Customer Engagement: The 2010 Email Marketing Imperative

Follow on Twitter:@LorenMcDonald@Silverpop

Loren McDonaldVP, Industry Relations

#4

If they were countries…

#1

Email is the #1 way consumers want to be communicated to by

businesses.

Microsoft/Hotmail

So, Email Engagement…

What’s all the fuss?

Social Media Explosion

Mobile / Small-Screen Devices

Some Consumers are Tuning Out

25% to 80%+ of your listis “inactive”

Customers Have the Last Word

“Retention is the new acquisition.”

Joseph Jaffe

The customer-led and social

revolution has ushered in…

…the need for companies to better Engage with their Customers and

Prospects…

..and Deliver the

Right Message

at the

Right Time

Because Hope is Not a Strategy

Relevant Emails Rock!

Note: Metrics and salary costs based on JupiterResearch executive survey. Broadcast assumes $3 CPM, and all others assume $4.5 CPM. All assume $89 AOV, 50 percent product margin, and 2.8 million pieces of mail per month.

3 Keys to Better Engagement

Data as the Foundation

Explicit Data

Implicit Data

Content as the Value

Automation and Rule sets as the Enablers

Data is the Foundation

No Data, No Relevance

Logical data capture

• Gender• Marital status• Age ranges on signup• Wedding anniversary• Significant other’s birth

date

26th Anniversary…and I get This?

How About Product Selection & Content that recognizes I’m:

• Male• Married• Kind of old guy • Married 26 years

Explicit and Implicit Data Types

Demographics

Psychographics / Interests

PreferencesBehavioral

SocialGraphics

Why Preference Centers?

•Demographics & interests

•Up to date/changes

Data Capture•“My

Email”

•Better retention

Subscriber Empowerment

•Preferred frequency, lists

•Basis of personalization, segmentation

Increased Relevance

Explicit Data/Preferences

Behavior-Based Segmentation

Customers• Active – Buying, opening and clicking regularly

• Semi-Active – Buying, opening and clicking

occasionally

• Inactive – No longer buying, opening and clickingProspects • Active – Opening and clicking regularly

• Semi-active – Opening and clicking

occasionally

• Inactive – No longer opening or clicking

Engaging Content

Old Rule:Sell the sizzle, not the

steak.

New Rule:Educate with grilling tips, recipes and wine pairing.

Content that is Engaging is…

Surprise & Delight

Leverage Reviews

Recommendations

Cross Sell / Upsell

Best Practice:Recommend accessory itemsor complementary items for each product in cart

Sell by Educating

Be Human – Incorporate Personality (I’m Too Sexy for My Subject Line)

Be Helpful

• Personal reviews/ comments from staff members

• While not objective, puts real people behind the products and emails

Be Relatable

“Doughboy” + Valentine = Shareworthy

Lifecycle / Automated Emails

“Set it and forget it”

Question is not What is

the optimum frequency?,

but How do we send

more relevant emails,

more often but with

fewer resources?

Triggered Emails:

3-5% of email volume45% of profits

Orbitz

Automated Email Program

Within two months of opt-in, the open rate typically

falls 20% to 25%.

Source: MarketingSherpa

Welcome emails may be the most important email

you will ever send.

Bring the Flowers

Welcome to the Tafford Community

Three Reasons You Will Love Tafford + A Special

Offer

Personalize Your Tafford Experience

2009 Welcome Series Indexed Results…

Welcome #1 Performs 6X Better!

Happy Birthday

• 52% Open Rate

• 13.8% CTR

• 10% higher conversion rate

2009 Birthday Campaign Indexed Results…

Almost 25X

better…

Product Review Email

14% of those who click place another order

Second highest conversion rate next to Abandon Cart emails.

Thank You

60% higher conversion rate than overall broadcast average

Purchase Anniversary

15% higher conversion rate than average from broadcast messages

Multiple Opportunities in the Funnel

Samples of RemarketingCategory Views /

Abandonment

Product Views

Cart Abandonmen

t

Purchase History

Product Purchased

Following up with abandoners by email

yields

up to 50% conversion.

Cart Abandonment w/ Discount

CTR 350% higher50% higher conversion rate

than broadcast

A Special Offer To

Return To Tafford

Did You Forget

Something?

2009 Abandoned Cart Indexed Results…

25% conversion on cart abandoners.

Cart program account for almost 1/3 of TOTAL yearly email sales

First and most effective in the series sent within hours after abandonment.

Abandon Cart Emails

Rewards for Fabric.com’s Efforts

1. 35+% of revenue comes from email

2. Nearly 50% annual growth in email

revenue

3. 140% increase in conversion rate

4. More than 50% increase in visitors

5. 7% increase in avg. order value

Are You Engaged With Your Subscribers?

Resources

• Resource Center– White papers– Webinars– Blogs– Case studies– Newsletters– http://www.silverpop.com/marketing-resources/index.ht

ml

• Many presentations on SlideShare– www.slideshare.net/Silverpop

Thank you!

On Twitter: @Silverpopwww.slideshare.net/silverpop

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