make your emails matter

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Make Your Emails Matter Increase Email Relevance Through Segmentation and Targeting Presented by Tom Bishop, Marketing Manager Based on white paper by Marianne Cellucci Certified Email Marketing Specialist

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Raise the relevance and response of your email marketing campaigns by using segmentation.

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Page 1: 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

Page 2: Make Your Emails Matter

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

Page 3: Make Your Emails Matter

Segmentation?What is

Page 4: Make Your Emails Matter

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

Page 5: Make Your Emails Matter

Segmentation?Why use

Page 6: Make Your Emails Matter

It Gets Results!

Page 7: Make Your Emails Matter

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

Page 8: Make Your Emails Matter

Response

Interest

It Gets Results!

Page 9: Make Your Emails Matter

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:

Page 10: Make Your Emails Matter

You observe patterns

You stay relevant

You address needs

You stay engaged

Page 11: Make Your Emails Matter

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

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

Page 12: Make Your Emails Matter

RelevantServe Up

Content

Page 13: Make Your Emails Matter

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

Page 14: Make Your Emails Matter

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)

Page 15: Make Your Emails Matter

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)

Page 16: Make Your Emails Matter

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)

Page 17: Make Your Emails Matter

“74% of people are influenced by the opinions of

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

2009

Page 18: Make Your Emails Matter

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)

Page 19: Make Your Emails Matter

You know who to call

You find engaged people

You offer the solutions

You win the business

Page 20: Make Your Emails Matter

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

Page 21: Make Your Emails Matter

TargetingApply

Techniques

Page 22: Make Your Emails Matter

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

Page 23: Make Your Emails Matter

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

Page 24: Make Your Emails Matter

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.)

Page 25: Make Your Emails Matter

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

Page 26: Make Your Emails Matter

Discover interests

React to behavior

Offer timely solutions

Drive loyalty

Page 27: Make Your Emails Matter

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

Page 28: Make Your Emails Matter

LifecycleAutomate

Messaging

Page 29: Make Your Emails Matter

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

Page 30: Make Your Emails Matter

Female Custom

er

High Incom

e

Frequency: 3

Months

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

Page 31: Make Your Emails Matter

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

Page 32: Make Your Emails Matter

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

Page 33: Make Your Emails Matter

Match frequency

Timing is everything

Match expectations

Improve ROI

Page 34: Make Your Emails Matter

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

Page 35: Make Your Emails Matter

FrequencyAchieve the right

Page 36: Make Your Emails Matter

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

Page 37: Make Your Emails Matter

• 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

Page 38: Make Your Emails Matter

Watch for trends

Heed feedback

Evaluate metrics

Find the perfect pitch

Page 39: Make Your Emails Matter

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

Page 40: Make Your Emails Matter

MeasureTest and

Results

Page 41: Make Your Emails Matter

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

Page 42: Make Your Emails Matter

Test and Measure ResultsIncrease in response by metric:

Opens

Increasedby %

Increasedby %

Increasedby %

Increasedby %

Increasedby %

Increasedby %

SalesSite Visits CallsClicks Conversions

Page 43: Make Your Emails Matter

Maximize marketing ROI

The possibilities are endless

Don't be all things to all people

Be one thing to each of them

Page 44: Make Your Emails Matter

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

Page 45: Make Your Emails Matter

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

Page 46: Make Your Emails Matter

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

Page 47: Make Your Emails Matter

Contact Net Atlantic• www.netatlantic.com• [email protected]• 978-219-1900