Next Generation Email Marketing

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Next Generation Email Marketing

• eMarketing Conference
• Bill Nussey, CEO Silverpop
• April 25, 2006

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Relevance
Timing is the ultimate form of targeting Event
triggers and lifecycle email marketing
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Email Marketing Is All About Relevance
Biggest E-Mail Marketing Challenges according to
US Companies
MarketingProfs.com, June 2004
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But Relevance Remains a Low Priority Among
Marketers
Top Three Most Important Aspects of E-mail
Marketing Campaigns
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The Three Levels of Email Relevance
Level 1
Level 2
Level 3
Every recipient is treated the same
Recipients are broken into groups
Every individual is treated uniquely
Blast Personalization
Blast Personalization Segmentation Dynamic
content
Blast Personalization Segmentation Dynamic
content Event triggers Lifecycle campaigns
Level 1 and 2 follow a marketers schedule. Level
3 marketers time their messages around their
customers one at a time.
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Few Marketers Employ Time-based (Level 3) Messages

• Most Marketers Use Static Frequency Techniques

Static Frequency
JupiterResearch, 2005
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The Traditional Email Marketing Approach
Jan
Feb
Mar
Apr
May
Traditional email marketing campaigns start with
a marketing-driven idea and seek to find the
highest number of recipients who will find it
valuable (targeting).
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Customer Lifecycle A Better Marketing Approach
Engaged
Inactive
Interested
The person has made a commitment and is now
actively involved with the brand. She expects
communications and (potentially)
promotions. For sales cycles, this person is
now a customer.
The lifecycle has ended and the person is no
longer seeking a relationship.
The person has some interest, possibly
demonstrated through an action, but they are not
currently committed. For sales cycles, this
person would be called a prospect.
Lifecycle marketing is built on the idea that
customers have entirely different views of a
company at different points in time.
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Comparing Lifecycle and Traditional Email
Marketing
Jan
Feb
Mar
Apr
May
Engaged
Inactive
Interested
Every person, regardless of their interest and
lifecycle stage, gets the exact same message.
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Customer Lifecycle Goals Change For Each Stage
Engaged
Inactive
Interested
Goals
Goals
Goals

• Maintain purchases
• Increase purchases
• Improve loyalty retention
• Recommend to a friend
• Service customer efficiently

• Understand concerns
• Restart purchases
• Prevent switching

• Make a purchase
• Visit site
• Opt-in
• Visit retail location

Each lifecycle stage should have unique goals
that align with the customers mindset.
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Customer Lifecycle Campaigns Match Lifecycle
Stage
Engaged
Inactive
Interested
Service
Grow
Convert
Re-engage

• Survey
• Incentive to re-visit web site
• Promotion to re-engage purchases

• Welcome message
• Education campaign
• Lead warming
• Promotion for first purchase

• Cart abandon
• Receipts
• Renewal notices
• Service alerts
• Survey
• Upcoming event reminder
• Educational curriculum campaign

• Replenishments
• Anniversary / Bday promotions
• Top customer promotions
• Targeting based on website page visits
• Targeted ad in a receipt

There are a significant number campaigns that can
be used in each lifecycle stage.
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Customer Lifecycle vs. Traditional Blasting
Jan
Feb
Mar
Apr
May
Jun
Traditional Broadcast Campaign
Lifecycle Campaign
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Case Studies Metrics
Converting Interested Prospects

• Mazdas handraiser program uses highly
  personalized follow up messages for interested
  prospects
• Hundreds of potential permutations of each
  message so that every model can be included in
  the program
• The program blows away industry averaged with
  open rates above 80 and click-throughs above 40

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Case Studies Metrics
Servicing Engaged Customers

• Indigo Hotels, a new hotel chain from
  InterContinental, regularly sees a significant
  drop in no shows when they send reminder emails
  a few days before a reservation
• Babycenter sees 35 of its store sales driven
  directly off its newsletter, My Baby This Week.
  
• The newsletter content to is tailored to the time
  in a womans pregnancy. For instance, week 12 of
  a pregnancy might include an article on how the
  babys heartbeat can be detected.

Case study from MarketingSherpa
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Case Studies Metrics
Growing Engaged Customers

• A large office supply company has had unmatched
  response rates after sending ink jet cartridge
  offers a few months after the matching inkjet
  printer is purchased.
• Sky broadcasting in Britain sends personalized
  alerts based on each viewers individualized
  preferences
• By tailoring content to a viewers stated
  interests, they are able to dramatically reduce
  churn and upsell additional content and services

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Case Studies Metrics
Re-engaging Inactive Customers

• Earthlink ties call-center and billing
  information to customized email campaigns
• Promotional messages offering incentives for
  unsatisfied or departing customers to return to
  Earthlink
• The numbers are not public but the program has an
  enormous ROI

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Adoption of Highly Targeted Campaigns Remains Low

• Types of Marketing Campaigns Used by Promotional
  Marketers

JupiterResearch, 2005
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Lifecycle Campaigns Outperform Other Campaign
Types
Percentage of Marketers Achieving 5 or Greater
Conversion Rate
JupiterResearch, 2005
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Benefits of Lifecycle Campaigns over Broadcast
Mailings

• Lifecycle campaigns on average generate a 5X
  improvement in revenue
• Triggered campaigns on average generate a 7X
  improvement in net profit
• Targeted email leveraging Web site click-stream
  on average generate a 9X improvement in revenue

Triggered Campaigns On Average Generate a
Seven-Time Improvement in Net Profit Over
Broadcast Mailings
Campaign Type Broadcast Triggered Lifecycle Targeted Web-site Click-Stream
Primary Targeting Tactic Used None, no personalization or segmentation Shopping cart abandon message Product replenishment message Segmented, dynamic content Click-stream web analytics based targeting
Avg. Unique Open Rate 20 27 26 30 33
Avg. Click Through Rate 9.5 9.3 14 12.9 14
Avg. Conversion Rate 1.1 2.3 2.8 2.7 3.9
JupiterResearch, 2005
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Level 3 Emailing is Hard

• Why is time-based, 11 emailing so hard?
• Only a few ESPs support this out of the box today
  most require additional custom programming
• Marketers often prefer a traditional campaign
  cycle with a defined beginning and end
  time-based campaigns never stop
• Measuring ongoing campaigns often requires new
  metrics
• Solutions are becoming available quickly
• Most major vendors will support some aspects of
  this functionality in the next 12 months

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Some Tips For Starting Today

• Start acting on lifecycle data today
• Simple fields like last purchase date, opt-in
  month and 2005 revenues can easily be added to
  your existing lists and updated regularly
• These fields enable simple lifecycle marketing
  using existing, non-automated targeting
• Use triggers and event messaging
• Most ESPs can do this today
• Add in opt-in welcome messages, e-receipts and
  e-alerts
• Keep an eye out for level 3 technology
• Find out when your ESP (or in-house solution)
  will support lifecycle marketing if not today

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Questions?