red eye presentation building lifecycle strategies (pdf)
DESCRIPTION
As email continues to grow, the traditional ‘newsletter’ approach is declining in effectiveness. To be successful online companies must respond to customer engagement with email campaigns relevant to specific online behaviour.Engagement Data is key to consumer purchasing intentions. Behavioural Data provides email marketers with information to drive relevant and timely communications. Together, these two strategies give marketers the ability to manage a customer’s entire online lifecycle, providing ongoing revenue increase and reduced cost of sale.This presentation will look at what online companies need to be doing to engage customers and improve conversion for the long term.TRANSCRIPT
Building Customer Lifecycle Marketing
StrategiesUsing Behavioural and Engagement
Data
1 May 2011
Premise
1. “Using the new media of the 1:1 future you will be able to communicate directly with customers, individually, rather than shouting at them in groups… The technologies needed to track and communicate with customers, one at a time, are already here.”
* ‘The One To One Future, Building Relationships One Customer at a Time’, Don Peppers and Martha Rogers, 1993
2. Income for eCommerce organisations employing the latest Behavioural and Engagement strategies should be growing 150-250% per year.
Over 100% Year on Year Increase in Email Revenues
ROI of 2,399%, 103% growth in email revenues compared to the same period 2009.Evans Cycles achieved these results through, amongst others, segmentation and life cycle marketing strategies. The email campaign plan segmented messaging and creative content based on individual preferences, engagement, online browsing and behavioural behaviour. Email marketing content was relevant to each individual user. The results included open rates as high as 84.9% (generic ‘newsletter’ emails 16% - 25%) and click rates of 40.5% (generic emails 3.8% - 5%).
Diverging Strategies in Email
Maximising Relevance
Email Address
Preference Centre
RFM Data
Behavioural Data
Engagement Data
What is Engagement Data?
• Engagement data identifies engagement with all media and the website.
• When Engagement is tracked and analysed the resulting segmentation will identify those customers likely to buy
• For instance, a customer engaged with email is 6.2 times more likely to purchase than one who is not…
A combination of engagement and RFM can be used to select frequency of mailings.
Sending emails to people who want to receive them, is vital to ensuring email deliverability.
More frequent
Less frequent
Toxic segments
Email engagement data in action
Using Email, and web engagement, the Engaged Plus can be identified, and frequency can be increased, to improve conversion
Combining Email and Web Engagement
What is Behavioural Data?
Repeat visitors are 8 times more likely to buy than first time visitors and the best way to get someone back to the website is via email
Consumers respond better to more relevant communication
Behavioural email targets consumers based on their online behaviour for best results
Makes email marketing relevant to every recipient
Typical results of 70% open rates, 30% click through rates and conversion rates over 10%
Why it’s important
• Forrester research says 71% of shopping carts are abandoned
• Whilst recent studies have shown 46% of abandoned transactions would convert when remarketed to
• A single basket abandonment emailwill generate about 2% extra revenues
• A few dozen behavioural emailsshould be able to generate an extra10% to 20% revenues
How the combined strategies work
Visitors
Browsers
Info Gathering
Comparing
Basket Abandon
Engagement is the first
stage of any journey
Purchase
Drop off communications
Browser programmeBrand reinforcement and USPsCompetitor Positioning
Basket Abandonment
Engagement
Automated Welcome Programme
Automated Welcome Programme
Different types of behavioural programmes•Abandon Basket•Incomplete quote•Quote not purchased•Registered not purchased•Previous customer visited site but did not buy•Content triggers to existing customer (e.g. Viewed section X)•Errors on site completing process•Add on product up-sell (e.g. Product insurance)•Loyal customer programme•Welcome program•Nursery program•Dis-engagement (see following slides)•Incomplete quote•Quote not buy•Save quote not buy•Abandon buying process•Cross sell to existing customers visiting other products on-site•Welcome program•Add on product up-sell (e.g. Breakdown cover)•Renewal program, timing based on when the customer returns to site•Dis-engagement (see following slides)•Abandon Basket•Regular browser never purchased•Previous customer visited site but did not buy•Registered not purchased•Loyal customer programme•Content triggers to existing customer (e.g. Viewed baby product pages)•Welcome program•Nursery program
•Add on product up-sell (e.g. insurance)•Dis-engagement (see following slides) •Abandon buying process•Quote not purchased•Save quote not buy•Regular browser never purchased•Previous customer visited site but did not buy•Loyal customer programme•Purchase lifecycle triggers (pre-departure, welcome home etc...)•Registered not purchased•Content triggers to existing customer (e.g. Viewed hotel X or resort Y)•Welcome program•Nursery program•Ancillary up-sell (e.g. Insurance, car hire etc...)•Dis-engagement (see following slides)•Partial registration•Registered not deposited•Deposit errors•Deposited not played or bet•Regular browser not playing or betting•Loyal customer programme•Cross sell based on content triggers (e.g. Viewed poker for first time)•Welcome program•Nursery program•Dis-engagement (see following slides)
March 2007, Trends “Realizing The Life-Cycle Marketing Vision”
• Lifecycle Marketing is identified by Forrester as the most advanced form of customer marketing and involves all approaches to customer marketing.
• Lifestage programmes, from Welcome thru Xsell to Win Back, are automated and optimised.
• Lifestage programmes, supported by dynamic content and behavioural information, achieve maximum relevancy.
• The outcome will be increased Lifetime Value.
Extending Customer Lifetime Value with Lifecycle Strategies
The 6 Stages of Customer Lifecyle
• Tactical• Engagement• Purchase• Re-Enforcement• Retention• Reactivation
Behavioural Search Criteria
Holiday specific search criteria will drive the content and trigger
Saved Event Mailings – Travel Industry
Client: Haven Holidays Campaign: – Saved Search Data Logic: - 7 days after the event No purchase
Results: • Revenue increased by +168% • Increased conv. +196%
0100200300400500600700800900
2010 Bookings
2011 Bookings
Extended Product Specific Basket Abandon Program
Client: Haven Holidays Campaign: Holiday Type driven Basket Process 24 hr emails
Results: • Revenue increased by +556% YoY
To make these programmes work…
1. An online database operating at a customer level
2. Engagement data3. Browser/web analytics data4. Customer RFM data5. Product and customer lifecycle
models6. Business rules
In Summary
Thank you.