Here are the most popular posts on this blog from the past year.
Enjoy, and have a great New Year!
Here are the most popular posts on this blog from the past year.
Enjoy, and have a great New Year!
When you’re trying to optimize the profits of your business, most web metrics are unhelpful at least, and deceptive at worst. But what about the world of email marketing ? Kevin Hillstrom, in his excellent Mine That Data blog, gave this example to illustrate how conventional email metrics look at the wrong things:
Say you have a list of 500,000 e-mail addresses. You send your standard campaign on a Monday. Later in the week, you tabulate your results:
- 500,000 recipients
- 20% open rate = 100,000
- Of the opens, 20% click through to the website = 20,000 visit website
- Of the clicks, 5% convert and buy something = 1,000 orders
- Average Order Value = $100
- Total Demand = 1,000 * $100 = $100,000
- Demand per Recipient = $100,000 / 500,000 = $0.20 [per customer]
He compares these finding with what you’d get if you did something called a mail/holdhout test. You compare a control group that does not get the email with a test group that does. For instance, he suggests this breakout:
Much more insightful!
This is why I’m not a fan of open/click/conversion. A mail/holdout test proves the actual value of an e-mail marketing campaign. In this case, we observe $0.30 lift, whereas open/click/conversion yields $0.20 lift. E-mail marketers, why would you not want to know that your campaigns are working 50% better than when measured via opens/click/conversion?
Kevin goes on to provide other interesting observations from his years of doing this sort of testing. You can’t go wrong by following his blog, and trying his approach to data-driven online marketing.
Four years ago, when I first started this blog, one of the first members of the “legitimate” blogging community to pay me notice was James A. Gardner. At the time he was a senior director at Aquent. He also had one of the most ambitious “hobby blogs” I’d ever encountered. It’s Adverlicio.us, a site that’s still going strong. Its tag line is The World’s Tastiest Collection of Online Advertising.
Tasty and comprehensive!
It was an impressive site when I first checked it out, a constant source of inspiration and competitive intelligence. It has recently gotten better. I especially like the category of Ads By Brand.
The ads are also tagged well. I clicked on the tag “Films” (found in the tag cloud, in the right column) and saw the ad to the right for The Social Network.
It’s hard to believe James is still at this archive site — all while serving as marketing director for the Boston computer hardware start-up Litl. I know from my work as marketing advisor of HarQen how demanding that can be!
Do check out this useful resource, and me know what you think of it.
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