make your emails matter
DESCRIPTION
Raise the relevance and response of your email marketing campaigns by using segmentation.TRANSCRIPT
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• [email protected]• 978-219-1900