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+44 (0)20 7812 6475 bronto.co.uk WHITE PAPER Digital Marketing for Fashion Retailers Tips and examples to keep your messaging in style

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+44 (0)20 7812 6475 bronto.co.uk

W H I T E P A P E R

Digital Marketing for Fashion RetailersTips and examples to keep your messaging in style

+44 (0)20 7812 6475 bronto.co.uk

Digital Marketing for Fashion RetailersTips and examples to keep your messaging in style In a vertical that is always looking a season ahead, many online fashion retailers are dreadfully behind the times with their digital communication. It’s surprising that brands known for innovative design, beautiful products and impressive in-store experiences sometimes offer so little to their online customers.

Throughout this paper, we examine some digital marketing techniques that are essential for fashion retailers, with a focus on email. Whether you are high fashion or bargain basement, a sophisticated and tenured email marketer or brand new to digital commerce, the tips included here will help you uncover hidden revenue opportunities and develop ways to build better customer relationships.

Global B2C e-commerce surpassed $1 trillion in 2012. And the growth rate of online retail has outpaced that of High Street for several years running. In other words, your shoppers are increasingly going online.

Source: IMRG: “Pureplay Vs Multichannel Growth Trends in 2013,” 5/12/13

This means there is a huge opportunity for revenue growth through your online sales. To those who are hesitant to change or anxious about committing more resources to online marketing, I ask:

Would you ignore next season’s fashion trends? Then why would you ignore how customers buy and plan to pay for those trends?

This paper will help you better understand how to:

Get NoticedPeople are visiting your site and may not even be aware that you have an email program. This lack of awareness directly correlates to a lack of online sales. Grow this awareness and your sales will follow.

Be RelevantFashion e-commerce is a giant marketplace - one of the largest verticals in the online retail industry. This means you have a lot of competition. How can you connect with your audience? Send them messages that have true value. Show them you are different and ensure that you are top of mind.

Stay Tech SavvyKeep up with your audience. How are they looking at your messages? Where are they doing the actual buying? Today it could be smartphones, tablets and laptops, but what will it be tomorrow? Only time will tell. You must understand how your messages are being read and strive to remain relevant.

Foster Customer LoyaltyCongratulations on getting them through the door to make their first purchase, but how do you get them to come back? Use data on what they have purchased to make smart decisions on what to do next.

Average YOY Growth 2010 2011 2012 2013 YTD

High St/Multichannel +24% +19% +12% +15%

Online-only/Catalogue +11% +11% +17% +17%

+44 (0)20 7812 6475 bronto.co.uk

Get NoticedHow do you grow your database of contacts? You probably know that the size of your list combined with the quality of that list directly impacts the amount of revenue per email you send out. Translated: the more quality contacts you have, the more money you make.

Think of your list sign-up as the window display for your email marketing program. It needs to bring people in. It needs to make a statement and show the value of the program. The amount of positive attention your email sign-up receives is directly proportional to your list growth.

PlacementWhen a new visitor comes to your site, you need to show them the value of your email program, and it should be available on every page! Many retailers forget that their potential contacts will be spending time on more than just their homepage. Standard best practice is to have the sign-up on two places on each page; however, you will need to balance the need to grow your email list against the design integrity of your website.

Retailers can be put off by the idea of asking for an email so boldly as to promote it above the fold. For fashion retailers, though, it is important to sell the value of the email sign-up and NOT label it as a newsletter. Consider a smoother call to action, and tailor the message to fit your audience. For a hip, young audience, “Sign-up for the newness.” For a luxury brand, “Take advantage of our email service.”

Les 100 ciels has a great call to action here, “Join the community”. This denotes a sense of humanity in their marketing and not ‘just another newsletter: The placement of the sign-up looks good; however, once someone leaves the home page, they will not see it anymore. Ideally, I’d like to see this sign-up a little higher up and on every page of the site.

+44 (0)20 7812 6475 bronto.co.uk

Not Just A Label has beautiful, fashion forward, innovative products. Their audience is very stylish and lives on the cutting edge. So why then is the sign-up so boring? The word “newsletter” is something we all associate with filling up our mail boxes and becoming a daunting task to delete. It does not need to be that way! Why not show the value of the email program? The audience wants to know when new products come out ,so why not say, “Get the first peek” or something that excites the would- be contact?

This is a smart email sign-up from A wear Ireland. They invite us to “Join in on the chat.” We would be missing out. This has a simple but strong call to action for the email. The placement is solid and can be seen anywhere on the site.

Double points here for having a smart sign-up at the bottom of the page!

Own the Runway has a great placement and has emphasised it with colour, but based on their target market, I would use a different call to action, something that shows value and seems ‘hip’.

+44 (0)20 7812 6475 bronto.co.uk

Are pop-ups1 effective?Short answer: Yes, do it. Long answer: Typically used to collect email addresses. Test it out and apply best practices. If you do, there is a very high likelihood you will see a huge increase in list growth. Many of our clients have seen a 10x or more increase in sign-ups after implementing a pop-up.

What are the must haves for any pop-up?

• Make it elegant. The pop-up should not be ugly but rather stylish and within brand.

• Keep it simple. To keep good will with your visitors, give them an easy way out with both a “no thanks” and a big X in the top right of the pop-up. If people do not want to see the pop-up, do not force them.

• Show people the value of subscribing to your emails. It might be an incentive such as a discount off their next purchase, free shipping or a complimentary style guide. It could be the promise of sneak peeks and email-only offers. Whatever it is, it must be tempting to your audience.

Finally, testing both your pop-up and website sign-up is essential in order to make sure that you are maximising your list growth. Test the call to action, incentive and layout.

Austique’s pop-up has a great opening line but then gets a little lost with the small text. I completely missed the 10% off when I first saw this. The email collection is big and bold and hard to miss; however, I would recommend having two ways for someone to close the popup. If someone were to be in a rush and not see the close at the top right, then you could risk loosing them.

1Modal windows/light boxes/pop-ups are all names for the same thing - you visit a site, the background fades and a box is presented to you. In this paper, I refer to them as pop-ups. This is not to be confused with the idea of the increasingly popular popup shops.

+44 (0)20 7812 6475 bronto.co.uk

Have brick and mortar stores?Great! Store shoppers who subscribe to your email program are more likely to stay in touch with you and keep you top of mind. How can you gather email addresses from those visiting your store?

• Ask for it at point of purchase

• Ask if they want an e-receipt

• Text-to-join

• Give them a discount if they sign-up

• Create collateral with a link or QR code that leads to a webform

• Put quick, easy ways to sign-up around the store, not just at the register

PartnershipsIf you sell dresses, why not partner up with an accessories company that aligns with your look? This will make you more relevant to your audience. They were wondering what to wear with the dress anyway, and it gives you a chance to reach a wider audience! Feature the partner in one of your emails by promoting their brand. Have them do the same. This not only exposes you to a new audience, but it can also help drive site traffic and list growth.

The Zoe Report, (remember her?) used a variety of partner emails as an overall strategy to align the brand with other more established brands. Here the Zoe Report features Shopbop.com. This introduces everyone on TZR list to Shopbop.com and leads them to a Shopbop.com landing page. It’s then up to Shopbob.com to get the sale or persuade visitors to sign-up for emails. The key here is finding the right partner.

+44 (0)20 7812 6475 bronto.co.uk

Be Relevant Let’s face it - online fashion retail is competitive! How can you use your communications to build strong connections with your audience?

Sneak PeeksIn the fashion industry, sneak peeks have a certain electricity. A fashion forward person cannot resist the idea of seeing ‘what’s new’ before anyone else. It is the reason we buy fashion magazines, check out what celebs are wearing and sneak a peek at the stylish people on the tube. What will be next? That’s the question that buzzes through our heads and Sneak Peeks are like catnip to our inner fashion kitten.

In this Moda in Pelle ‘style preview,’ we are allowed to see the latest style and even the different colours it comes in.

However, in their ‘online/sale preview,’ we do not see any product. For me, the second is more powerful as it invites curiosity. It’s highly tempting to click through to the site and see if there are any products of interest. Remember, the job of the email is to get a contact to the site.

+44 (0)20 7812 6475 bronto.co.uk

In this message snippet from Petit Bateau, we are not only invited to see a sneak peek on what the spring could offer but also videos from a guest host. The call to action, “Get the gossip,” is great. It reinforces the idea that this is something exclusive and that the reader gets something that others do not.

Harrods has a very straightforward “Fashion Sale Preview”. Again, holding back any product images to invite some curiosity is a strong technique. They’ve also set a time table that gives a sence of urgency.

+44 (0)20 7812 6475 bronto.co.uk

Style GuidesWhat to wear with what? When done right, it feels like you have a personal message from a stylist. Style guides not only give you an opportunity to show off products, but they also allow you to communicate your brand’s voice.

In this Red and Black example from Mr Porter, we see a simple image and call to action at the top. As you scroll down, you get so much more. This message is not promoting just a product from Mr Porter. It is promoting a trend. By aligning the products with a trend and pop culture references, the products have now become a necessary means to an end. Now you have your audience wanting the trend, and it just so happens your product lines up perfectly. This is a great way to cross that sell into accessories.

Showing off how to use a product in retail is almost always a good idea. In fashion, it’s critical. You can add so much more to the message by showing your audience how to wear your items. This not only gives them ideas on what to buy, but it also gives them confidence in buying a product. This Harvey Nichols “Get Layered” message lays out “instructions” on how to wear the products but still gives people options so that different tastes can be taken into consideration. The quotes around ‘styling tips’ are especially nice.

+44 (0)20 7812 6475 bronto.co.uk

Very Important PeopleYour VIPs are those special people you see in your store all the time. You know their names, what they like, and that they will leave with bags full of your products. How can you translate this to your email program? Use your past purchase data to identify those who shop regularly and are consistently high spenders. Your RFM (recency, frequency, monetary value) metrics will allow you to find and target a specific segment of your list.

You need to decide where to draw the line on who is a VIP, but once you do, you will have found a group that deserves your special attention. For example, this might be anyone who has made multiple purchases in the last six months and has a higher average order value and total lifetime revenue than your average shopper.

VIPs expect to be treated differently; they want to be rewarded; they want a deeper connection, and they want exclusive access to the best customer service and deals.

In this “VIP Only” message from Childs Play, we see that not only are they acknowledging that this is an exclusive email but that the recipient is also getting a discount that others are not.

In this example from Versace, there are two strong value statements. One announces that this is a “VIP” event, the other that this is a “pre-sale” event. Both of these statements make use of exclusivity to tempt the contact into clicking through. Maybe not the most visually stunning email Versace has ever produced, but it carries a strong message.

+44 (0)20 7812 6475 bronto.co.uk

What sorts of perks could you offer your VIPs?

Quick easy wins with lifecycle marketingMake your messaging more relevant by basing them on contact data or events – activities done by your contacts that trigger a message to be sent. Customers tend to follow a certain lifecycle and below are some key messages that align with that lifecycle. This should be part of any fashion retailer’s email program:

Welcome MessagesA welcome message is a prime example of a simple automated message that helps you start a relationship on the right foot. The welcome message or series of messages is triggered when a contact subscribes to your email program. These messages typically introduce the subscriber to your brand and content. They might also describe the different ways they can shop and could move someone towards that first purchase.

• Personal shopping

• Dedicated customer support

• Sneak peeks

• Extended sales

• Exclusive events

• Faster shipping

• Limited edition access

Welcome messages typically see open rates anywhere from 40-60% meaning that it can be one of the most valuable messages you send to a prospective customer. This Dorothy Perkins message is strong and sets a great tone for future messages. There is an incentive and it is not hidden with a call to action to return to the site. There is a plea to be whitelisted and a simple bullet point list of the values of shopping online. It even has a security reminder at the bottom to round everything out. However, I do need to point out that the discount code is placed in an image. Someone who did not turn on images would not see it (which may not be an issue as enabling images automatically is becoming more accepted). Also, it’s very easy for someone to mistype the code at checkout (is that a 1 or an I?). We typically see lower conversion rates and higher abandonment rates with incentive codes only found in the hero image of the message.

+44 (0)20 7812 6475 bronto.co.uk

This welcome message from Lipsy is very effective. It is easily read with images on or off. The discount code is not hidden anywhere, and they offer up strong value statements. However, considering the brands, I would come up with a stronger piece of copy at the top. “Newsletter Sign-up” is practical and makes sense, but Lipsy is not a practical brand. They are a sexy, feminine, celebrity -endorsed brand. I think they could get away with something a little spicier.

Ok Primark, I get it. You are known for having a low price point. That is no reason to look cheap! This is a double opt-in sign-up so obviously the focus needs to be on the subscribe link. But could we add in some branding? Maybe a value statement? Even an example of a future message?

House of Fraser takes on some of the same great attributes we saw in the Dorothy Perkins example. It welcomes the contact, sets expectations, asks for the whitelist and gives strong value statements in the form of bullet points.

This message does not include an incentive, but it is showing the value of the email program and does a great job of tempting people back to the site with a bit of eye candy.

+44 (0)20 7812 6475 bronto.co.uk

Birthday MessagesEach year on my birthday (September 4th for anyone interested), I am always disappointed in the lack of birthday emails I get from retailers. It’s such a simple campaign to set up and it often drives sales. (It’s my birthday and I’m in the mood to buy). It’s a simple date-based trigger that is easy to set up and has a huge return.

Implement these programs and what do you get?Increased sales, brand loyalty and being seen as a more sophisticated, ‘with it’ brand who knows and cares about its audience. Your audience develops a relationship with you that they do not have with your competition. Warm fuzzies aside, these programs can really impact the choices people make on where to buy products like clothes, shoes and jewelry.

The beauty of the birthday message is that it’s simple. Great example here again from Dorothy Perkins. The message hits on a very strong point. “Whatever you have planned... it’s important you look your best.” This is a great statement because it feeds into the common practice of celebrating one’s birthday by going out with friends. Knowing their audience, statements like this are helpful because it backs up the desire to buy something.

This birthday example from Hudson Shoes makes sure to hit hard on the value of the birthday incentive by also reminding the contact that they have free shipping and that the contact should ‘treat themselves.’ For fashion retailers, the birthday message is that perfect excuse to splurge on one’s self. This is why they typically see a higher AOV as well!

+44 (0)20 7812 6475 bronto.co.uk

Stay Tech Savvy Nearly half of all emails (48%) are opened on mobile devices, and this figure continues to rise rapidly. What’s more, in a recent Bronto Software paper, “Responsive Design Provides the Perfect Fit,” we reported that a Google study showed 85% of consumers will start shopping on one device and finish on another. What does this mean for you? Your audience IS looking at their phones all day, and chances are they filter their emails on it. They are also likely to device-hop while shopping. If you’re not already doing it, you need to put your best foot forward with responsive design or another mobile-focused design strategy.

Responsive design, which adjusts the email to fit the device being used to view it, is a popular choice. This is not to be confused with adaptive design, which is where you design multiple versions of your email or site and serve up the appropriate one based on the device being used by the viewer. Both have their pluses and minuses. Either way, the point is that your audience wants to see the clothes/shoes/jewelry! They want to see how it is styled, what to wear it with, etc.

To a shopper, it does not matter if they are looking at your email on a phone, tablet or desktop. They expect to be able to see the product. If you can not give that to them, they are likely to lose interest and go somewhere else.

Hudson Shoes has gone with a different approach while still using responsive design. This message is product focused, and therefore, the product image is taking up as much room on the phone as possible. Being able to see the products clearly and in detail is an obvious benefit to responsive design.

Toms has done a great job translating this multipart message into a simple and easy to read mobile message using responsive design. Note that images have been made to fit the screen and call to action buttons are made larger.

+44 (0)20 7812 6475 bronto.co.uk

Foster Customer Loyalty Imagine that you are in a shop buying a coat. You like the store and many of its products, but today you only want to purchase the coat. At the checkout, one of two things happens. Which one would get you to come back to the shop?

• The clerk helps you bag up your item quickly and efficiently. You pay and are out the door.

• The clerk helps you bag up your items quickly and efficiently, and as you are swiping your credit card or signing the receipt, the clerk hands you a little card that will give you 20% off your purchase next month.

The second scenario sounds better, doesnt’ it? The little extra effort makes a difference. This is a common technique in brick and mortars, but why not apply it to your online buyers?

You spend so much money on acquiring customers and encouraging them to make that first purchase, but do you ever see them again? Only 5% of a site’s new visitors will return, and only 3% will purchase again. You can improve these percentages by proactively reaching out to your shoppers in a targeted way. (Again, if you have access to your past purchase data in your marketing platform, then you can trigger a drip campaign to go out to your customers after purchase. Use the data to customise the campaign or message in a way that will encourage them to interact with you after a purchase.)

Give customers a reason to come back to shop again, review the product they have purchased, or tell friends about their experience. You might even show them how to care for the product they purchased. These are all messages you could develop for a fashion-focused post-purchase series.

Erin Fetherston employs a simple yet effective post-purchase message to encourage customers to come back again and make a future purchase.

+44 (0)20 7812 6475 bronto.co.uk

Again, these types of messages can be easily automated and populated with unique information based on what the customer purchased. This makes them more targeted and effective.

The second is a message that goes out to a lapsed purchaser. Still utlising the post purchase data, this message is triggered after a customer goes x many days without purchasing again.

These are two post-purchase messages from JustFab.com. The first asks for a product review. It includes the product image and a big clickable button to lead the customer back to the site to complete the review.

+44 (0)20 7812 6475 bronto.co.uk

Wrapping upThere are a number of things that fashion retailers should be doing to optimise their marketing programs and drive more first-time and repeat purchases. Throughout the customer lifecycle, from acquisition to loyal customer, you have opportunities to stand apart from your competition. With relevant and timely messages, you will increase your brand awareness and customer loyalty. By using connected data and automation to target and customise your messages, you are likely to improve the interactions with your brand and deliver more revenue via digital channels.

Specific takeaways:• Review and optimise your site sign-up to maximise

your email list growth

• Identify other touchpoints where you could gather more contacts

• Be relevant by first understanding your audience’s needs and expectations and then creating automated lifecycle messages that suit them

• Create and develop messaging specifically for a fashion consumer which will help you stand out from your competition

• Stay tech savvy. Make sure you keep up with the times so that your contacts can view your messaging on any device

• Your buyers have taken the important step of making a first purchase, so treat them well and see them return for more

Trends in both fashion and communication will continue to evolve. Those who are aware and who adapt will continue to see success. So what changes will you make to your program this year?

About BrontoBronto Software provides a cloud-based marketing platform for retailers to drive revenue through their email, mobile and social campaigns. The platform is used by over 1000 organisations worldwide, including Armani Exchange, Samsonite, Hostelworld, Direct Golf and Moda in Pelle. Bronto is the leading self-service email marketing provider to the Internet Retailer Top 1000. The company is headquartered in Durham, North Carolina with offices in London and Sydney. For more information, visit bronto.co.uk.