delivering increased relevance and revenue with automated emails
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TRANSCRIPT
Delivering Increased
Relevance and Revenue with Automated Emails
@CareyMKegel @LorenMcDonald
“Trigger” horse sense
Carey Marston Kegel, SmartPak @CareyMKegel
Loren McDonald, Silverpop @LorenMcDonald
Happy Birthday Carey!
Why Automation?
…Hope is not a marketing strategy.
1. Relevance
2. Revenue - Low Volume, High ROI!
Volume of Emails sent Sales Generated
95.9 % Batch
Campaigns
4.1% Triggered
Campaigns
40.2% Triggered
Campaigns 59.8 % Batch
Campaigns
…and no need to push the “send” button!
3. Relaxation
Agenda
SmartPak Email Program
Overview
Sample Automated
Emails
Process / Takeaways
Q & A
SmartPak Background
About SmartPak • Founded by riders and horse owners for
riders and horse owners
• Finding a better way to administer supplements led to a quest for discovering innovative, smarter products
• Convenience, peace of mind, time savings
• How SmartPaks work:
Benefits: • Fed right every time • Custom orders • Delivered free, monthly
Email Channel
Promotional
Newsletters
Offers
Transactional
Order Shipment Confirmation
Password Recovery
Credit Card Failure Notification
SmartPaks Cancel Confirmation
Returns Notification
Order Delivered Confirmation
Delivery Confirmation
Order Confirmation
Lifecycle
SmartPaks Welcome
Order Reminder
Abandoned Cart
Post Purchase Review
SmartPaks Up-sell
Consumable Replenishment
Browse Behavior
ColiCare
+ 8 More
24 triggered and transactional
programs in place, ~50 unique automated
mailings/day
SmartPak Email Program
• ~2MM+ emails sent, per month
• Email generates 30% of all online marketing revenue
• Healthy transactional and triggered email program drives high return
Transact. & Triggered
12% Promotional 88%
Email Volume
Transact. & Triggered
30% Promotional
70%
Email Revenue
4 years ago = 2% volume / 1% revenue
SmartPak Email Team
Business Owners with many requests for email campaigns
Email Marketing Manager Email Designer
Where we came from Separate systems
Email starting to get respect
Hired Consultant
New ESP
Sample Lifecycle Emails
Sample Automated Emails
Browse
Cart
Order Status
Onboarding
Review Request Shipment Reminders
Upsell
Replenishment
Reengagement
Pre- to Post-Purchase Emails
Pre-Transaction
• Browse abandonment
• Cart abandonment
Purchase Process
• Order Confirmation
• Order status
• Shipping notice
• Shipment confirmation
• Trip preparation
Post-Purchase
• Satisfaction Survey
• Review request
• Review notification
• Recommendation
• Replenishment
• Repurchase
• Upgrades
Relationship
• Bounceback
• Account reminder
• Loyalty programs
• Account status
• Purchase anniversary
Browse Behavior
Browse Behavior
• 37.6% Open Rate
• 7.35% CTR
• $0.44 Rev/Email
Browse Behavior
Browse Behavior
Browse Behavior
Cart / Wishlist Abandonment
Updated Abandon Cart
The results:
• 38.5% open rate
• 10.15% CTR
• 50% conversion rate
• $4.80 revenue/email
Dynamic product recommendations
Abandon Cart Enhancement
+ Add “reminder” to existing stream to increase conversion
» Test timing (5 days with no conversion)
» Test subject line and headline
» Streamline copy
Enhancement
DEMCO Results
Cart Email A
Day 1
Cart Email B
Day 3
Cart Email C
Day 5
AVERAGE
Open Rate 40% 39% 32% 37%
Click-to-Open 44% 47% 28% 41%
Click-thru-Rate 18% 18% 9% 15%
Conversion Rate 22% 15% 24% 20%
Sales/email $8.60 $8.40 $5.04 $7.46
Conversion rate is just as high on the first email as it is on the last email
– without an offer
Abandon Wishlist + Encourage subscribers to update their SmartPak
wish list and/or share with friends
+ Potential to pair with birth date targeting (and timely email encouraging subscriber to share list with friends and family)
+ Send reminders around holidays
+ 36% Open rate
+ 2% CTR
+ $0.73 Rev/Email
+ Offer a forward to a friend feature, but have so far seen little usage
Supplement Wizard
Supplement Wizard – Abandoned, Finished Process
• Sent when a customer receives their results but does not add items to cart or checkout
• 40.17% Open Rate • 4.18% CTR • $0.38 Rev/Email
Supplement Wizard – Abandoned, Did not get results
• Sent when a customer starts the Wizard, but does not get to the results page
• 44% Open Rate • 7.61% CTR • $0.25 Rev/Email
Order Status
Order Status: Another $ Opp
Order Confirmation 24.16% Open Rate $0.13 Rev/Email
Shipment Confirmation 36% Open Rate $0.16 Rev/Email
Delivery Confirmation 34.44% Open Rate $0.05 Rev/Email
Next Steps: • Insert dynamic product recommendations to increase rev/email • Potentially insert offer for repeat purchase
Product Review Request
Post-Purchase Review “Customer input gives shoppers the confidence to buy, increasing sales,
conversion, average order value, and more.” Source: Bazaarvoice
• Launched home-grown product review tool in early 2006
– Gathered 5,000 customer reviews
• Use Bazaarvoice (launched January 2009) to handle customer reviews
• Sent generic broadcast email to customers to review products they have purchased
• Launched a daily triggered email to review first time ordered products post-purchase
– Currently have over 80,000 product reviews
Onboarding Emails
SmartPaks System Welcome Email – New Creative
41% Open Rate 5.46% CTR
Answers questions customers may have when their package arrives
SmartPaks System Welcome Email #2
• Sent 7 days after the 2nd shipment • 34.5% Open Rate • 8.9% CTR • Goal – increase retention of new customers
Order/Shipment Reminders
Autoship Reminder Email • Reminds customer of upcoming SmartPaks
order • Allows customer time to make changes
before order is processed • Top revenue generating triggered email
The results: • 36% open rate • 13% click-through rate • $1.39 revenue-per-email • 18%+ conversion rate
Real time products based on purchase behavior
Follow Up Reminder Email
• 22.9% Open Rate
• 6.7% CTR
• $0.98 RPE
• 22.8% Conv. Rate
- Sent 3 days before autoship order ships - Since launching the 2nd reminder email, we are seeing ADDITIONAL revenue (almost double) being generated from this campaign.
Upsell Emails
SmartPaks Upsell Emails Customer orders supplements in buckets for their horse
GOAL: Convert customer to order supplements in AutoShip SmartPaks
SmartPaks Upsell Emails
• Focus on the most important product purchase
SmartPaks Upsell Emails
• Launched early September
• Slow to start
• 15% Open Rate
• 1% CTR
• 3 SmartPaks started (1% conversion)
• Potentially re-assess timing and/or welcome onboarding as the majority are brand new customers
SmartPaks Upsell Emails
Replenishment
Replenishment Goal: Increase sales of repeat purchases Timing: Based on a calculation of when product will run out Results: - 29.4% Open Rate - 3.56% CTR - $0.41 Rev/Email - 9.56% Conversion Rate
Inactive Re-Engagement
Inactive
Re-Engagement
• Goal: Reactivate customers before they become inactive
• Results: • Open Rate – 5.6% • CTR – 0.5%
• Timing previously was 75 Day, 90 Day, 180 Day. • Observed low engagement
• 3% Open Rate • 0.35% CTR
• Decided to make the switch to catch people earlier in the inactive process
Email recipient does not open,
click or purchase in 45 days
Inactive Re-Engagement Email: Update Profile - 1.1
Opens or clicks any email or makes a
purchase in 75 days
Inactive Re-Engagement Email: Pays to be Smart – 1.2
Opens or clicks any email or makes a
purchase in 90 days
Inactive Re-Engagement Email: 10% off Order – 1.3
Exits Inactive Re-Enagagement
Program
Inactive Re-Engagement
Day 45: “Help Us Serve You Better”
Day 75: “It Pays to be Smart”
Day 90: “We Miss You! Come Back and Save 10%”
Process / Takeaways
How we did it? – Phased Approach
1 • Identified critical segments and articulated the goals for each (e.g.
convert supplement bucket buyers to SmartPaks buyers)
2 • Mapped out existing email framework to understand the flow from
one lifecycle stage to the next (and identify gaps!)
3 • Prioritized opportunities and executed (while keeping an eye on
simplicity and automation to make the most of our limited resources)
4 • Completed relational tables integration
5 • Our motto: Pilot > Optimize > Automate!
Where to Focus????
What marketing programs will
help you capture new email addresses?
What marketing programs will help
you convert prospects to customers?
What marketing
programs will help you grow
customer value?
What marketing programs will help
you ensure customer loyalty?
What marketing programs will
help you win back lost
customers?
Identify current and wishlist campaigns
Reasons to Targeted Email
SmartPak Promotional
SmartPak Lifecycle &
Transactional Email
Open Rate 17% 64% higher 28%
Click-Through Rate 2% 150% higher 5%
Conversion Rate 6% 83% higher 11%
175% higher Revenue-Per-Email $0.16
16% higher
$0.44
Unsubscribe Rate 0.043% 0.05%
Spam Complaint Rate 0.047% 10% lower 0.043%
Too much email with triggered messages?
12.1
8.5
2.8 3.1
0
2
4
6
8
10
12
14
Email SubscriberWith SmartPaks
Email SubscriberNo SmartPaks
Non-Email SubscriberWith SmartPaks
Non-Email SubscriberNo SmartPaks
Average No. Emails Received Per Month by Customer Segment
* Includes promotional emails and reminders (when applicable), order shipped emails with tracking number, rate and review emails, and abandoned cart emails. Does not include transactional emails such as delivery confirmation, order confirmation, password recovery, etc.
Test First - Purchase Cross-Sell Goal: Increase supplies sales of supplement buyers by marketing a relevant product to them Results: - 26.59% Open Rate - 6.73% CTR - $0.23 Rev/Email - 2.6% Conversion Rate
- Of the orders, half sold the saddle pad
- Test group performed 2.4x better than control
Subject Line: “You Might Like the Back on Track Saddle Pad”
Test First - Purchase Cross-Sell Goal: Increase sales by marketing a relevant product to customers - Targeted customers with a particular need - Reused previous creative Results: - 19.41% Open Rate - 4.31% CTR - $0.58 Rev/Email - 12.5% Conversion Rate - Test group performed 2x
better than control group - (small test groups,
difficult to draw solid conclusions off of)
Subject Line: “Stop Sore Feet in their Tracks”
Upcoming Goals
Anniversary
Customer-centric conversion
Creative/brand refresh on all current triggered emails
Real-time product recommendations
Integrated marketing database
Post-purchase upsells and cross-sells
Takeaways Have an action plan
Map out your existing framework and where you want to go
Don’t get overwhelmed
Prioritize based on business goals
Test
Speak to your customers in a timely manner
Analyze your business and what value you want to give to your customers via email
Demonstrate results of email along the way. Share success
Q&A / Contact Info • Carey Marston Kegel
– SmartPak
– Email Marketing Manager
– Twitter: @CareyMKegel
• Loren McDonald
– Silverpop
– VP, Industry Relations
– Twitter: @LorenMcDonald
– Google+: +LorenMcDonald
– Pinterest: intevation