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Email/Lifecycle Marketing

                         Lead Generation & Relationship
                                   Building



Presentation Date: January 2010                       James Windrow
E-mail outreach can play a significant role in developing
     new relationships and nurturing existing relationships.

     The secret is in the messaging….




Presentation Date: January 2010                    James Windrow
But wait. Doesn’t email marketing annoy people?

     Despite popular belief, there is no magic number for the maximum number of
     times someone will “put up with your emails” before they unsubscribe.



     Unsubscribe rates are tied directly to relevancy. Not
     frequency.


     Most companies simply don’t understand how to make their email
     communications consistently relevant to their readers.




Presentation Date: January 2010                                   James Windrow
What types of email marketing are there?
     Mass/Broadcast Emails: message has little to no personalization or
       segmentation
     •    E.g. Newsletters, promotions

     Lifecycle: message is based on recipients placement in the customer lifecycle
     •    E.g. Welcome programs, loyalty programs, ambassador campaigns

     Behavioral: message is based on a recipient's clickstream data, which is used
       to formulate the message and the offer.
     •    E.g. Abandoned cart, reviewing a product page, transactional emails


     A great email marketing strategy leverages all three!




Presentation Date: January 2010                                                 James Windrow
Mass/Broadcast                       Behavioral
      Low                                                         High
                                        Lifecycle


                                  Response Rates




Presentation Date: January 2010                           James Windrow
Email Response Rates
                                   Broadcast             Lifecycle              Behavioral
                                    Minimal to no
     Primary targeting tactic                          Timed to customer    Behavioral targeting (i.e.
                                  personalization or
     used                                                  lifecycle       click-stream, transactions)
                                    segmentation

     Average unique open
     rate                              20%                 26%                     33%
     Average click-through
     rate                              9.5%                14%                     14%
     Average conversion rate           1.1%                2.8%                   3.9%



Presentation Date: January 2010                                               James Windrow
Email Marketing – Broadcast
     Monthly Promotional Email
     What’s new? What’s hot? What’s on sale? What’s happening? What we’re doing to
     make a difference.

     Ingredients to successfully building relationships and driving revenue.
     1.      Continuously grow your list by clearly communicating benefits of staying connected
     2.      Keep your communications relevant
     3.      Respect the privacy of your readers




Presentation Date: January 2010                                                     James Windrow
Lifecycle Email Marketing
                                        Prospective
                                        Customers




                              Brand
                            Ambassado                 Customers
                                rs




                                         Repeat                 Non-
                                        Customers             Responde
                                                                 rs



Presentation Date: January 2010                                   James Windrow
Lifecycle Email Marketing
     Examples of Lifecycle Email Marketing Programs
     • Welcome programs
     • Loyalty programs
        – Anniversary
        – Birthday
        – Earn Points/Rewards/Promotions
     • Ambassador programs
        – Tell a Friend
     • Win-Back programs
        – Limited time offers/promotions




Presentation Date: January 2010                James Windrow
Loyalty Program
     Challenge
     • Pet birthday celebrated by many
       parents

     Solution
     • Send reminder two weeks before pet
        birthday with offer
     • Personalize with pet’s name and
        artwork that reflects the type of pet
        (i.e. dog, cat, etc.)

     Result
     • Captured new customers - 50% of
       converters had not previously
       purchased online
     • 17% of new purchasers
       subsequently continued to shop
       online


Presentation Date: January 2010                     James Windrow
Ambassador Program
     Challenge
     • Grow business through word
         of mouth

     Solution
     • Online flower purchase, sent
         satisfaction email with
         customer survey
     • Positive raters receive an
         email encouraging them to
         recommend Serenata             Negative Net Promoter
         Flowers to their friends
                                                                High Net Promoter
     • Customers will receive thank
         you offer after referring
         friends

     Results
     • Net promoter score of 8.5
     • Tens of thousands of referrals

                                                                           Discount for Referring
                                               Referred Email
Presentation Date: January 2010                                               James Windrow
Win-Back Program
     Challenge
     •    Growing segment of customer base had not
          purchased within 90 days

     Solution
     • Implement automated program to reengage
        lapsed customers
     • Emails triggered after 90 days with special
        incentive offers, such as free shipping

     Result
     • Recouped cost of implementing program in one
        month
     • Open rates: 67%
     • Click-through rates: 55%
     • Conversion rates: 11.5%

Presentation Date: January 2010                       James Windrow
Behavioral Email Marketing
     Programs and messages triggered based on a recipient's
     clickstream data, which is used to formulate the message/offer.
     • Clickstream
        Visit the camera section of BestBuy.com and two days later you receive
        an email or direct mail piece with a promotion/discount on the camera
        you were looking at.

     • Transactional
        Emails that are triggered when a user takes a predefined action.




Presentation Date: January 2010                                   James Windrow
Behavioral Email Marketing
     Examples of Transactional Emails
     •    Account Creation/Sign-up
     •    Order Confirmation
     •    Order Shipping
     •    Lost Password
     •    Information Request
     •    Article/Whitepaper Download
     •    Abandoned Cart Email
           • Could also be a lifecycle marketing activity




Presentation Date: January 2010                             James Windrow
Cart Abandonment Program
     Challenge
     • High rate of shopping cart abandonment
     • Very short 3-day purchase cycle time

     Solution
     • Trigger email message 3 days after
        abandonment
     • Include some abandoned products, as well as
        additional cross-sell items

     Result
     • Increased conversions 171%
     • Increased margin 30%
     • Increased email click-through 852%

Presentation Date: January 2010                      James Windrow
Challenge
                            Order Confirmation
     • Improve customer buying
       experience and drive incremental
       revenue

     Solution
     • Leverage transactional email to
        target recent purchasers with
        relevant product information
     • Include top-seller recommendations
        related to purchase category

     Result
     • Transactional messages now
        generate 15% of total email
        program revenue




Presentation Date: January 2010                  James Windrow

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Email Lifecycle Marketing: Lead Generation and Relationship Building

  • 1. Email/Lifecycle Marketing Lead Generation & Relationship Building Presentation Date: January 2010 James Windrow
  • 2. E-mail outreach can play a significant role in developing new relationships and nurturing existing relationships. The secret is in the messaging…. Presentation Date: January 2010 James Windrow
  • 3. But wait. Doesn’t email marketing annoy people? Despite popular belief, there is no magic number for the maximum number of times someone will “put up with your emails” before they unsubscribe. Unsubscribe rates are tied directly to relevancy. Not frequency. Most companies simply don’t understand how to make their email communications consistently relevant to their readers. Presentation Date: January 2010 James Windrow
  • 4. What types of email marketing are there? Mass/Broadcast Emails: message has little to no personalization or segmentation • E.g. Newsletters, promotions Lifecycle: message is based on recipients placement in the customer lifecycle • E.g. Welcome programs, loyalty programs, ambassador campaigns Behavioral: message is based on a recipient's clickstream data, which is used to formulate the message and the offer. • E.g. Abandoned cart, reviewing a product page, transactional emails A great email marketing strategy leverages all three! Presentation Date: January 2010 James Windrow
  • 5. Mass/Broadcast Behavioral Low High Lifecycle Response Rates Presentation Date: January 2010 James Windrow
  • 6. Email Response Rates Broadcast Lifecycle Behavioral Minimal to no Primary targeting tactic Timed to customer Behavioral targeting (i.e. personalization or used lifecycle click-stream, transactions) segmentation Average unique open rate 20% 26% 33% Average click-through rate 9.5% 14% 14% Average conversion rate 1.1% 2.8% 3.9% Presentation Date: January 2010 James Windrow
  • 7. Email Marketing – Broadcast Monthly Promotional Email What’s new? What’s hot? What’s on sale? What’s happening? What we’re doing to make a difference. Ingredients to successfully building relationships and driving revenue. 1. Continuously grow your list by clearly communicating benefits of staying connected 2. Keep your communications relevant 3. Respect the privacy of your readers Presentation Date: January 2010 James Windrow
  • 8. Lifecycle Email Marketing Prospective Customers Brand Ambassado Customers rs Repeat Non- Customers Responde rs Presentation Date: January 2010 James Windrow
  • 9. Lifecycle Email Marketing Examples of Lifecycle Email Marketing Programs • Welcome programs • Loyalty programs – Anniversary – Birthday – Earn Points/Rewards/Promotions • Ambassador programs – Tell a Friend • Win-Back programs – Limited time offers/promotions Presentation Date: January 2010 James Windrow
  • 10. Loyalty Program Challenge • Pet birthday celebrated by many parents Solution • Send reminder two weeks before pet birthday with offer • Personalize with pet’s name and artwork that reflects the type of pet (i.e. dog, cat, etc.) Result • Captured new customers - 50% of converters had not previously purchased online • 17% of new purchasers subsequently continued to shop online Presentation Date: January 2010 James Windrow
  • 11. Ambassador Program Challenge • Grow business through word of mouth Solution • Online flower purchase, sent satisfaction email with customer survey • Positive raters receive an email encouraging them to recommend Serenata Negative Net Promoter Flowers to their friends High Net Promoter • Customers will receive thank you offer after referring friends Results • Net promoter score of 8.5 • Tens of thousands of referrals Discount for Referring Referred Email Presentation Date: January 2010 James Windrow
  • 12. Win-Back Program Challenge • Growing segment of customer base had not purchased within 90 days Solution • Implement automated program to reengage lapsed customers • Emails triggered after 90 days with special incentive offers, such as free shipping Result • Recouped cost of implementing program in one month • Open rates: 67% • Click-through rates: 55% • Conversion rates: 11.5% Presentation Date: January 2010 James Windrow
  • 13. Behavioral Email Marketing Programs and messages triggered based on a recipient's clickstream data, which is used to formulate the message/offer. • Clickstream Visit the camera section of BestBuy.com and two days later you receive an email or direct mail piece with a promotion/discount on the camera you were looking at. • Transactional Emails that are triggered when a user takes a predefined action. Presentation Date: January 2010 James Windrow
  • 14. Behavioral Email Marketing Examples of Transactional Emails • Account Creation/Sign-up • Order Confirmation • Order Shipping • Lost Password • Information Request • Article/Whitepaper Download • Abandoned Cart Email • Could also be a lifecycle marketing activity Presentation Date: January 2010 James Windrow
  • 15. Cart Abandonment Program Challenge • High rate of shopping cart abandonment • Very short 3-day purchase cycle time Solution • Trigger email message 3 days after abandonment • Include some abandoned products, as well as additional cross-sell items Result • Increased conversions 171% • Increased margin 30% • Increased email click-through 852% Presentation Date: January 2010 James Windrow
  • 16. Challenge Order Confirmation • Improve customer buying experience and drive incremental revenue Solution • Leverage transactional email to target recent purchasers with relevant product information • Include top-seller recommendations related to purchase category Result • Transactional messages now generate 15% of total email program revenue Presentation Date: January 2010 James Windrow