2013 Association Marketing Benchmark Report

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1 2013 Association Marketing Benchmark Report Part I: Key Metrics 1

2 TABLE of CONTENTS About Informz Introduction Key Findings Overall Association Metrics... 6 Results by Country of Sender... 7 Results by Client Type Results by Number of Links Results by Number of Recipients Results by Time of Day Results by Day of Week Results by Length of Subject Line Open Duration Results Conclusion

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4 INTRODUCTION marketing has become one of the primary ways associations communicate with members, and has proven to be both cost-efficient and highly-effective. But what determines whether or not an campaign was successful? And what can you do to improve your results? Informz, the leading provider of marketing solutions for the association industry, has performed a study on our association client base to provide marketers from member-based organizations benchmarking information for their programs. This study will help you to understand what metrics you should be analyzing when reviewing your marketing program, what goals you can set based on similar organizations, and how your marketing program is performing. If your metrics are below benchmarks, that doesn t mean you need to throw your entire strategy out the window. Like many things in life, you can see big results by making small changes in your approach to marketing. You don t have to reinvent the wheel, and we ll tell you how. This report includes a summary of marketing metrics collected from over 800 large and mid-sized associations that used the Informz marketing platform in These associations, located in the United States, Australia, New Zealand, Canada and the United Kingdom, sent over 1 billion s in Marketing Metrics Four key metrics are used in this report: delivery, open, click and unsubscribe rates. Delivery Rate is the percentage of s that were not reported back to Informz as bounced or blocked. Open Rate is the percentage of delivered s that were reported back to Informz as having been opened. If the text version of an is read, it is not counted. Likewise, if an HTML is read with the images turned off, it is not counted. However, if an is opened with images off, but a link is clicked, the is counted as being opened. Open rate only includes unique subscribers. Multiple opens by one subscriber only count once. Click Rate is the percentage of opened s that were clicked by the recipient. Clicking on a link in a text is not counted as a click. Click Rate only includes unique subscribers. Multiple clicks by one subscriber only count once. Unsubscribe Rate is the percentage of recipients who unsubscribed from a particular mailing. 4

5 Key Findings The Informz Association Marketing Benchmark Report analyzes the results from over 1 billion s sent by over 800 large and mid-sized associations. The key findings from this portion of the study are as follows: The average metrics for associations include a 98.15% delivery rate, 32.36% open rate, 21.08% click rate, and a.051% unsubscribe rate. Day of the week again had little affect on open and click rates, but Saturday boasted a high average open rate at 40.19%. For the first time, s mobile readership has surpassed desktop readership by 5%. While time of day didn t report a drastic effect on opens, s sent in the late afternoon reported the highest click rates at 19%. Shorter subject lines continue to outperform lengthier subject lines. Subject lines with fewer than 10 characters saw the highest open rates at 51%. For the third year, s containing more links had higher click-thru rates. 53% of s opened were classified as read (as opposed to skimmed or just opened), meaning recipients spent 10 seconds or longer engaged with the . 5

6 Overall Association Metrics Key Metrics: 100% 98.15% The following chart displays the average delivery, open, and click rates from over 1 billion s sent by over 800 associations in the United States, Australia, New Zealand, Canada, and the United Kingdom. The most notable change from last year s benchmark report is that click-thru rates increased from 19.49% in 2011 to 21.08% in The unsubscribe rate dropped slightly as well from.052% in 2011 to.051% in % % 0 Delivery Rate Open Rate Click Rate 6

7 Results By Country Of Sender Metrics by Country: Australia 16% 37% Based on the physical location of the association, we looked at marketing results from Australia, Canada, New Zealand, the United Kingdom, and the United States. Delivery rate did not vary between countries, so it has been omitted from the chart. Canada New Zealand United Kingdom 16% 24% 26% 27% 38% 38% If you re sending messages to members all around the world, it can be difficult to deliver the right message to your members at the best time for everyone. Take a look at your demographic data and split up your send times to ensure your message is hitting inboxes at the right time of the day. Or, take the leg work (and guess work) out of it, and try using Send Time Optimization, a feature in Informz that automatically sends s to recipients when they are most likely to open based on their past behavior. United States 17% 35% % Open Percentage Click Percentage Informz clients that are customizing their send time with the click of a button are seeing increases in opens and clicks because their s are landing in inboxes at the best time possible, when recipients are ready to engage with their message. It doesn t get any easier than that! 7

8 Results By Client Type Client Type: Web-Based (17%) This chart examines what type of client or program recipients are using to open s. For the first time, mobile readership has surpassed desktop readership. This dramatic shift is not to be ignored, as we have found that the behaviors of mobile readers differ greatly than traditional desktop or web-based users. Unknown (8%) Mobile (40%) In order to keep members engaged, it is absolutely critical that you are optimizing s for mobile devices. For example, in a past Informz study it was found that mobile readers click 20% less than desktop readers. A primary reason for that may be that s designed to render optimally on a desktop computer, may not be as user friendly when viewing on a mobile device. This is the perfect opportunity to make a small change and see a big impact! Try increasing the font size and the white space around your hyperlinks (remember, you re designing for a fingertip now, not a mouse) to make them easily clickable for our mobile readers. Desktop (35%) 8

9 Results By Number Of Links Click Rate Based on Number of Links: 1 21% Just as in years past, the results show that the more links an contains, the higher the click-thru rate is. The most important things to keep in mind are the call to action, tone, and the language you use. Number of Links 2 17% % % % % % % Over 70 28% % Click-Thru Percentage One call to action per is ideal; demanding too much of readers will distract or confuse them, and your links won t be clicked on. It s always a great idea to provide readers with multiple opportunities to click and reach the same location, and this is a simple way to increase your number of links without increasing confusion. Here are some other ways to play with links to improve your click rate: Link placement Are your links clicked on more at the top of your , because readers don t make it all the way to the end of your ? Or do they skim right to the end? Maybe in the middle? Types of links Do you link pictures, buttons, or text? Or maybe all three? What type of link draws readers in? Language Download Now might imply too much work for the recipient. Why not test out Learn More or Get Started? If your call to action is clear and the perceived value of clicking on the link outweighs the perceived cost, recipients will want to click your links. These simple tests can provide great insight into what motivates readers to click and how they interact with your messages. 9

10 Results By Number Of Recipients Metrics Based on Number of Recipients: <50 23% % % 35% 40% 55% Each year we consistently see engagement rates decrease as the list size increases. For lists with less than 50 recipients, open rates were highest, most likely due to highlytargeted content that was very specific to those recipients. How do you get small-list results with a large list? The answer is segmentation. Use the data you know about your subscribers whether it s from your AMS, surveys, or past activity to break your large subscriber group into segments. Number of Recipients K 1K 5K 5K 50K 31% 21% 27% 16% 23% 13% 19% 12% Not sure what to segment on? Geography, age, gender, persona, organization type or size, job function, events attended, topic, and membership level are just a few ideas to get you started. Think about your content and how it would best serve different segments, and target it! 50K 100K 14% 20% 100K 250K 10% 18% Open Percentage Click Percentage >250K 16% 18% % Open and Click Percentage 10

11 Results By Time Of Day Metrics Based on Time of Day Sent: 40% Open and Click Percentage 36% 35 34% 34% % 18% 17% % 17% We didn t see too much variation with time of day for opens or clicks this year, but late afternoon did take the highest clickrate percentages once again. What does this mean for you? Utilizing past subscriber behavior is your ticket to increasing opens and clicks. Monitor your subscriber reports to see when most of your opens are happening, and then try sending your next at the time that seems best for the majority of recipients. The Informz Send Time Optimization tool could be your new best friend here, too! 0 Morning Mid-Day Late Afternoon Night Open Percentage Click Percentage Time of Day 11

12 Results By Day Of Week Metrics by Day of Week: Day of the Week Sunday Monday Tuesday Wednesday 34.37% 17.07% 31.86% 20.42% 31.77% 19.91% 32.40% 25.43% This next area we studied looks at what might just be the number one most-asked question by marketers. When is the best day to send my ? This year by popular demand we included weekends in our analysis, and the results piqued our curiosity! While open rates are pretty even throughout the week, there was a large jump in opens on Saturdays. Now keep in mind that volume is also lower on the weekend, but with the positive weekend results you may want to test out a weekend send with the right . Interestingly, while Saturday won for opens, it also had the lowest click rates. Wednesday saw the highest click rates, but not by much. Based on the results of this study, and several other analyses in this report, it s clear that factors such as relevant content and segmentation have a greater impact on results than the day of the week. Thursday 20.50% 32.01% Friday 19.74% 33.03% Open Rate Click Rate Saturday 14.12% 40.19% % Open and Click Percentage 12

13 Results By Length Of Subject Line Open Rate Based on Subject Line Length: <10 51% % In this analysis, we explored the relationship of subject line length and open rates. These results show that shorter subject lines yield higher open rates. You need to keep your subject lines as short as possible while still clearly communicating value and interest. Number of Characters % % % % % >69 29% % Open Percentage Luckily, subject lines are very easy to test and another area of your program where small changes can have big results. Try testing length, language, personalization, or even tone. Think about your subject line like it s the opening scene of a movie: it needs to capture the visitor s attention and convert this attention into interest in a very short amount of time. Put yourself in the seat of the subscriber and ask yourself, If I was a member, what kind of subject lines would make me open an from this association? Turn your subject line into something all about the recipient. Make them the star of the show. And if you re highlighting a discount or deadline include this at the start of your subject line. If your subject lines happen to be too long, causing the end to be cut off somehow, you want the highlights to be at the start of your subject line. 13

14 Open Duration Results Average Open Duration: 60% % Read (Greater than 10 seconds) 15% Skim (3 10 Seconds) 31% Open (Less than 10 seconds) Open duration is measured to determine how long a recipient engaged with your . At Informz, we categorize open duration in three levels: Open the was looked at for less than three seconds. Skim the was looked at for 3-10 seconds. Read the was looked at for more than 10 seconds. From the s we analyzed for this report, 53% of s opened were classified as read, 15% were skimmed, and 31% were opened. The good news is, the majority of recipients that opened the s actually read them, too! This section of the report, more so than other sections, is directly related to engagement and relevancy. When recipients are spending a good amount of time on your s, it means they value your brand and the content you deliver, leading to a strengthened relationship. If you re finding that your subscribers aren t mostly falling into the read category, you aren t delivering the right content to the right person at the right time. Ask yourself these questions: Right person are your lists clean and up to date? Right message is the content what they were expecting? Are you segmenting based on preferences? Right time do your subscribers have the time to read what you ve sent at that time? Hopefully your message will hit on all three key parts, but if you re not anywhere near there yet, start with one and build up to all three. 14

15 CONCLUSION After reading through this study, you should have a better idea of what metrics to analyze when reviewing your marketing programs and a general idea of how your programs are performing. Always keep in mind that while the results from this report should provide a general baseline to compare your current statistics, every audience is different. When looking at your own program, use these benchmarks in combination with your past marketing campaign results for the most comprehensive analysis. And remember small changes can lead to big results. Making minor improvements whether in your subject lines, segmentation or send time could potentially impact your campaign results in a positive way! 15

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