Brian Gilbert |
on December 4, 2007 |
category: integrated marketing |
Vice President/Integrated Marketing
What in the world are you measuring?
Recently EmailStatCenter.com released results from an August survey that indicate that email marketing "professionals ranked click through rate and deliverability as the most important metrics to track."
Third on the list was conversion rate and measuring ROI was fourth in importance on the list. Revenue was sixth out of eight options. Yikes! Can you believe this?
It's as if most email marketing pros are more concerned with getting people to click on emails than they are whether their campaigns are actually performing their most important function – DELIVERING REVENUE! Wake up people! Isn't that the function of marketing – to help drive sales? Feed the beast.
As an e-marketing professional, I have to be grateful for my roots and passion for direct marketing. These survey answers would be comparable to stating that measuring the performance of a direct mail campaign is most importantly gauged by whether the mail entered the USPS stream successfully and a consumer opened the envelope. Ummm, last time I checked, I'd get bounced out of the room (and out of a job) if I suggested that ROI and revenue were in the middle of the pack of key metrics.
I am picturing conversations out there…
“Sorry, boss. I know we're not hitting our revenue target for the quarter and profit is down, but I got 18,000 click-thru's to my blog and 7,200 downloads of my widget – isn't that fantastic?”
“No, Spam boy, it isn't. We're in the business of making money, not measuring clicks. Figure it out.”
Perhaps I'm being unfair.
It's hard to know whether every email sent had a revenue component. I guess a newsletter email without a transactional offer might not have a revenue goal. Yeah, that might explain some of it.
Or alternatively, this could be an indication that while many companies have figured out how to launch email campaigns, they struggle with the technology that can actually link email activity into site or commerce behavior.
Or this could point to a structural problem organizations haven't fixed yet. Perhaps email marketers can't make the leap to measuring performance by revenue and ROI because ecommerce revenue is the domain of the “web team” and not marketing – similar to the “over the transom” mentality we see every day between Marketing and Sales departments. “Not my job.” Do you say that? I hope not.
Who knows . . . I'm still baffled by these results – and I'm grasping at straws to justify the results.
At least the responders to the study were honest in their answers. They rank Strategy/Planning as very high on the list of challenges these marketers face.
Wow. I couldn't have said it better myself.
Comments:
12/8/2007 at 11:39 a.m.You Gotta WannaYou’re right Brian, it is alarming when no none wants to connect the dots on ROI for email marketing campaigns. I have found that there are two reasons why people don’t do things:
1. They don’t know how.
2. They Don’t want to.
Maybe it is their reliance on CRM systems that may deliver leads but don’t close the loop and produce a sales results. Let’s face it, when it comes to accountability, many people don’t want to take the risk. Jim Lenskold’s book on ROI is still the best out there but someone has to read it to make an attempt. We formed the Sales Lead Management Association www.salesleadmgmtassn.com just for the reason of bringing a spot light on the failure to manage leads even while companies spend millions on CRM systems. Keep up the pressure Brian, maybe someone will listen: ROI counts and always will.
Jim Obermayer
Sales Lead Management Association
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