EMAIL OPTIMIZATION FORMULAS What is the most effective way to approach an email messaging optimization project: Where should you begin? The MarketingExperiments Email Optimization Sequencesm The MarketingExperiments Email Optimization Sequencesm, by its structure and notation, is designed to convey this essential optimization principle: You should sequence your optimization efforts in the opposite order from the physical conversion-to-sale process. In the physical conversion-to-sale process: You first identify prospects by accumulating email addresses. For house lists this is accomplished through email capture, represented in the Email Optimization Sequencesm as “ec”. Once your message arrives, you must inspire your prospect to open it.  This is represented in the Sequence as “op”. Your next objective is to motivate them to “click through,” represented as “ct”. Finally, you must “close the sale.” For the Web site-based conversion model that begins with the offer on the “Landing Page,” represented as “lp”. Although the Sequence symbols are listed from left to right in accordance with the physical conversion process, the “operator” symbols point from right to left: When performing the optimization process, start with the end in mind. MarketingExperiments recommends applying an email-specific formula called the Email Messaging Effectiveness Indexsm, shown below, to each stage in the optimization sequence, Key point: The variables in the index apply to every step of the conversion process, but the way in which they are applied is unique at each stage. This concept is illustrated by the arrow from the Landing Page step of the Optimization Sequence formula to the Email Messaging Effectiveness Index: BACKGROUND Let’s now look at the first element in the relationship between the offer Landing Page and your email’s effectiveness: Relevance, or “rv” in the Index above. Merriam-Webster Online defines relevance as: 1 a: relation to the matter at hand b: practical and especially social applicability : pertinence <giving relevance to college courses> 2: the ability … to retrieve material that satisfies the needs of the user. Relevance in Landing Page Optimization Creating relevance between the Landing Page and the visitors’ motivations when Follow

Better know your customers and what they like and need instead of blasting them with generic info and offers. The secret word is relevance. First up was Annette Promes, director of email marketing for Expedia. She wanted to know which offer–points towards free travel, a cash discount code, or a general message promising savings–did a better job of increasing response to hotel offers from customers who had signed up for a ThankYou® Rewards Network membership. The points treatment lifted click-through by 82% and transactions a whopping 347% while the code/coupon, while also doing well, increased clicks by 24% and transactions by “only” 106%. Customers had signed up for the points program, and it was points they desired. Promes warned against training customers not to do business with you unless they get a coupon. Kimberley Talbot, senior group manager of worldwide relationship marketing for Adobe also proved relevance is the key with her case study of the launch of the Creative Suite 3 product. Talbot segmented the campaign to meet the needs of three customer segments in general: designers, photographers, and educators. The creatives got an email with one stunning, original graphic on a white background and a minimum of copy. Photographers got more tech specs to check out. Educators were told how the software could prepare students for future success. Then Talbot used a propensity model to ID which customers were early, mid, and late adopters and crafted her email Call-To-Action accordingly. She focused additional direct marketing spend on the early adopters. Her results? A mind-blowing email campaign ROI of 29,000% in North America and 5,000% worldwide. A 41% increase in overall order rate and a 72% increase in direct orders vs. a “no contact” control. “Customers proved they know what they need,” said Talbot. “They purchased what we predicted they would… but they were exposed to more products.” Source: http://www.marketingexperimentsblog.com/research-topics/email-marketing/29000-roi-on-an-email-campaign-the-secret-is-one-word-25-08.php Follow