The Fast and Furious World of

Predictive Marketing

Nathan Decker

Director of Ecommerce

evo

Matt Williamson

Co-Founder & CEO

Windsor Circle

Loren McDonald

Marketing Evangelist

IBM Marketing Cloud

What You’ll Learn Today

1. What is “Predictive Marketing?”

2. Why Now?

3. Who Should Act to Seize Competitive Advantage?

4. Real World Examples from EVO

5. How to Get Started

1. WHAT IS PREDICTIVE MARKETING?

4

Gartner: Five Key Trends

1. Cross-Channel Strategy, Campaigns and Data

2. Automation to Boost Speed and Performance

3. Yearning for 1:1 Customer Relationships

4. Engagement Aligned for Daily Activities

5. More Responsibility for Digital Commerce

http://www.gartner.com/smarterwithgartner/five-key-trends-in-gartners-2015-digital-marketing-hype-cycle/

2. WHY NOW?

‘Early adopters’ require more

complete products, but move

quickly to seize competitive

advantage.

Mainstream adoption requires

completeness and convenience.

Innovators willing

to try early

products, co-invest

in development,

etc.

3. WHO SHOULD ACT NOW TO SEIZE COMPETITIVE ADVANTAGE?

Who Should Act Now to Seize Competitive Advantage?

Aspiring

Stars

Category

Leaders Established

Migrators

Sophis

tication

Resources

4. REAL WORLD EXAMPLES FROM EVO

A CROSS SECTION OF OUR CATEGORIES

evo PRODUCT MIX

evo curates the best of brands and products in Ski, Snowboard, Wake, Bike,

Skate, and Surf – from hardgoods to apparel and accessories, sport to lifestyle.

8CATEGORIES

400+BRANDS

13,000PRODUCT STYLES

FROM PEOPLE TO SPACES, evo IS UNMISTAKABLE

evo PERSONALITY

We believe in making the business and our people accessible, showing the customer behind the curtains and inviting them to the evo party. Being cooler than the consumer is

not a part of evo; we are open and inclusive, knowledgeable but friendly, and always excited to share the fun.

OUR SCRAPPY JOURNEY FROM HOMEGROWN AND MANUAL TO CLOUD BASED AND AUTOMATED

Three Stages of Email Marketing

STAGE ONE: INITIALIZATION

evo.com

Social PLADirectPaidOrganic Store

Blunt

CampaignRepeat Etc.

Purchase

STAGE TWO: OPTIMIZATION

evo.com

Social PLADirectPaidOrganic Store

Blunt

Campaign

Repeat

PurchaseEmail Signup

Welcome #1

Welcome #2 Welcome #3

Targeted

Campaigns

STAGE 3: RETENTION AUTOMATION

evo.com

Social PLADirectPaidOrganic Store

Blunt

Campaign

Repeat

Purchase

Email Signup

Welcome #1

Welcome #2 Welcome #3

Targeted

Campaigns

Post Purchase

Series

Behavioral

Automation

EMAIL TRENDS Over 10%

0%

2%

4%

6%

8%

10%

12%

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

$5,000,000

2010 2011 2012 2013 2014 2015

Email Revenue

Email as % Total

RETENTION SERIESTRIGGERED EMAIL COMMUNICATION BASED ON VISTITOR BEHAVIOR

“OMNI” CHANNELRECREATING THE RICHNESS OF THE IN STORE EXPERIENCE THROUGH DIGITAL MEDIUMS

DIGITAL

PURCHASE

PurchaseConversion on evo.com

Fit uncertainty

UNCERTAINTY , GUILT AND SUBOPTIMAL INFORMATION IN CONSUMER PURCHASING

HOLES IN THE PATH

ResearchCustomer researches on

evo.com

Shipping• Outside SEA, PDX, package

ships to home.

• Lost opportunity for add-on

sales, service.

Isolated Service• Consumer walks product into 3rd

party for service.

• Consumer guilt over separate

purchase, point of tension.

• Random traffic, often lost to local

shop.

Lost CommunicationRisk of lost contact after shipping

reduces incremental sales beyond

service.

PurchaseConversion on evo.com

PROVIDING A SEAMLESS PATH

CLOSING THE LOOP

CLOSING THE

LOOP

ResearchCustomer researches on

evo.comIncreased Loyalty• Follow up on fit

• Product use guides

• Ability to suggest related products

Reinforcing expertise and leadership

• Delighting Customers = Higher

loyalty with evo.

Partnership between evo and local retailer can remove much of the consumer guilt, improve service, ramp up local traffic, and capture customer data for acquisition and

increased communication. The end result is improved loyalty for evo and a new customer for the partner retailer.

Shipping• Ship to partner offered to

consumer

• Opportunity to direct traffic

to partners

Service• Customer gets recommended

service location

• Increased consumer trust, blunts

uncerttainty upfront.

“OMNI” CHANNEL RECREATING THE RICHNESS OF THE IN STORE EXPERIENCE THROUGH DIGITAL

• Lower tech knowledge gap

• Communicate critical ownership

information

• Improve product experience

with suggestive selling opportunities

38%

CTR

RETENTION AUTOMATION – POST PURCHASE EMAILS DESIGNED TO IMPROVE THE PRODUCT EXPERIENCE

1. Guide to Trying on Your Boots

OPEN

RATE

67.8%

Relevant

Image

Why this works

Clear CTA

25%

CTR

RETENTION AUTOMATION – POST PURCHASE EMAILS DESIGNED TO IMPROVE THE PRODUCT EXPERIENCE

2. How to Video

OPEN

RATE

56%

Reference to first email

in series

Why this works

Clear CTA

8%

CTR

RETENTION AUTOMATION – POST PURCHASE EMAILS DESIGNED TO IMPROVE THE PRODUCT EXPERIENCE

3. Technical Ski Socks

OPEN

RATE

49%

Fun Image

Mentions First Purchase

Why this works

Clear CTA

RESULTS: SKI BOOT SERIESRECREATING THE RICHNESS OF THE IN STORE EXPERIENCE THROUGH DIGITAL

18.1%

58%

67.8%

56%

48.3%

2.6%

25%

38%

26%

8%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Open Rate

Click Rate

3.2

9.6

Times theOpen Rates

Times theClick Rates

POST PURCHASE FOLLOW UP SERIES

Backcountry Safety Snowboard Boots Guide

RECREATING THE RICHNESS OF THE IN STORE EXPERIENCE THROUGH DIGITAL

BRIDGE THE DATA & TECH GAPFIRST CONNECT THE RIGHT DATA INTO YOUR EMAIL PROGRAM, THEN POWER UP AUTOMATION

• Automated

• Accurate

• Accessible

• Nightly upload

• Data translation

• Over 50 fieldsPhoto: Grant Gunderson

Source: Outsideonline.com

Mt. Baker Road Gap

• Automated

Programs

BRIDGE THE DATA & TECH GAPFIRST CONNECT THE RIGHT DATA INTO YOUR EMAIL PROGRAM, THEN POWER UP AUTOMATION

Examples:

WC_Purchase_History

Marker The Squire Ski Bindings (110mm Brakes);Line

Skis Snow Angel Skis Girls - 133 Kids;Rossignol S2 Skis

Women's – 150

WC_Purchase_Category

SNOWSPORTS > SKIING > SKIS

WC_First_Order_Date

01/28/2013

+50 more

BEHAVIORAL AUTOMATIONTRIGGERED EMAIL COMMUNICATION BASED ON VISITOR BEHAVIOR

BEHAVIORAL AUTOMATIONTRIGGERED EMAIL BASED ON VISITOR BEHAVIOR

10.1%

$4.75

REVENUE

PER EMAIL

CLICK

RATE

BEHAVIORAL AUTOMATION – EMAIL COMMUNICATION TRIGGERED BY WEBSITE INTERACTION

CART ABANDONMENT

OPEN

RATE

49.8%

12.3%

$1.83

REVENUE

PER EMAIL

CLICK

RATE

BEHAVIORAL AUTOMATION – EMAIL COMMUNICATION TRIGGERED BY WEBSITE INTERACTION

WINDOW SHOPPING

OPEN

RATE

57.4%

12.3%

$1.83

REVENUE

PER EMAIL

CLICK

RATE

BEHAVIORAL AUTOMATION – EMAIL COMMUNICATION TRIGGERED BY WEBSITE INTERACTION

POST PURCHASE

OPEN

RATE

57.4%

14.99%

$1.72

REVENUE

PER EMAIL

CLICK

RATE

BEHAVIORAL AUTOMATION – EMAIL COMMUNICATION TRIGGERED BY WEBSITE INTERACTION

PRICE DROP

OPEN

RATE

43.86%

BEHAVIORAL AUTOMATION – EMAIL COMMUNICATION TRIGGERED BY WEBSITE INTERACTION

RESULTS

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

 Abandoned Cart  Window Shopping

Opens

CTR

BEHAVIORAL AUTOMATION – EMAIL COMMUNICATION TRIGGERED BY WEBSITE INTERACTION

RESULTSRetention Series (Windsor Circle)

3%

Promotional Email

(Windsor Circle + IBM)54%

Behavioral Automation (Bluecore)

34%

Transactional9%

Email % Revenue

LEARN FROM OUR FAILURES AND MISTAKES

FAIL

INTERNAL AND EXTERNAL FACTORS WE NEEDED TO OVERCOME

CHALLENGES

• Customer Feedback

• Internal Resistance

• Data Challenges

• System Obstacles

TECHNICALHUMAN

QUICK WINS

QUICK WINS: LATE DAY REMINDERS

Subject Line: REMINDER: $50 Off Ends at Midnight!

Piggyback Creative

Highly Relevant

50+% Open Rates, 5%+ CTRs

New Traffic – Huge Conversion Rates

(2-3x)

QUICK WINS: LATE DAY REMINDERS

Late Day ReminderSends

Same Day Sends

Total

Total

94%

6%

Reminder Revenue as % Total Email(last 30 days)

QUICK WINS: SWEEPS!

Ensure Message Gets

to Intended Audience

Piggyback

Creative

Use Previous

Performance

Incremental Revenue

Sent 2/10 (100K) Sent 2/12 (20K)

QUICK WINS: REVIEW LOOKBACKS

QUICK WINS: FAILS!

QUICK WINS: FAILS!

59%

41%

RevenueThis one is RARE. The North Face! We Screwed Up!

QUICK WINS: SWEEPS!

5. HOW TO GET STARTED

55

• Get the Basics Down First

• Thank Customers

• Reward Best Customers

• Predict and Save Churning Customers

• Cart Abandonment

• Segmented Promotions

• Then Quickly Move to More Advanced Capabilities

• Replenish Items That Have Run Out

• Browse Abandonment

• Geo-location and store targeting

Automation You Should Be Running

• Windsor Circle is IBM Smarter for Commerce Certified

• IBM is a Windsor Circle Platinum Partner

• Joint Capabilities

• Full Integration of eCommerce Data to IBM Marketing Cloud

• Pre-packaged WebSphere for Commerce Integration

• Cart and Browse Abandonment

• Behavioral and Predictive Marketing Automation

• UBX Integration (coming soon!)

IBM Marketing Cloud + Windsor Circle

Retention Marketing Survey

www.WindsorCircle.com/Survey

58

In 10 minutes…

Help us gain key insights into the state of

retention marketing

Get a free copy of the results in early June

when the report is published

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$250 Visa gift cards

WindsorCircle.com/evo

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