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When e-mail list subscribers lose interest and open rates begin to dip, it’s time to consider a re-engagement e-mail campaign. Discover the steps taken by Dungarees.net to run a re-engagement series targeted to their inactive subscribers and the data that was gathered in the process. Learn the techniques proven to successfully bring your customers back to life, including how to properly clean your list, create engaging content, and optimize for opens, clicks and conversions, while also gaining insight into the common pitfalls to avoid. Several techniques will be discussed that can be used to analyze the collected data and determine the success of your campaign.
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Bring Your Customers Back From the Dead …Unless they are actually dead.
Dungarees.net
We sell more than pants.
Retailer of work apparel & footwear
2000 – Opened two retail locations
(Columbia & St. Louis, Missouri)
2004 – Launched Dungarees.net
Double digit growth every year since going online
Internet Top 500 Company
What you should take away
§ How long you should wait before you Re-Engage a customer
§ Optimizing for Opens, Clicks or Conversions & what’s the difference
§ How to analyze the data to determine the true Re-Engagement ROI
§ Common Pitfalls to avoid
§ When you should not try to Re-Engage
Bring Your Customers Back And Keep them Back
What is Email Re-Engagement?
Bringing back subscribers that are no longer active on your site or on your email list.
§ Some of these contacts may have NEVER even been to your site or purchased.
§ Generally involves better incentives than you would offer active subscribers
Why Do Customers Become Disengaged?
§ Emailing too often
§ Not emailing enough
§ Not emailing them with relevant or personalized messages
§ Not offering them a good incentive to make a purchase
§ Going to their SPAM folder
§ They only subscribed to get initial offer
§ They truly are dead!
Why You Should Clean Your List
§ Lower your cost of Email Marketing
If You’re Paying… 1 Send Per Week 2 Sends Per Week
$2 Per Thousand Sends $5,200 $10,400
$3 Per Thousand Sends $7,800 $15,600
$4 Per Thousand Sends $10,400 $20,800
§ Increase Sender Rating
For a list with 50K unengaged email addresses
Calculation: ( (unengaged) * (sends per week) * (cost per thousand) * 52 ) / 1,000
How Often Should You Clean Your List?
§ What type of products do you sell?
§ What is your email frequency?
§ There are customers that do continue to purchase but do not open emails
Why Should You Try Re-Engaging?
§ You’ve made improvements that you feel can turn the inactive subscriber into an engaged customer.
§ You have something else to offer them that you couldn’t when they became inactive
Re-Engagement Strategies
1. Optimizing for Opens
Goal:
§ Focus on getting the customer to open the email
§ Best to use if you are planning on moving any opens back to your email list
§ Clever, attention-grabbing subject line
§ Offer in subject line
Re-Engagement Strategies
1. Optimizing for Opens
2. Optimizing for Clicks
Goal:
§ Focus on getting the customer to your site
§ Best to use if you are planning on moving clicks back to your active list
§ Engaging content. Test both putting the offer on the email or trying a “Click here to receive offer” in your email content
Re-Engagement Strategies
1. Optimizing for Opens
2. Optimizing for Clicks
3. Optimizing for Conversions
Goal:
§ Focus on getting the customer to convert
§ Good if only moving conversion back to active list
§ Make as good of an incentive that you feel you can afford
§ Put incentive directly on the email
Pitfalls to Avoid
§ Cleaning your list prematurely
§ Sending to customers that convert but don’t open
§ Not offering enough incentive
§ Allowing too long of an expiration on the code and not making immediate call to action
Dungarees’
Re-Engagement Strategy
Why We Wanted to Re-Engage?
§ We felt there were revenue opportunities on the inactive list
Goals:
§ To get the subscriber to Convert
§ Test variations so we had good data on future re-engagement campaigns
§ Won’t know full ROI until we analyze in a few months
Our Re-Engagement Strategy
3-Part Series
§ 25 Percent Off
§ Free Gift
§ “Dungarees is Awesome”
§ Also, we will send one more email during our peak time and then a final, you will be removed from our list email.
Data & Results
Our Re-Engagement List
§ Orders per subscriber…
1 Year 2 Years 3+ Years Never
32% 26% 30% 12%
§ We have cleaned our list 3 times
§ January 2010, March 2012, November 2012
§ Each time removing by “Hasn’t opened last 50 emails”
§ Hadn’t converted in…
1 2 - 5 6 - 10 10+ None
68% 19% <1% <1% 12%
25 Percent Off Series
§ Wanted to get the best offer possible that we felt we could give.
§ Break-even scenario on initial orders
25 Percent Off Series
§ “Save 25% On Your Next Carhartt Order”
§ “Best Carhartt Discount We’ve Ever Given”
§ “Save 25% On Your Next Carhartt Order – No Minimum”
25 Percent Off Series
§ “Save 25% On Your Next Carhartt Order” – 4.25%
§ “Best Carhartt Discount We’ve Ever Given” – 5.68%
§ “Save 25% On Your Next Carhartt Order – No Minimum” – 3.66%
Delivery Rate Open Rate Click Rate Conv. Rate Orders Per Thousand
94% 6% 34% 14% 2.7
§ 25% Off $100 or 15% Off Any Purchase
Delivery Rate Open Rate Click Rate Conv. Rate Orders Per Thousand
94% 6% 28% 8% 1.5
Gift With Purchase Series
§ For customers that might be more enticed with a giveaway.
§ Not quite as good of a deal as the % Off
Gift With Purchase Series
§ “We’ve Missed You, Come Get Your Free Gift”
§ “Come Back and Get Your Free Gift”
§ “Haven’t Seen You Around For a While, Come Get Your Free Gift”
Gift With Purchase Series
§ “We’ve Missed You, Come Get Your Free Gift” – 5.21%
§ “Come Back and Get Your Free Gift” – 4.75%
§ “Haven’t Seen You Around For a While, Come Get Your Free Gift” – 3.75%
Delivery Rate Open Rate Click Rate Conv. Rate Orders Per Thousand
99% 6% 18% 9% 0.7
“Dungarees is Awesome” Series
§ Show the subscriber all the benefits of being a Dungarees customer
§ No immediate offer that is exclusive to the email
“Dungarees is Awesome” Series
§ “We’ve Missed You” – No Offer
Delivery Rate Open Rate Click Rate Conv. Rate Orders Per Thousand
99% 5% 15% 13% 1.0
§ “Free Shipping On Any Purchase”
Delivery Rate Open Rate Click Rate Conv. Rate Orders Per Thousand
99% 4% 14% 7% 0.4
§ “We’ve Missed You” – Free Shipping
Delivery Rate Open Rate Click Rate Conv. Rate Orders Per Thousand
99% 7% 17% 5% 0.6
Comparison
Typical Marketing 99% 21% 26% 5% 2.7
Series Delivery Rate
Open Rate
Click Rate
Conv. Rate
Orders Per Thousand
Percent Off 94% 6% 32% 12% 2.4
Gift w/ Purchase 99% 6% 18% 9% 0.7
Dungarees is Awesome 99% 5% 16% 10% 0.8
Breakdown
§ Sample from a recent marketing email
1 Year 2 Years 3+ Years Never
Sent 32% 26% 30% 12%
Conv. 46% 26% 27% 0%
§ Hadn’t converted in…
0-6mo 7-12mo 1 Year 2 Years 3+ Years None
Sent 42% 14% 21% 9% 5% 9%
Conv. 58% 15% 12% 3% 2% 10%
Breakdown
§ Orders per subscriber…
1 2 - 5 6 - 10 10+ None
Sent 68% 19% <1% <1% 12%
Conv. 47% 52% <1% <1% 0%
§ Sample from a recent marketing email
1 2 - 5 6 - 10 10+ None
Sent 59% 31% 3% 1% 7%
Conv. 40% 45% 9% 3% 3%
Conclusion
§ Make sure the subscriber is truly inactive
§ Decide your strategy
§ Give the best deal you can, even if you break even
§ Consider different incentives for different customers
§ Keep your campaigns controlled with short time frames
§ Focus on the Lifetime Value of the customer
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