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News Stories Thursday, October 20, 2005   
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Web analytics improve results from targeted e-mail campaigns, study says


Web analytics can play a key—although more costly—role in personalized e-mail campaigns, JupiterResearch reports. Using clickstream data, targeted e-mail campaigns on average produced open rates of 33%, click-through rates of 14% and conversion rates of 3.9%, Jupiter found.

That compares with average open rates of 20%, click-through rates of 9.5% and conversion rates of 1.1% for mass mailings, Jupiter says.

But because there is more labor involved in applying web analytics to e-mail campaigns, average total salary budgets for campaigns using click-stream targeting are 2.5 times higher than those of marketers using mass-mailing campaigns, Jupiter found. There’s also a 10% premium on monthly web analytics spending. The average cost per message totals $4.50, excluding web analytics costs, compared with $3 for untargeted mailings, according to Jupiter.

But the higher costs are worth it, Jupiter says, citing the experience of retailer Newport-News.com, which had a six-fold improvement in revenue after using web analytics to target browsers of three of its worst-performing product categories.

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