DoubleClick Inc.'s just released Q3 2004 Email Trend Report shows a significant increase in the productivity of email for online merchants, with conversion rates and number of orders per emails delivered both rising over the previous year's rates. For all mailers, the latest trend report shows continued stability in overall email performance over the past two years, while year-on-year figures show an increase in delivery rates and a decline in open rates and click-through rates.

The Q3 Email trend report shows the click-to-purchase conversion rate grew 23.5 percent or 0.8 points year-over-year, from 3.4 percent in Q3 2003 to 4.2 percent in Q3 2004. The average number of orders per email delivered rose 17 percent or 0.04 points year-over-year to 0.28 percent in Q3 '04 from 0.24 percent in Q3 '03.

Despite these increases, two other measures of email productivity showed declines. Revenue per email delivered declined year-over-year to $0.21, a 19.2 percent drop, while the median order size, declined 6.9 percent year-over-year to $94 in Q3 2004.

These figures, combined with a decline in click rates for Retail and Catalog mailers suggest that email recipient behavior is evolving with regards to promotional email from retailers. As the email medium matures, recipients seem less likely to always click on a promotional email, but when they do click, they are demonstrating that they are more likely to be "in market" for products and services and have a higher propensity to convert.

Other findings: Despite year-over-year fluctuations, overall email performance over the past two years remains stable with regards to bounce rates, open rates and click-through rates.

"Once again, this quarter's data reveal the incredible effectiveness of email as a marketing tool for online merchants and underscores the maturity and stability of email as a communications vehicle," says Kevin Mabley, director of strategic services at DoubleClick. "As more and more marketers adopt and abide by best practices in list hygiene and continue to pay attention to customer preferences, we predict response rates and conversion trends will continue to hold strong -- a great message for merchants this holiday season."

Additional resources:
My 2005 Predictions for Email