Knocking down the Email Strategy barrier
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The document discusses the barriers to effective email marketing and outlines strategies to enhance email marketing objectives, such as database growth and customer retention. It emphasizes the importance of customer segmentation, managing opt-outs, and optimizing contact policies while leveraging data analysis for campaign efficiency. Key areas include the value proposition of emails, mapping customer journeys, and the process of continuous optimization and testing.
Knocking down the Email Strategy barrier
- 1. Knocking down the Email Strategy barrier Tim Watson
- 2. Why this session? What do you view as the main barriers to effective email marketing? Econsultancy Email Census 2012
- 3. A little bit about me
- 5. Business objectives May-2012 Jun-2012 … May June … July Jun-2013 August
- 6. 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
- 7. Email marketing hierarchy Business and Goal setting marketing Value and objectives evaluation Contact & Relevance Message, copy & creative Deliverability & Governance and integration permission management
- 8. Email marketing hierarchy Business and marketing objectives
- 9. Email marketing hierarchy Business and marketing objectives Deliverability & permission management
- 10. Email marketing hierarchy Business and marketing objectives Message, copy & creative Deliverability & permission management
- 11. Email marketing hierarchy Business and marketing objectives Contact & Relevance Message, copy & creative Deliverability & permission management
- 12. Email marketing hierarchy Business and marketing Value objectives Contact & Relevance Message, copy & creative Deliverability & permission management
- 13. Email marketing hierarchy Business and Goal setting marketing Value and objectives evaluation Contact & Relevance Message, copy & creative Deliverability & permission management
- 14. Email marketing hierarchy Business and Goal setting marketing Value and objectives evaluation Contact & Relevance Message, copy & creative Deliverability & Governance and integration permission management
- 15. What’s in it for me?
- 16. What’s in it for me = Value
- 17. Email value proposition • Be first to know • Special offers • Competitions • Deals and savings • Birthday gift • Convenience • New product information • Value add content • Exclusivity & privileges
- 18. Getting a head start
- 19. Give a little help
- 20. Areas of focus
- 21. Aim Steve Jobs advice: Focus on 3
- 22. How to focus and take aim
- 23. Map your customer journey Regular One purchase purchase Lapsing Prospect Signup Lapsed Scenario 1 1,000 7,000 15,000 2,000 5,000 Scenario 2 10,000 1,000 12,000 2,000 25,000
- 24. Scenario 1 vs 2 Scenario 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
- 25. 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?
- 26. 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?
- 27. 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?
- 28. Customer segmentation Photo credit: CraigMarston Flickr
- 29. Customer insight 1. Categorise products 2. Collate customer transactions by categories 3. Overlay customer profile
- 30. Transaction data drill-down Average spend per customer per segment 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 …
- 31. 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
- 32. 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
- 33. Campaign data drill down Campaign objective … Subject line … Open Click ALL 15% 5% Male 10% 4% Female 20% 7% Single 8% 2% …
- 34. Data collection
- 35. Analysis of intervals First Last Purchase purchase purchase Quantity purchases 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 84% of people who buy again will do so within period average+standard deviation. In this case 76 days.
- 36. 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.
- 37. Optimisation A or B > 20%
- 38. Have a process Define Objective Develop Execute and Create test Review what and tests and report hypotheses and why optimisation define cells results metric
- 39. Have a plan Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Subject Subject Calls to Subject Use of Time of lines. lines. action lines. images. day/day From Calls to size, Email Email of week. name. action placeme length format. copy nt. Offers.
- 40. Metrics & measurement £
- 41. How long will all this take? Very small list size 2 to 3 days Limited number of products/services Niche market Online pure play business Small to medium list 3 to 6 days Wider range of products/services with limited distinct categories Wider demographic Online pure play Medium to large list 5 to 10 days Several complementing categories of products/services Integrated marketing Online and offline Large list 10+ days Large range products Wide customer demograhpic Multi-channel integrated marketing Online and offline
- 42. Customer hierarchy Value Signup Contact & Message Relevance Message, copy & Relevance creative Deliverability & Value. What’s in it for permission management me
- 44. Thank you for listening Questions? 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/