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Integrating Email and Web Analytics Data to Boost Conversion Rates
Matthew Kritzer
Director of Ecommerce,
L’Occitane en Provence
Monday, March 16, 2009
2
L’Occitane en Provence – Who we are
Pronounced LOX-EE-TAHN
High-end lifestyle brand selling natural beauty products devoted to well-
being and the pleasure of taking care of oneself
Founded in 1976 in Southern France Worldwide sales in excess of €400 million
Privately held
Business presence in 70 countries
Diverse product line
Core US business units: Retail, Wholesale, Direct, B2B, Spa
Enthusiastic customer base that loves to talk!
3
Existing Email Strategy
Newsletters are deployed 1-3 times / week Campaign-focused (“Say & Spray”)
Free Shipping, Gift With Purchase offers
Blasts mirror the boutique marketing calendar
Boutique event emails sent to local audiences
Successful Email Strategies Last minute reminders on offers
Building excitement through campaigns
Testimonial creative
Inactive segmentation
Triggered Messages: Welcome Sequence (2 touches with incentive)
Abandoned Cart
Total mailable DB size: ~800,000
Active list size: ~250,000
Inactive list size: ~550,000
Avg. open rate: 10.00%
Avg. unique click rate: 1.30%
4
Challenge: How do we increase engagement?
Why is relevance important? Increase in email frequency reaching point of diminishing returns
Inbox clutter is on the rise / consumer attitude is changing
Increased consumer engagement, revenue and ROI
Ability to fully utilize all marketing offers
How did we become more relevant? Smart segmentation
Testing
Why did we improve our segmentation? Broad lists decrease relevancy
Impersonal email blasts result in decreased interest, engagement & profitability
5
Capturing Web Behavior Data andIntegrating It with Email
Capturing Web Behavior WITH Email Activity for users that have registered is
captured via analytics vendor cookie
Integrating with the Email vendor Daily feeds with product-level data:
• Browsed
• Abandoned
• Carted
• Purchased
6
Using Web Behavior Data in Emails
Selected campaigns to run tests: Mother’s day Campaign (May 2008)
Shea Butter & Valentine’s Day (January 2009)
Note: The volume mailed using web behavior data was small (less than
10k) due to the level of granularity and timeframe used.
These volumes can be increased: By enlarging the line of products selected
By extending the timeframe
7
Browsed Master list
Segment
DescriptionBrowsed < 90 days
Master subscriber list.
Browsed seg. was suppressed
Volume 5,175 678,487
Subject LineMother’s Day Gift Sets to
Celebrate + Free Shipping Offer
Mother’s Day Gift Sets to Celebrate
+ Free Shipping Offer
Main CTA Gift Sets for Mother’s day Gift Sets for Mother’s day
2nd CTACreate your own custom gift set
Items recently browsed were
published
Ensure On-time Delivery for
Mother's Day
Various shipping options detailed.
Browsed Master
Open Rate* 31.1% 8.8%
Unique Click
Rate**11.4% 0.7%
Revenue $3,672 $23,531
Conversion
Rate***0.87% 0.04%
$/ Total
Mailed ****
$0.71 /
email sent
$0.03 /
email sent
Browsed Segment Master List Segment
Emails sent to “browsed” segment
were 23 more times more
profitable than emails sent to the
overall list.
* HTML only
** Number of e-mail messages recipients who clicked through on at least one
URL link within the e-mail as a percent of Net Delivered
***Conversion rate: # of unique conversions as a percent of net delivered
**** $ / Total Mailed: Total revenue generated divided by total volume mailed
Mother’s Day Campaign
8
Browsed Segment Master List Segment
Mother’s Day Campaign
9
The Skincare segment had
8,433 records
4% of the ACTIVE mailed volume
The revenue it generated is
¼ of the revenue generated by
the ACTIVE segment
Skincare Active
Segment
Description
Browsed/Purchased/Carted
Skincare Products < 90 days
Welcome emails received < 3
months; clicked on emails < 6
months
Volume 8,433 210,453
Subject LineExclusive Skincare Offer &
FREE Shipping on $40+
Great Values for Valentines &
FREE Shipping on $40+
Main CTA Shea Butter & Valentines Shea Butter & Valentines
2nd CTA Skincare GWPBag & hand cream GWP
Skincare Active
Open Rate* 37.5% 14.7%
Unique Click
Rate**14.5% 2.4%
Revenue $7,419 $23,465
Conversion
Rate***1.07% 0.14%
$/ Total
Mailed ****
$0.88 /
email sent
$0.11 /
email sent
Skincare Segment Active Segment
* HTML only
** Number of e-mail messages recipients who clicked through on at least one
URL link within the e-mail as a percent of Net Delivered
***Conversion rate: # of unique conversions as a percent of net delivered
**** $ / Total Mailed: Total revenue generated divided by total volume mailed
Shea Butter Campaign
10
Skincare Segment Active Segment
Shea Butter Campaign
11
Using the Abandoned Cart Behavior data…
… to create an Abandoned Cart Trigger!
Message business objectives Capture missed sales with a “soft” touch
Encourage writing of testimonials
Business Rules: Abandoned item/cart 7 days ago with no subsequent item purchase
Have not purchased in the past 14 days
Have not received the Abandoned Cart message in the past 50 days
Include up to 3 abandoned products
Site-level promotions managed in a separate module
12
Abandoned Cart Results
Open Rate* 46.5%
Unique Click
Rate**10.4%
Conversion
Rate***0.86%
$/ Total Mailed
****
$0.84 /
email sent
* HTML only
** Number of e-mail messages recipients who clicked through on at least one
URL link within the e-mail as a percent of Net Delivered
***Conversion rate: # of unique conversions as a percent of net delivered
**** $ / Total Mailed: Total revenue generated divided by total volume mailed
Subject Line: “Still interested? L’OCCITANE fans have
commented on products that may interest you”
Implemented in late January ’09
30% of the implementation cost
was recovered after 20 days
Unsub rate remained constant
Flexible Ad slots in creative
allow for up to date promotions
to be included
13
Learnings & Next Steps
Learnings Analytics integration is key for successful email segmentation
Increased segmentation yields a higher ROI
Segmentation enables email to be more relevant and engaging
Segmentation allows for greater promotional possibilities
More Testing! Incentive tests > Are they necessary? Are they more profitable?
Creative placement tests > How much additional creative is necessary?
Determining “best” segments (i.e. Abandoned vs. browsed)
Abandoned Cart Program: Next steps Messaging test (i.e. “You have product A in your cart” vs. “Products you were interested about”)
Timing tests (i.e. 7 days after abandonment vs. 3 days)
14
Credits/Thank You
Matt Kritzer, L’Occitane En Provence
mkritzer@loccitane.net
e-Dialog
www.e-Dialog.com
Coremetrics
www.Coremetrics.com
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