Q4 2013 North America Email Trend Results: Customer Brand Connections Must Be Built on Engagement and Differentiated Experiences

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Epsilon’s EASE Analysis Highlights High Percentage of Inactive Subscribers

DALLAS, TX – April 3, 2014 – Epsilon, the global leader in creating customer connections that build brand and business equity, and Email Institute, the Epsilon-powered email marketing best practices destination, today released the Q4 2013 North America Email Trends and Benchmarks report. The report shows an increase in email open rates over the previous year’s metrics (Q4 2012). The analysis also found that a significant amount (62%) of new subscribers were unengaged with marketers’ email programs in Q4 2013, highlighting the continual need to build and maintain subscriber engagement.

“As we’ve said before, subscriber engagement isn’t a one-time effort. It’s a continual process that requires a long term strategy,” said Judy Loschen, Vice President of Digital Analytics at Epsilon. “How, when and where a customer interacts with your brand could prove to be the most useful information in your email marketing efforts—today email marketers need to build connections between brands and customers that are based on engagement and differentiated experiences. The best way to achieve this is by leveraging data to provide meaningful experiences.”

Business As Usual (BAU) Email Trends
The quarterly analysis is compiled from 7.0 billion emails sent by Epsilon in October, November and December 2013 across multiple industries and approximately 140 participating clients. The analysis combines data from Epsilon’s proprietary platforms.

BAU Highlights:

• Non-Bounce rate remained strong at 96.1%
• Open rates were consistent quarter over quarter at 30.9%
• Click rates were 4.4%, increasing quarter over quarter and in-line with last year

Triggered Message Email Trends
Triggered message benchmarks are compiled from more than 297 million triggered emails sent by Epsilon in Q4 2013 across multiple industries. Results track campaigns deployed as a result of an action or trigger such as Welcome, Abandon Shopping Cart, Thank You and Anniversary.

Triggered Highlights:

• Triggered messages accounted for 4.1% of total volume, slightly lower than Q4 2012
• Triggered open rates were 58.5% higher than BAU messages in Q4 2013
• Triggered messages continued to perform well, reporting 127.7% higher click rates than BAU messages

Email Activity Segment Evaluation (EASE)
These metrics are compiled from more than 592 million non-bounced and opted-in email addresses that were contacted from January 1, 2013 through December 31, 2013 across multiple industries and approximately 150 clients. The EASE analysis, which includes behavioral segments, examined the overall performance of the average email file.

EASE Highlights:

• Half of an average email file had at least one open or click during the 12-month study period

• 88% of a marketer’s email list had been on file for more than three months

• Approximately 18% of subscribers in an average email file had opened or clicked in the most recent three months

For more information and industry-specific benchmarks, the Q4 2013 Email Trends and Benchmark report is available at www.epsilon.com/pr/Q413emailbenchmarks.

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About Epsilon
Epsilon is the global leader in creating customer connections that build brand and business equity. A new breed of agency for a consumer-empowered world, our unique approach harnesses the power of rich data, world-leading technologies, engaging creativity and transformative ideas to ignite connections between brands and customers, delivering dramatic results. Recognized by Ad Age as the #1 U.S. Agency from All Disciplines, #1 World CRM/Direct Marketing Network and #2 U.S. Digital Agency Network, we employ over 5000 associates in 60 offices worldwide. Epsilon is an Alliance Data company. For more information, visit www.epsilon.com, follow us on Twitter @EpsilonMktg or call 1.800.309.0505.

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