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STO Revisited: What We’ve Learned About the Best Time to Send Email

Loren McDonald, Silverpop
by: Loren McDonald (@LorenMcDonald)
03 August 2011

Two years ago, Silverpop introduced Send Time Optimization in an effort to provide marketers with the answer to the eternal question, “What’s the best time to send email?” With email habits varying widely from person to person and endless time variables to consider, we proposed that a “one size fits all” approach wasn’t the best choice when deciding whether to send on Tuesdays at 9 a.m., Thursdays at 3 p.m. or Saturdays at midnight.

Today, with the continued growth of social and mobile forms of communication, the emergence of local marketing initiatives and, yep, even more messages crowding inboxes, the fight for mindshare is fiercer than ever. And with consumers demanding relevance—and ISPs/Web email service providers such as Gmail actually segmenting emails based on it—delivering the right message at the right time has never been more important. Enter Send Time Optimization.

What Is Send Time Optimization?
Silverpop’s Send Time Optimization (STO) feature analyzes recipient behavior on a rolling basis to predict the ideal message delivery time for each recipient on your list over that recipient’s entire lifecycle. The system can then deliver messages to those recipients at the precise day and time they’re most likely to be opening emails. Over time, the system continues to adjust each recipient’s ideal delivery time based on his or her typical behavior. Users have the option of using STO to deliver messages over a 24-hour period or a seven-day period, with the 24-hour option having proven to be much more popular among Silverpop clients.

One of the biggest benefits for time-starved marketers is that STO only takes a single click, and then the technology does the rest. There’s no slicing and dicing of your list, no sending the same message multiple times, and no poring over multiple mailing reports. With a minimum amount of effort, Silverpop clients have generated significant results. Toy manufacturer Little Tikes, one of the first companies to try STO, saw an immediate impact when it used STO on its weekly promotional mailing, with open rates increasing by 20 percent, click rates by 30 percent and total revenue generated by 75 percent. “Using Silverpop’s Send Time Optimization feature has allowed Little Tikes to take a more sophisticated approach to our email marketing with no extra effort on our end,” says Julie Gibson, email coordinator, Little Tikes.

What Have We Learned? Six Tips for Getting the Most from STO
During the last two years, we’ve watched our clients use STO in countless scenarios across thousands of mailings. Here are some of the key takeaways related to STO:

1) Test and Learn
As with many elements of email marketing and lead management, testing is a smart bet when it comes to STO. Doing so can help confirm that your message will benefit from STO and give you insights into exactly what lift you can expect as a result of using it.

For Silverpop clients, testing STO is as simple as performing a traditional A/B test, with half of your list getting the email at the standard time and half being sent the email with STO activated. If you’re using a system that doesn’t have STO, you can export your email data from a recent send, group recipients by their open time, and test your next send, with 50 percent getting the email at the standard time, and 50 percent getting it at the hour of day they last opened.

J&P Cycles, the world’s largest aftermarket motorcycle parts and accessories store, recently tested STO and saw increases across all metrics. "When we learned about Silverpop’s Send Time Optimization feature, we decided to test it out with identical emails, one sent using the 24-hour option for STO and the other sent immediately,” says Anthony Linnabery, email marketer, J&P Cycles. “The emails sent using STO outperformed the control email in all of the key metrics, which included a 22 percent lift in open rate and a 24 percent lift in click rate. Due to these positive results, we now use STO for all of our emails."

2) Look Beyond Opens and Clicks
In general, using STO results in some level of increase in open and click-through rates, but STO’s biggest impact is typically on conversion rates, revenue generated per email and overall order size, all of which on average increase significantly with STO. This makes sense because using STO means you’re catching recipients at a time they have allocated for Internet activity. Because they aren’t as rushed, they engage more deeply.

Encyclopaedia Britannica, for example, tested STO and saw modest increases in opens and click-throughs, but a 40 percent lift in revenue and a 30 percent increase in total numbers of orders per campaign.

3) Use STO When Mailing Across Multiple Time Zones
STO is a perfect solution for companies who are sending campaigns across multiple time zones. By eliminating the need to separate queries in order to target each recipient at 9 a.m. in his or her local time zone, it cuts back on wasted manual effort. You simply use STO and allow it to deliver at the optimal time for each recipient worldwide—regardless of whether you’re sending your email to three time zones or 10.

4) Try STO in Place of Traditional Throttling
If you need to spread out email volume over a period of time to make it more consistent or to reduce impact on websites or call center personnel, STO can help. The Girl Scouts of the USA recently found itself in a situation in which its weekly promotional emails were causing its site to crash because so many subscribers would visit it to purchase merchandise. To alleviate the problem, it wanted to space out these messages.

“Send Time Optimization eliminated this issue by automatically sending emails to our recipients based upon when they are most likely in their inbox,” says Tom Hassett, assistant director of marketing, Girl Scouts of the USA. “There was also a huge financial benefit, including a 10 percent increase in open rates and a 12 percent increase in conversion rate.”

5) Use It in Conjunction with Complex Campaigns
Savvy marketers are increasingly looking to engage customers and prospects by creating mailings and campaigns that are automatically triggered by contact behaviors. In many cases, using STO in tandem with these techniques can yield even greater returns.

Whether you’re a retailer sending a “happy birthday” message with a surprise discount or a technology company delivering a follow-up nurture email five days after a Webinar, having your message arrive when the recipient is most likely to be in his or her inbox will help you engage recipients, move contacts through the buying cycle and drive revenue.

6) Incorporate STO into Your Testing Process
Conducting A/B and multivariate testing of email subject lines, design elements, etc. to see which messages and content resonates with customers is a great way to improve results. If you’re planning on eventually using STO with your list, though, it’s important to incorporate STO into your test as well to make sure you select the right winners. Otherwise, you run the risk that the subject line or design element that performs best when your test email is sent at a “random” time is different from the top-performing subject line or design element when the message is sent when recipients are most likely to be engaged. Using STO in your tests ensures an accurate apples-to-apples comparison.

The Future
Today’s customers and prospects expect to be treated as individuals. Marketers who stop looking at their lists as audiences and take steps to communicate with each contact as an individual with his or her own unique usage patterns, needs and expectations will increase their chances of success. To that end, using STO is an easy way to move your marketing sophistication up a notch and help nail the timing aspect of the “right message, right time” equation.

 

 

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Comments

13
  1. Richard Head

    I can see this working to a degree in B2C communications but less so for B2B. It is a pretty unique feature that Silverpop have. That said, I think most of the major ESP's have their own unique features and I guess the question is, when comparing one offering against another, is STO enough to win my business? For me, not yet. But who knows what they will launch next.

  2. Jimmy

    I don't agree with Ben Dover. I have struggled with identifying best send times and the STO seems a real innovation. I couldn't believe any serious company would give up on developing this for themselves. Most industries are flooded with companies who shadow© a competitor's developments JUST so that the innovator doesn't gain any competitive advantage. Surely that would be the case here.

  3. Mary

    There are other providers who offer STO. http://community.bronto.com/blog/updates/new-features-going-live-21711 Whether it is a "gimmick" or not can be debated, but ultimately it's usefulness depends oneach unique business and their subscriber base.

  4. Jessica Fox

    Aaron has an interesting point, this service is 2 years old and the email marketing space is full of innovative providers, why is that none of them have decided to develop Send Time Optimization?

    1. Benjamin Dover

      Jessica, Great observation, with the top ESPs spending tens or hundreds of millions on R&D they have obviously determined STO is nothing more than a gimmick. Cheers, Ben.

      1. Loren McDonald

        Benjamin - I hope you are right on the thinking by other ESPs. I can assure you, however, STO is no gimmick.

    2. Loren McDonald

      Jessica - I can't tell you why other ESPs haven't developed a similar feature. But I personally don't mind that they haven't. :-)

  5. John Johnson

    Hi Guys, I'd love to find out more about this but do you really think it's the biggest thing to hit email marketing in the last two years? What about my subscribers that don't open or click on emails? Isn't this preaching to the choir as it's only working on the people already engaged? John

    1. Loren McDonald

      John, First, thanks for the comments and question. I don't think that I or anyone else with Silverpop has claimed that this is the biggest thing to hit email marketing in the last two years. We are certainly proud of this and other innovative features - but more importantly that it is easy to implement and that many of our clients are seeing excellent results from it. The purpose of the blog was simply to aggregate and share what we've learned via our clients using the feature the last few years. Regarding unengaged subscribers, I couldn't agree more. Dealing with inactives is one of the biggest challenges that email marketers face. I've written a couple of posts on this topic recently: - http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=154874 - http://www.silverpop.com/blogs/email-marketing/inactive-subscribers-whats-your-strategy.html To that end, marketing automation can play a role here as well by moving early inactives into separate marketing tracks very early in the relationship. Thanks, Loren

  6. Aaron Adjemian

    Very cool! Are there any other email service providers or marketing automation companies that can do something similar?

    1. Loren McDonald

      Aaron - I don't believe any of the marketing automation providers have a similar feature. I seem to recall one of the SMB ESP players might have a similar feature, but I can't recall who it is.

  7. Derrick Jackson

    Sounds like a great product. How much does something like that cost?

    1. Loren McDonald

      Derrick, There is no additional cost for STO for Silverpop clients - it is simply a standard feature. If you aren't a client it isn't a tool or feature that we can simply make available. Thanks, Loren

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