Integrating Email and Web Analytics Data to Boost Conversion Rates

Matthew Kritzer

Director of Ecommerce,

L’Occitane en Provence

Monday, March 16, 2009

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L’Occitane en Provence – Who we are

Pronounced LOX-EE-TAHN

High-end lifestyle brand selling natural beauty products devoted to well-

being and the pleasure of taking care of oneself

Founded in 1976 in Southern France Worldwide sales in excess of €400 million

Privately held

Business presence in 70 countries

Diverse product line

Core US business units: Retail, Wholesale, Direct, B2B, Spa

Enthusiastic customer base that loves to talk!

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Existing Email Strategy

Newsletters are deployed 1-3 times / week Campaign-focused (“Say & Spray”)

Free Shipping, Gift With Purchase offers

Blasts mirror the boutique marketing calendar

Boutique event emails sent to local audiences

Successful Email Strategies Last minute reminders on offers

Building excitement through campaigns

Testimonial creative

Inactive segmentation

Triggered Messages: Welcome Sequence (2 touches with incentive)

Abandoned Cart

Total mailable DB size: ~800,000

Active list size: ~250,000

Inactive list size: ~550,000

Avg. open rate: 10.00%

Avg. unique click rate: 1.30%

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Challenge: How do we increase engagement?

Why is relevance important? Increase in email frequency reaching point of diminishing returns

Inbox clutter is on the rise / consumer attitude is changing

Increased consumer engagement, revenue and ROI

Ability to fully utilize all marketing offers

How did we become more relevant? Smart segmentation

Testing

Why did we improve our segmentation? Broad lists decrease relevancy

Impersonal email blasts result in decreased interest, engagement & profitability

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Capturing Web Behavior Data andIntegrating It with Email

Capturing Web Behavior WITH Email Activity for users that have registered is

captured via analytics vendor cookie

Integrating with the Email vendor Daily feeds with product-level data:

• Browsed

• Abandoned

• Carted

• Purchased

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Using Web Behavior Data in Emails

Selected campaigns to run tests: Mother’s day Campaign (May 2008)

Shea Butter & Valentine’s Day (January 2009)

Note: The volume mailed using web behavior data was small (less than

10k) due to the level of granularity and timeframe used.

These volumes can be increased: By enlarging the line of products selected

By extending the timeframe

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Browsed Master list

Segment

DescriptionBrowsed < 90 days

Master subscriber list.

Browsed seg. was suppressed

Volume 5,175 678,487

Subject LineMother’s Day Gift Sets to

Celebrate + Free Shipping Offer

Mother’s Day Gift Sets to Celebrate

+ Free Shipping Offer

Main CTA Gift Sets for Mother’s day Gift Sets for Mother’s day

2nd CTACreate your own custom gift set

Items recently browsed were

published

Ensure On-time Delivery for

Mother's Day

Various shipping options detailed.

Browsed Master

Open Rate* 31.1% 8.8%

Unique Click

Rate**11.4% 0.7%

Revenue $3,672 $23,531

Conversion

Rate***0.87% 0.04%

$/ Total

Mailed ****

$0.71 /

email sent

$0.03 /

email sent

Browsed Segment Master List Segment

Emails sent to “browsed” segment

were 23 more times more

profitable than emails sent to the

overall list.

* HTML only

** Number of e-mail messages recipients who clicked through on at least one

URL link within the e-mail as a percent of Net Delivered

***Conversion rate: # of unique conversions as a percent of net delivered

**** $ / Total Mailed: Total revenue generated divided by total volume mailed

Mother’s Day Campaign

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Browsed Segment Master List Segment

Mother’s Day Campaign

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The Skincare segment had

8,433 records

4% of the ACTIVE mailed volume

The revenue it generated is

¼ of the revenue generated by

the ACTIVE segment

Skincare Active

Segment

Description

Browsed/Purchased/Carted

Skincare Products < 90 days

Welcome emails received < 3

months; clicked on emails < 6

months

Volume 8,433 210,453

Subject LineExclusive Skincare Offer &

FREE Shipping on $40+

Great Values for Valentines &

FREE Shipping on $40+

Main CTA Shea Butter & Valentines Shea Butter & Valentines

2nd CTA Skincare GWPBag & hand cream GWP

Skincare Active

Open Rate* 37.5% 14.7%

Unique Click

Rate**14.5% 2.4%

Revenue $7,419 $23,465

Conversion

Rate***1.07% 0.14%

$/ Total

Mailed ****

$0.88 /

email sent

$0.11 /

email sent

Skincare Segment Active Segment

* HTML only

** Number of e-mail messages recipients who clicked through on at least one

URL link within the e-mail as a percent of Net Delivered

***Conversion rate: # of unique conversions as a percent of net delivered

**** $ / Total Mailed: Total revenue generated divided by total volume mailed

Shea Butter Campaign

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Skincare Segment Active Segment

Shea Butter Campaign

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Using the Abandoned Cart Behavior data…

… to create an Abandoned Cart Trigger!

Message business objectives Capture missed sales with a “soft” touch

Encourage writing of testimonials

Business Rules: Abandoned item/cart 7 days ago with no subsequent item purchase

Have not purchased in the past 14 days

Have not received the Abandoned Cart message in the past 50 days

Include up to 3 abandoned products

Site-level promotions managed in a separate module

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Abandoned Cart Results

Open Rate* 46.5%

Unique Click

Rate**10.4%

Conversion

Rate***0.86%

$/ Total Mailed

****

$0.84 /

email sent

* HTML only

** Number of e-mail messages recipients who clicked through on at least one

URL link within the e-mail as a percent of Net Delivered

***Conversion rate: # of unique conversions as a percent of net delivered

**** $ / Total Mailed: Total revenue generated divided by total volume mailed

Subject Line: “Still interested? L’OCCITANE fans have

commented on products that may interest you”

Implemented in late January ’09

30% of the implementation cost

was recovered after 20 days

Unsub rate remained constant

Flexible Ad slots in creative

allow for up to date promotions

to be included

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Learnings & Next Steps

Learnings Analytics integration is key for successful email segmentation

Increased segmentation yields a higher ROI

Segmentation enables email to be more relevant and engaging

Segmentation allows for greater promotional possibilities

More Testing! Incentive tests > Are they necessary? Are they more profitable?

Creative placement tests > How much additional creative is necessary?

Determining “best” segments (i.e. Abandoned vs. browsed)

Abandoned Cart Program: Next steps Messaging test (i.e. “You have product A in your cart” vs. “Products you were interested about”)

Timing tests (i.e. 7 days after abandonment vs. 3 days)

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Credits/Thank You

Matt Kritzer, L’Occitane En Provence

mkritzer@loccitane.net

e-Dialog

www.e-Dialog.com

Coremetrics

www.Coremetrics.com