open rates (22.1%) saw little change over the two-year period, increasing 5% from<br />

the same time two years ago. Four of the 13 reported industries saw an increase<br />

in open rates over Q4 2009.<br />

• Click rates (5.1%) decreased from the same time last year (5.9%) but remain<br />

established over the last two years.<br />

• Average volume per client increased 34.3% from last quarter and 18.5% from Q4 2009.<br />

• The non-bounce rate (95.0%) increased compared to this time last year (93.9%).<br />

• Conversion rates increased 11.3% over last quarter and 16.1% over last year.<br />

The 2.9% conversion rate is the strongest over a two-year period.<br />

• Median order sizes increased 19.8% over last quarter.<br />

• The increase in median order size and orders delivered per email led to a 16.1% increase<br />

in revenue per email over the previous quarter.<br />

100%<br />

90%<br />

80%<br />

70%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

20.9%<br />

Epsilon’s Non-bounce, open and click rates<br />

continue to drive strong results<br />

94.4% 93.5% 94.8% 96.1%<br />

94.1% 94.1% 93.9% 94.7%<br />

•<br />

• •<br />

• •<br />

•<br />

5.8% 6.1% 5.9% 6.2% 5.9% 6.0% 5.3% 5.4%<br />

p<br />

22.1%<br />

• •<br />

21.9% 22.0% 22.4% 22.1% 22.0%<br />

• • • • • • • •<br />

p<br />

22.2%<br />

p<br />

p<br />

Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310<br />

p<br />

• Non-Bounce • Open rate p Click-through<br />

p<br />

p<br />

p<br />

95.0%<br />

•<br />

22.1%<br />

•<br />

5.1% p<br />

Q410<br />

2


STRATEGY AND ANALYTICS / TARGETING / CREATIVE / TECHNOLOGY / DIGITAL<br />

INDUSTRY PERFORMANCE<br />

Business Products and Services General, Retail General, Retail Specialty and Travel/Hospitality<br />

Travel Services had an increase in open rates compared to the previous year.<br />

Only Consumer Services General and Retail Apparel saw an increase in the click rate compared<br />

to the same quarter in 2009.<br />

The highest open rate was in Travel/Hospitality Travel Services (28.4%) and the highest click rate<br />

was Consumer Products CPG (10.3%). Consumer Products CPG also had the highest click to open<br />

rate (53.7%), greatly exceeding all other industries.<br />

Q4 10 North American Industry<br />

Average Sent<br />

per Client<br />

Non-<br />

Bounce<br />

Open Rate Click Rate Click to<br />

Open Rate<br />

Business Products and Services General 55.1% 92.4% 21.9% 3.8% 17.4%<br />

Business Publishing/Media General -76.8% 97.5% 16.4% 4.4% 26.8%<br />

Consumer Products CPG 30.6% 95.4% 19.2% 10.3% 53.7%<br />

Consumer Products Pharmaceutical -75.7% 84.0% 23.2% 6.3% 27.1%<br />

Consumer Publishing/Media General 30.8% 97.9% 14.1% 4.9% 34.6%<br />

Consumer Services General 9.5% 97.4% 18.6% 4.1% 22.1%<br />

Consumer Services Telecom 20.3% 96.4% 21.1% 5.3% 24.9%<br />

Financial Serviced CC/Banks 29.0% 93.8% 27.9% 3.5% 12.6%<br />

Financial Services General 35.5% 96.0% 26.9% 4.8% 17.9%<br />

Retail Apparel 72.8% 98.9% 13.1% 3.8% 29.2%<br />

Retail General 19.5% 96.7% 25.1% 6.7% 26.6%<br />

Retail Specialty -104.9% 97.0% 21.3% 4.4% 20.5%<br />

Travel/Hospitality Travel Services -5.6% 94.9% 28.4% 4.2% 14.7%<br />

Red or green text indicates an increase (green) or decrease (red) over last year’s metrics<br />

epsilon.com


STRATEGY AND ANALYTICS / TARGETING / CREATIVE / TECHNOLOGY / DIGITAL<br />

CAMPAIGN PERFORMANCE<br />

The Q4 2010 <strong>Email</strong> Trends and Benchmarks also analyzed the message types and their performance metrics.<br />

74.4% of emails delivered by Epsilon were categorized as marketing messages, up from 63.1% the previous quarter.<br />

Marketing messages had relatively low open (17.4%) and click (3.5%) rates compared to service and editorial<br />

messages which typically contain highly relevant and targeted information based on consumer preferences<br />

and/or triggered campaigns.<br />

% Delivered in Q4 2010<br />

Acquisition<br />

Service Editorial<br />

0.0%<br />

4.4%<br />

0.9%<br />

Research<br />

0.0%<br />

Other<br />

20.2%<br />

Marketing<br />

74.4%<br />

Key metrics varied by message type across the industries analyzed. Marketing messages fared well in categories such<br />

as Business Publishing/Media General, Consumer Services General, Consumer Services Telecom, Financial Services<br />

CC/Banks, and Financial Services General.<br />

Message Types by Industry<br />

74.4% of emails delivered through Epsilon<br />

were tagged as Marketing messages*<br />

Message Type Open Rate Click Rate CTOR<br />

Service 38.2% 8.0% 20.9%<br />

Other 23.2% 3.7% 16.1%<br />

Editorial 21.6% 5.5% 25.5%<br />

Research 18.1% 3.0% 16.8%<br />

Marketing 17.4% 3.5% 20.4%<br />

Acquisition/Research 15.1% 2.9% 19.2%<br />

* Message types are based on emails deployed out of the DREAM platform and<br />

defined by the person(s) creating the campaigns which may not reflect the same<br />

definitions as your company<br />

Industry Industry Category Message<br />

Type<br />

Open<br />

Rate<br />

Click<br />

Rate<br />

Click to<br />

Open Rate<br />

% of Total<br />

Delivered<br />

in Industry<br />

Business Products and Services Business Products and Services General Marketing 14.1% 2.0% 13.9% 72.4%<br />

Other 10.4% 1.7% 16.7% 26.6%<br />

Acquisition 6.9% 2.5% 36.4% 0.4%<br />

Research 2.4% 0.6% 24.9% 0.5%<br />

Business Publishing/Media Business Publishing/Media General Marketing 29.4% 3.9% 13.3% 9.7%<br />

Service 22.3% 1.8% 8.1% 0.4%<br />

Other 21.9% 1.7% 7.7% 4.3%<br />

Editorial 21.1% 5.5% 25.9% 83.8%<br />

Acquisition 11.4% 1.2% 10.7% 1.8%<br />

Consumer Products Consumer Products CPG Other 14.3% 4.2% 29.2% 0.5%<br />

Marketing 13.9% 3.3% 23.5% 99.5%<br />

Consumer Publishing/Media Consumer Publishing/Media General Other 9.6% 1.9% 19.6% 100.0%<br />

4


STRATEGY AND ANALYTICS / TARGETING / CREATIVE / TECHNOLOGY / DIGITAL<br />

Message Types by Industry (cont.)<br />

Industry Industry Category Message<br />

Type<br />

Open<br />

Rate<br />

Click<br />

Rate<br />

Click to<br />

Open Rate<br />

% of Total<br />

Delivered<br />

in Industry<br />

Consumer Services Consumer Services General Other 75.89% 20.2% 26.6% 1.2%<br />

Acquisition 43.5% 8.5% 19.7% 0.0%<br />

Marketing 28.1% 5.3% 18.8% 98.8%<br />

Consumer Services Telecom Marketing 34.0% 4.1% 12.0% 100.0%<br />

Financial Services Financial Services CC/Banks Research 59.8% 13.3% 22.2% 0.0%<br />

Service 37.9% 7.8% 20.7% 34.3%<br />

Other 37.5% 5.8% 15.4% 49.8%<br />

Marketing 25.5% 2.2% 8.6% 15.9%<br />

Financial Services General Service 64.7% 17.9% 27.7% 4.1%<br />

Other 59.4% 14.2% 23.9% 3.7%<br />

Marketing 27.4% 3.1% 11.2% 92.2%<br />

Editorial 22.4% 4.6% 20.3% 0.0%<br />

Retail Retail Apparel Service 69.6% 11.6% 16.6% 0.0%<br />

Other 11.8% 3.1% 26.4% 16.3%<br />

Marketing 11.0% 2.2% 20.3% 83.7%<br />

Service 64.4% 27.8% 43.1% 0.0%<br />

Retail General Other 18.9% 2.9% 15.1% 25.7%<br />

Research 18.8% 6.7% 35.5% 0.0%<br />

Marketing 18.1% 4.0% 22.4% 74.2%<br />

Retail Specialty Research 75.5% 30.3% 40.1% 0.0%<br />

Service 63.8% 8.4% 13.1% 0.1%<br />

Editorial 28.9% 6.0% 20.7% 1.1%<br />

Other 18.6% 3.0% 16.3% 17.2%<br />

Marketing 16.1% 1.9% 12.0% 81.7%<br />

Travel/Hospitality Travel/Hospitality Travel Services Other 62.9% 6.2% 9.9% 0.1%<br />

Service 62.0% 7.6% 12.3% 0.0%<br />

Acquisition 47.2% 13.4% 28.5% 0.0%<br />

Research 42.6% 4.9% 11.5% 0.1%<br />

Marketing 19.1% 2.8% 14.6% 99.8%<br />

epsilon.com


STRATEGY AND ANALYTICS / TARGETING / CREATIVE / TECHNOLOGY / DIGITAL<br />

CONCLUSIONS<br />

It is not simply enough to send batch-and-blast email marketing campaigns to a broad<br />

database of consumers. In order to get the most out of the email marketing program,<br />

Epsilon recommends utilizing consumer data – both stated preferences and past behavior –<br />

to personalize and individualize campaigns that appeal to the consumer and create a one-to-one<br />

dialogue. As more marketers compete for inbox space, triggered campaigns become increasingly<br />

important – targeting a consumer when they’re engaged with your brand – whether it’s directly<br />

following their registration on your website or upon the completion of a purchase or transaction.<br />

By combining a personalized and highly targeted message with the ideal timing of deployment,<br />

marketers will be better positioned to communicate effectively with the consumer and improve<br />

email metrics while increasing revenue.<br />

6


Epsilon<br />

Corporate<br />

Headquarters<br />

4401 Regent Boulevard<br />

Irving, TX 75063<br />

1-800-309-0505<br />

info@epsilon.com<br />

<strong>Email</strong> <strong>Experience</strong> <strong>Council</strong><br />

Direct Marketing Association<br />

1120 Avenue of the Americas<br />

New York, NY 10036<br />

Ali Swerdlow<br />

917.213.9721<br />

ali@emailexperience.org<br />

epsilon.com<br />

emailexperience.org

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