Segmentation test lifts ROI by over 300%
Posted on March 26th, 2008 in Marketing Case Study | No Comments »
Read this case from Marketsherpa and i am sure you will learn something:
Email software systems run the gamut. Some lack standard reporting, list segmenting and A/B testing capabilities or make you build email with HTML coding. Other systems are the polar opposite, offering an array of features and an easy-to-use interface.
Be careful what you wish for. When you transition from a barebones email system to a premium provider, the metrics suddenly at your fingertips can be overwhelming. You might not know where to start.
Erick Barney, VP Marketing, Motorcycle Superstore, sends email offering accessories and specialized content. About three years ago, he switched from software that couldn’t even tell him his open rates to a system that gave him all the metrics he could ask for … and more.
“Right away, we had access to more numbers and reports than we knew what to do with, really,” he says. “Our challenge was to define what to focus on.”
Barney and his team started by defining some key performance indicators and scrubbing the list. They followed this with some basic A/B testing and gradually increased the complexity of their metrics work. They stayed focused on taking small, incremental steps.
The result? Deliverability, open, clickthrough and conversion rates are all up dramatically, and their email revenue has increased 377%.
“Optimization is not something that you can actually achieve, it’s something that you continue to work toward. There’s always something that can be done to improve your strategy,” Barney says.
Here’s the process they followed along with key insights they discovered when suddenly handling a flood of metrics.
Determine What Numbers Matter
First, Barney and his team set out to figure out which metrics were the most important to track.
They chose to monitor:
o Delivery rate
o Open rate
o Click activity
o Unsubscribes
o Conversion rate
o Revenue
“We had little knowledge of what were considered acceptable [key progress indicator] levels, and we began paying closer attention to industry standards,” he says. “We were quickly able to define acceptable KPI levels for our particular business strategy.”
The full case study can be accessed here







