Design of experiments analysis of email marketing response rates

Strategy to Improve the E-Mail Marketing Response Rates

A company intends to improve its email marketing system to measure its response rates from its email advertisements by carrying out the evaluation process using different combination of "two (2) options of the three (3) key factors: E-Mail Heading (Detailed, Generic); Email Open (No, Yes); and E-Mail Body (Text, HTML). Each of the combinations in the design was repeated on two (2) different occasions." (Email Attachment, 2015 p 1).

The objective of this paper is to develop the email advertising strategy to assist the company to increase the response rates.

Conducting a DOE ( design of experiment) to test a cause-and-effect relationship of the Company Business Processes

2.

Using the data in the table 1, the paper develops graphical illustrations to test relationships of the company's business process .

Fig 1: Sum of the Response Rate by Email Body and Email Open

As being revealed in Fig 1, the response rates for the TEXT emails are higher than the response rates for the HTML emails. Typically, the email receivers open larger number of emails sent through TEXT than through HTML. A sum of the response rates of TEXT email opened are 263 while the sum of the response rates for the HTML emails opened are 96.

Fig 2: Sum of the Response Rate by Email Body and Email Heading

Similarly, the fig 2 shows that the company is able to generate higher response rates from both the detailed and generic TEXT emails than detailed and generic HTML emails.

Fig 3: Sum of the Response Rate Email Heading and Email Open

As being revealed in Fig 3, the detailed emails had higher response rates than generic emails. The sum of the response rates for the email opened for detailed emails are 200, however, the sum of the response rates for the generic emails are 159.

Regression Analysis

The table 2 reveals the summary of the response rates of the Text, HTML, Generic and Detailed Emails. The sum of the response rates of text emails are higher than the sum of the response rates of the HTML emails.

Table 2: Summary of E-Mail Response Rate

TEXT

HTML

Generic

Detailed

46

27

46

34

34

32

56

68

56

23

25

22

68

33

21

19

38

25

38

38

38

22

59

80

59

21

27

32

80

19

23

33

SUM

AVERAGE

52.37

25.25

36.87

40.75

The output of the regression analysis reveals that emails sent though text have higher response effects than emails sent through HTML. Moreover, the detailed emails have higher response effects than generic emails.

SUMMARY OUTPUT OF Emails TEXT AND HTML Response Rates

Regression Statistics

Multiple R

0,29765

R Square

0,088595

Adjusted R Square

-0,06331

Standard Error

16,79014

Observations

8

ANOVA

df

SS

MS

F

Significance F

Regression

1

164,4218

164,4218

0,583245

0,473994

Residual

6

1691,453

281,9089

Total

7

1855,875

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Lower 95,0%

Upper 95,0%

Intercept

76,40771

32,02361

2,385981

0,054323

-1,95123

154,7667

-1,95123

154,7667

X Variable 1

-0,95179

1,246281

-0,7637

0,473994

-4,00133

2,09775

-4,00133

2,09775

SUMMARY OUTPUT of Generic and Detailed Emails Response Rate

Regression Statistics

Multiple R

0,90206

R Square

0,813712

Adjusted R Square

0,782665

Standard Error

7,098373

Observations

8

ANOVA

df

SS

MS

F

Significance F

Regression

1

1320,554

1320,554

26,20827

0,00218

Residual

6

302,3214

50,3869

Total

7

1622,875

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Lower 95,0%

Upper 95,0%

Intercept

11,08726

5,627816

1,970083

0,096339

-2,68351

24,85803

-2,68351

24,85803

X Variable 1

0,632828

0,123614

5,119402

0,00218

0,330356

0,9353

0,330356

0,9353

3.Recommendation of the main actions the Company could use to increase the Email Advertising Response Rate

The outcome of the analysis reveals that the company should concentrate on using the TEXT emails rather than focusing on the HTML emails. Typically, larger number of the email recipients prefer responding the email sent through text than emails sent through HTML. Thus, the number of email opened will depend on the response rates. The paper recommends that the company should focus on the TEXT message than the HTML message since people prefer responding the TEXT message than HTML messages. Additionally, the company should focus sending the detailed email than generic emails since the detailed emails will assist the company to achieve a higher response rates that generic email. By focusing more on the TEXT emails and detailed emails, the company will be able to record more benefits from the marketing expenses, which will consequently assist the company to achieve competitive market advantages.

3. Overall Strategy to Develop a Process Model

The company should concentrate of TEXT email advertising technique that will catch the attention the email receivers, which will consequently arouse the interest of the receivers. Moreover, the email message should form a mental picture of the company brand because it will assist the email receivers to remember the company logo anywhere. The brand will make the receivers to decide on the price willing to pay for a particular product. Moreover, the message should be designed in such a way to convince the receivers to pay for the product. These strategies will increase the response rates of the email advertising.

Reference

Email Attachment (2015). Company Email Response Rates.