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Tim Watson, Independent Email Marketing Consultant49% of email marketers in the recent Econsultancy Email Marketing Census 2012 said the lack of email strategy was a major barrier to effective email marketing.
Citation preview
Knocking down the Email
Strategy barrierTim Watson
Why this session?
What do you view as the main barriers to effective email marketing?
Econsultancy Email Census 2012
A little bit about me
Business objectives
May June July AugustMay-2012 Jun-2012 … … Jun-2013
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
Email marketing hierarchy
Value
Contact & Relevance
Message, copy & creative
Deliverability & permission management
Goal setting
and
evaluation
Business and
marketing
objectives
Governance and integration
Email marketing hierarchy
Business and
marketing
objectives
Email marketing hierarchy
Deliverability & permission management
Business and
marketing
objectives
Email marketing hierarchy
Message, copy & creative
Deliverability & permission management
Business and
marketing
objectives
Email marketing hierarchy
Contact & Relevance
Message, copy & creative
Deliverability & permission management
Business and
marketing
objectives
Email marketing hierarchy
Value
Contact & Relevance
Message, copy & creative
Deliverability & permission management
Business and
marketing
objectives
Email marketing hierarchy
Value
Contact & Relevance
Message, copy & creative
Deliverability & permission management
Goal setting
and
evaluation
Business and
marketing
objectives
Email marketing hierarchy
Value
Contact & Relevance
Message, copy & creative
Deliverability & permission management
Goal setting
and
evaluation
Business and
marketing
objectives
Governance and integration
What’s in
it for me?
What’s in it for me = Value
Email value proposition
• Be first to know
• Special offers
• Competitions
• Deals and savings
• Birthday gift
• Convenience
• New product information
• Value add content
• Exclusivity & privileges
Getting a head start
Give a little help
Areas of focus
Aim
Steve Jobs advice:
Focus on 3
How to focus and take aim
Map your customer journey
Signup
Prospect
One purchase
Regular purchase
Lapsing
Lapsed
1,000 7,000 15,000 2,000 5,000
10,000 1,000 12,000 2,000 25,000
Scenario 1
Scenario 2
Scenario 1 vs 2Scenario 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
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?
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?
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?
Customer segmentation
Photo credit: CraigMarston Flickr
Customer insight
1. Categorise products
2. Collate customer transactions by categories
3. Overlay customer profile
Transaction data drill-down
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 …
Average spend per customer per segment
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
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
Campaign data drill down
Campaign objective …
Subject line …
Open Click
ALL 15% 5%
Male 10% 4%
Female 20% 7%
Single 8% 2%
…
Data collection
Analysis of intervals
84% of people who buy again will do so within
period average+standard deviation. In this case
76 days.
First
purchase
Last
purchase Quantity purchases
Purchase
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
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.
Optimisation
A B
>
20%
or
Have a process
Define Objective
and optimisation
metric
Create test hypotheses
Develop tests and
define cells
Execute and report results
Review whatand why
Have a plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Subject
lines.
From
name.
Subject
lines.
Calls to
action
copy
Calls to
action
size,
placeme
nt.
Offers.
Subject
lines.
length
Use of
images.
format.
Time of
day/day
of week.
Metrics & measurement
£
How long will all this take?
Very small list size
Limited number of products/services
Niche market
Online pure play business
2 to 3 days
Small to medium list
Wider range of products/services with limited distinct categories
Wider demographic
Online pure play
3 to 6 days
Medium to large list
Several complementing categories of products/services
Integrated marketing
Online and offline
5 to 10 days
Large list
Large range products
Wide customer demograhpic
Multi-channel integrated marketing
Online and offline
10+ days
Customer hierarchy
Value
Contact & Relevance
Message, copy & creative
Deliverability & permission management
Signup
Message
Relevance
Value. What’s in it for me
Thank you for listening
Let’s connect…
– @tawatson
– http://uk.linkedin.com/in/tawatson
• Web
– www.zettasphere.com
• Blogs
– dmaemailblog.com/author/tim-watson/
– www.smartinsights.com/author/tim-watson/
Questions?