make your emails matter

Make Your Emails MatterIncrease Email Relevance

Through Segmentation and TargetingPresented by Tom Bishop, Marketing Manager

Based on white paper by Marianne Cellucci Certified Email Marketing Specialist

Agenda• Serve Up Relevant Content• Apply Targeting Techniques• Automate Lifecycle Messaging• Achieve the Right Frequency• Test the Segmentation Strategy

Segmentation?What is

What is Segmentation?• The process of subdividing your market base• Create distinct groups• People with similar purchase behavior• People with similar needs and interests• People who share something in common

Segmentation?Why use

It Gets Results!

It Gets Results!• No more batch & blast• Segmentation raises relevance• Add value, drive response, & increase revenue• Focus your marketing efforts

Response

Interest

It Gets Results!

The Email Continuum

“Batch & Blast”to ALL

subscribers

Best Practices &

A/B Split Testing

Segmentation &Targeting

Email Campaign Automation

Merge Fields &Keyword Templates

• Company Promotions

• News & Updates

• Subject Lines• Layout• Design• Content• Offer• Frequency

• Business Segment

• Retail vs. Commercial

• Gender, Age, etc

• Purchase Frequency

• Region,Language

• Auto-Response Emails

• Event Triggers• Behavioral

Triggers• Scheduled

Campaigns

• Templates Based on Subscriber Interests and Surveys

• Content Built From Searchable Keywords in Subscriber Data

LowEffectivenes

s

High Effectivenes

s

Range of Campaign Tools & Supported Applications:

You observe patterns

You stay relevant

You address needs

You stay engaged

Tip: Observe and Serve• #1 reason people unsubscribe: Relevance (lack of

it)• Observe audience activity• Then segment and serve them appropriately

RelevantServe Up

Content

Serve Up Relevant Content• What you think is relevant… is irrelevant• Your customer will tell you what’s relevant• You gather insight about your customer from data• More information means more segments• More segments means more focused messages

Se-ries151%

49%

Who Uses Clickthough Data?

Use clicks to segment

Do not use clicks to segment

SOURCE: The ROI of E-Mail Relevance,Forrester (2009)

Se-ries180%

20%

Which Strategy Works Better?

Use clicks to segment

Do not use clicks to segment

SOURCE: The ROI of E-Mail Relevance,Forrester (2009)

What Data Do Marketers Use?

Click-through dataDemographic data

Geographic dataOpen rate

Customer spendingRecency and frequency of purchase

Acquisition source code of the listCustomer profitability

Customer service dataWebsite clickstream data

Customer satisfaction survey

Contribution to product reviewsWidget interaction

51%51%

47%48%

30%39%

28%29%

23%24%

21%

5%6%

SOURCE: Q1 2009 Global Email Marketing and On-Site Targeting Online Survey, Forrester (base of 103 marketing executives)

“74% of people are influenced by the opinions of

others, and 47% read reviews before purchase.”- ManageSmarter, September

2009

Why Not Use Segmentation?• Many collect only basic data• 87% collect only contact information• 28% capture basic demographic data

• Is data collection too complex?• Is triggered segmentation too time consuming?• Does the need for volume of leads trump quality?

SOURCE: Email Marketing Benchmark Report,MarketingSherpa (2010)

You know who to call

You find engaged people

You offer the solutions

You win the business

Tip: Track Social Media• Use social engagement metrics to segment

readers• Forwards, votes, likes, follows, fans• Surveys and feedback• Social commentary and brand sentiment• Self-categorization

TargetingApply

Techniques

Apply Targeting Techniques• The most powerful tool in email marketing• Unlimited data storage• Dynamic segmentation• Conditional content fields• Online behavior tracking

Data You’ve Collected• Transactional: dates, purchases, methods, amounts• Lifetime information: total purchases, average amounts, time between sales•Contact information: customer name, address, phone number, email•Source/promo code: how the customer was acquired•Customer type: repeat buyer, inactive, or new customer•Online behavior: past opens or clicks, web page visits, conversions•Customer satisfaction: past experiences, survey responses

Data You Should Collect•Demographics: age, income, family size, education, race, region, job, etc.•Geography: countries, states, Zip Codes, phone numbers, ISPs, etc.•Psychographics: personality, risk aversion, impulsiveness• Lifestyles: hobbies, recreation, music & entertainment, vacations, etc.•Values: religious, political, cultural & nationalistic, etc.• Life stages: chronological points in people’s lives at different ages (e.g., preteens, teenagers, empty nesters, etc.)

Using Targeting• A unique message for each group• Identify segments such as level of loyalty:

Brand advocacy = 8,500 people

Brand loyalty = 20,000 people

Brand tendency = 45,000 people

Brand interest = 125,000 people

Brand awareness = 1,000,000 people

Discover interests

React to behavior

Offer timely solutions

Drive loyalty

Tip: Stay In Sync• Customer interests change constantly• One-third of users create a new email address

each year• Networking power increases exponentially• Use a real-time metric analysis tool to keep up• Use a list cleaning and appending tool to stay in

touch

LifecycleAutomate

Messaging

Automate Lifecycle Messaging• Deliver different messages based on lifecycle• Define activities accurately• i.e. opens, clicks, conversions have different values

• Set rules according to historic data• Capture new data in real-time• Pay attention to internal and external influences

Female Custom

er

High Incom

e

Frequency: 3

Months

Raise Relevance• Use inclusive segments• Interests may overlap• Use conditional content• Use timed sequences

Segmentation Dimensions

• And countless more available

Education:•High School•Trade School•College•Masters•Doctorate

Online Activity:•None•<1 Hr/Day•1-2 Hrs/Day•3-5 Hrs/Day•5+ Hrs/Day

Fashion:•Rustic•Conservative•Traditional• Flamboyant•Glamourous

Life Stages:•Students•Professionals• Families•Homeowners•Retirees

Relevance Drives Revenue

Web Analytics

Monthly Revenue

Dollars Generated (in thousands)*

Campaign Tactics Used

Targeting Social TargetingNo Targeting

* Metrics are based on a Forrester executive survey. Based on 2.8 million pieces of email per month, CPM ranges grow with program complexity, assuming $39 AOV and 40% product margin.SOURCE: Q1 2009 Global Email Marketing and On-Site Targeting Online Survey, Forrester (base of 103 marketing

executives)

$159$40

$540

$185

$664

$239

$840

$306

MonthlyProfit

ImprovedROI

Match frequency

Timing is everything

Match expectations

Improve ROI

Tip: Let People Self-Segment• Make your interface easy to use• Make the benefits of your categories clear• Let people freely choose categories• Deliver on the benefits immediately

FrequencyAchieve the right

Achieve the Right Frequency • Don’t send emails too frequently• Don’t send emails too infrequently• The right frequency varies by segment• Segment expectations• Customer preferences• Industry and market norms

• Sometimes it takes trial and error

• Offer/Promotion• Signup for

Newsletter• Try a Free Trial• Etc.• Subscription Renewal

• Payment Reminder• Login Reminder• Offer/Promotion

• Welcome Email• Login Info• Order

Confirmation• Shipping Details• Etc.

InitialContact

Reminder(2 Wks max)

Last Chance(4 Wks max)

Memory Zone

Try Again ZoneRe-engage Zone

Watch for trends

Heed feedback

Evaluate metrics

Find the perfect pitch

Tip: Keep People Engaged• Irrelevance is the number one reason people

unsubscribe• Send emails that are specific to each segment• Keep interest high with content and offerings• Reach people as frequently as they request

MeasureTest and

Results

Test and Measure Results• Take segmentation even further• Use A/B/n testing for real-world feedback• Learn each segment's preferences• Optimize message, appearance and timing• Reach maximum precision and flexibility

Test and Measure ResultsIncrease in response by metric:

Opens

Increasedby %

Increasedby %

Increasedby %

Increasedby %

Increasedby %

Increasedby %

SalesSite Visits CallsClicks Conversions

Maximize marketing ROI

The possibilities are endless

Don't be all things to all people

Be one thing to each of them

Tip: Revive Lapsed Customers• It is easier to win back old customers than find

new ones• You don’t contact as often but may still track

activity• Time re-engagement campaigns to match

milestones

Conclusion• Identify groups of customers and prospects• Create hyper-relevant, targeted content• Increase response and productivity• Meet individual wants and needs• Provide the best possible solution• Get ahead of your competition

About Net Atlantic• 15 Years of Service, Founded in 1995• Headquartered in Salem, MA • Privately Held, Profitable Organization• One of the first Email Service Providers (ESPs)• Development of SaaS Application (Version 10.2)• Stable, Long-term Partner

Contact Net Atlantic• www.netatlantic.com• sales@netatlantic.com• 978-219-1900