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August 15, 2008

A new way to look at your e-mail list

It's typical to judge the performance of an e-mail list by looking at the open, click-through, click-to-open, and other rates. These important measurements give you a look at how effective your e-marketing efforts are and form the basis to compare campaigns. They do not, however, measure how effective your list building efforts are or if your mailing frequency is optimal for maximum reach.

We have adopted a measurement technique we call the Ovation Razor. When applied to your list frequency and building efforts, this performance measurement tool will give insights into your list's potential for engagement and its ability to keep the long-time users as active as their initial engagement. Your list's loyalty factor is found by dividing the CTR by the CTR of the 1st e-mail.

Loyalty Factor

You can use your loyalty factor to determine if your frequency is appropriate and your content is consistently engaging. A loyalty factor between 50% and 65% indicates a balanced program as represented by client 3 and client 4. Client 2's frequency could be increased as their user's engagement is very high. Client 1's factor is 27%, which indicates the e-mail is not engaging or the frequency is too high.

One key to keeping your list active and growing is to understand and match your subscriber's frequency preferences with their desired delivery rate. And using the loyalty factor as another measurement tool will help you deliver your one-to-one message for the best chance of long-term engagement.