Today, Return Path is pleased to present our Global Deliverability Benchmark for the second half of 2009. We conducted this study by monitoring data from our Mailbox Monitor service for email campaigns deployed from July to December 2009. We tracked delivery, blocking and filtering for more than 600,000 campaigns. In addition we reviewed non-delivered data for hundreds of ISPs in the United States, Canada, France, Germany, United Kingdom and the Asia Pacific territories.
Here are some highlights and key findings:
What does this data tell us about the state of email marketing? The answer is clear: deliverability is still a crisis for commercial email senders. We think three factors are at work:
First, many senders still don’t have access to reliable data on their deliverability situation. They rely on reports that show a “delivered” metric that tends to be 95% or higher. But in most cases this is not the Inbox Placement Rate – the percentage of mail that actually arrives in the inbox. Rather it is simply a reporting of the number of messages sent minus the number that returned a hard-bounce message. This creates a false impression that nearly 100% of email messages arrive as intended.
Second, email marketing is a high-ROI, low-cost channel – and when you’re making money on every campaign that goes out the door it’s easy to disregard opportunities for improvement. The reality is that senders are leaving a lot of money on table – on average, according this report, about 20%. For example, if you deploy a campaign to one million subscribers with an average conversion rate of 5% (50,000 buyers) for a value per conversion of $10, you should earn $500,000 in revenue from that campaign. But if 20% of your email never made it to the inbox, then the numbers look very different. With an 80% inbox placement rate, only 800,000 subscribers would receive your email and at the same conversion rate and value, your email revenue drops down to $400,000 for that same email campaign. Now multiply that by the number of campaigns you send every year and that can turn into millions in lost revenue. What senders fail to realize is that those dollars can be recouped simply by maintaining a good reputation and implementing basic best practices that are proven to improve inbox placement. While achieving 100% deliverability is key, even a 5% increase to your inbox placement, results (for this example) in $100,000 more in revenue per campaign.
Third, and perhaps most important, sending reputation (behavior) is THE driving factor that determines whether (or not) email makes it to the inbox. But senders are still failing to implement the best practices that make email deliverability more likely and more consistent. This includes very straightforward tactics like welcome messages, easy opt-out procedures and setting expectations at opt-in. These basic practices build the strong reputations that drive higher deliverability. When we take a look at senders with good reputations (Sender Score of 90-100) inbox placement rates are over 50% higher at Yahoo!, Hotmail and Google than senders with mediocre reputations (Sender Scores of 40-60).