• by Jack Loechner , Staff Writer @mp_research, September 11, 2015

According to Yesmail Interactive, the fourth quarter of the year not only generates between 20-40% of retailers’ annual revenue, but it also boasts the largest number of holidays that marketers could use to boost engagement and maximize revenue.

The analysis reviewed key email metrics of top retailers over Q3 and Q4 of 2013 and 2014reveals major trends and takeaways to consider when developing an effective marketing strategy for the 2015 holiday season.

Key Findings:

• More marketers deployed holiday-themed emails: Compared to Q4 2013, 32% more brands deployed holiday-themed campaigns in Q4 2014, with the majority (83%) sending general holiday* campaigns
• Rising email volume does not necessarily drive down response rates: Average open rates for Q3 and Q4 2014 were 14.7% and 14.6%, respectively, despite a 46% quarter-over-quarter increase of average email volume
• Post-holiday emails can be top performers if done right: Relevant messaging, good timing, and out-of-the-box creative can be instrumental in achieving better response rates
• Deliverability improved in 2014: Overall Q4 inboxing rate increased month-over-month and achieved a 2% increase over Q4 2013.
• *”Holiday” emails were defined as emails that reference the holiday or winter season without specifying a particular holiday. The search term “Holiday” is used to capture these general holiday campaigns.

Both email volume and average open rate were lowest in July, increased in August, and somewhat plateaued in September. This could be due to lower retail activity during the start of the summer as consumers are on vacation. During this typically slow period retailers scale back their mailing volume and start ramping up half-way through the summer as they prepare for the fall, back-to- school, and holiday seasons.

As the holiday season approached and email volume increased considerably month-over-month, open rates remained unchanged with averages of 14%. In line with findings from the Q4 2014 Yesmail Email Marketing Compass, this research confirmed that increasing email volume no longer drives response rates down, a trend in stark contrast from previous quarters. Several factors could explain this new trend, says the report, including improved and more consistent mobile email experience, a more informed approach to customer preferences and segmentation, and better inboxing strategies that allowed more subscribers to receive marketing emails.

Marketers deployed more emails earlier in Q4 of 2014 than they did in 2013, a likely indication that they started their holiday email promotions earlier in 2014. This could be in response to evolving customer demand and the increasingly intense retail competition to attract holiday shoppers. Based on research from the National Retail Foundation, 20% of US consumers had started their holiday shopping by September of 2014.

In addition, the YOY comparison of open rates further strengthens the point that increasing email volume no longer drives response rates down. Despite email volume growing by 26% and 7.8% YoY in Q3 and Q4 of 2014, respectively, open rates increased by 11% and 2% over the same period.

Most popular among marketers were general holiday campaigns (emails that reference the holiday or winter season without specifying a particular holiday) with 83% of tracked brands deploying them. This trend differs from last year when 73% of brands deployed Black Friday campaigns making it the most popular emailing holiday. Halloween-themed campaigns were least popular in both 2013 and 2014 with only 23% and 33% of marketers mentioning that holiday, respectively.

Year-over-year more marketers sent holiday- themed campaigns. Across the board, more brands deployed holiday-themed campaigns in 2014. This could be a result of marketers acknowledging the high relevance of these messages and subsequently implementing them in their 2014 mailing programs.

Thanksgiving and Black Friday campaigns deployed in the period directly leading up to the holiday saw higher open rates compared to those deployed further in advance. This makes sense because these holidays do not require much advanced planning or gift-giving, so a reminder that the day is coming up may be more effective in engaging consumers than an advanced notice.

Most marketers did a good job of incorporating last year’s findings by refraining from sending out Thanksgiving and Black Friday emails way in advance of the actual holiday, and instead sending them shortly before the holiday. In 2014 marketers who sent Thanksgiving and Black Friday-themed emails way in advance saw open rates that were 14.6% and 10% lower, respectively, compared to base communications.

General holiday campaigns (emails that reference the holiday or winter season without specifying a particular holiday) started 10 days earlier in Q4 2014 than they did in Q4 2013. In the earlier weeks of the holiday season open rates for these emails were comparable to those of base communications but increased as the year was coming to an end. Consumers may have been more likely to engage with the consistent flow of holiday emails in 2014, instead of having to adjust to an unexpected influx of emails at the tail-end of the holiday season, opines the report.

Spacing out their general holiday emails throughout Q4 of 2014 is an effective practice brands could follow for the 2015 holiday season, says the report, by starting campaign deployments earlier in October and following up with reminder emails as the end of the year approaches. From a creative perspective, campaign series with a themed narrative (countdowns, daily gift ideas, sneak peeks, etc.) work well to nurture relationships with subscribers so they are more likely to welcome a hard-sell email as the holidays approach.

The report concludes by noting that year after year the holiday season starts earlier for marketers and consumers are willing to listen. To seize the opportunity and maximize consumer engagement and conversions, brands need to plan their communications in advance and consider what the optimal timing is for each holiday-themed deployment. The right combination of business-as-usual and holiday-themed campaigns can yield great results for marketers eager to engage customers and deliver a successful close to 2015.

For additional information from YesMail, including charts and graphs, please visit here.