using email to get relevant and to get incremental revenue by www velomarketing co_uk

Using email to get relevant and to get incremental revenue

Paul CrabtreeDirector, Velo//

Paul.Crabtree@velomarketing.co.uk30-31st October 2007

[Delivered at eCommerce Expo]

How pioneering eCommerce companies use targeting and relevant content to drive additional revenue from their audiences

Agenda:

1. The Business Case of Relevance

2. The right message: MESSAGE

3. The right people & time: TARGETING

“The right message, to the right

people, at the right time! “

Industry Research tells us it works

Source: “The ROI of E-mail Relevance” Report

MESSAGE

• DESIGN: Making creative work harder

• OFFER: Compelling offers without cannibalisation

Use personalisation and you are 40% more likely to have an average conversion rate of more than 3%

Certain offers work best:

• 67% find discounts most compelling• 55% were motivated by free shipping.

Industry Research tells us it works

• WHO: Reaching appropriate people only

• TIMING: Driving impulse buys

Source: “The ROI of E-mail Relevance” Report

TARGETING

Targeted approach achieves 9 times the response

60% of consumers who made immediate purchases from email did so it contained products they were already considering.

Industry Research tells us it works

Source: “The ROI of E-mail Relevance” Report

Revenues per campaign type

USD45,600.00

USD123,483.00

USD222,970.00

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Broadcast Triggered Life Cycle

Combine the factors for

significant up lift!

The Sales Funnel shows it works

…. With this, you can forecast impact on your marketing for example…..

• Delivery rates: inbox placement and bounce rates

• Open rate: driving relevant reads

• Click through rates: design effectiveness

• Conversion rates: into orders and revenue

Delivered

Opened

Clicked

Converted

The Sales Funnel

This information can be supplied by your email partner

Sales Funnel shows it works

Source: Adestra

Caveat

Delivered

Opened

Clicked

Converted

The Sales Funnel

This information can be supplied by your email partner

In this presentation, we will address the bottom half of the funnel BUT don’t forget

delivered

Email Marketing

MESSAGE M

ESSAGE

Is this the extent of your targeting?

Simple targeting models based on demographics or events in the

calendar?

MESSAGE

Is this the extent of your targeting?

And just using personalisation to address to

someone

MESSAGE

…All underpinned by simple data capture?

MESSAGE

…. This is tip of the iceberg

‘Given’ Data

• Demographics

• Personal Data

• Purchase History

Your Data

• Product inventory

• Pricing offers

• Related Products

‘Snooped’ Data

• Behaviour on email

• Web analytics data

Your available data set

Accountancy Systems

Marketing Database

Web site

Product Catalogue

More data = more triggers and more relevant

communications!

Web Analytics Provider

Email Service Provider

Email Marketing

MESSAGE

Dynamic Content to create relevant email creative:

• Highlight offers

• Sequence Advice

• Push images

Making them work harder: using conditional content

• Results confined: Dynamic content twice as effective (2.9% versus 5.8%)

MESSAGE

All this relies on accurate data

• Increased competition from free papers in London• Need to drive news stand sales via email• How to enrich data profile of contacts captured through quizzes etc

More information: http://www.broadsystem.com/casestudies/ourclients_timesemail.htm

SOLUTIONS: Cleaning strategies

SOLUTION: The TIMES PREVIEW

Content based on age, sex and location

THEN

Content further refined based on recipient interests

MESSAGE

Results

• Significant open rates:

From between 15-20% to 40-50%. • More news stand sales:

50% of those reading their Times Circle emails agree that receiving them make them more likely to purchase The Times or Sunday Times newspaper.

More information: http://www.broadsystem.com/casestudies/ourclients_timesemail.htm

SOLUTIONS: Cleaning strategies

MESSAGE

Encouraging recipients to clean their data in return for more relevant communications can be self perpetuating

Email Marketing

TARGETING

TARGETING

When do you send?

Emails every Friday….

Emails on a Thursday….

Emails at the start of the month….

TARGETING

We send when we want, not when they want

Number of unique campaigns launching by hourLast 2 weeks

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What governs when to send at the moment?

We send when we want, not when they want

To…. Self Selecting Programs

Recipient Action

EMAILRecipient action

• Thank you for registering

• Abandon Cart campaigns

• Reactivation campaigns

• Purchase confirmation

Company action • Event conducted

• Products shipped • Service delivered

Company Action

TARGETING

Your targets become self selecting!

Welcome back!

“How was it for you?”

Self Selecting Program: Post Purchase Follow up

TARGETING

Cross sell in customer service

TARGETING

Abandon Basket Program

TARGETING

Segmentation:

All contacts who targeted everyone who had abandoned their basket over a 3-day period.

Message:

Personal letter style with no images bar the company logo to differentiate from normal marketing. No offer, just reminded them that products were in basket

Once set up, only tinkering!

Planning Design DataOptimis

ation Sending ReportingRefinement

Planning Design Data Optimisation Sending Reporting Refinement

One a program is created, no need for ongoing campaign production apart from refinement!

Email 2-Extra incentive

Week 1

Resend (?)

Email sendEmail 3

- Extra incentive Offer ending

Non open

Unsubs

Open, click, subscribe

Open, click, subscribe

Open, click, subscribe

Unsubs

Non open

Week 2 Week 3 Week 4

Telesales(?)

DM(?)

Email 5- Survey

Open/Click

Abandonedsubscribe

Open/Click

Abandonedsubscribe

Email 4- Loyalty

This model can even apply to simple newsletter programs

TARGETING

Timeline of Clicks

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Clicks (Campaign 1)

Clicks (Campaign 2)

First step: Is there an opportunity between sends?

What we’ve covered

1. The Business Case of Relevance

2. The right message: MESSAGE

3. The right people & time: TARGETING