knocking down the email strategy barrier
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Knocking down the Email
Strategy barrierTim Watson
Why this session?
What do you view as the main barriers to effective email marketing?
Econsultancy Email Census 2012
A little bit about me
Business objectives
May June July AugustMay-2012 Jun-2012 … … Jun-2013
Email marketing objectives(examples)
• Grow permission database
• Move one time purchases to multiple
• Reduce unsubscribes
• Win-back
• Get product reviews
• Reduce abandoned baskets
• Move DM to online
• Improve customer insight
Email marketing hierarchy
Value
Contact & Relevance
Message, copy & creative
Deliverability & permission management
Goal setting
and
evaluation
Business and
marketing
objectives
Governance and integration
Email marketing hierarchy
Business and
marketing
objectives
Email marketing hierarchy
Deliverability & permission management
Business and
marketing
objectives
Email marketing hierarchy
Message, copy & creative
Deliverability & permission management
Business and
marketing
objectives
Email marketing hierarchy
Contact & Relevance
Message, copy & creative
Deliverability & permission management
Business and
marketing
objectives
Email marketing hierarchy
Value
Contact & Relevance
Message, copy & creative
Deliverability & permission management
Business and
marketing
objectives
Email marketing hierarchy
Value
Contact & Relevance
Message, copy & creative
Deliverability & permission management
Goal setting
and
evaluation
Business and
marketing
objectives
Email marketing hierarchy
Value
Contact & Relevance
Message, copy & creative
Deliverability & permission management
Goal setting
and
evaluation
Business and
marketing
objectives
Governance and integration
What’s in
it for me?
What’s in it for me = Value
Email value proposition
• Be first to know
• Special offers
• Competitions
• Deals and savings
• Birthday gift
• Convenience
• New product information
• Value add content
• Exclusivity & privileges
Getting a head start
Give a little help
Areas of focus
Aim
Steve Jobs advice:
Focus on 3
How to focus and take aim
Map your customer journey
Signup
Prospect
One purchase
Regular purchase
Lapsing
Lapsed
1,000 7,000 15,000 2,000 5,000
10,000 1,000 12,000 2,000 25,000
Scenario 1
Scenario 2
Scenario 1 vs 2Scenario 1 Scenario 2
Win-back lapsed
Lapsed 5000 25000
5% 250 1250
Existing regular 15000 12000
New regular 15250 13250
Convert one time to regular
One purchase 7000 1000
15% 1050 150
Existing regular 15000 12000
New regular 16050 12150
Database growth questions
• Value of an email address?
• What is growth per month?
• What is loss per month? What are causes?
• Address count with no email/permission?
• What % web visitors signup?
• How many opt-out during purchase?
• Performance and value by signup source?
• What incentives increase signup?
• Have existing processes been optimised?
• Have all contact points been reviewed?
Prospect & one purchase
• When to use an incentive?
• What is the normal time before purchase?
• What is most common product?
• What are most common first purchase?
• What incentive to use?
Regular customers
• What is the customer segmentation?
• Who are the best customers?
• What revenue % is from regular?
• What revenue is from best?
• How to cross sell based on history?
• What sort of up sell?
Customer segmentation
Photo credit: CraigMarston Flickr
Customer insight
1. Categorise products
2. Collate customer transactions by categories
3. Overlay customer profile
Transaction data drill-down
Customer criteria
Product category Male Female 25-35 … ALL
A £12.00 £11.00 £23.00 £11.50
B £2.00 £5.00 £0.80 £4.30
C …
Average spend per customer per segment
Customer classification
1. Demographic
– Population characteristics, age, gender, social class
2. Preferences
– Own expressed preference.
3. Behavioural
– Purchasing behaviour e.g. value of products, product
category, loyalty, RFM
4. Value
– Lifetime value, last 12 months gross margin
Customer classification (2)
1. Geographic
– Area e.g. country, city, urban/rural, north-south
2. Psychographic
– Psychological factors e.g. lifestyle, personality
3. Geodemographic
– Combine the places where people live with their
underlying characteristics and behaviour e.g. Acorn,
Mosaic and Prizm
4. Attitudinal and needs
– Risk in financial services, views on gambling
Campaign data drill down
Campaign objective …
Subject line …
Open Click
ALL 15% 5%
Male 10% 4%
Female 20% 7%
Single 8% 2%
…
Data collection
Analysis of intervals
84% of people who buy again will do so within
period average+standard deviation. In this case
76 days.
First
purchase
Last
purchase Quantity purchases
Purchase
interval (days)
Sue 04/04/2011 15/01/2012 5 57.2
John 02/11/2011 04/04/2012 2 77
Nigel 03/12/2011 30/01/2012 1 58
Sarah 12/05/2011 25/10/2011 8 20.75
…
Average 53.24
Standard deviation 23.51
Contact policy
• Triggers and transactional
– Confirmation
– Welcome campaign series
– Abandon basket
– Replenishment and reminders
– Post purchase
– Pre/post event
– Web action response
• Bulk email frequency
• Follow up, non-openers & clickers.
Optimisation
A B
>
20%
or
Have a process
Define Objective
and optimisation
metric
Create test hypotheses
Develop tests and
define cells
Execute and report results
Review whatand why
Have a plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Subject
lines.
From
name.
Subject
lines.
Calls to
action
copy
Calls to
action
size,
placeme
nt.
Offers.
Subject
lines.
length
Use of
images.
format.
Time of
day/day
of week.
Metrics & measurement
£
How long will all this take?
Very small list size
Limited number of products/services
Niche market
Online pure play business
2 to 3 days
Small to medium list
Wider range of products/services with limited distinct categories
Wider demographic
Online pure play
3 to 6 days
Medium to large list
Several complementing categories of products/services
Integrated marketing
Online and offline
5 to 10 days
Large list
Large range products
Wide customer demograhpic
Multi-channel integrated marketing
Online and offline
10+ days
Customer hierarchy
Value
Contact & Relevance
Message, copy & creative
Deliverability & permission management
Signup
Message
Relevance
Value. What’s in it for me
Thank you for listening
Let’s connect…
– @tawatson
– http://uk.linkedin.com/in/tawatson
• Web
– www.zettasphere.com
• Blogs
– dmaemailblog.com/author/tim-watson/
– www.smartinsights.com/author/tim-watson/
Questions?
top related