October 23, 2006

E-Mail Strategy

Assume you work for a small business with a e-mail list of 3,000 individuals. You executed an e-mail campaign last week, segmenting your campaign into three segments of customers (best, average, all others). Here are the results:

Best Customers (1,000 total):
  • Open Rate = 35%. Of those who opened the e-mail, 10% clicked-through to the website. Of the 35 remaining customers, ten purchased merchandise, spending a total of $1,000, yielding $300 profit. Two customers opt-out of future e-mail campaigns.
Average Customers (1,000 total):
  • Open Rate = 30%. Of those who opened the e-mail, 10% clicked-through to the website. Of the 30 remaining customers, three purchased merchandise, spending a total of $300, yielding $90 profit. Two customers opt-out of future e-mail campaigns.
All Other Customers (1,000 total):
  • Open Rate = 25%. Of those who opened the e-mail, 6% clicked-through to the website. Of the 15 remaining customers, one purchased merchandise, spending a total of $100, yielding $30 profit. Two customers opt-out of future e-mail campaigns.
How would you judge the results of this e-mail campaign? Is the performance of all three segments acceptable? Without knowing anything about the merchandising strategy or creative execution of the campaign, would you recommend mailing a similar strategy to each segment next time?

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