Evolving Your Email Targeting for Increased Revenue
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This document discusses the evolution of email marketing targeting strategies to enhance revenue through better data utilization and predictive analytics. It highlights the importance of understanding consumer expectations, collecting detailed data, and employing tailored marketing approaches to achieve higher engagement rates. Key recommendations include developing comprehensive profiling strategies, employing ready-to-deploy models, and integrating analytics into marketing practices for improved results.
Evolving Your Email Targeting for Increased Revenue
- 1. Evolving your email targeting for increased revenue Julie Anne Reda VP of Product Strategy, Yesmail Stephen Yu VP of Data Strategies, Infogroup
- 2. What We Will Cover Today • The marketing landscape • The evolution of targeting • Next Steps / Takeaways Yesmail Confidential 2
- 3. Consumers have changed… Yesmail Confidential 3
- 4. Standards are higher Source: DMA, Jan 2012; MyBuys & eTailing Group, June 2011 Yesmail Confidential 4
- 5. Most Desired Marketing Capability 97% of marketers said the following was highly or somewhat valuable • better targeting through more detailed customer preferences • delivering real-time personalized offers Source: RSR Research, Dec 2011 Yesmail Confidential 5
- 6. Consumers’ expectations for marketing Yesmail Confidential 6
- 7. To use data successful, marketers must Excel in: 1. Data Collection 2. Data Refinement 3. Data Delivery Provide marketing answers, not just data To be effective you must know how to wield the power of all available data faster. Yesmail Confidential 7
- 8. Example – StudentBeans.com • UK-based student portal • Welcome campaign based on offers • Offers selection criteria – Popularity – Profitability • Customized on – Sex of the subscriber – Location Source: MarketingSherpa Yesmail Confidential 8
- 9. Example – StudentBeans.com Use Orange Links instead of Blue 33.9% increase in click-through rate for men (up from 4.49% to 6.01%) Negligible increase in click-through rate for women Yesmail Confidential 9
- 10. But getting a clear picture is difficult… Yesmail Confidential 10
- 11. 74% of marketers are collecting demographic data 64% are collecting transactional data But…. Source: BRITE and NYAMA, Marketing ROI in the Era of Big Data, Yesmail Confidential 11 Mar 2012
- 12. Challenges Source: BRITE and NYAMA, Marketing ROI in the Era of Big Data, Mar 2012 Yesmail Confidential 12
- 13. Not only that…. Yesmail Confidential 13
- 14. Evolution of Targeting • Demographic • Attitudinal • Transactional • Predictive Yesmail Confidential 14
- 16. The Power of Prediction Marketing Programs that use predictive analytics receive – 76% increase in click-through rate – 73% increment sales lift Source: Aberdeen Group, Predictive Analytics for Sales and Marketing, Jan 2012 Yesmail Confidential 16
- 17. • No guessing game – You MUST know your target • Vast amount of online & offline data collected But are they being used properly? Yesmail Confidential 17
- 18. • Analytics play a huge roles in prospecting & CRM • Short paced marketing cycle getting shorter • Huge difference between advanced marketers and those who are falling behind Winners are the ones who wield the power of all available data faster. Yesmail Confidential 18
- 19. “Analytics” means different things… • BI (Business Intelligence) Reporting • Descriptive Analytics • Predictive Modeling • Optimization Predictive Modeling for 1-to-1 Marketing Yesmail Confidential 19
- 20. Why Model • Increase Targeting Accuracy • Reduce costs by contacting less/smart • Stay relevant • Consistent results • Reveal hidden patterns in data • Repeatable – key for automation • Expandable • “Supposedly” save time and effort Yesmail Confidential 20
- 21. Why not • Universe is too small • Predictable data not available • 1-to-1 marketing channels not in plan • Tight budget • Lack of resources Yesmail Confidential 21
- 22. Common Barriers to Analytics and Modeling Are not familiar with selection or modeling techniques • Just need marketing answers Have a limited budget • Can’t afford expensive custom models Don’t have time to develop custom models • Tight deadlines but still need campaigns to perform Employ non-traditional and online channels • Need new forms of data delivery Yesmail Confidential 22
- 23. TargetReady Models • Games are different now • Not ranking “Customers” for 1 Merchant at a time any more • Customize offers & products for 1 Customer at a time now • Speed is the name of the game • Pre-built “Marketing Answers” for Immediate Delivery • Categorical Models TargetReady Models: Pre-developed categorical models that are ready for immediate deployment Yesmail Confidential 23
- 24. Key Benefits of TargetReady Models • Provide “Marketing Answers”: No need for users to plow through sea of data • Extensive Category List & Coverage: Covers Behavioral & Attitudinal Elements (over 90 categories) A score for every household, for every category • Pre-built for Immediate Deployment: No time to wait for custom models • Significant Cost Savings: No upfront development cost, pay as you use it • Simple to Use: 9 means good, 0 means bad Yesmail Confidential 24
- 25. TargetReady Models: Perfect balance Yesmail Confidential 25
- 26. Example of TargetReady Models 26 Yesmail Confidential 26
- 27. Next Steps
- 28. Building a Better Targeting Program 1. Build a comprehensive and progressive profiling strategy and process 2. Use analytics to match profiles to content and desired behavior 3. Test for statistical significance 4. Optimize automation 5. Repeat Be subtle! Yesmail Confidential 28
- 29. Introducing Personalization Ready Models • Data service provided in conjunction with Infogroup • Industry-specific bundles • Benefits – Convenience – Frequently updated – Includes TargetReady • Predictive attributes without the cost Yesmail Confidential 29
- 30. Target in confidence • Trusted 85% of Fortune 100 • Derived from Infogroup’s Consumer Database • Permission based and publically available data • Consumer database is updated every month – Over 100 attributes – 210 million individuals within 115 M households Yesmail Confidential 30
- 31. Conclusion 1 Start Small 2 Test and Repeat 3 Integrate into Overall Program Yesmail Confidential 31
- 32. Thank you! Questions? – Marketing@yesmail.com