knocking down the email strategy barrier

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Tim Watson, Independent Email Marketing Consultant49% of email marketers in the recent Econsultancy Email Marketing Census 2012 said the lack of email strategy was a major barrier to effective email marketing.

TRANSCRIPT

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.

Email

length

Use of

images.

Email

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…

• Twitter

– @tawatson

• LinkedIn

– 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