Quarterly Benchmark Study

Transcription

1 Quarterly Benchmark Study Q July, August, September An Experian CheetahMail benchmark study

2 Table of contents Q Executive summary... 1 A spotlight on: Brand loyalty... 2 The loyalists...2 Brand loyalist mindset...2 Mobile marketing and social media attitudes...4 Q benchmarks... 6 Year-over-year volume comparison...6 Volume variance year-over-year Q versus Q Volume variance quarter to quarter...7 Performance analysis... 8 All industry...8 All industry quarter to quarter...9 Business products and services...9 Catalogers...10 Consumer products and services...10 Media & entertainment...11 Multi-channel retailers...11 Publishers...12 Travel...13

3 Q Executive summary The following report details the overall trends for the third quarter of 2012 as well as the key performance indicators (KPIs) that shaped the success of Experian CheetahMail s client programs over the past two years. volume remained the same in Q as it had been in Q This is likely due to efforts that ensure better deliverability. Open rates were moderately higher year-over-year in Q s declined 5% from Q3 2011, but actually rose by 9% in Q compared to Q Transaction rates were 0.10%, matching those seen in Q3 2011, while revenue per had a slight decline from $0.12 to $0.11. Bounce and unsubscribe rates were lower for each month of Q3 in 2012 than they were in This quarter in the Spotlight On section we look at Brand Loyalty: Experian Simmons research found that 34% of the U.S. population can be defined as a brand loyalist during the past year. Eighty percent of brand loyalists claim they do not buy unknown brands merely to save money, highlighting the need to test if discount offers are needed for this segment to actively engage with campaigns. Loyalists want personal experiences from their favorite stores. Open rates for personalized s were 83% higher than loyalty s without personalization. Loyalists welcome new ideas and respond with double the transaction rates on campaigns highlighting new loyalty program benefits. Loyalists want to be engaged with your brand, and provide significantly higher click rates on survey and review requests, as well as on invitations to be a fan of a brand on social media sites. An Experian CheetahMail Benchmark Study Page 1

4 A spotlight on: Brand loyalty In today s digital world, with instant comparisons between brands available at your fingertips, it is particularly important to cultivate and reward loyal customers. Whether the program is based on points, miles, gift cards, credit cards, stamps or coupons, the goal of a loyalty program is to keep the best customers committed to the brand. Customer retention has never been more important. Communication is key, and plays a leading role in informing loyalty members of benefits, status, offers, as well as brand and program news. To identify current brand loyalty trends, we looked at the latest survey research from Experian Simmons (Spring, 2012 NHCS Adult Survey 12-month) and at loyalty s sent between January 2011 and March 2012 from 43 brands. The loyalists Who are these brand loyalists? Brand loyalist mindset Experian Simmons found that 34% of the adult U.S. population has been a brand loyalist as of April of this year. Looking at that 34%, we have identified some key areas in which brand loyalists differ from the overall adult U.S. population. I do not buy unknown brands merely to save money I usually only shop at my favorite stores because I know they have brands I like I like to share my knowledge with others I enjoy owning good quality things I usually read the information on product labels I always look out for special offers I'm always looking for new ideas to improve my home When buying toiletries, the brand I choose is very important to me I ask people for advice before buying new things Price isn't the most important factor it is getting exactly what I want Brand loyalist mindset 33% 38% 43% 44% 43% 50% 55% 60% 59% 63% 63% 67% 70% 69% 76% 75% 75% 0% 10% 20% 30% 40% 50% 60% 70% 80% Percent of each population 52% 57% 80% Percent of loyalists Percent of U.S. adults Source: Experian Simmons Spring, 2012 NHCS Adult 12- month Survey Page 2 Quarterly Benchmark Study: Q July, August, September

5 The response to campaigns reflects this mindset in a number of ways: Dollars and sense: Offers are valuable, but purchasing the right product from a preferred brand may be more so. While 80% of brand loyalists said they do not buy unknown brands merely to save money, 69% are always looking out for special offers. Mailings without offers in the subject line had 24% higher transaction rates, but 11% lower revenue per than loyalty mailings with offers in the subject line. Consideration: Test whether including an offer will work best for your loyalty program. Loyalty mailings without offers had higher transaction rates but lower revenue per 0.30% 0.25% 0.26% $0.36 $0.36 $ % 0.19% $ % $ % 0.5% $0.32 $0.32 $ % Without offer With offer $0.30 Transaction rate Revenue per The 1:1 - Value your customer: When looking for a favorite store, s with dynamic store locations in the subject line can help ensure that your loyalty members will easily find your brand. Loyalty s with name, dynamic benefit or status updates, or dynamic store locations enjoyed unique open rates that were 83% higher than loyalty mailings that had no dynamic content in the subject line (loyalty mailings with dynamic content had unique open rates of 43.5% compared to 23.5% for those without dynamic content). Spend $75 and Get a $10 Summer Reward Coupon at %storename%! Use your $%point_balance% in Instant Rewards on gifts for Dad Here s Your Online Reward Dollars %fname% An Experian CheetahMail Benchmark Study Page 3

6 Keep it fresh: New ideas, new benefits equates to more engagement. Campaigns mentioning new, updated benefits had more than double the transaction rates than other loyalty mailings (loyalty mailings with new benefits had transaction rates of 43% compared to 20% for other loyalty mailings). Mobile marketing and social media attitudes Two areas in which Brand Loyalists expressed opinions that were stronger than the average U.S. adult population in the Experian Simmons survey are mobile marketing and social networks. Brand loyalist mobile and social network attitudes I am likely to purchase products I see advertised on my cell phone 39% I would be interested in receiving advertisements on my cell phone 33% My cell phone is an expression of who I am 28% I would be interested in a service that would let me use my cell phone to make purchases in a store Tablet (non pc/laptop) brands owned: ipad (Apple) 22% 21% I am more likely to purchase products I see advertised on a social sharing/networking Website 37% I trust product information that I get from social sharing/networking Websites more than other sources 23% I like to follow my favorite brands or companies on social sharing/networking Websites 11% 0% 5% 10% 15% 20% 25% 30% 35% 40% Percent more likely to express than average U.S. adult Source: Experian Simmons Spring, 2012 NHCS Adult 12- month Survey Loyalty campaigns can be effective cross-channel marketing tools that boost your brand s mobile and social media program engagement: Support mobile programs: Loyalty programs are crucial to the travel industry and travel brands are leading the way with mobile communications and mobile apps. Travel is not alone. Mobile loyalty programs are being started in many different types of brands including supermarkets, pharmacies, consumer electronic stores, and office supply companies, just to name a few. Loyalty s are a great way to increase mobile program enrollment, and provide unique benefits to loyalty members. Earn Bonus Points when you enroll in mobile messaging Introducing Quick Prints - The Fastest Way To Print From Mobile Phone to Store Page 4 Quarterly Benchmark Study: Q July, August, September

7 Use surveys and ratings and reviews: Sixty-seven percent of brand loyalists said they ask people for advice before buying new things. They are also 23% more likely than the average U.S. adult to say that they trust product information on social networking sites. is an effective way to obtain opinions and product reviews that can then be used on your social media site. Survey and review requests to loyalty members had 38% higher open rates and more than double the click rates of other loyalty mailings (surveys/reviews had unique open rates of 28% and click rates of 10.7% compared to non-survey loyalty mailing rates of 20.2% and 3.7% respectively). Earn 1,000 Miles For Your Valued Feedback Tell us what you think. Take full advantage of social media: With 75% of brand loyalists saying they like to share their knowledge with others, it is likely that some of that sharing is happening on social media sites. The keen interest brand loyalists have in social media can be seen in their response to s asking them to join or follow a site: Experian CheetahMail click analyses have shown that s with invitations to like us, typically receive 43% of their total clicks on the main link to the social media site. Social invitation s sent to loyalty segments, however, received almost 70% of their total clicks on the main link to social media. Above all, the key to building and retaining loyalty is to know your customer, understand their mindset, acknowledge their individuality, and tailor your brand s messaging to meet their needs, wants and interests across channels. The extra efforts will be recognized by your brand s biggest supporters and you will soon gain new fans along the way. An Experian CheetahMail Benchmark Study Page 5

8 Q Benchmarks Year-over-year volume comparison The following benchmarks report on the year-over-year (YOY) trends for the third quarter of 2012 compared to the third quarter of This quarter, volume was the same as that seen in Q Volume variance year-over-year Q versus Q % Volume variance by industry YOY Q versus Q % 30% 20% 10% 0% -10% -20% Business Products and Services -5.4% -10.3% Catalogers Consumer Products and Services 13.4% -5.2% Media and Entertainment Multi-Channel Retailers -3.6% -0.6% Publishers Travel 0.2% All Industry Travel had a major increase in volume as three quarters of travel brands increased mailings in Q Page 6 Quarterly Benchmark Study: Q July, August, September

9 Volume variance quarter to quarter 40% Volume variance quarter to quarter Q3 compared to Q2 by Industry, 2011 and % 20% 22% 10% 0% -10% -5% -7% -6% -8% -10% -3% -3% 5% 0% 0% -2% 12% 10% 3% -1% -20% Business Products and Services Catalogers Consumer Products and Services Media and Entertainment Multi-Channel Retailers Publishers Travel All Industry Q to Q Q to Q There was almost no change in All Industry volume from Q2 to Q3 in As we saw in 2011, most verticals have some decline in volume from Q2 to Q3. An Experian CheetahMail Benchmark Study Page 7

10 Performance analysis In order to enhance our understanding of what s happening by industry, we have created views that look at all metrics and compare Q3 year-over-year for 2012 versus All industry Total open rate 21.3% Transaction-to-click Transaction rate Revenue per Average order 14.7% 17.5% 4.2% 2.8% Q3 all industry year-over-year performance analysis 4.9% 0.10% 0.10% $0.12 $0.11 $ $ % 2.4% 0.18% 0.14% 22.5% 5.5% 15.7% 15.1% 3.8% 2.7% 4.9% 6.9% -13.7% -9.6% -5.2% -1.4% 3.6% -2.7% 2.5% -11.5% -21.4% -25% -20% -15% -10% -5% 0% 5% 10% Year-over-year variance In Q3 2012, total and unique open rates were above the Q rates. More than 56% of brands had statistically significant increases in open rates in Q s declined year-over-year in Q3 for all verticals. Unlike the declines we had been seeing in click rates, total and unique click rates rose in Q3 compared to Q Page 8 Quarterly Benchmark Study: Q July, August, September

11 All industry quarter to quarter Total open rate 21.9% Transaction-to-click Transaction rate Revenue per Average order 15.2% 15.4% 3.8% 2.5% Q3 compared to Q2 all industry performance analysis 5.1% 0.10% 0.10% 22.5% 2.6% 15.7% 15.1% 3.8% 2.7% 4.9% -3.2% -1.8% $0.12% $0.11% -7.3% $ $ % 2.6% 2.4% -7.9% 0.15% 0.14% -7.9% -10% -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 0.9% 2.1% Quarter to quarter variance 3.3% 9.0% Business products and services Q3 business products and services year-over-year performance analysis Total open rate 26.9% Transaction-to-click Transaction rate Revenue per Average order 15.4% 12.9% 3.5% 2.1% 10.6% 0.23% 0.17% $0.44 $0.28 $ $ % 4.6% 0.20% 0.23% 26.7% -0.6% 15.2% 13.1% 4.0% 2.8% 8.4% -0.7% 0.9% 14.5% 31.2% -21.3% -25.4% -36.6% -13.5% -0.4% 12.4% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% Year-over-year variance While the click rates rose for Business Products and Services in Q3 2012, only 50% of brands enjoyed a statistically significant increase. Transaction rates continue to be lower for electronics and office supply brands. An Experian CheetahMail Benchmark Study Page 9

12 Catalogers Q3 catalogers year-over-year performance analysis Total open rate 12.2% Transaction-to-click Transaction rate Revenue per Average order 9.6% 14.6% 2.1% 1.5% 5.2% 0.07% 0.10% $0.07 $0.08 $ $ % 0.3% 0.20% 0.08% 13.6% 11.7% 11.0% 11.4% 1.8% 1.3% 7.4% 15.1% -21.9% -15.3% -12.3% 42.5% 35.2% 8.6% 0.3% -60.0% -61.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% Year-over-year variance After struggling with high bounce rates the last two quarters, Catalogers now have the lowest bounce rates they have seen in the past two years. Revenue per also showed a statistically significant increase for 59% of Catalogers in Q3. Consumer products and services Q3 Consumer products and services year-over-year performance analysis Total open rate 20.7% Transaction-to-click Transaction rate Revenue per Average order 14.5% 16.9% 3.9% 2.7% 7.8% 0.12% 0.15% $0.09 $0.11 $90.84 $ % 3.4% 0.24% 0.17% 21.8% 5.6% 15.1% 14.4% 3.7% 2.6% 7.9% 4.6% -14.9% -5.5% -5.8% 0.8% 21.9% 21.3% 11.4% -6.2% -31.5% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 40.0% Year-over-year variance Although click rates still showed a modest decline, over 53% of brands had a statistically significant increase in click rates in Q compared to Q3 2011, and 50% had significantly higher revenue per . Page 10 Quarterly Benchmark Study: Q July, August, September

13 Media & entertainment Total open rate 21.6% Q3 Media & entertainment year-over-year performance analysis 15.0% 16.0% 16.6% 15.1% 3.7% 3.4% 2.5% 2.5% 5.2% 4.2% 0.1% 0.1% 22.0% 1.6% -8.8% -7.5% -3.4% -19.4% -9.9% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% Year-over-year variance 6.1% While unique click rates showed a slight decline year-over-year for Media and Entertainment, a more recent trend shows a three percent increase in unique click rates compared to Q for this vertical. Multi-channel retailers Total open rate 19.2% Transaction-to-click Transaction rate Revenue per Average order Q3 Multi-channel Retail year-over-year performance analysis 14.0% 18.8% 3.9% 2.8% 3.3% 0.08% 0.07% $0.13 $0.12 $ $ % 1.1% 0.14% 0.12% 20.6% 7.1% 15.5% 16.5% 4.0% 2.9% 2.8% 10.3% -12.0% 1.7% 1.2% -15.9% -10.9% -10.5% -3.1% -20.0% -11.3% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% Year-over-year variance An Experian CheetahMail Benchmark Study Page 11

14 Trend to Watch As we projected last quarter, click rates have stabilized for multi-channel retailers. Although transaction rates and revenue per are down slightly year-over-year, 50% of brands had statistically significant increases in both of these metrics for Q Early holiday sales show higher transaction rates and revenue compared to last holiday season. We will be watching and reporting on these regularly throughout this year s holiday period. Publishers Total open rate 21.8% Q3 Publishers year-over-year performance analysis 15.2% 16.2% 20.6% 16.5% 4.8% 3.8% 3.2% 2.6% 3.7% 2.3% 0.1% 0.1% 22.8% 4.4% 6.1% -19.8% -19.9% -18.2% -36.8% -44.7% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% Year-over-year variance While click rates are down year-over-year, total and unique click rates for publishers rose over 4% compared to Q Page 12 Quarterly Benchmark Study: Q July, August, September

15 Travel Total open rate 27.5% 17.9% 19.6% 15.4% 14.0% 4.2% 4.0% 2.6% 2.7% 2.7% 2.6% 0.2% 0.1% Q3 Travel year-over-year performance analysis 31.1% 13.3% 9.4% -9.5% -5.5% -3.6% -5.1% -14.5% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Year-over-year variance Sixty-four percent of Travel brands showed statistically significant increases in unique click rates year-over-year. An Experian CheetahMail Benchmark Study Page 13

16 Experian Marketing Services 955 American Lane Schaumburg, IL Experian Information Solutions, Inc. All rights reserved Experian and the Experian marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners. 11/2012