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	<title>Hedges &#38; Company Aftermarket Marketing and Market Research Blog</title>
	<link>http://hedgescompany.com/blog</link>
	<description>Automotive aftermarket market research and marketing blog</description>
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		<title>New Auto Market Research: Secrets of Parts Buyers Revealed</title>
		<description><![CDATA[New BuyerZoom and BrandZoom reports are available through the Hedges &#38; Company Market Research Store. We&#8217;ve added new reports covering engine bearings, carburetors, connecting rods, cylinder heads, engine blocks, performance fasteners, fuel and oil pumps, gaskets, lifters, pistons, push rods, rocker arms, valves, and valve springs. For the first time in the automotive aftermarket it is possible to obtain affordable research reports focused on buyers of specific types of parts. BuyerZoom reports give you extensive behavioral data on consumers who shopped for or purchased specific types of parts, while BrandZoom reports show consumer perceptions and opinions on brands of specific types of parts. We have found significant differences in automotive enthusiasts who buy one type of part vs. another. This valuable data is helpful for manufacturers planning their marketing or identifying strengths and weaknesses, or retailers looking for new opportunities to increase sales. For example, consumers who purchase pistons spend much more per year than consumers who purchase carburetors. Over 40% of piston buyers spend $5,000 or more per year on their automotive hobby, while a little more than two out of ten carburetor buyers spend that much. That is partly due to piston buyers being more involved with motorsports [...]]]></description>
		<link>http://hedgescompany.com/blog/2012/05/auto-market-research-secrets-of-parts-buyers-revealed/</link>
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		<title>2012 Online Sales of Auto Parts Growing</title>
		<description><![CDATA[With the Catalyst 2012 conference in full swing this week in Las Vegas &#8212; ChannelAdvisor&#8217;s annual ecommerce gathering &#8212; we thought this would be a good time to examine online sales of auto parts, statistics and multichannel shopping. The growth in online sales of auto parts has been outpacing the rest of the industry for many years. In 2009 we saw the slowest growth rate at just under 10% over 2008. More recently, we&#8217;re seeing a robust growth rate again and we&#8217;re projecting online sales of auto parts to be just under $3.5 billion in 2012. This is purely retail sales of auto parts and excludes online auctions which would easily double that number. The newly-published BuyerZoom market research reports from Hedges &#38; Company show distinct variations in how shoppers purchase various parts online. For example, buyers of camshafts are 16% more likely to buy their other auto parts and accessories from an online store than are gasket buyers or connecting rod buyers. On the other hand, consumers who buy gaskets are 29% more likely to buy the rest of their parts from chain stores than are camshaft buyers. Buyers of camshafts and cylinder heads are 19% more likely to [...]]]></description>
		<link>http://hedgescompany.com/blog/2012/04/2012-online-sales-of-auto-parts/</link>
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		<title>Americans Spend More Income on Auto Parts, Reversing Long-Term Trend</title>
		<description><![CDATA[A bit of good news to add to our post last month that sales of auto parts for 2011 will show an increase over 2010: Our market research shows the amount of auto parts purchased as a percentage of personal income has reversed a downward trend of more than 10 years. In 2010, retail sales of auto parts represented about half a percent of personal income (0.0513% to be exact). Preliminary numbers for 2011 show the first increase in that percentage in more than 10 years, to levels not seen since 2008. We&#8217;re projecting just over 0.052% of personal income was spent on auto parts in 2011. And while the difference between 0.0513% and just over 0.052% may sound trivial, that represents nearly $1 billion in additional retail sales dollars of auto parts and accessories in 2011! Personal income includes household income from things like employment, dividend and interest income, rental income or social security. Auto parts sales includes retail sales of automotive replacement parts, performance parts and accessories, tires and wheels. Both personal income and auto parts sales are expressed in nominal dollars. A large part of the increase in household spending is related to how long people are [...]]]></description>
		<link>http://hedgescompany.com/blog/2012/01/americans-spend-more-on-auto-parts/</link>
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		<title>New Automotive Market Research Reports Available for Purchase</title>
		<description><![CDATA[New automotive aftermarket market research reports are now available for purchase online, direct from Hedges &#38; Company&#8217;s new Market Research Store. These marketing research reports are based on consumer perceptions and opinion data, gathered after inviting over 100,000 automotive enthusiasts to participate in a market research survey, and include data never-before reported in the automotive aftermarket. These new research reports fall into two categories. BuyerZoom™ research reports are part-specific and analyze how enthusiast consumers shop for specific products including gaskets, camshafts, cylinder heads, carburetors, engine blocks, intake manifolds, valve springs, valves, rocker arms, pistons, lifters, crankshafts and more. The research reports currently cover 18 engine products and new reports are being published in the Market Research Store continuously. More consumer opinion research is being conducted now to expand the research library to include light truck accessories and drive train parts. BuyerZoom reports reveal how consumers make purchasing decisions, what influences these decisions, the amount of time it takes to make a purchase decision, car and truck magazines read and websites visited, and more. Each research report is specific to each product type, so the Gasket BuyerZoom report covers how consumers who have purchased or shopped for gaskets over a 12-month [...]]]></description>
		<link>http://hedgescompany.com/blog/2011/12/new-automotive-market-research-reports-available-for-purchase/</link>
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		<title>2011 Auto Parts Sales Looking Good</title>
		<description><![CDATA[2011 has been a strong year for the performance &#38; accessory and replacement parts market. Auto parts sales are up and there are several positive year-end economic indicators. The auto parts industry is poised to come into 2012 with momentum. We are projecting retail sales of auto parts to have a 4.5% increase over 2010 (including replacement parts, performance parts &#38; accessories, tires and wheels). The graph shown here shows two consecutive years of growth, a far improvement over 2009. (Readers of this blog know retail sales of auto parts went into negative territory in June, 2009, the same month the Great Recession officially ended. A bad year for the auto parts industry.) There&#8217;s other good news, too. Hedges &#38; Company released the October SEMA Financial Benchmarking reports, December 13, to program participants, and those fortunate people will see evidence of a marked improvement in YTD sales for the industry as well as a rather optimistic view for the first months of 2012. If you have not yet participated in the SEMA Financial Benchmarking program we encourage you to do so. You&#8217;ll get three free reports in exchange for your participation, while the rest of the industry has to wait [...]]]></description>
		<link>http://hedgescompany.com/blog/2011/12/2011-auto-parts-sales-data/</link>
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		<title>Financial Benchmarking Program Allows Automotive Distributors, Manufacturers and Retailers to Measure Business Performance</title>
		<description><![CDATA[The SEMA Financial Benchmarking program administered by Hedges &#38; Company is accepting new participants. This market research program provides auto parts and accessory distributors, manufacturers and retailers exclusive, industry-specific sales forecasts and key performance indicators, with the ability to confidentially compare their company’s performance with other companies in the industry. The SEMA Financial Benchmarking program collects data from respondents through a simple questionnaire. Responses are aggregated and program participants receive a monthly report of metrics including year-to-date sales, sales forecasts, quick ratio, gross margin, inventory turns, customer return rate, sales per employee, operational overhead and more. Now in its third year, the program has had over 6,500 companies participate. “The program has been successful because it lets owners and managers compare what they are seeing in their own business with what other companies in the industry are seeing. It gives them a valuable tool to help manage and grow their business,” said Julie Hedges, President of Hedges &#38; Company. Each month, financial benchmarking program participants get free copies of all three SEMA Financial Benchmarking Reports: Distributor, Manufacturer and Retailer. Participants are the first to receive these exclusive benchmarking reports, which provide the most current financial picture of the specialty equipment [...]]]></description>
		<link>http://hedgescompany.com/blog/2011/09/financial-benchmarking-program/</link>
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		<title>Hedges &amp; Company: Two New Affiliations</title>
		<description><![CDATA[Hedges &#38; Company is not only growing, but we&#8217;re proud to be affiliated with two new trade associations as well. We recently joined the Automotive Aftermarket Industry Association (AAIA) and the Marketing Research Association (MRA), in addition to our long-standing affiliation with the Specialty Equipment Market Association (SEMA) where we&#8217;ve been members since 2004 (although, through various employers, we&#8217;ve been associated with SEMA going back to 1985 and of course SEMA is a valued client of ours). Our affiliation with both associations is representative of our expanding client list. AAIA is the trade assocation representing the $250+ billion automotive aftermarket industry including replacement parts and the heavy duty vehicle markets. AAIA, along with SEMA, is part of Automotive Aftermarket Industry Week in Las Vegas the first week of November every year. AAIA&#8217;s show is AAPEX. MRA is the association for the market research profession. Members follow MRA&#8217;s principles of market research, best practices in market research and adhere to the MRA&#8217;s Professional Code of Standards.]]></description>
		<link>http://hedgescompany.com/blog/2011/08/hedges-company-has-two-new-affiliations/</link>
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		<title>Hedges &amp; Company Ranked #33 in 2011 Direct Marketing Agency Standings</title>
		<description><![CDATA[Hedges &#38; Company was named one of the top direct marketing agencies in the 2011 Agency Business Report released by Direct Marketing News. The report ranked Hedges &#38; Company as the 33rd leading direct marketing agency in the US. The report ranks agencies across industries by reportable US revenue and can be viewed here. As a leader in database marketing, market research and strategy, Hedges &#38; Company is grateful for the recognition. We are proud to be part of the automotive aftermarket industry and will continue to thoroughly serve our customers.]]></description>
		<link>http://hedgescompany.com/blog/2011/07/hedges-company-ranked-33-in-2010-direct-marketing-agency-standings/</link>
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		<title>SEMA Market Research Report Analyzes Truck Ownership and Accessory Purchases</title>
		<description><![CDATA[The SEMA 2011 Pickup Truck Market Research Report authored by Hedges &#38; Company is available as a free download for SEMA members. Non-members may purchase a copy for $99.95 at SEMA.org/2011pickupreport. It dives deeper into the industry than SEMA&#8217;s previous research report from 2008. The U.S. light-truck market is incredibly broad. Used for general transportation, commercial applications and recreation, light trucks comprise the single largest category for businesses in the automotive specialty equipment industry. Trucks and truck accessories are so popular that they have laid claim to their own exhibit hall at the annual SEMA Show in Las Vegas. While the light truck market includes vans, crossovers, SUVs and some specially constructed vehicles, pickups make up the lion’s share of the market for SEMA members. The nation’s first and second top-selling vehicles are, and have been for years, the Ford F-Series and Chevrolet Silverado. The 2008 light truck market research report covered only late-model offerings, focusing on 2007 and 2008 midsize and fullsize pickups. The new report covers a decade’s worth of vehicles, ranging from the 2001 to the 2011 model years. It includes information about 15 individual models as well as sales and popularity data on more than three [...]]]></description>
		<link>http://hedgescompany.com/blog/2011/06/sema-light-truck-market-research-report/</link>
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		<title>Slight Decline In Aftermarket Stock Index While S&amp;P Gains</title>
		<description><![CDATA[January 2011 saw the first decline for the Hedges Aftermarket Stock Index since July 2010. The 5% decline in stock value was halted in February and the Index rebounded 4% through April. In comparison, the S&#38;P 500 increased 2% in January, 2% in February, and 3% in April. The S&#38;P increase may be attributed to an uptick in the Consumer Confidence Index that is approaching a 9 month high. However, a combination of a strong new car market and increased oil prices may negatively affect the aftermarket in months to come. Automakers are expecting to reach sales figures of nearly 12.6 million units per year (December 9 update: units will be close to 14 million for 2011) which is up from the 10.5 million in the previous year. Although the Hedges Aftermarket Stock Index declined, the &#8220;What If You Invested $1,000 in Automotive Aftermarket Companies&#8221; topic is still exciting! If you would have invested $1,000 in the automotive aftermarket on January 1, 2008 your investment would be worth $1,585.30 (excluding dividends). On the other hand, $1,000 invested in the S&#38;P 500 would now be worth $968.60 (excluding dividends). February and March historically have seen declines or flat results that rebound [...]]]></description>
		<link>http://hedgescompany.com/blog/2011/05/slight-decline-in-aftermarket-stock-index-while-sp-gains/</link>
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		<title>Groundbreaking SEMA Show Opinion Leaders Report Released; Measures Online Behavior</title>
		<description><![CDATA[The Specialty Equipment Market Association (SEMA) has released a new market research report prepared by Hedges &#38; Company covering results of the SEMA Show Opinion Leaders program.  This is important to aftermarket companies because the feedback from the Opinion Leaders market research program is a big opportunity to better understand the buying process used by automotive enthusiasts. As with the previous year, Opinion Leaders Program participants were granted access to the SEMA Show. These enthusiasts completed a detailed survey to share their opinions and buying habits, and shared impressions from the SEMA Show through social media using their personal account or their car club affiliation. An important conclusion from the report: Almost universally enthusiasts associate &#8220;performance&#8221; with &#8220;an improvement in function&#8221; and not necessarily with &#8220;speed.&#8221; This is worth noting because the automotive aftermarket often associates &#8220;performance&#8221; with horsepower. A restoration enthusiast is likely to refer to a replacement radio as &#8220;improved performance&#8221; just like an off-road enthusiast is also likely to refer to a new suspension as &#8220;improved performance&#8221; while rock-crawling at 5 mph. In the report, one motorsports enthusiast explained his personal buying process like this: &#8220;I tend to go by word of mouth. If a company is [...]]]></description>
		<link>http://hedgescompany.com/blog/2011/02/sema-show-opinion-leaders-market-research/</link>
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		<title>Hedges &amp; Company on RSS Ray: Email Marketing Best Practices</title>
		<description><![CDATA[Hedges &#38; Company was featured on RSS Ray&#8217;s radio show February 9, covering email marketing and email best practices. The landing page on RSS Ray&#8217;s site is here and a link to the podcast is available on that page. Topics covered on the RSS Ray show included: Managed email marketing vs. self-serve email marketing: Hedges &#38; Company manages email marketing and customer segmentation for clients, there is no software to buy, no training, no additional employees to hire and no learning curve. Hedges &#38; Company also manages customer databases and is able to provide customer database segmentation. Email marketing segmenting: Your customers aren&#8217;t identical, why send them all identical emails? Customers have unique interests and buying history. By segmenting your customer file and crafting targeted emails, your click-through rates and your sales will go up. We also cover this on our website here. The importance of a meaningful message: Today, marketing is all about relevancy. If your marketing message, especially in email marketing, is not targeted and relevant to your recipient, you&#8217;re wasting your money, your customer&#8217;s time and your reputation. Tips to improve email results: It it important to test offers, subject lines, days you send emails, time of [...]]]></description>
		<link>http://hedgescompany.com/blog/2011/02/hedges-company-email-best-practices-interview/</link>
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		<title>How will 2011 be for the Automotive Aftermarket Industry?</title>
		<description><![CDATA[Happy New Year for the automotive aftermarket industry! Following up on our popular blog post &#8220;What If You Invested $1,000 in Automotive Aftermarket Companies&#8221; the Hedges &#38; Company Automotive Aftermarket Index finished 2010 with a 48% gain. In a dramatic comparison, the S&#38;P 500 only increased 11% in 2010. Not only did the Hedges &#38; Company Automotive Aftermarket Index outperform the S&#38;P, but aside from a slight blip in June and July, the rise was steady and constant. Compared to the 2008 baseline (gray line in chart), 2010 was clearly a breakout year. The index bounced around the baseline for 2008 and 2009, but by late summer 2010, the index was 34% ahead of the baseline and didn&#8217;t look back. The S&#38;P by comparison (green line in chart) vacillated throughout 2010 and ended December with a last minute flourish to finish 11% higher than January. The S&#38;P was at 1132.99 January 4, 2010 and closed at 1257.64 on December 31, 2010. If you would have invested $1,000 in the automotive aftermarket on January 1, 2008 your investment would be worth $1,601.43. On the other hand, $1,000 invested in the S&#38;P 500 would now be worth $900.30 (excluding dividends). Clearly the [...]]]></description>
		<link>http://hedgescompany.com/blog/2011/01/how-will-2011-be-for-auto-aftermarket-industry/</link>
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		<title>Auto Aftermarket is a Bright Spot In A Cloudy Economy</title>
		<description><![CDATA[While economists report that the U.S. economy is &#8220;bumping along the bottom,&#8221; the Hedges &#38; Company Aftermarket Stock Index continues its climb that started in March 2009. That&#8217;s right, March 2009, three months before the &#8220;Great Recession&#8221; was officially declared over. The stock index is comprised of over 20 publicly-traded automotive aftermarket SEMA-member/AAIA-member companies and has steadily grown over 72%, March 2009 to November 2010. The chart below compares the stock index with the S&#38;P 500. The S&#38;P 500 does appear to bumping along the bottom with a hint of a slow recovery. In contrast, the Hedges &#38; Company Aftermarket Stock Index bottomed out in 4Q2008 &#8211; 1Q2009 but has been in a sustainable recovery ever since. If you would have invested $1,000 in the S&#38;P 500 on January 1, 2008 you would be down to just over $800 today. Investing in the companies represented in Hedges &#38; Company index would have turned your $1,000 into nearly $1,500 on November 1, 2010. Financial disclaimer: Hedges &#38; Company is not attempting to give any financial advice; investments are subject to risk; carefully review and consider a prospectus before making any investment decisions. Full disclosure: Hedges &#38; Company principals do not directly [...]]]></description>
		<link>http://hedgescompany.com/blog/2010/11/auto-aftermarket-bright-spot-in-cloudy-economy/</link>
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		<title>Turn/Earn Calculation and GMROI to Manage Inventory</title>
		<description><![CDATA[The Turn/Earn Index and Gross Margin Return on Inventory (GMROI) are two simple ways to help manage your inventory. Turn and Earn to manage inventory Your purchasing manager or accountant may want to justify a SKU (stock keeping unit) with the Turn/Earn Index. Also known as the Turn/Earn calculation or Turn/Earn formula, or simply as Turn and Earn, it&#8217;s a simple way to help manage inventory by evaluating your entire inventory or a part number to see if it is worth stocking or selling. To calculate the Turn/Earn index for your inventory, simply multiply gross margin x turnover (&#8220;turnover&#8221; is simply your inventory turns). For example, if your inventory turns 5 times in a year and you have a 35% margin your Turn/Earn index is 175 (35 x 5 = 175). To calculate the Turn/Earn index for an individual part number or SKU, simply multiply gross margin x turnover (units sold per year). For example a product with a gross margin of 35% that sells 5 per year would have a Turn/Earn Index of 175 (35 x 5 = 175). Companies typically look for a minimum Index of 100 to 150 although there are a lot of reasons for higher [...]]]></description>
		<link>http://hedgescompany.com/blog/2010/10/turn-earn/</link>
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		<title>Stages of Growth in a Company and &#8216;Growing Pains&#8217;</title>
		<description><![CDATA[As a business grows, it goes through major, distinct phases of growth. These phases have unique characteristics and challenges and require some strategic planning. Recognizing these characteristics (even better, preparing for them) will help you manage your business through these challenges, or &#8220;growing pains.&#8221; Stage One: $1 million (manufacturer) or $2 million (distributor) The first stage typically hits when your business reaches around $1 million in sales for a manufacturer, or $2 million in sales for distribution. Your business is building momentum, but you&#8217;re overworked and need additional help. You&#8217;ve been adding employees and now need to face the challenges of managing a growing workforce in addition to building a business. Your challenges will include laying the foundation for later stages of growth, even though they may not be your top problems right now. Laying a good foundation now will help solve problems later. Things to remember: 1). Hire people carefully&#8211;you need people who are secure in a smaller company but who have the capability to take on more responsibility as your company grows. 2). Be consistent with your employee practices and start having documented HR (human resources) policies. 3). Make sure everyone knows the plan to grow the business [...]]]></description>
		<link>http://hedgescompany.com/blog/2010/10/growth-stages-of-a-business/</link>
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		<title>How A Price Increase/Decrease Affects Gross Profit vs. Unit Sales</title>
		<description><![CDATA[If you want to increase gross margin with a price increase, you should know how gross profit is calculated and assuming a drop in unit sales, how many unit sales are needed to maintain the same gross profit. On the other hand if you&#8217;re considering a sale you should know how many additional unit sales are needed to maintain the same gross profit. You need to know how total unit sales can drop (for a price increase) or need to increase (for a price decrease) for gross profit dollars to remain the same. The numbers may surprise you. Calculate a gross profit, a price increase and total unit sales If you increase your prices and profit margin, how many fewer units can you sell and keep gross profit dollars the same? We&#8217;ve calculated it for you in the chart below. Find the current gross margin of your product in the left column, then find the column that shows your price increase. Where the two numbers intersect you&#8217;ll see how many fewer units are required for you to sell and maintain the same gross profit dollars. For example, if you currently have a 40% gross margin, and you are considering a [...]]]></description>
		<link>http://hedgescompany.com/blog/2010/10/formula-price-increase-price-decrease/</link>
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		<title>Rule of Three Marketing: Market Share and Market Dynamics</title>
		<description><![CDATA[Why do some companies thrive and dominate their market, only to later become an afterthought in history? Most industries and market segments, including the specialty aftermarket industry, will have market share dominated by three competing companies. This article will take that a step further and show how companies can plan a market share strategy that will help ensure profits in the coming years. Rule of Three reviewed To revisit an October 2003 article we wrote for SEMA News, market share is the result of a complex combination of market dynamics, strategy, products and consumer demand, among other things. In mature industries or market segments, where growth and market share have stabilized, three companies usually end up dominating market share. Marketing experts are still divided on why this phenomenon occurs but the fact remains that it usually does. If an industry does not have three dominating companies, that in itself can predict the future and indicate that the market hasn&#8217;t yet matured and a shakeout or consolidation is on the way. It was also shown that these dominating companies usually have common characteristics: they will be broad line, high volume companies serving many customers and market segments. Companies like this will [...]]]></description>
		<link>http://hedgescompany.com/blog/2010/10/rule-of-three/</link>
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		<title>Using the Pareto 80/20 Principle to Analyze your Business and Increase Profits</title>
		<description><![CDATA[You&#8217;ve undoubtedly heard about Pareto&#8217;s Law or the 80/20 principle, although most people only understand 20% of it, 80% of the time. This simple, century-old principle can be used to increase your sales, profits and overall marketing, and is easy to use. Let&#8217;s look at how the 80/20 principle can be used to streamline your business, reduce your costs, and increase your profits. First, a quick history lesson: Vilfredo Pareto was an Italian economist and sociologist born in 1848. HIs big discovery, &#8220;Pareto&#8217;s Law,&#8221; claimed in 1897 that basically in any society, 20% of the people would earn 80% of the income. Pareto&#8217;s discoveries, now usually referred to as either the Pareto Principle, Pareto&#8217;s Law or simply the 80/20 principle, have since been used in areas that Pareto could never have imagined. Many people are surprised at how often Pareto&#8217;s Law appears in every day life, and how easy it is to use the 80/20 principle to analyze your business. Pareto to analyze your business Pareto&#8217;s Law is old news to a lot of industrial engineers and people in the quality profession dealing with process improvement, but it can be used to analyze a variety of other things in your [...]]]></description>
		<link>http://hedgescompany.com/blog/2010/10/80-20-pareto-principle/</link>
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		<title>When Is The Best Time To Send An Email Campaign?</title>
		<description><![CDATA[Rising above the clutter and noise in the inbox is your goal. First impressions are critical in email marketing and although the subject line grabs attention, when does it grab attention? If your email is sent at the wrong  time, your message may be buried by emails received after your email. Your prospect may start with the newest emails first, ignoring older emails further down the queue. Here are some examples of what we&#8217;ve observed in our email marketing, but all audiences are different and you need to design tests on your customer list to determine what works for you. If you&#8217;re sending business-to-business emails, sending on Saturdays or Sundays may give you a low open rate. We&#8217;ve seen a recent improvement in open rates on Saturday for emails sent late Friday, so that&#8217;s worth testing on your email list.  Our email market research shows that business-to-business and consumer emails sent Mondays, especially Monday mornings, receive a significantly lower open and click-through rate than messages sent other days of the week. Consumer emails sent on weekends or evenings, when consumers view their home email accounts, can have higher open rates. Emails sent during business hours can get buried by the [...]]]></description>
		<link>http://hedgescompany.com/blog/2010/10/when-is-the-best-time-to-send-an-email-campaign/</link>
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