Wednesday, August 23, 2006

Hack-off customers at thier fingertips

Email marketing (mostly spam) has some fine metrics and Ashley Friedlein CEO has just given his rule of thumb in a post today.

He says:

"Results will depend on the target market, proposition and so on, but as a rough 'rule of thumb' which is easy to remember, I tend to use the following:

(NB these are based on e-mailing an opted-in in-house list)

Open rates - 33% (divide/multiply by 3)

(Unique) Click rates (of those who've opened) - 20% (divide/multiply by 5)

Buy / Convert rates (of those who open) - 10% (divide/multiply by 10)

The 3-2-1 bit equates to the 33%-20%-10%.

If you compound these metrics you can work out:

- Divide total number of people on your list by 150 to get approximate number of conversions you should get.

- Multiply the number of clicks you get by 15 to work out the active list size."

Lets suppose 150 get the marketing guru's email. We know that 149 don't want it, a hundred have already rejected your company and you just upset another 40 and there are nine more who have just realised that they have wasted their time. Scream marketing is really great at turning customers away.

Now, here are some alternatives. Get a conversation going; offer RSS and stop upsetting all those people who did not realise they has signed away the integrity of their email when they visited your web site.

Use email as the last option in marketing communication, only by invitation, sparingly and with very very relevant content.

Picture: Filtered light