getting the right promotion to the right customer segment · 28% increase in email marketing profit...

Getting the Right Promotion to the Right Customer Segment

Don McNichol

Director, eCommerce and Direct Marketing

Intermix

Monday, March 16, 2009

2

Stella McCartney, Matthew Williamson, Missoni,

Catherine Malandrino, Diane von Furstenberg, JBrand,

Geren Ford, Sass & Bide, Chloe,

KORS Michael Kors

Fendi, Gucci

intermix /in-ter-mix'/ vb.: to be or become

mixed together; to blend, or associate

intimately

Operate 24 stores nationwide

Unique Merchandising – “a boutique

should merchandise its clothing for the way a

woman actually intends to wear it. The “mix”

of established and emerging designers at a

range of prices, displayed in unexpected

combinations”…Khajak

The Intermix Concept

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Succeed where others will fail in this

economy

Reduce Discounts

Increase direct multi-channel revenue

Increase profitability of email marketing

Goals

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The Rejects

Batch and Blast Causes deliverability problems/nightmares

Alienates customers

Not cost efficient

Too many discounts

1:1 marketing for everyone Not scalable

Not efficient

Not the low hanging fruit

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Segment by customer engagement through

automated RFM

What is RFM? Recency, Frequency and Monetary value of

customer interactions

Why engagement through RFM? Proven in offline world to be the most

accurate prediction of future customer

behavior

Scalable and efficient

The Winner

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Step 1: Automation First solution to update and automate RFM

for email channel

Step 2: Data used Purchase

Web navigation

Email behavior including click rate and

open rate

Step 3: Segmentation findings VIPs: 20% of customers

Sale Shoppers: 40% of customers

Brand Shoppers: 40% of customers

Step 4: A/B tests to determine discounts VIPS: usually full price & events

Sale Shoppers: 30% discount

Brand Shoppers: 10 to 15% discount

Methodology

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9% Increase direct multi-channel revenue

28% increase in Email Marketing Profit

40% decrease in the average discount rate

& 3 week shorter discount period Before & After = 30% & 18% average

Results

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Results

90% increase in Opens

Before & After = 20% & 38%

46% increase in Click Thrus Before & After = 35% & 51%

84% decrease in Opt Outs Before & After = 1.2% & .19%

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Intermix’s Segmentation By

Engagement

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Intermix Brand Shopper Segmentation 10/10

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Intermix Brand Shopper Email

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Intermix Sale Shopper Segmentation 10/23

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Intermix Sale Shopper Email

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Intermix Sale Shopper Segmentation 11/24

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Intermix Sale Shopper Email

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Intermix Brand Shopper Segmentation 12/06

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Intermix Brand Shopper Email

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Craig Kerr, VP of Marketing, iPost

Don McNichol Director of E-Commerce & Direct Marketing

212-741-5075 ext. 217

don@intermixonline.com

Big Thanks to:

Credits/Thank You