2009 email masterclass redeye 090428103814 phpapp01

1

© RedEye International Ltd 2009

E-mail Marketing Masterclass

28th April 2009

Dr Dave Chaffeywww.davechaffey.com/blog

www.davechaffey.com/presentations

2 2


The biggest challengein Email marketing?

3 3


Today’s topic:improving engagement

4 4


Today’s topics

1. Benchmarking engagement– What should I be measuring?

2. How to best target & personalise– Behavioural targeting

3. Creating a structured testing programme– What to test?– How to test?

4. What other companies are doing?– Case studies to inspire

5 5


About Dave

An e-marketing “guru”!

www.davechaffey.com/blog

Recognised by the CIM in 2004 as one of 50 people who have ‘shaped the future of marketing’ and by DTI in 2005 as a key contributor to the development of UK E-commerce in the last 10 years

Author of 6 best-selling business books

• Internet Marketing• E-business and e-commerce Mgt• Total E-mail Marketing

E-marketing trainer and consultant

Clients include 3M, BP, CIPD, Euroffice, HSBC, IDM, Intel, Sony, Tui and Tektronix. Analyst at www.econsultancy.com.

E-marketing consultant at www.cScape.com.

Visiting lecturer at leading UK business schools

• Cranfield School of Management • Leeds University Business School• Warwick (E-business)2

• Previously Birmingham, Derby

6 6


– CREATIVE – RELEVANCE, Readability, Reach – Individualised, ISP delivery, INCENTIVISATION – TARGETING/Segmentation – INTEGRATION – CONTENT/COPYWRITING – ATTRIBUTES – LANDING PAGE

Activity. What affects E-mail campaign success rate?

7 7


About YouHow advanced is your email marketing?

• Level 5: OptimisedMultiple segments, subject lines optimised in real-time, single customer view, optimized event-triggered mailings, Full RFV

• Level 4: Contextual relevanceEvent-triggered lifecycle, mailings: Welcome strategies, post-purchase and reactivation – but not optimized, Basic RFV

• Level 3: Basic test and learnSubject line testing, AB Testing, Follow-up on open/click behaviour

• Level 2: Increasing relevanceBroadcast to multiple segments (and track response)

• Level 1: “Pray and Spray”Emails untargeted and untracked

8 8


Benchmark your Email capabilities!

Presented by Grant Baillie of Argos at 2008 Email marketing conference, with permission

9


1 Measuring engagement

10 10


3 advanced ways of measuringemail engagement

• How do you measure engagement with email?

• Open/clicks/CTOR is NOT good enough, instead…

• Opens/clicks/CTOR/sales:

– 1. At position in lifecycle

– 2. By segment

– 3. By offer / email type

– 4. Aggregated over a longer time period

11 11


Measuring list activity – email engagement

Tip. Measure the overall health of your list

through activity / inactivity levels over time

• These “hurdle rates” are for whole list. Repeat:– By segment– By product categories purchased

12 12


Avoiding disengagement

Yes

Yes Yes Yes

Yes Yes

Yes

Not open email

Open email

Click through

Purchase

Weeks or campaigns 1 2 3 4 5 6 7 8

Yes Yes Yes

Yes

Yes

PotentialDisengagement

(Don't let this happen)

Successfully engaged(Do more of this)

Semi-Engaged(change something now)

Increasin

g en

gag

emen

t

Source:

13


2 Which are the best targetingvariables?

14 14


easyJet.com example

Source: Brand Republic Email marketing conference

Personalising by departure airport increased response by 5 percent

15 15


Example of dynamic content insertion

Presented by Grant Baillie of Argos at 2008 Email marketing conference,, with permisssion

Tip. Change order of offers

or features

according to segment

to increase relevance

16 16


Q. Which targeting factors give best response?

Unknown

Demographic profile data

Lifestyle &psychographics

Attitude &preferences

Behaviour & lifecycle

Pro

pen

sity

: ta

rget

ing

varia

ble

mos

t pre

dict

ive

of r

espo

nse

Customer profiling insights

17 17


Farming segments

• Purchase behaviour:– Buyer vs non-buyer– One-time vs multiple

• Email activity– Active vs inactive clicker– Number of clicks on email

• Web activity– Visited, never visited– Browsed, not bought

• Channel activity– Web vs Store vs Catalogue

• RFM– Proportional– Hard-coded

• Category purchased • Appending lifestyle data• Value

18 18


Using predictive modelingto nurture best customers

• Some variables used to identify “best” included:– Total # of purchases

• The more the better

– Time on file• The younger the better

– Months since first purchase• The more the better

– Months since last purchase• The less (or more recent) the better

– Total e-mails clicked on over the past year• The more the better

– Total e-mails opened over the past year• The more the better… though not always predictive

19 19


20 20


The eBay approach:segmentation layers

21 21


Targeting customers according to value

Customerpotential

Customerquality

high

low

low high

One time shoppers with low potential

Average customers

Good customers Very good customers

15 % 15 %

60 % 10 %

Indicators for customer quality Indicators for customer potential

Order value per received catalogue Order value per season Gross margin in % of net sales Returns in % of order value

Last date of purchase Number of active seasons Channel usage score Number of different product categories

Source: Chris Poad, Otto, E-consultancy masterclass 2006

22


Behavioural targeting

23 23


Exactly what is behavioural targeting?

1. Event based. A set of individuals who do the same thing on a web site and therefore become a segment of individuals

2. Browsing behaviour. A set of individuals who have shown the same behaviour, for instance browsing the same website sections or pages or using similar paths to the website.

3. Email response behaviour. For instance, active vs inactive, openers, clicker non converters etc

4. Online purchase history. Buyers/non buyers, onetime buyer/multibuyers, loyal or transient, brand engaged or disengaged.

5. RFM / RFV

Matthew Kelleher – Redeye blog - http://www.redeye.com/blog

24 24


BT - It’s all about past actions…

Purchase Dispatched +7d

+14d +21d

Recognition ofprevious purchase

25 25


Using subscription behaviourto set broadcast time

Source: Econsultancy Innovation Report

26 26


• Behavioural Email Dramatically Increases Online Conversion for Sainsbury's Bank– RedEye followed up with

behaviourally triggered email campaigns across Sainsbury’s Bank pet and car insurance products.

– Utilising activity driven triggered emails in response to saved quotes and basket abandonment, RedEye analytics enabled Sainsbury’s Bank to recognise specific online behaviours, targeting emails in response to customer engagement in definitive areas of the site.

• Sainsbury’s Bank was delighted to record an unprecedented ROI of 750% across their pet insurance promotions.

Source:

case study

27 27


Need to segment and test follow-ups:William Hill example

Source:

28 28


Basic registrationtriggered e-mails

B2C brand education B2B registration follow-up

29 29


“Learn more through time…”

30 30


Incentivisingmultichannel purchase

31 31


32 32


The Argos approach:Identifying “unfulfilled intent”

Tip. Identify

Next best “hero”

product for

each category

33 33


5

Parlez-vous RFM/V?

1

2

3

4

5

Recency Frequency Monetary

1

2

3

4

5

1

2

3

4

5Each R decile contains20% of all customers

Recency:Time since customer completed an action e.g. click, visit, log-in, new purchase

Frequency:Number of times action completed in period

Monetary value:Amount transacted, average balance in period

HIGHEST

Lowest

Note alternative term:FrequencyRecencyAmount

Category=

FRAC analysis

Phone

E-mail/webonly

Direct mail

1

3

4

34 34


RF scoring example

Source: Article by Mark Patron + Matthew Kelleher – Interactive Marketing journal – January to March 04 – SilverMinds music catalogue

Scoring:

RecencyLow 1 = > 24months2 = 19-24 months3 = 13-18 months4 = 7-12 months5 = 0-6 monthsHigh

FrequencyLow1 = One purchases2 = Two purchases3 = Three 4 = Four5 = FiveHigh

Note here boundaries are definedto illustrate behaviour. There

are a different number in each group

35 35


A RF(M) segmentation example for a theatre

Oncers (F) Definition

Recent oncers attended <12 months (R)

Rusty oncers attended >12<36 months (R)

Very rusty oncers attended 36+ months (R)

Twicers (F)

Recent twicer attended < 12 months

Rusty twicer attended >12, < 36 months

Very rusty twicer attended in 36+ months

6+ (F)

Current subscribers Booked 6+ events in current season

Recent Booked 6+ last season

Very rusty Booked 6+ more than a season ago

36 36


Q. How well are you using ‘Sense & Respond’ marketing

Source, adapted from:

Time

Lo

yalty

2. First sale

1. Register

3. Second sale

TriggeredE-mail / Message

Hardersale

Latency

TriggeredE-mail / Message

Customer A

Customer B

37 37


Customers

Welcomeemail

BehaviouralCross sell

Regularmarketing

emails

Site segmented

Activityflagging

RFM

PredictiveLapsed /

Churn

By product

Site downapology

Birthday / XmasEmails

Repeatabandoner

FutureRelease

alert

Back instock alert

Lapsed

ActivityNon cross sell

Not returnedin 14 days

Not re-purchasedin 14 days

Processabandonment

X-sellprogramme

By product

NewsletterNot

transacted

By contentgroup visited

Contenttriggers

Entry level

5 - 8 triggers

Medium level

17 – 30 triggers

Upper level

20 – 50 triggers

Nirvana

50 – 500 triggers

How Behavioural Email develops over time

Nursery program

Site Activity programFull marketing email program

Customer service emails Source:

38


More inspiring examples of touch strategies

39 39


Response increases by 25%

for campaign

First Campaign,

Open rate, 8 to 10%

CCR = 0.2%

Second Campaign,

Open rate, 50 to 75%

CCR = 0.2%

Re-mailing to opening non-converters

Source: E-consultancy Masterclass - BCA

Tip. Remind with multimessage campaigns

40 40


Response increases by 40%

for campaign

First Campaign,

CCR = 0.2%

Second Campaign,

CCR = 0.2%

Reminder emails:Re-mailing with urgency

Source: E-consultancy Masterclass – BCACCR = Campaign conversion rate

41 41


Combined response from e-mail and

direct mail is 125% better than no e-

mail.

Pre-mail, with online response

Response increases, 100% for

direct mail piece.

Teaser e-mail. No online response Direct Mail

Direct Mail

Combining Email with offline communications

Source: E-consultancy Masterclass 2005 - BCA

42 42


Email Campaigns that Build…

Welcome Email

Time-limited offer

Offer Extension

43 43


Example New account welcome: Email No. 1

Welcomes customers to their new account

Product information welcomes customers to their new account

Source: Forrester

44 44


Encourages customers to activate their Portfolio Management credit card

Encourages customers to activate their Portfolio Management check card

Example Account usage: Email No. 2

Source: Forrester

45 45


Cross-sell message: online banking

Cross-sell message: Bill pay and online statements

Example Cross-sell: Email No. 3

Source: Forrester

46 46


Up-sell message: Personal loan and lines of credit

Up-sell message: Home equity loan or line of credit with your mortgage

Example Up-sell: Email No. 4

Source: Forrester

47


3 Creating a testing andoptimisation plan for

Email marketing

48 48


Q. How can I build in testing – Sixteen testing ideas

1. Testing copy in e-mail headers – different subject lines and from addresses.2. Making “Pre-headers” more persuasive3. Different offers – does 10% discount or £50 off work best – it is usually the

latter. Are secondary offers useful in elevating the overall response?4. Different template layout designs5. Timing of broadcast on different days of the week, times of day6. Text vs HTML, Embedded versus linked images7. Tone of voice in copy / personality of e-mail.8. Long vs short copy9. Calls-to-action (number and location of links)10. Personalisation for targeting and dynamic messaging11. Use of video and animation12. Incorporating social media and customer involvement13. Integration with other media (e.g. e-mail teaser before DM or response

mechanism after DM).14. Which newsletter or solus e-mail template is most effective?15. Which frequency interval for a newsletter maximises revenue (while avoiding

perceptions of SPAM)16. Touch strategy for event triggered e-mail – which sequence of offers and

intervals between them work best?

49 49


Using Eyetracking research to improve Email marketing

1. Heading and subhead copy critical• First 2-3 words most important• Make hyperlinked

2. Large fonts work well

3. Images often missed• Use text link calls-to-action

4. Readers scan down the left of an E-mail

5. First part of para important• F shape eyetrack

6. Email intros skipped • Use to personalise and engage

e.g. with hyperlinks

Need to deliver`Scannability and Skimmability

See www.etre.com

50 50


Which hypotheses could you test to optimize?

i.e. which design elementswill make a difference?

51 51


Response testing option A : Live split testing

50% of list: Subject Line 1or Offer 1

Two or more alternatives

are evaluated during broadcast

50% of list: Subject Line 2or Offer 2

100% List

http://www.company.com/promotion.htm?SL1O2

52 52


Q. Short or long subject lines - which are best?

53 53


Recommendation - Test alternate subject lines

Split or live testing

Subject line 1: “Autumn offers start today - £20 cash-back” Open rate 23.4%

Subject line 2: “£20 cash-back this week only” Open rate 36.8%

Subject line 1: “Travel is fun, not a high street trek” Open rate 39%

Subject line 2: “A click away from all your foreign currency”Open rate 34%

Source: HSBCPresented to MAD conference

With permission

54 54


eBay treats Subject line optimisation seriously

55 55


Testing option B. AB pre-test for major campaign

Test version A

Send Volume: 10,000

Sample criteria: Random

Click through rate: 6.1%

Test version B

Send Volume: 10,000

Sample criteria: Random


Main Broadcast

Send Volume: 180,000


56 56


Test length – Which is best: short or long?

57 57


On the other hand…

Tip. Tease (sometimes) Don’t give too much away in subject line or Email body

58 58


Test position and form of hyperlinks

59 59


Q. Are you using effective calls-to-action?

Lorem ipsum dolor sit amet, consectetuer adipiscing elit. In eget nulla ac eros eleifend vestibulum. Aenean felis wisi, consequat vitae, dapibus sed, nonummy a, lorem. Sed fringilla. Phasellus pellentesque neque vel leo. Sed pretium risus a lacus. Nulla ipsum. Click here!, Vivamus erat urna, porttitor et, blandit aliquet, lacinia id, orci. Phasellus vitae mauris. Curabitur tristique, turpis at fringilla ultrices, mi dui consectetuer nibh, id condimentum ipsum magna in dolor. Quisque imperdiet. Curabitur dui. Sed augue. Curabitur imperdiet.

Use Action Verbs:Get a QuoteRegister now

Make imagesclickable:

Optimise for organic search in anchor text i.e.Not click here for your car insurance quote

But, Get an instant car insurance quote now!

Make Hyperlinks long and buttons larger:I am an easier to click

than me!

Fitts law states that “Time to reach a target with mouse is proportional to the distance to the target

divided by the size of the target”.

Use Hyperlinks:Within body copy

60 60


Integrated hyperlinks:email best practice

61 61


Highlight your offer with a “Johnson box”

62 62


Combining simple web form and ‘Exclusive’ code encourages click through and conversion to site.

Prospects do not enter payment details

Conversion rate is three times higher than sites without passcode.

Using the passcode as a response activator

Source: E-consultancy Masterclass 2005 - BCA

63 63


Copyable offer code

64 64


Test video

65 65


http://www.rei.com/email/gearmail/gm022709_vid.html

http://www.retailemailblog.com/2009/03/am-inbox-reis-embedded-animation-video.html

66 66


Make your emails social!

• Web 2.0 = Participation + Interactivity + dialogue:

• Creation of user generated content – users can comment on blogs or upload videos and are updated by feeds.

• Rating of content and online services – social bookmarking services such as deli-cious and Traceback comments on some blogs.

• Mashups – Different types of content are merged, for example YouTube videos or Google Maps can be integrated into a web site. Widgets or gadgets can be integrated into users home pages on social networks or personalised home pages like Netvides or iGoogle (www.google.co.uk/ig).

67 67


68 68


69 69


70 70


Optimise your “pre-headers”!

71 71


Make your Emails mobile

72 72


73 73


Q. Are you getting the tone right?

74 74


Bonus! Optimisation case study – Audible.co.uk

Acquisition Retention Conversion

5% 5% in in acquisitionsacquisitions

5% 5% in revenue; in revenue; 40% better with 40% better with

M/F split M/F split Email sales Email sales 25% 25%

Source: Thanks to Louis Wahl, Marketing Director at www.audible.co.uk

75 75


Audible.co.uk Campaign targeting matrix

76 76


Acquisition Email

• Sent to new leads, daily

• Two test offers – ’30-day Free Trial’, ‘£6.99 per month’

• Targeted by gender

• Limited to first send only• High open rates

Acquisition

77 77


Retention – dynamic container

• Sent to members and customers, weekly

• Targeted by customer status

• A la Carte vs AudibleListener

• Repeat sending to opening, non-purchasers

• 25% more conversions than single send

78 78


Conversion – reactivation - dynamic

• Sent to dormants, at ‘end of life cycle’

• A/B tested against other generous offers

• Best performing offer sent to bulk

• Repeat sending to opening, non-purchasers

• Male vs Female

79 79


Discussion and Q & A

• Format – Split into groups to discuss how to make these types Behavioural marketing successful:– 1. Welcome strategies – 2. Re-engagement strategies– 3. Targeting based on past behaviour

• Please discuss key issues / questions which will govern success, e.g. frequency, personalisation, testing

• Report back at …. with:– Best practice recommendations and examples of

approaches– Questions

80 80


Retail

• Gather softer information initially e.g. “how savvy with product” clicks populate database – according to product / vertical

• Accelerated first offer – First welcome email has strong offer to segment - danger of extended offers

• Apology emails• Service emails e.g. password for reactivation• Basket abandonment – ask why – provide phone

messages – give main reasons

81 81


Financial Services

1 Enewsletters in FS have to be info-led – need consistent format to highlight products and call-to-action

2 Cross-sell upsell in service emails? Using store&save of quote information email

3 Basket abandonment – review all steps – include relevant information

82 82


Travel

• Reactivation example:– Inactives tested– Leave fallow– Send single email – do you want to hear from us?– Ultimate goal to avoid fallow

• Welcome example:– Asking product interests and timing of holiday– Then test 6-8 initial emails for right frequency

83 83


• Please complete the feedback forms

• Download presentation:– www.davechaffey.com/presentations

• Any questions, any time, do e-mail me:– [email protected]

• Subscribe to my E-marketing Essentials, monthly briefing in What‘s New in Digital Marketing – www.davechaffey.com/blog

• Stay in contact through:– www.twitter.com/DaveChaffey – www.linkedin.com/in/davechaffey

Thank you!

2009 email masterclass redeye 090428103814 phpapp01

Technology

email web activity

email response behaviour

email type

list activity email

emarketing consultant

future of marketing

emarketing trainer

emarketing guru