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Five elements that contribute to the success (or failure) of every email campaign Crafting an Effective Email Message Dr. Flint McGlaughlin CEO & Managing Director MECLABS

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Page 1: Crafting anftp.marketingsherpa.com/heap/presentations/emailsummit11...conversion rate of sales and marketing processes. 1992 Preliminary Research Begins 1997 Research Program Established

Five elements that contribute to the success (or failure) of every email campaign

Crafting an Effective Email Message

Dr. Flint McGlaughlinCEO & Managing DirectorMECLABS

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ABOUT THE RESEARCHEmail Messaging

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Email Messaging

Dr. Flint McGlaughlin – Managing Director, MECLABS Group

Flint McGlaughlin is the Managing Director of MECLABS Group. The organization has partnered with key market leaders including, The New York Times, Microsoft Corporation, and Reuters Group. 

Dr. McGlaughlin also serves as the Director of Enterprise Research at the Transforming Business Institute, University of Cambridge (UK), as the Chairman of the Board of Governors for St. Stephen’s University, and as a Trustee for Westminster Theological Centre. Dr. McGlaughlin originally studied Philosophy and Theology at the University of London’s Specialist Jesuit College. 

Today, his primary research is focused on enterprise as transformative agent. His work has won multiple awards and has been quoted in more than 13,000 online and offline sources.

About the Research

Presenter
Presentation Notes
ANDY
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Email Messaging

Core Offerings >>

MECLABS Sciences Group

Conversion Group

Leads Group

Technology Group

Training Group

Strategy Group

Applied Research

Brands

Primary Research

• 974 case studies• 753 how‐to articles• 180 research briefs • 50 publication series

Products

Over 100 conferences, training sessions and events per year 

Events

Agency Group

About the Research

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Email Messaging

MarketingExperiments was the first Internet‐based research lab to conduct experiments in optimizing the conversion rate of sales and marketing processes.

1992 Preliminary Research Begins

1997 Research Program Established

2001 First Research Report Published 

2002 Testing of Research Partnership Model Begins

2003 Offer Response Optimization Theory Validated

2006 Patent Filings for Research Findings (10 Heuristics)

About the Research

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EXPERIMENTEmail Messaging

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7

Experiment ID: (protected)Location: MarketingExperiments Research LibraryTest Protocol Number: TP2061

Background: An established financial institution offering online savings accounts

Goal: To increase clickthrough from an email message to the landing page

Primary research question: Which email design will produce the most clickthrough?

Approach: A/B email split test (variable cluster)

Research Notes:

Experiment

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Email Messaging

8

Note the following things about the control:

• Utilizes graphical imagery throughout email

• Provides multiple calls‐to‐action

• Follows a typical clean landing page format

• Copy is difficult to read in some places

Experiment

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Email Messaging

9

Note the following things about  Treatment 1:

• Not many graphical elements

• Relies on copy‐rich messaging

• Has a personal letter‐style feel

• Links are embedded within the copy

Experiment

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Email Messaging

10

Note the following things about  Treatment 2:

• Utilizes graphical header to catch visitors eyes

• Organizes the content in a clean, easy‐to‐scan format

• Displays security guarantee seal

• Single clear call‐to‐action

Experiment

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11

Note the following things about Treatment 3:

• Similar to Treatment 2

• However, does not utilize graphical header

• Organizes the content in a clean, easy‐to‐scan format

• Displays security guarantee seal

• Single clear call‐to‐action

Experiment

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12

Control

Treatment 1

Treatment 2

Treatment 3

Experiment

Presenter
Presentation Notes
We asked this same question on the MarketingExperiments blog today The marketer who not only guessed the winner, but came closest to the correct CTR increase was NEED NAME
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13

Email

Email CTR Rel. Diff.

C – Control email 0.51%

T1 – Copy-rich email 0.73% 42.34%

T2 – Single CTA (w/ header) 0.63% 24.12%

T3 – Single CA (w/o header) 0.65% 26.27%

42% Increase in ClickthroughTreatment 1 (copy rich) outperformed the control by 42.34%

Experiment

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14

What was it about this email that generated the most response?

Experiment

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Email Messaging

Rule‐based Optimization

Science‐basedOptimization

vs. 

• Emphasize hero shots• Keep it above the fold• Avoid too much copy• Emphasize the Benefits• Don’t use reverse text• Don’t rely too much on Flash• Implement basket recovery emails• Avoid auto‐on audio

Practice

Methodology

Meta‐theory

Rules vs. Science

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Email Messaging

eme  =  email messaging effectiveness indexrv  =  relevance to the consumerof  =  offer value (why)i   =  incentive to take actionf  =  friction elements of processa  =  anxiety elements of process

eme = rv(of + i) – (f + a) ©

Email Messaging Optimization Heuristic

Methodology

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Email Messaging

eme = rv(of + i) – (f + a) ©

Email Messaging Optimization Heuristic

Methodology

During today’s presentation, we will be walking through each of the five elements in the heuristic above, analyzing the key components of a successful email message.

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RELEVANCEEmail Messaging

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Email Messaging

Relevance – The compatibility of the email message to the recipient’s motivations

eme = rv(of + i) – (f + a)©

eme = rv(of + i) – (f + a)

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Email Messagingeme = rv(of + i) – (f + a)

Simple key statements are used to generate a relevant connection to the user:

• References to previous purchase patterns – “being a XXXXX account holder”

• Personal name “Monica” is used in the greeting

• Reference to personal behavior “saving for next your vacation, home, etc.”

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Email Messaging

1. The relevance of an email can be based upon 1) the internal motivations of the recipient and 2) the external events surrounding a recipient.

eme = rv(of + i) – (f + a)

Key Principle

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Email Messagingeme = rv(of + i) – (f + a)

Internal Relevance• Personal interests • Demographics• Shopping habits• Personality• Communication styles• Level of engagement

External Relevance• Seasonality• Special discounts• Limited‐time offers• News events• Competitive initiatives

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Email Messaging

Now let’s look at an example of how we tied relevance into a holiday email campaign for one of our research partners … 

eme = rv(of + i) – (f + a)

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Email Messaging

Current Subscriber 

Never Gifted

Current Subscriber

Has Gifted

Lapsed Subscriber 

Never Gifted

LapsedSubscriber 

Has Gifted

Never a Subscriber 

Has Gifted

• This company segmented the current email list into five distinct groups (as seen above) for a holiday email campaign.

• They sent targeted email messages relevant to each group.

eme = rv(of + i) – (f + a)

Presenter
Presentation Notes
Boris answers with these slides social networking site allows users buy gifts for others
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Email Messaging

External Relevance: Uses the holiday season to motivate recipients  – “It’s already too late to send through snail mail…”

Internal Relevance: Messaging ties into previous actions of the recipient – “You’ve recently given one of your friends…” as well as appealing to personality – “You know how great it is to be a subscriber…”

eme = rv(of + i) – (f + a)

Presenter
Presentation Notes
Read the copy uses both external and internal
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Email Messaging

External Relevance: As before, this email uses the holiday season to motivate recipients.

Internal Relevance: Messaging speaks more to the subscriber who hasn’t sent a gift to anyone before – “Did you know you can give a… a subscription to….”

eme = rv(of + i) – (f + a)

Presenter
Presentation Notes
Read the copy
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OFFEREmail Messaging

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Email Messaging

Offer – The value you promise in your email in exchange for a click

Value is the primary reason an ideal prospect would respond to you.

eme = rv(of + i) – (f + a)©

eme = rv(of + i) – (f + a)

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Email Messagingeme = rv(of + i) – (f + a)

• Much of value proposition of this offer is the same in this test, with the exception of one critical element – the call‐to‐action.

ControlTreatment 

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Email Messagingeme = rv(of + i) – (f + a)

Learn more and open an account

Control CTA

Treatment CTA 

Click here to earn more today!

Original: The call‐to‐action in the control is focused on what the prospect has to do (“learn & open”) rather than what they might get. This just creates anticipated Friction and Anxiety rather than Value.

Optimized: The new call‐to‐action focuses on what the email client gets (“earn more money”) if they are willing to click to the next step.

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Email Messaging

1. Your communication of value begins in your subject lines and should be maintained throughout the entire conversion process.

eme = rv(of + i) – (f + a)

Key Principles

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Email Messaging

Experiment from

eme = rv(of + i) – (f + a)

Experiment ID: (Protected)Location: MarketingSherpa Research LibraryTest Protocol Number: CS771

Background: This company offers prepackaged organic meals delivered to your home. They believed that the order minimum was hurting repeat sales. They began a promotion that reduced the minimum order. An email was developed to inform previous customers of this new order option. 

Goal: To get recipients to open the email 

Primary research question: Which subject line will receive the higher open rate?

Approach: A/B single‐factorial split test

Research Notes:

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Email Messaging

Subject Line #1[Company Name]: A New Way To Order

• This email is being sent to previous customers.

• This subject line emphasizes a “New Way To Order,” but says nothing about why or how it is better.

eme = rv(of + i) – (f + a)

Experiment from

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Email Messaging

Subject Line #2[Company Name]: Now only 2‐meal minimum order

• This subject line explains the benefit of the new order option.

eme = rv(of + i) – (f + a)

Experiment from

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Email Messaging

25.3% Increase in Open RateResulting in greater subscriptions and revenue

eme = rv(of + i) – (f + a)

Email Subject line Open Rate (%)

Control – A New Way to Order 35.2

Treatment 1 – 2‐meal minimum order 44.1%

Relative Difference 25.3%

Experiment from

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Email Messagingeme = rv(of + i) – (f + a)

1. Your communication of value begins in your subject lines and should be maintained throughout the entire conversion process.

2. In the body of the email, it is important to distinguish the difference between the product offer and the clickthrough offer. In many cases we conflate the two. To avoid this danger one must ask two questions:

• Q1: What is your objective? 

• Q2: What is the best way to achieve your objective? 

Key Principles

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Email Messaging

What REALLY is the offer? 

• You may think that the offer is the product that you want to sell, when in reality it is the additional information they receive in exchange for a click.  

• What is the objective of your email? Is it to sell product or to get a click?  

• If the goal is to get a click, then why are you trying to sell your product twice (email and landing page)? If we conflate our purpose, then we mitigate conversion.

eme = rv(of + i) – (f + a)

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38

Experiment ID: (protected)Location: MarketingExperiments Research LibraryTest Protocol Number: TP2063

Background: A financial organization offering a quarterly newsletter for business leaders. These emails often feature a single whitepaper download.

Goal: To generate more whitepaper downloads.

Primary research question: Which email design will produce the most downloads?

Approach: A/B email split test (variable cluster)

Research Notes:

eme = rv(of + i) – (f + a)

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eme = rv(of + i) – (f + a)

• The original version of the email provided an overview of the whitepaper download similar to what might be best practices for a landing page offer (strong headline, intro paragraph, bullet point, single CTA, etc.).

LOGO

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• In a radical testing strategy, our researchers wanted to test peaking the recipients interest by showing part of the article (title and first three paragraphs) that they could download.

• The hypothesis was that this would increase the value of “the click”.

eme = rv(of + i) – (f + a)

LOGO

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41

Test Designs Email CTR Relative Difference Download Rate Relative 

Difference

Control 8.4% ‐ 18.2% ‐

Treatment 1 10.8% 28.6% 33.6% 84.6%

85% Increase in DownloadsTreatment 1 increased the rate of clickthrough rate by 29%

eme = rv(of + i) – (f + a)

What you need to understand: By focusing on piquing interest just enough to get a click in the email, not only did we generate more response from email recipients, but we also generated more white paper downloads on the landing page. 

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eme = rv(of + i) – (f + a)

INCENTIVEEmail Messaging

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Email Messaging

Incentive – An appealing element introduced in your email to achieve a desired action.

eme = rv(of + i) – (f + a)©

eme = rv(of + i) – (f + a)

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Email Messagingeme = rv(of + i) – (f + a)

Background: A student from our certification course in landing page optimization tested two different incentive options on a B2B email landing page seeking to promote the download of a specific white paper.

Goal: To improve landing page conversion rate while generating opt‐ins for ongoing communications

Primary research question: Which incentive will generate the most conversions?

Approach: A/B single‐factorial split test

Experiment ID: (Protected)Location: MarketingExperiments Research Library

Research Notes:

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Email Messagingeme = rv(of + i) – (f + a)

“… a chance to win one of twenty $25 Amazon gift cards...”

“… a chance to win one of ten $50 Amazon gift cards...”

Incentive #1 Incentive #2

The cost of these offers was the same, but which do you think performed best?

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Email Messaging

Subscription path CR Relative diff v. control

Incentive #1 43.0% ‐

Incentive #2 56.5% 31.4%

31% Increase in conversion rateThe second incentive outperformed the other by 31.4%

eme = rv(of + i) – (f + a)

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Email Messaging

Ideal Incentive: Incentives must be tested. There is an “ideal incentive.”  

Until you find an incentive that gives you a major ROI increase, you must assume you have not yet found the ideal incentive.

So how do you determine the ideal incentive?

eme = rv(of + i) – (f + a)

Friction Elements Incentives

ABANDON COMPLETION

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Email Messaging

Background: An online people search company that was losing many orders due to cart abandonment.  We wanted to find a way to recover as many of these orders as possible with a minimum incremental marketing spend.  

Goal: To recover partially completed but abandoned orders through a sequence of basket recovery emails. 

Primary research question: Which basket recovery sequence and offer will generate the most sales?

Approach: A/B split test (variable cluster)

Research Notes:

Experiment ID: (Protected)Location: MarketingExperiments Research Library

eme = rv(of + i) – (f + a)

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Email Messaging

The table below shows the performance of the initial test, using a sequence of two email messages. 

Note: With no additional marketing spend, the initial set of basket recovery email messages yielded 25 additional sales and $725 in additional revenue. 

Email Description Emails Sent

CTP Clicks CTR Sales CR Price Net 

Rev

Email Send – 1‐hr message ND 8,834 252 2.85% 24 9.52% $29.00 $696.00

Email Send – 24‐hr message ND 8,610 100 1.16% 1 1.00% $29.00 $29.00

EMAIL TOTALS 17,444 352 2.02% 25 7.10% $725.00

eme = rv(of + i) – (f + a)

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Email Messaging

• We then added a third email to the sequence that offered a discount on the cost of the service as an incentive.

• The original price was $29.95, the discounted prices is $19.95 (33% off).  

eme = rv(of + i) – (f + a)

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Email Messaging

3 Message Series with Discount Incentive:

149% Increase in ConversionThe third email increased conversion rates by 149%

What you need to understand: Adding the discount incentive email boosted conversion rate for the series by over 149% (17.7% vs. 7.1%) and generated a more than 273% higher level of net revenue ($1,982 vs. $725).  Conversion from click through to sale for the third email was over 43%.

Email Description Emails Sent

CTP Clicks CTR Sales CR Price Net Rev

Email Send – 1‐hr message ND 8,834 252 2.85% 24 9.52% $29.00 $696.00

Email Send – 24‐hr message ND 8,610 100 1.16% 1 1.00% $29.00 $29.00

Email Send – 5th day message ND 8,419 145 1.72% 63 43.45% $19.95 $1,256.85

EMAIL TOTALS 25,863 497 1.92% 88 17.71% $1,981.85

eme = rv(of + i) – (f + a)

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52

eme = rv(of + i) – (f + a) ©

Email Messaging Optimization Heuristic

Based on what we have covered so far, let’s begin to apply these principles to real‐life email campaigns submitted by our audience.

Live Optimization

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eme = rv(of + i) – (f + a)

LIVE OPTIMIZATION #1Email Messaging

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eme = rv(of + i) – (f + a) ©

Subject Line: The Best Coupons This Week ‐ 1/17/11 (with today's Deal of the Day!)

Presenter
Presentation Notes
Submitted by: Jacob
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eme = rv(of + i) – (f + a) ©

Subject Line: Email‐Only 20 Farm Cash INSIDE!

Presenter
Presentation Notes
Submitted by: Tien-Wei Huang
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Subject Line: You're just one step away

eme = rv(of + i) – (f + a) ©

Presenter
Presentation Notes
Submitted by: Jennifer
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Email Messaging

57

eme = rv(of + i) – (f + a) ©

Email Messaging Optimization Heuristic

We will now move on to covering the last two elements of the Email Messaging Optimization heuristic: Friction and Anxiety.

eme = rv(of + i) – (f + a)

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eme = rv(of + i) – (f + a)

FRICTIONEmail Messaging

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Email Messaging

Friction ― Psychological resistance to a given element in the email

eme = rv(of + i) – (f + a)

eme = rv(of + i) – (f + a)©

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Email Messagingeme = rv(of + i) – (f + a)

In the original email, Friction is potentially caused by three factors:

1. Multiple visual elements competing for the recipient’s attention. 

2. The eye‐path in this email is not being directed in the proper order.

3. Multiple unique calls‐to‐action from which the recipient must choose between

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Email Messagingeme = rv(of + i) – (f + a)

Treatment changes:

• The competing visual elements have been removed

• The flow of the page is linear and emphasis is in proper order

• There is one main call to action (though in two hyperlinks) in this email message, minimizing the difficulty in the decision process

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Email Messaging

1. Two common elements that create Friction in body copy are:

• Length

• Difficulty

eme = rv(of + i) – (f + a)

Key Principle

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Not this But this

Example: Length

Presenter
Presentation Notes
Length – Both emails are trying to get a click. The number of promotions in the first email causes friction.
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Email Messagingeme = rv(of + i) – (f + a)

Not this But this

Example: Difficulty

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Email Messaging

1. Two common elements that create Friction in body copy are:

• Length

• Difficulty

2. Friction is also generated by email messages that do not match proper thought sequence. Therefore, body copy must be specifically crafted to synchronize to the decision patterns of the recipient. 

eme = rv(of + i) – (f + a)

Key Principle

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Email Messaging

Re: The Research Results You Requested

Dear MarketingExperiments Subscriber,

As the Director of MECLABS Group, I felt it was important to personally inform you regarding one of the most significant breakthroughs in the history of our paid search experimentation.

In this study, we were able to reduce cost by 35% and yet increase conversion by 300%. You can find out more by clicking here.

Perhaps this breakthrough will help you improve your paid search ROI.

Dr. Flint McGlaughlinDirectorMECLABS Group

P.S. This link will only be active for 24 hours; we are trying to get this information to our subscribers before it reaches the media.

CAPTURE

First paragraphSubsequent paragraphs

Call‐to‐actionSignaturePostscript

Subject line/headlineSalutationOpening sentence

CONVINCE

CLOSE

eme = rv(of + i) – (f + a)

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ANXIETYEmail Messaging

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Email Messaging

Anxiety― Psychological concern stimulated by a given element in the email process 

eme = rv(of + i) – (f + a) ©

eme = rv(of + i) – (f + a)

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The Original:• The tone and presentation 

of this email does not seem personal, but rather appears and sounds like sales jargon.

• This does not reduce any of the inherit Anxiety already associated with the receiving of an email message.

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Email Messagingeme = rv(of + i) – (f + a)

The Optimized:• This version uses a 

letter style layout and personal copy tone in order to communicate on a more one‐to‐one level.

• This email is more like a personal letter than a hype‐filled sales offer.

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Email Messaging

1. While website visitors are skeptical and cautious, the natural level of concern is even greater for email offer recipients.  

eme = rv(of + i) – (f + a)

Key Principle

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Email Messagingeme = rv(of + i) – (f + a)

Why is concern greater for emails?

• Are you more likely to be skeptical about a company you called for information or one who called you at home with the same offer?  

• The very nature of email, as an outbound or “push” marketing channel, causes it to need to overcome the extra measure of distrust and skepticism.  

• We need an extraordinary amount of over‐correction to overcome this extra measure of anxiety and distrust.  

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Email Messagingeme = rv(of + i) – (f + a)

Experiment ID: (Protected)Location: MarketingExperiments Research LibraryTest Protocol Number: TP2002

Background: MarketingExperiments sent out two emails promoting their Landing Page Optimization course. One used the familiar academic tone in the subject line and body copy, while in the other we tested a more informal and sales‐like tone. 

Goal: To establish whether the familiar academic tone or a less formal one would result in more course registrations. 

Secondary research question: Will the familiar academic tone or a more informal sales‐oriented tone result in more registrations? (pretty repetitive)

Approach: A/B split test (variable cluster)

Research Notes:

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Email Messaging

Familiar academic approach

Subject line: MarketingExperiments—An increase of 541%‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Take the MarketingExperiments Landing Page Optimization Certification Course

Dear MarketingExperiments Subscriber,

Our Landing Page Optimization Certification Course for subscription sites begins on April 26, 2007.

Passing this test will impact your business and personal career in two important ways:

1. The study and application of all that you learn, including our unique Conversion Index, will help you increase revenues for your business almost immediately.

2. When you pass the course, you will receive a Certification Certificate which you can add to your résumé and use to advance your career.

eme = rv(of + i) – (f + a)

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Email Messaging

Subject line: MarketingExperiments—A Porsche or a Corolla?‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Take the MarketingExperiments Landing Page Optimization Certification Course  . . . and change gear for ever.

Dear MarketingExperiments Subscriber,

Ask yourself a question.

Think of one of your company’s key Web site landing pages and ask yourself whether it’s more like a Porsche 911 or a Toyota Corolla.

Is it a high‐performance page, fully optimized to maximize conversion rates?

Or is it a Corolla . . . to which you have been adding cup holders and new upholstery in the hope that these little tweaks will enhance its performance?

Sales‐tone approach

eme = rv(of + i) – (f + a)

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Email Messaging

29% Increase in CTRResulting in twice the number of subscribers

eme = rv(of + i) – (f + a)

Email Messages CTR  (%)

Email 1 – Academic 1.75%

Email 2 – Sales 1.35%

Relative Difference 29.3%

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Email Messagingeme = rv(of + i) – (f + a)

Do our emails look like this?

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Email Messaging

The Prospect’s Protest (A Problem) 

I. I am not a target; I am a person: Don’t market tome, communicate withme.

II. Don’t wear out my name, and don’t call me “friend,” until we know each other. 

III. When you say “sell,” I hear “hype.” Clarity trumps persuasion. Don’t sell; say.

IV. I don’t buy from companies; I buy from people. And here’s a clue: 

V. I dislike companies for the same reason I dislike people. 

VI. Stop bragging. It’s disgusting.

eme = rv(of + i) – (f + a)

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Email Messaging

The Prospect’s Protest (A Problem) 

VII. And why is your marketing “voice” different from your real “voice”? The people I trust don’t patronize me. 

VIII. In all cases, where the quality of the information is debatable, I will always resort to the quality of the source. My trust is not for sale. You need to earn it.

IX. Dazzle me gradually: tell me what you can’t do, and I might believe you when you tell me what you can do.

X. In case you still don’t “get it,” I don’t trust you. Your copy is arrogant, your motives seem selfish, and your claims sound inflated. If you want to change how I buy, first change how you market.

eme = rv(of + i) – (f + a)

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Email Messaging

The MarketingExperiments Creed (A Response)

We believe that people buy from people, that people don’t buy from companies, from stores, or from web sites; people buy from people. Marketing is not about programs; it is about relationships.

We believe that brand is just reputation; marketing is just conversation, and buying is an act of trust. Trust is earned with two elements: 1) integrity and 2) effectiveness. Both demand that you put the interest of the customer first.

We believe that testing trumps speculation and that clarity trumps persuasion. Marketers need to base their decisions on honest data, and customers need to base their decisions on honest claims.

eme = rv(of + i) – (f + a)

ARTICLE ONE

ARTICLE TWO

ARTICLE THREE

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81

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Email Messaging Optimization Heuristic

Now let’s apply all the principles we have learned today to the following real‐life email campaigns submitted by the audience.

eme = rv(of + i) – (f + a)

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Subject Line: Do More With Less!

Presenter
Presentation Notes
Submitted by: Leann
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eme = rv(of + i) – (f + a) ©

Subject Line: Make Your Escape

Presenter
Presentation Notes
Submitted by: Amy
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eme = rv(of + i) – (f + a) ©

Subject Line: Aldrich eChemFiles, a New Product Showcase

Presenter
Presentation Notes
Submitted by: Terry
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ADDITIONAL RESOURCESEmail Messaging

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Email MessagingAdditional Resources

1. RESOURCE #1 – Complete Online Email Certification Course Eight hours of research‐driven training on how to create effective email campaigns from building a list to converting email‐related landing pages.

2. RESOURCE #2 – Free Email Optimization Web Clinic On February 9th, MarketingExperiments will be hosting a one‐hour web clinic focused on optimizing audience‐submitted email campaigns.

3. RESOURCE #3 – MarketingExperiments Research JournalFree copies (limited amount) of the Q3 Research Journal that features the most recent discoveries from our online marketing research.

For more information, please visit the MECLABS booth

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ENDEmail Messaging

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APPENDIX – FREQUENCY TESTEmail Messaging

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Email Messaging

Background: Large ecommerce company with strong online presence.

Goal: To find the optimal send frequency for a segment of their email list.

Primary research question: Which email frequency will generate the most revenue without increasing the rate of unsubscription?

Approach: A/B email frequency test ran over a period of 60 days.

Experiment ID: (Protected)Location: MarketingExperiments Research Library

Research Notes:

eme = rv(of + i) – (f + a)

Presenter
Presentation Notes
Strong brand & online presence Conducted testing to find their optimal send frequency for a loyal segment of their list
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Email Messaging

This group was currently sending emails with a frequency ranging from once a week to multiple times a day. But what was the the optimal frequency?

Optimal Frequency

Email Sends

Total Revenue

Unsubscribes

eme = rv(of + i) – (f + a)

Presenter
Presentation Notes
This chart identifies a simplistic version of when you can expect to reach optimal frequency. - It is important to monitor both total revenue and unsubscribes when testing frequency. - Your optimal frequency is met when your revenue reaches the peak. - However you have to be mindful and consider the life time value of your customer and anticipate how this could play out over time.
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Email Messaging

Three weeksTwo weeks10 daysWeek5 Days3 Days2 Days

• Took a segment of their large subscriber base (more than one billion emails a year)

• Segmented that group into seven different email frequencies mentioned above hoping to find the frequency “sweet‐spot”

Full ListTest list Frequency

eme = rv(of + i) – (f + a)

Presenter
Presentation Notes
The left image identifies the loyal/motivated segment we selected to test from their full list Through data analysis we designed a test plan in which divided the selected segment down into 7 different frequencies, which you see on the right. Frequencies ranged from sending an email every other day to just once every 3 weeks. We did have limits set by the partner in which we could not send more than 15 emails a month.
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What do you think will be the optimal monthly frequency for this company?

1. 1‐2 per month

2. 3‐4 per month

3. 6‐9 per month

4. 10‐15 per month

eme = rv(of + i) – (f + a)

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Email Messaging

• Projected monthly revenue rose consistently with increasing send frequency and the amount of sends did not have a significant impact on the overall rate of transaction.

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

2 4 6 8 10 12 14

Estim

ated

 Reven

ue ($

/mo)

Send Frequency (sends/mo)

Estimated Monthly Revenue vs. Email Send Frequency 

eme = rv(of + i) – (f + a)

Presenter
Presentation Notes
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• Though projected unsubscribes rise with more sends…

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2 4 6 8 10 12 14

Ave  No. Unsub

s. per M

onth

Send Frequency (sends/mo)

Average No. Unsubs Per Month at Each Send Frequency

eme = rv(of + i) – (f + a)

Presenter
Presentation Notes
But what about unsubscribes? At first glance, it seems that unsubcribes also increased. This however is to be expected because there are more opportunities to unsubscribe.
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• …the unsubscribe rate on a per‐message basis does not rise significantly.

• This does not suggest a greater level of irritation, but rather simply more unsubscribe opportunities offered at higher frequencies. 

eme = rv(of + i) – (f + a)

Presenter
Presentation Notes
However a deeper look shows us more promising results. Here we see the unsubscribe rate (the number of unsubscribes per send) did not increase. When you are testing frequency, unsub rate is another metric you should watch for in your tests
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• Open‐rate also does not appear to be significantly influenced by send frequency within the range of frequencies tested.

• There is no significant correlation evident between send frequency and open rate.

eme = rv(of + i) – (f + a)

Presenter
Presentation Notes
Open rate is also important to monitor during frequency testing This particular test showed that open rate was not significantly influenced by our range of frequencies. The correlation coefficient (r) for Open-rate as a function of Send-frequency of 0.0704 indicates that there is no significant correlation between the variables. - In fact, a linear model Coefficient of Determination (r^2) established that for the data collected, at most 8% of the variation in Open Rate could be explained by variation in Send-frequency.
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Email Messaging

3x Increase in Projected Monthly RevenueIncreasing email frequency yields three times the projected revenue

What you need to understand: When sending  email at the rate of once a week this company is missing three times the amount of revenue it could be making if sending once every other day without negatively affecting unsubscribes or opens.

020,00040,00060,00080,000100,000

2 4 6 8 10 12 14

Estim

ated

 Reven

ue ($

/mo)

Send Frequency (sends/mo)

Estimated Monthly Revenue vs. Email Send Frequency 

eme = rv(of + i) – (f + a)

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Email Messaging

• Optimal email frequency is strongly related to the relationship you have with your lists and their motivations.

• There is not a “one‐size‐fits‐all” for email frequency. You need to test.

• Keep in mind that there might be different optimal frequencies for different segments of your own house lists.

What does this all mean?

eme = rv(of + i) – (f + a)