Apr 21, 2010

Score your DataBase !

One of the most important things for a successful email strategy is to know your Data Base.

We have discussed more than once on this blog the importance of analyzing the reactions of your DB to estimate what "turns it on" and what "turns it off".

But knowing your DB goes far beyond that, it also means to have a good and honest vision of its quality.

I've been playing with reports, for quite some time now in search for a formula that would give an easily understandable and relevant snapshot of the database quality.

After quite a lot of thinking around, I came out with the following recipe that I am willing to share with you guys:

Let's take the following numbers:
A - Unique openings (per campaign)
B - Unique clicks (per campaign)
C - The number of orders (if tracked) (per campaign)
D - The number of sent emails

Then you can run the following calculation:
[(A + (B * 2) + (C * 5)) / D] * 100 = Score
The result of this calculation will always be between 0 and 800 (don't expect to ever reach 800 ;p, I expect most DBs to score between 25 and 100)

The good thing once you have calculated your DB score is that you can score with quite the same calculation method the profiles inside your DB (and for example keep only the highest scores or even better, the profiles that score above your DB score to improve your DB quality).

For the emails inside the DB, the formula is the same:
A - Unique openings (per campaign)
B - Unique clicks (per campaign)
C - The number of orders (if tracked) (per campaign)
D - The number of received emails

The formula remains:
[(A + (B * 2) + (C * 5)) / D] * 100 = Score

Once you have both scores, you will easily identify subscribers that are lagging behind, lowering your campaign results and sender reputation and the most valuable addresses in your DB.

This can be the first step towards success.


Juan said...

Anton, this is great info and came to me exactly in the moment when I want to separate the "golden" users from the "bronze", "silver", etc.

One question though: how did you estimated the weight for each action: 2 for clicks and 5 for buy?

Anton said...

Hello Juan,

I estimated the weight according to what I measured myself as the real value of each event.

Of course these weights can be adjusted according to your business model, for example : an agency that will earn its money from clicks or that will justify the CPM they are renting the DB through the open rate might want to adjust these, and will of course not need the "number of orders" indicator.

The most important thing here is to score the DB and your profiles in th DB with the exact same ponderation so you can identify the different levels off users.