Quarterly benchmark report

Transcription

1 A Cheetah Digital benchmark report Quarterly benchmark report Q2 2017: April, May, June

2 CONTENTS Executive summary: Q Spotlight: Five quick tips for the holiday...2 Q2:2017 Quarterly benchmark...7 Performance analysis...9 Trend to watch: wish lists...12 Mobile Trends...13 Appendix I: Metrics definitions...15 Appendix II: All industry performance by month (Q )...16 Appendix III: Historical metrics by industry by quarter...18 Appendix IV: Historical metrics by alternate vertical... 22

3 Executive summary: Q The following report details overall marketing trends for the second quarter of 2017, as well as the key performance indicators (KPIs) that shaped the year-over-year program success for Cheetah Digital clients. Key trends: volume rose by 14.5% in Q compared to. Open rates were similar to the rates seen in. Although unique click rates declined by 6.7%, revenue per matched the $0.07 received in. Business products and services and travel industries experienced YOY increases in the percent of opens received on mobile devices, while other industries had increases in opens on desktops during this quarter. Forty-eight percent of total s occurred on desktops in Q compared to 42% on desktops in. In this quarter s Spotlight section, we explore five quick tips for the holiday: To help plan for the holidays, we ve identified five and mobile tips to enhance your upcoming holiday season: Send personalized promotional mailings Optimize your welcome program by creating a welcome series Maximize revenue with multiple abandon cart reminders Best offers for friends and family mailings Use existing data to enhance your mobile program Quarterly benchmark report Q (April, May, June) 1

4 Spotlight: Five quick tips for the holiday The season approaches It s hard to envision cozy sweaters and hot cocoa when it s 85 degrees outside and everyone is dreaming of the beach, but for marketers, the holiday season is just around the corner. We re sure holiday campaign planning is top of mind for your brand. To help you feel prepared for the upcoming holiday rush, we ve identified five and mobile tips to enhance your upcoming holiday campaigns and help you reach your year-end goals. 1. Pack a punch with personalized promotional mailings In the 2016 holiday season, 28% of brands included personalized subject lines with the subscriber name as part of promotional programs. When compared to other promotional mailings from the same brands, personalized s provided a lift in open, click and transaction rates, as well as revenue per ($0.10 for personalized s compared to $0.07 for other promotional mailings). 80% 70% 60% 50% 40% 30% 20% 10% 0% Personalized subject lines provide a lift on key performance metrics 17.0% Unique open rate 29.6% 70.0% 43.2% Unique click rate Transaction rate Revenue per While personalizing subject lines clearly appears to boost performance, we do not recommend personalizing every subject line. During last holiday season, personalized promotional mailings made-up between 5% to 25% of the promotional s sent from the brands using this technique. Brands should test the use of personalized subject lines as part of holiday programs, and decide for themselves what percent of personalized campaigns provide the maximum response. It is also important to remember that personalization does not have to be limited to subscriber names. Geographic location, browsed categories and past purchases can also be used to dynamically segment your mailings and create a personalized experience for your customers. 2. Boost enthusiasm by optimizing your welcome program Welcome s are a great first step toward turning a new subscriber s enthusiasm for your brand into a sustained relationship, and nearly all brands surveyed engage with new subscribers via a welcome . However, to keep the momentum of this fledging relationship going, brands should expand one-time welcome s into a comprehensive welcome series. Brands that extend a welcome program to a full series enjoy increased customer engagement throughout the welcome process at a rate that is nearly double the overall promotional average. That said, an analysis of mailings sent from May 2016 through April 2017 revealed that only 40% of brands currently send a welcome series. If your brand has not yet embraced the welcome series and is looking to increase subscribers engagement during the critical holiday selling season, we suggest testing in September or October, and sending second and third welcome s as part of your welcome program during the peak of the holiday season. Source: Cheetah Digital Quarterly benchmark report Q (April, May, June) 2

5 0.20% Engagement remains high throughout welcome series 1.0% The percent of abandoned cart revenue continues increase with each reminder 9% increase 0.15% 0.10% 8.9% 43.2% 0.8% 0.6% 35% increase 0.05% 0.00% 18.5% 1st Welcome Click-to-open 16.1% 15.5% 2nd Welcome 3rd Welcome Promotional average 0.4% 0.2% 0.0% 56% Abandon 1 91% 100% Abandon 1+2 Abandon Source: Cheetah Digital Source: Cheetah Digital A second key tip for optimizing your welcome program is to send the first welcome in real time if at all possible. First welcome messages sent via real-time triggers had 10 times higher transaction rates than those sent as bulk messages (transaction rate of 2.5% for real time, and 0.25% for bulk first welcomes). 3. Don t retire those abandon cart reminders The age-old saying, if at first you don t succeed, try, try again rings true when it comes to abandon cart reminders. s sent to shoppers who abandon a cart online typically have strong transaction rates. The average transaction rate for the first abandon cart is 1.0% compared to 0.04% for all promotional mailings. Brands sending just one abandon cart mailing, however, are missing an opportunity for additional revenue from these online shoppers. Expanding a single message abandon cart program to a series of two or three reminders drives value up. The abandon cart revenue for brands sending three abandon cart mailings was 44% higher than that of those sending a single abandon cart . Effective second and third abandoned cart reminders Don t forget: You re a click away from making it yours. Get it or regret it! Quarterly benchmark report Q (April, May, June) 3

6 4. Trust in the power of friends and family Mailings with friends and family in the subject lines occur throughout the year, although they are most popular during the holiday season. Friends and family mailings had 57% higher transaction rates than other promotional mailings from the same brands during the 2016 holiday season (transaction rate of 0.07% for friends and family compared to 0.05% for other promotional mailings). It begs the question, do customers respond to the sense of belonging to a special group associated with friends and family, or do the friends and family mailings just have better offers? To answer this, we looked at friends and family mailings from October to December 2016, and compared them to other mailings with the same offers from the same brands. The sweet spot for friends and family mailings appears to be offers between 25% to 50% off. While friends and family s offering discounts of 25%, 30% or 40% outperformed other comparable promotional mailings, the best friends and family performance was for offers of 50% off. Top performing friends and family s offered 50% for short time periods (one day only). 0.25% 0.20% 0.15% 0.10% Friends and family offers for 50% off had the highest transaction rates Transaction rates 0.08% 0.06% 0.04% 0.02% 0.00% Friends and family offers for 25%, 30%, or 40% off had better transactions rates than matched promotional mailings 0.08% 0.04% 20% off Source: Cheetah Digital Friends and family 0.07% 25% off 0.08% 0.06% 0.06% 0.05% 0.05% 30% off 40% off Matched offer promotional mailings 0.05% 0.00% Source: Cheetah Digital 0.07% Matched offer promotional mailings 91% 0.23% Friends and family It appears that the phrase friends and family resonates with customers, and boosts the performance of s with comparable offers for these sweet spot campaigns. Friends and family mailings with offers of 20% did not outperform comparable promotional mailings. For the low-value offers (less than 25%) it may be that the warmth of friends and family is not enough to boost conversion. Quarterly benchmark report Q (April, May, June) 4

7 5. Use existing data to enhance your mobile program Many customers interact with your program in multiple channels. Mobile messages can complement and expand on campaign themes, providing highly personalized messages to your customers during the critical holiday season. Birthday SMS: Use the personal information you have, such as birthdays and first names, to send SMS messages. Clear deadlines and offers can drive response Low inventory Push/ SMS: Use browse and inventory data to target specific customers interests and urge immediate action due to limited availability Review Push Notification: Requesting reviews of recent purchases promotes reengagement Targeted products SMS: These can be based on previous browse behavior or actual purchase history Quarterly benchmark report Q (April, May, June) 5

8 Summary Enhance your and mobile programs by incorporating these tips for the holiday season and beyond. By using your existing data to create personalized campaigns in both the and mobile channels, you can create the individual experiences that customers crave. Building on programs you already have, such as welcome and abandon cart series, allows you to optimize results from subscribers while they are most interested in your brand. Including friends and family campaigns with the right offer values can be a positive addition to the overall holiday season. Quarterly benchmark report Q (April, May, June) 6

9 Q2:2017 Quarterly benchmark Year-over-year volume comparison The following benchmarks report the year-over-year (YOY) trends for Q compared to. This quarter, volume rose by 14.5% compared to the same quarter last year. 0.30% 0.25% 0.20% 0.15% 0.10% Volume variance by industry: Q vs. 0.05% 0.00% -6.8% 16.7% 26.6% 14.0% -6.4% 13.8% 14.5% -0.05% -0.10% Business products and services Consumer products and services Media and entertainment Multi-channel retailers Publishers Travel All industry Source: Cheetah Digital Seventy-one percent of media and entertainment, and two-thirds of brands in multi-channel retailers and travel had YOY gains in volume in Q2. Over 50% of consumer products and services and publisher brands had YOY volume increases, while only 46% of business products and services did so. Almost all industries had similar volumes in Q compared to Q1. The exception was a 20.3% increase in media and entertainment driven by game and music brands. Quarterly benchmark report Q (April, May, June) 7

10 Volume variance by industry: Q vs. 0.20% 0.15% 0.10% 0.05% 0.00% -0.6% -4.8% 20.3% 2.0% 2.5% -5.0% 0.9% -0.05% Business products and services Consumer products and services Media and entertainment Multi-channel retailers Publishers Travel All industry Source: Cheetah Digital Quarterly benchmark report Q (April, May, June) 8

11 Performance analysis To improve our understanding of performance by industry, we analyzed all Q2 metrics for 2017 versus Q monthly performance and the past five quarters of historical data are included in the appendix of this report. Positive change Minimal change Negative change All industry: Q2 YOY performance analysis Although click rates declined, transaction rates and revenue per were similar to those seen in. Fifty-two percent of brands had statistically significant increases in unique open rates, but only 26% had significant increases in click rates. Open and click rates were similar in Q2 as compared to, while revenue per and average order values rose by about 5%. All industry: Q compared to Q performance analysis Quarterly benchmark report Q (April, May, June) 9

12 Business products and services: Q2 YOY performance analysis Year-over-year open and click rates were very similar for business products and services. Forty percent of the analyzed brands had statistically significant increases in unique open rates. Consumer products and services: Q2 YOY performance analysis Year-over-year open rate variances were positive for consumer products and services, with 53% of brands showing statistically higher open rates. Half of all brands had statistically significant increases in revenue per , with beauty and home goods products leading these increases. Media and entertainment: Q2 YOY performance analysis The increase in volume has contributed to the YOY decrease in open and click rates for media and entertainment. The results are somewhat mixed, as 25% of brands did see a significant increase in total click rates in Q Quarterly benchmark report Q (April, May, June) 10

13 Multi-channel retailers: Q2 YOY performance analysis While 52% of multi-channel retailers had significant YOY increases in unique open rates, only 16% had statistically significant increases in unique click rates. Shoes, department stores and luxury brands all saw YOY gains in revenue per mail in Q2. Publishers: Q2 YOY performance analysis Year-over-year open and click rates rose for publishers as 90% of publishing brands had statistically significant increases in unique open rates, and 50% had significant increases in click rates in Q Travel: Q2 YOY performance analysis YOY results were mixed for travel, as 58% of travel brands had significant increases in open rates, while only 33% had significant increases in click rates. Quarterly benchmark report Q (April, May, June) 11

14 Trend to watch: wish lists Not surprisingly, s referring to wish lists are popular during the holiday season. Brands that give subscribers the opportunity to set-up and save their own wish lists, as well as brands that let subscribers share their wish lists with others, are in a position to take advantage of this customer-provided information and continue conversations with these subscribers. Trigger s about wish lists sent in the 2016 holiday season had transaction rates and revenue-per- that were more than 20% higher than abandon cart s sent during the same time period. Wish list reminders outperformed abandon cart s during the 2016 holiday season 2.0% 1.5% 1.0% 0.5% 0.0% 1.2% $1.98 Abandon cart 91% $ % $3.00 $2.50 $2.00 $1.50 $1.00 Wish list reminders $0.50 $0.00 Effective wish list reminders Items from Your Wish List Are on Sale! Your Wish List Items Are Selling Out. GO! You've been sent a Wish List. Buy them something nice. Revenue per Transaction rates Source: Cheetah Digital Methodology Cheetah Digital bases quarterly benchmarks on the analysis of major marketing trends and key performance indicators across six major verticals: business products and services, consumer products and services, media and entertainment, multi-channel retailers, publishers and travel. Data analyzed in these benchmark reports are from client brands within the United States and Canada that have opted to participate in the study. All metrics, including the historical benchmarks, reflect average performance seven days after the send date. Quarterly benchmark report Q (April, May, June) 12

15 Mobile Trends opens and clicks by platform (Q2 2017) All industry Business products and services Consumer products and services Media and entertainment Multi-channel retailers Publishers Travel 100% Percent of opens 80% 60% 40% 20% 0% 48% 41% 11% 64% 30% 6% 43% 54% 45% 40% 12% 6% 40% 38% 55% 47% 30% 47% 13% 15% 15% 100% $0.08% Percent of clicks 80% 60% 40% 20% 0% 51% 42% 7% 69% 28% 3% 49% 45% 6% 60% 37% 3% 37% 61% 45% 55% 28% 46% 8% 11% 9% Source: Cheetah Digital Desktop Mobile Tablet Fifty-two percent of total opens occurred on mobile phones or tablets in Q This is a decrease from the 58% seen in. Consumer products and services, media and entertainment, multi-channel retailers and publishers all saw increases in opens on desktops in Q2 2017, while mobile opens increased for business products and services and for travel. Quarterly benchmark report Q (April, May, June) 13

16 Year-over-year change in opens and clicks by platform All industry Business products and services Consumer products and services Media and entertainment Multi-channel retailers Publishers Travel Year-over-year open % change 50% 0% -50% 14.9% -10.3%-11.3% -8.3% 23.4% 18.9% 12.1% -2.0% -9.1% 22.4% -13.2% -38.6% 12.1% -7.4% -4.6% 41.7% -10.6% -32.2% 24.2% -6.5% -31.0% Year-over-year click % change 75% 0% 4.2% -1.7% -16.4% -14.6% 72.4% 59.0% -3.3% 5.6% -10.8% 21.0% -17.2% -43.2% -8.6% 12.1% -23.7% 23.1% -29.0% -0.7% -10.6% 32.8% -39.6% -75% Source: Cheetah Digital Desktop Mobile Tablet The industry-wide percent of clicks received on mobile were steady YOY, but business products and services, multi-channel retailers and travel still had double digit gains in the percent of mobile clicks. Quarterly benchmark report Q (April, May, June) 14

17 Appendix I: Metrics definitions Total opens: All opens recorded for the mailing including multiple opens by the same subscriber. Total open rates are (total opens/received). Unique opens: The number of unique subscribers that have opened an HTML-formatted message. Unique open rates are (unique opens/received). Total clicks: Every click on a tracked link, including multiple clicks by a given subscriber. Total click rates are (total clicks/received). Unique clicks: The number of unique subscribers who have clicked on any link. Unique click rates are (unique clicks/received). Click-to-open rates: Unique clicks as a percentage of unique opens (unique clicks/unique opens). Transaction rates: Overall percentage of transactions as related to delivered messages (transactions/received). This metric only includes data for clients who have implemented Cheetah Digital s Track-to-Purchase functionality. Transaction-to-click rates: Percentage of transactions compared to the number of unique clicks (transactions/unique clicks). This metric only includes data for clients who have implemented Cheetah Digital s Track-to-Purchase functionality. Average order value: Average total amount for each transaction. This metric only includes data for clients who have implemented Cheetah Digital s Track-to-Purchase functionality. Revenue per delivered: Average amount earned for each delivered (total order/received). Bounce rates: The percentage of subscribers that did not receive a mailing because their addresses hard bounced (bounce/sent). Unsubscribe rates: The total percentage of subscribers lost as a result of users unsubscribing from the mailing (unique unsubscribers/received). Quarterly benchmark report Q (April, May, June) 15

18 Appendix II: All industry performance by month (Q ) Open Rates All industry total open rates All industry unique open rates 26.3% 26.3% 25.8% 25.7% 26.0% 25.1% 17.2% 17.2% 16.7% 16.6% 17.0% 16.2% Apr May Jun Apr May Jun 2016 volume 2017 volume 2016 volume 2017 volume 2016 total open rate 2017 total open rate 2016 unique open rate 2017 unique open rate Unique open rates were higher in 2017 for each month of Q2. Click rates All industry total click rates All industry total unique rates All industry click-to-open rates 2.4% 2.7% 2.7% 2.3% 2.6% 2.3% 1.8% 1.9% 1.9% 1.9% 1.6% 1.6% 10.3% 11.1% 10.9% 10.6% 9.4% 8.8% Apr May Jun Apr May Jun Apr May Jun 2016 volume 2017 volume 2016 volume 2017 volume 2016 volume 2017 volume 2016 total click rate 2017 total click rate 2016 total click rate 2017 total click rate 2016 total click rate 2017 total click rate Total and unique click rates were lower YOY in each month of the quarter. Quarterly benchmark report Q (April, May, June) 16

19 Transactions and revenue All industry transaction rates All industry transaction-to-click rates 0.05% 0.05% 0.05% 0.06% 0.04% 0.05% 4.1% 3.8% 3.9% 3.5% 3.5% 3.4% YOY transaction-to-click rates were higher in each month of Q Apr May Jun Apr May Jun 2016 volume 2017 volume 2016 volume 2017 volume 2016 transaction rate 2017 transaction rate 2016 trans-to-click rate 2017 trans-to-click rate All industry revenue per All industry average order value $0.07 $0.07 $0.07 $0.06 $0.06 $0.06 $165 $183 $190 $166 $160 $151 Revenue per matched Q in April and June. Apr May Jun Apr May Jun 2016 volume 2017 volume 2016 volume 2017 volume 2016 revenue per revenue per average order value 2017 average order value Quarterly benchmark report Q (April, May, June) 17

20 Bounce and unsubscribe rates All industry bounce rates All industry unsubscribe rates 2.0% 1.8% 1.7% 1.6% 1.9% 1.2% 0.09% 0.09% 0.09% 0.09% 0.08% 0.08% June 2017 had the lowest bounce rates Apr May Jun Apr May Jun 2016 volume 2017 volume 2016 volume 2017 volume 2016 bounce rate 2017 bounce rate 2016 unsubscribe rate 2017 unsubscribe rate Appendix III: Historical metrics by industry by quarter Business Products and Services Q2: 2016 Q3: 2016 Q4: 2016 Q1: 2017 Q2: 2017 YOY Open 31.3% 32.5% 32.7% 34.3% 32.5% -1.8% 1.2% Unique Open 18.2% 17.6% 18.7% 19.8% 18.5% -1.2% 0.4% Click to Open 10.1% 12.0% 11.3% 9.0% 9.6% 0.6% -0.4% Click 3.2% 3.8% 3.5% 2.9% 3.3% 0.4% 0.1% Unique Click 2.0% 2.4% 2.3% 1.9% 2.1% 0.2% 0.1% Bounce 3.3% 5.1% 4.5% 2.8% 2.7% -0.1% -0.7% Unsubscribe Rate 0.18% 0.17% 0.13% 0.16% 0.17% 0.00% -0.01% Quarterly benchmark report Q (April, May, June) 18

21 Consumer Products and Services Q2: 2016 Q3: 2016 Q4: 2016 Q1: 2017 Q2: 2017 YOY Open 25.9% 28.3% 29.0% 29.8% 28.6% -1.1% 2.7% Unique Open 16.0% 17.3% 18.1% 18.3% 17.9% -0.4% 1.9% Click to Open 9.8% 9.6% 8.6% 8.0% 8.0% 0.0% -1.8% Click 2.5% 2.6% 2.4% 2.2% 2.1% -0.1% -0.3% Unique Click 1.8% 1.9% 1.7% 1.6% 1.5% -0.1% -0.2% Transaction to Click 6.2% 6.7% 7.5% 6.8% 7.0% 0.3% 0.9% Transaction 0.06% 0.07% 0.07% 0.07% 0.06% -0.01% 0.00% Revenue per Delivered $0.07 $0.08 $0.09 $0.09 $0.08 ($0.00) $0.01 Average Order $ $ $ $ $ $23.59 $40.64 Bounce 2.5% 2.7% 3.4% 3.0% 2.1% -0.9% -0.4% Unsubscribe Rate 0.08% 0.08% 0.10% 0.10% 0.08% -0.02% 0.00% Media and Entertainment Q2: 2016 Q3: 2016 Q4: 2016 Q1: 2017 Q2: 2017 YOY Open 29.7% 28.1% 29.1% 29.6% 28.9% -0.7% -0.8% Unique Open 18.9% 18.0% 18.9% 18.8% 17.3% -1.5% -1.6% Click to Open 8.5% 7.6% 7.7% 6.7% 5.7% -1.0% -2.8% Click 2.3% 2.0% 2.1% 1.8% 1.5% -0.4% -0.8% Unique Click 1.6% 1.4% 1.5% 1.3% 1.0% -0.4% -0.7% Bounce 2.0% 1.0% 1.1% 1.1% 0.9% -0.2% -1.1% Unsubscribe Rate 0.06% 0.05% 0.06% 0.07% 0.05% -0.02% -0.02% Quarterly benchmark report Q (April, May, June) 19

22 Multi-Channel Retailers Q2: 2016 Q3: 2016 Q4: 2016 Q1: 2017 Q2: 2017 YOY Open 21.8% 21.2% 20.4% 21.9% 20.8% -1.1% -1.0% Unique Open 15.3% 14.6% 14.8% 15.8% 15.3% -0.5% -0.1% Click to Open 12.3% 12.4% 13.6% 10.8% 10.3% -0.5% -2.0% Click 2.6% 2.7% 2.3% 2.4% 2.1% -0.2% -0.5% Unique Click 1.9% 1.9% 1.7% 1.8% 1.6% -0.2% -0.3% Transaction to Click 2.6% 2.6% 3.1% 2.6% 2.7% 0.1% 0.0% Transaction 0.05% 0.05% 0.06% 0.04% 0.05% 0.00% 0.00% Revenue per Delivered $0.07 $0.06 $0.08 $0.06 $0.07 $0.01 ($0.01) Average Order $ $ $ $ $ $4.93 ($5.33) Bounce 1.0% 1.0% 1.6% 1.3% 1.0% -0.3% 0.0% Unsubscribe Rate 0.08% 0.09% 0.08% 0.09% 0.08% -0.01% 0.00% Publishers Q2: 2016 Q3: 2016 Q4: 2016 Q1: 2017 Q2: 2017 YOY Open 29.2% 29.0% 33.4% 34.4% 40.7% 6.3% 11.5% Unique Open 18.7% 18.6% 21.2% 21.4% 25.4% 4.0% 6.7% Click to Open 13.8% 14.2% 13.9% 17.7% 18.2% 0.4% 4.4% Click 3.7% 3.9% 4.1% 5.9% 7.0% 1.2% 3.3% Unique Click 2.6% 2.6% 2.8% 4.1% 5.0% 0.9% 2.4% Bounce 2.0% 2.1% 2.6% 1.9% 1.2% -0.6% -0.7% Unsubscribe Rate 0.09% 0.10% 0.14% 0.06% 0.04% -0.02% -0.05% Quarterly benchmark report Q (April, May, June) 20

23 Travel Q2: 2016 Q3: 2016 Q4: 2016 Q1: 2017 Q2: 2017 YOY Open 26.7% 31.2% 25.7% 27.4% 27.5% 0.1% 0.8% Unique Open 17.1% 18.6% 17.2% 17.7% 18.5% 0.8% 1.3% Click to Open 10.5% 10.3% 10.8% 13.7% 12.8% -0.9% 2.3% Click 2.6% 2.8% 2.6% 3.2% 3.2% -0.1% 0.6% Unique Click 1.8% 1.9% 1.8% 2.2% 2.2% 0.0% 0.4% Bounce 1.2% 1.2% 2.5% 1.5% 0.8% -0.7% -0.3% Unsubscribe Rate 0.10% 0.10% 0.13% 0.14% 0.07% -0.07% -0.03% All Industry Q2: 2016 Q3: 2016 Q4: 2016 Q1: 2017 Q2: 2017 YOY Open 25.0% 25.7% 25.5% 26.7% 25.8% -0.9% 0.8% Unique Open 16.3% 16.3% 16.9% 17.4% 17.0% -0.4% 0.7% Click to Open 10.9% 11.1% 11.1% 9.8% 9.7% -0.2% -1.2% Click 2.6% 2.7% 2.5% 2.5% 2.4% -0.1% -0.2% Unique Click 1.8% 1.9% 1.8% 1.8% 1.7% -0.1% -0.1% Transaction to Click 3.4% 3.6% 4.1% 3.8% 4.0% 0.2% 0.6% Transaction 0.050% 0.050% 0.057% 0.050% 0.048% % % Revenue per Delivered $0.07 $0.06 $0.08 $0.06 $0.07 $0.00 ($0.00) Average Order $ $ $ $ $ $8.57 ($16.52) Bounce 1.8% 1.9% 2.5% 2.0% 1.6% -0.3% -0.1% Unsubscribe Rate 0.09% 0.09% 0.10% 0.10% 0.09% -0.02% 0.00% Quarterly benchmark report Q (April, May, June) 21

24 Appendix IV: Historical metrics by alternate vertical In an attempt to offer more relevant context for our benchmark numbers, we evaluated all participating clients and classified them into a set of more granular verticals. We hope this alternative view of the traditional data for this quarter will provide more specific insight and help you better understand how your program compares to benchmarks in your category. We placed clients in the vertical most relevant to their business. Some clients were assigned to multiple categories. Vertical definitions Apparel & accessories: Shoes, bags, belts, apparel, and sportswear retailers/merchants Beauty: Merchants whose main product lines are cosmetics, perfumes, and skin care items Department stores: Retailers offering a variety of merchandise and services organized in separate departments Financial services: Banks, lending institutions, financial consultants, and financial publishers Grocery & pharmacy: Online and offline groceries and pharmacies and merchants selling related products Home: Merchants who sell furnishings, lawn and garden supplies, kitchen wares, and home maintenance products Luxury: Retailers that exclusively or almost exclusively sell high-end merchandise Shoes: Online and offline sellers of footwear Specialty product: Retailers who sell a particular product line or category of products Telecom & technology: Retailers and service providers of technology products and telecommunications equipment We will continue to analyze, refine, and expand this research in future studies. We welcome your feedback and hope that you find this to be a useful inclusion in our benchmark reports. Quarterly benchmark report Q (April, May, June) 22

25 Apparel/Accessories Q2: 2016 Q3: 2016 Q4: 2016 Q1: 2017 Q2: 2017 YOY Open 20.9% 21.1% 19.0% 20.8% 20.5% -0.3% -0.4% Unique Open 14.7% 14.3% 13.9% 14.9% 14.8% -0.1% 0.1% Click to Open 12.1% 11.9% 15.6% 9.5% 9.1% -0.4% -3.0% Click 2.5% 2.5% 2.0% 2.0% 1.9% -0.1% -0.5% Unique Click 1.8% 1.8% 1.5% 1.5% 1.4% 0.0% -0.4% Transaction to Click 2.6% 2.7% 3.0% 2.7% 2.7% 0.0% 0.1% Transaction 0.05% 0.05% 0.05% 0.04% 0.05% 0.01% 0.00% Revenue per Delivered $0.08 $0.06 $0.07 $0.05 $0.07 $0.01 ($0.01) Average Order $ $ $ $ $ $1.94 ($21.21) Bounce 1.0% 0.8% 2.2% 1.5% 1.1% -0.4% 0.1% Unsubscribe Rate 0.07% 0.08% 0.06% 0.06% 0.08% 0.02% 0.02% Beauty Q2: 2016 Q3: 2016 Q4: 2016 Q1: 2017 Q2: 2017 YOY Open 14.3% 14.2% 14.5% 15.4% 14.5% -0.9% 0.2% Unique Open 10.5% 10.5% 11.1% 11.6% 11.1% -0.5% 0.6% Click to Open 8.4% 7.9% 7.4% 6.7% 6.3% -0.4% -2.2% Click 1.3% 1.2% 1.1% 1.0% 1.0% -0.1% -0.3% Unique Click 0.8% 0.8% 0.8% 0.7% 0.6% -0.1% -0.2% Transaction to Click 6.6% 6.5% 7.1% 5.9% 7.1% 1.2% 0.5% Transaction 0.05% 0.05% 0.05% 0.04% 0.04% 0.00% -0.01% Revenue per Delivered $0.05 $0.04 $0.05 $0.04 $0.04 $0.00 ($0.01) Average Order $92.09 $81.21 $93.68 $93.36 $96.12 $2.76 $4.03 Bounce 1.4% 1.8% 3.0% 2.5% 2.0% -0.6% 0.5% Unsubscribe Rate 0.07% 0.06% 0.06% 0.07% 0.06% -0.01% -0.01% Quarterly benchmark report Q (April, May, June) 23

26 Department Stores Q2: 2016 Q3: 2016 Q4: 2016 Q1: 2017 Q2: 2017 YOY Open 19.0% 17.2% 18.7% 19.5% 19.0% -0.5% 0.0% Unique Open 13.4% 12.5% 13.7% 14.3% 14.0% -0.3% 0.6% Click to Open 10.8% 10.0% 10.1% 8.9% 8.6% -0.2% -2.1% Click 2.1% 1.8% 2.0% 1.9% 1.8% -0.1% -0.3% Unique Click 1.5% 1.3% 1.5% 1.4% 1.3% -0.1% -0.2% Transaction to Click 2.3% 2.1% 2.5% 2.2% 2.4% 0.1% 0.0% Transaction 0.03% 0.03% 0.04% 0.03% 0.03% 0.00% -0.01% Revenue per Delivered $0.07 $0.05 $0.09 $0.07 $0.08 $0.01 $0.01 Average Order $ $ $ $ $ $16.92 $39.51 Bounce 1.0% 1.0% 1.3% 1.2% 0.9% -0.3% -0.1% Unsubscribe Rate 0.05% 0.04% 0.04% 0.04% 0.03% -0.01% -0.01% Financial Q2: 2016 Q3: 2016 Q4: 2016 Q1: 2017 Q2: 2017 YOY Open 40.1% 49.3% 47.1% 47.5% 46.9% -0.6% 6.8% Unique Open 22.5% 27.1% 27.6% 27.0% 26.9% -0.1% 4.4% Click to Open 9.4% 9.4% 6.4% 7.2% 8.3% 1.1% -1.1% Click 2.9% 3.7% 2.1% 2.6% 3.0% 0.4% 0.1% Unique Click 1.9% 2.7% 1.5% 1.9% 2.1% 0.2% 0.2% Bounce 2.0% 2.6% 2.7% 2.2% 1.9% -0.3% 0.0% Unsubscribe Rate 0.13% 0.18% 0.13% 0.16% 0.15% -0.01% 0.02% Quarterly benchmark report Q (April, May, June) 24

27 Grocery & Pharmacy Q2: 2016 Q3: 2016 Q4: 2016 Q1: 2017 Q2: 2017 YOY Open 18.5% 19.5% 18.1% 20.3% 19.7% -0.6% 1.2% Unique Open 12.6% 13.1% 12.6% 13.9% 13.7% -0.2% 1.1% Click to Open 7.9% 7.7% 6.7% 6.6% 6.7% 0.1% -1.3% Click 1.4% 1.7% 1.3% 1.4% 1.4% 0.0% 0.0% Unique Click 1.0% 1.1% 1.0% 1.0% 1.0% 0.0% 0.0% Bounce 2.7% 2.3% 3.0% 3.8% 0.8% -3.0% -1.9% Unsubscribe Rate 0.05% 0.05% 0.06% 0.07% 0.04% -0.03% -0.01% Home Q2: 2016 Q3: 2016 Q4: 2016 Q1: 2017 Q2: 2017 YOY Open 20.7% 18.2% 19.1% 19.3% 19.9% 0.6% -0.9% Unique Open 15.5% 13.7% 14.8% 15.5% 15.6% 0.1% 0.2% Click to Open 9.2% 8.5% 7.8% 7.1% 6.8% -0.3% -2.4% Click 1.9% 1.5% 1.6% 1.5% 1.4% 0.0% -0.5% Unique Click 1.4% 1.1% 1.2% 1.1% 1.1% -0.1% -0.4% Transaction to Click 1.5% 1.4% 2.1% 1.5% 1.9% 0.5% 0.4% Transaction 0.02% 0.02% 0.02% 0.02% 0.02% 0.00% 0.00% Revenue per Delivered $0.03 $0.03 $0.04 $0.03 $0.05 $0.02 $0.02 Average Order $ $ $ $ $ $62.70 $42.17 Bounce 0.7% 0.5% 1.0% 0.9% 0.6% -0.3% -0.1% Unsubscribe Rate 0.07% 0.05% 0.07% 0.07% 0.06% -0.01% -0.02% Quarterly benchmark report Q (April, May, June) 25

28 Luxury Q2: 2016 Q3: 2016 Q4: 2016 Q1: 2017 Q2: 2017 YOY Open 16.9% 16.8% 17.9% 17.5% 16.6% -0.9% -0.4% Unique Open 12.5% 12.3% 13.6% 13.4% 12.8% -0.5% 0.3% Click to Open 11.6% 11.3% 10.7% 9.4% 9.2% -0.2% -2.3% Click 2.0% 2.0% 2.1% 1.7% 1.6% -0.1% -0.4% Unique Click 1.5% 1.4% 1.5% 1.3% 1.2% -0.1% -0.3% Transaction to Click 1.9% 1.5% 2.0% 1.8% 2.1% 0.3% 0.1% Transaction 0.03% 0.02% 0.02% 0.02% 0.02% 0.00% 0.00% Revenue per Delivered $0.13 $0.09 $0.11 $0.09 $0.11 $0.02 ($0.02) Average Order $ $ $ $ $ $8.87 ($58.35) Bounce 1.7% 1.7% 1.9% 1.4% 1.2% -0.2% -0.5% Unsubscribe Rate 0.03% 0.03% 0.04% 0.04% 0.03% -0.01% 0.00% Quarterly benchmark report Q (April, May, June) 26

29 Shoes Q2: 2016 Q3: 2016 Q4: 2016 Q1: 2017 Q2: 2017 YOY Open 21.0% 20.1% 18.9% 22.6% 23.6% 1.0% 2.6% Unique Open 14.3% 13.7% 13.7% 15.2% 15.9% 0.7% 1.6% Click to Open 16.3% 16.1% 13.3% 14.1% 13.5% -0.6% -2.8% Click 3.5% 3.4% 2.6% 3.0% 3.0% 0.0% -0.5% Unique Click 2.6% 2.5% 2.0% 2.3% 2.3% 0.0% -0.3% Transaction to Click 2.0% 2.0% 3.6% 2.4% 2.7% 0.4% 0.8% Transaction 0.05% 0.04% 0.07% 0.03% 0.05% 0.02% 0.01% Revenue per Delivered $0.05 $0.03 $0.08 $0.04 $0.06 $0.02 $0.01 Average Order $93.78 $94.19 $97.59 $ $ $3.89 $12.18 Bounce 1.1% 1.1% 1.0% 1.2% 0.9% -0.2% -0.2% Unsubscribe Rate 0.12% 0.11% 0.10% 0.11% 0.10% -0.01% -0.01% Quarterly benchmark report Q (April, May, June) 27

30 Specialty Product Q2: 2016 Q3: 2016 Q4: 2016 Q1: 2017 Q2: 2017 YOY Open 21.5% 21.5% 23.2% 24.3% 23.4% -1.0% 1.8% Unique Open 14.4% 14.3% 15.6% 16.1% 15.7% -0.5% 1.3% Click to Open 9.0% 8.5% 8.4% 7.3% 7.5% 0.2% -1.5% Click 2.1% 2.0% 2.2% 1.9% 2.0% 0.1% -0.1% Unique Click 1.4% 1.3% 1.5% 1.3% 1.4% 0.0% 0.0% Transaction to Click 5.4% 5.8% 6.7% 5.8% 6.2% 0.5% 0.9% Transaction 0.05% 0.05% 0.06% 0.05% 0.04% 0.00% -0.01% Revenue per Delivered $0.05 $0.05 $0.06 $0.05 $0.05 ($0.00) ($0.00) Average Order $ $ $ $ $ $8.08 $12.42 Bounce 1.5% 1.2% 2.0% 1.7% 1.2% -0.5% -0.3% Unsubscribe Rate 0.07% 0.07% 0.07% 0.07% 0.06% -0.01% -0.01% Technology Q2: 2016 Q3: 2016 Q4: 2016 Q1: 2017 Q2: 2017 YOY Q to Open 49.0% 54.4% 58.8% 58.5% 54.6% -3.9% 5.6% Unique Open 26.9% 30.1% 32.6% 32.4% 31.3% -1.1% 4.4% Click to Open 10.0% 10.4% 11.4% 9.3% 7.7% -1.5% -2.2% Click 3.9% 4.5% 5.3% 4.2% 3.4% -0.8% -0.5% Unique Click 2.8% 3.2% 3.9% 3.0% 2.5% -0.5% -0.4% Bounce 4.1% 5.7% 5.2% 4.5% 2.6% -1.9% -1.4% Unsubscribe Rate 0.08% 0.05% 0.06% 0.07% 0.07% 0.00% -0.01% Quarterly benchmark report Q (April, May, June) 28

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