Maximizing customer value (and not re‑engagement campaigns!)
May 9, 2011
Take a moment to consider this picture. Where is the plane going? Is it about to complete a magnificent loop-de-loop or crash into the side of a barn? Is it being piloted by a top gun or a novice? From this single moment in time, there’s clearly no way to tell. The answers to these questions may not seem so important…unless, of course, it’s your plane! I bring this up because I’m still surprised when I encounter experienced email marketers who focus solely on campaign open and click rates.
To these marketers, the formula seems simple: if they send 100,000 emails, they’ll get 30,000 opens, 10,000 clicks and 2,000 conversions. Overall, their main focus is on maximizing list growth and minimizing list attrition. All well and good, but fundamentally flawed. Like the single image of the biplane, this sort of metric only accounts for a moment in time — a single campaign, if you will — and lumps all users into groups of those who clicked and/or opened the email.
But the fact is, not all users are created equal: For some, this was their first click; for others, one of many over time; and for some, it will be the last time they ever click. So your campaign may get 10,000 clicks, but if a typical user opens just one out of 10 emails she receives from you, it means that nine out of 10 times you’re serving up content she’s simply not interested in.
In other words, you’re boring her! But if you can look past the simple opens and clicks, you’ll find a list segment that holds far greater value as the driving engine of site traffic and revenue; the one you should be watching, nurturing and using for valuation metrics: Engaged users.
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