Download - Evolution of Email Marketing: 2016 Edition
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Evolution of Email Marketing2016 Edition
Dave WoodbeckPresident & CEO
Three Deep Marketing
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Dave WoodbeckCEO, Three Deep Marketing Email: [email protected]
• Self-described recovering CPA, in a good way• Manages over 1,200 email campaigns per year• Sends over 245,000,000 permission-based emails per year• Works with B2C and B2B Fortune 100 to Small Businesses• Maps marketing to consumers’ behavior and buying psychology
Visit www.threedeepmarketing.com to learn more about the measureable digital marketing campaigns Dave and his team provide.
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Evolution Happens: Transportation
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Evolution Happens: Photography
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Evolution Happens: Music
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Evolution Happens: Telephone
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Evolution Happens: Email
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Evolution Happens: Email… Is more like this!
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Why Email?
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Think email is dead? Businesses will use email marketing more often and more effectively in the
next 10 years than they have since the beginning of the internet.
Isn’t Email Dead?
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That Would Be NO!
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Cost Effective
Reach Your Customers
Nurture Repeat Business
Email Marketing has an avg. ROI of $38 for each dollar spend. One in 5 companies report an ROI of over 70:1. (DMA National Email Report 2015)
In 2014, email marketing was cited as the most effective digital marketing channel for customer retention in the United States. (eMarketer)
70% of people say they always open emails from their favorite companies. (Exact Target)
Why
Em
ail?
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The Continued Evolution of Email
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Evolving Strategies
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Where Are You on the Maturity Curve?
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5 Email Marketing Strategies You NEED to Master. And How They’ve Progressed
• Email Acquisition • Personalization• Journey Mapping• Email Value Through Scoring• Pulse and Respond
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The Measurement GapIf a tree falls in the forest and no one is around to hear it, does it make a sound? Rhetorical, I know – the point is why send an email if you can’t measure its performance or attribute success.
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Measurement is a Large Gap
But, many don’t know how to align against revenue.
Opens and Clicks are important, but that’s not what executives care about.
Later in this presentation we’ll show you a measurement model that allows you to talk about value!
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The Measurement See-Saw
Opportunity Optimization
Budget Optimization
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Email Acquisition
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You Don’t Have a Database of Names if You Don’t Acquire Them
Evolve To Looking At Entire Journey To Capture Names
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Sources of Acquisition Across the Landscape
Online• Sign in/ Register• Newsletter sign up• Surveys• Competitions• Online Purchase• Write a review/ Rate Product• Contact Us• Quote Engines• Form Applications
Offline• Instore Purchase• Store Collections• Instore Orders• Voucher Redemption• Store Exchange/Returns• Consultations/Appointments• Postal Subscriptions• Call Centre Interactions• Post Purchase Services
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Social Media Data Cards
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Single Sign-On
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Only Capture What You Need
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But As You Provide Value Ask For More(Progressive Profiling)
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Experiment Your Way To Success
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Wanted to
Increase
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Experiment Your Way To Success
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Changed CTA
Brought White
Paper Up
• Changed ads and landing page CTA to “Talk to an Expert” increased conversions
• Moving the white paper to the top of page increased conversions
• Adding on page form vs pop up form increased conversions
• Improvements increased conversion rate by 36%
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Personalization
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Treat People in Your Database Like People
Evolve past batch and blast
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What is: Batch and Blast?
Sending a single email to as many contacts as possible without attention to individual behavior.
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Is it SPAM?
Not technically. But some argue that SPAM isn’t theoretically meat. Let’s just say you wouldn’t want to serve either to your guests.
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Disrespectful!
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If we’ve taken the time and effort to understand our customer why would we disrespect them with a one size fits all email strategy?
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Why do: companies blast then?
Because it is often the easiest thing to do.
Creative variation can get expensive.
Uncertain about the economic benefits of personalization.
All valid, so can we make it more effective?
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Yes!
Consumer Journey Mapping
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Image Source: http://brightspotstrategy.com/wp-content/uploads/2013/06/experience-map-activity1.jpg
How do: I execute more effectively?
And turn this….
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How do: I execute more effectively
…into this!
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Define Objectives | Set Goals
Company Goals and Objectives
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These Are NOT Just Pretty Pictures
What is your Consumer...
THINKING
FEELING
DOING
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These Are NOT Just Pretty Pictures
Where can you IMPACT them on their journey?
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These Are NOT Just Pretty Pictures
Drive these into Campaign Strategies
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PreN
atal
Post
Nat
al
Results: Campaigns that are personalized to the consumer lifecycle!
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Stati
c Co
nten
t
Dyna
mic
Con
tent
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The Content Game
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Your Approach to Content is UPSIDE down!
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We should be spending MORE time focused on the TARGET (i.e. the List) and MORE time focused on the SUBJECT LINE (i.e. the Offer).
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Persuasion Equation
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Understand the decision making science of the brain.
Interrupt
Engage
Educate
Offer
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A New Scoring Model
From the Past
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Everybody wants Engagement
A simple scoring model from decades ago delivers it best.
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Stop Fighting Over Clicks and Opens
Think about engagement and value!
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Did you know Marketing Automation & CRM actually existed in 1985?
It was called Database Marketing
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How do I value my email database?
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The Recency Curve GoingGoing
Gone
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Now with Real Data
Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan -
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
Recency Curve as of 12/31/2015
Month Since Last OpenU
niqu
e Co
nsum
ers
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The Classic Quintile Model
Rece
ncy • 5
• 4• 3• 2• 1
Freq
uenc
y • 5• 4• 3• 2• 1
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25 Cells of Segmented Goodies
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Let’s Simplify This A Bit
Because why overthink, if You don’t have too
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The Simple Grid
Engagement Value = Lifecycle Value
Mor
e Fr
eque
nt L
ess
Freq
uent
Less Recent More Recent
Cu
rren
t Val
ue (F
REQ
UEN
CY)
Potential Value (RECENCY)
Adapted from: http://blog.jimnovo.com/2007/04/03/recency-defines-engagement/
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The Simple Grid
Engagement Value = Lifecycle Value
Adapted from: http://blog.jimnovo.com/2007/04/03/recency-defines-engagement/
Mor
e Fr
eque
nt
High Current ValueLow Potential ValueSAVE these consumers
High Current ValueHigh Potential ValueLOYAL: Keep these Consumers
Les
s Fr
eque
nt
Low Current ValueLow Potential ValueREACTIVATE: Should we spend time/effort here?
Low Current ValueHigh Potential ValueGROW: Focus on growing
Less Recent More Recent
Curr
ent V
alue
(FR
EQUE
NCY)
Potential Value (RECENCY)
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The Simple Grid
Engagement Value = Lifecycle Value
5 o
r mor
e
High Current ValueLow Potential ValueSAVE these consumers
120K
High Current ValueHigh Potential ValueLOYAL: Keep these Consumers
178K
1 -
4
Low Current ValueLow Potential ValueREACTIVATE: Should we spend time/effort here?
64K
Low Current ValueHigh Potential ValueGROW: Focus on growing
314K (217K NEW)3 or more months ago New to -2 Months Ago
C
urre
nt V
alue
(FRE
QUE
NCY)
Potential Value (RECENCY)
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Lifetime Value
Case Study
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‘MEASURE SOMETHING’
• Metrics in channel silos • Standardized metrics• Historical averages for goals• Reporting is observational
- i.e. x increased, y decreased
‘STRATEGIC MEASUREMENT’
• Metrics tied to objectives • Engagement weighted by value• Industry benchmarks for goals• Reporting drives action
‘ADVANCED ANALYTICS; …BEYOND MEASUREMENT’
• True Life time value • Hyper personalization & engagement
modelling- Churn prevention• Multivariate testing - Audience segments, offers & content
Level 1
Level 2
Level 3
It’s Important to Understand Your Maturity
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Business Objective:Lifetime Value
Marketing Objective:Engagement
There they are! The real world use of the terms we’ve been discussing!
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…And The Sales Impact
Purchase Amount
Frequency Penetration Sales % Increase
15.5%
-3.3%
12.0%
20.2%
Purchase Amount
Frequency Penetration Sales % Increase
4.9%
7.5%
2.5%
10.7%
Introductory Product Upsell Product
$153 of Incremental LTV Lift
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The Simple Grid
Engagement Value = Lifecycle Value 5 o
r mor
e
High Current ValueLow Potential ValueSAVE these consumers
120K = $9MM
High Current ValueHigh Potential ValueLOYAL: Keep these Consumers
178K = $27MM
1 -
4
Low Current ValueLow Potential ValueREACTIVATE: Should we spend time/effort here?
64K = $0.1MM
Low Current ValueHigh Potential ValueGROW: Focus on growing
314K = $24MM3 or more months ago New to -2 Months Ago
C
urre
nt V
alue
(FR
EQUE
NCY
)
Potential Value (RECENCY)
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The #1 Predictor of Future Value!
Why Recency & Frequency?
BEHAVIOR!
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Email is Marketing Strategy
Let’s Put It All Together
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Engagement = Lifecycle Marketing
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Retail Post-Purchase Campaign
0 daysInitial Thank YouBoot purchases only
+4 daysSurvey Reminder
0 daysInitial Thank YouNon-purchase version
+20 daysHow Are Your New Boots Working Out?
+6 MonthsFree 6 Month Tune-Up
+12 MonthsFree Heel-To-Toe Check-Up
+18 MonthsFree Heel-To-Toe Check-Up
+24 MonthsUpgrade To New Boots
Email Opt-in No Footwear Purchase
Email Opt-in Footwear Purchase
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Retail Post-Purchase Campaign
Email Opt-in Footwear Purchase0 daysInitial Thank YouBoot purchases only
A+F
Store Manager
District Manager
Survey Grade
Survey
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Retail Post-Purchase Campaign
+18 MonthsFree Heel-To-Toe Check-Up
Email Opt-in Footwear Purchase
Image Source: http://www.vrbusinessbrokers.com/
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Retail Post-Purchase Campaign
*Source: IBM Silverpop 2014 Email Benchmark Study
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Batch and Blast is NOT a Strategy
Personalized Broadcast and Respond IS a Strategy
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Lifestyle / Solution Information
Product / Promotion Information
2 – 4Jan
2 – 4Feb
2 – 4Mar
2 – 4Apr
2 – 4May
2 – 4Jun
2 – 4Jan
2 – 4Feb
2 – 4Mar
2 – 4Apr
2 – 4May
2 – 4Jun
The Behavior Zone
The Broadcast and Respond Strategy
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The Behavior Zone
Lifestyle / Solution Information
Product / Promotion Information
2 – 4Apr
Trigger 1
Trigger 2
Trigger 3
The Broadcast and Respond Strategy
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The Behavior Zone
The Broadcast and Respond Strategy
Lifestyle / Solution Information
Product / Promotion Information2 – 4May
Trigger 1
Trigger 2
Trigger 3
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2016 Benchmarks From Best-in-Class CompaniesOn Marketing Automation
http://offer.threedeepmarketing.com/marketing-automation-trends-for-success
Free 14-page eBook based on research we completed with Ascend2 on Trends for Marketing Automation Success
•Most Significant Barriers to Success •Strategy and Planning Resources•Most Useful System Features•Measuring Marketing Automation Performance
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Questions