the fast and furious world of predictive marketing
TRANSCRIPT
The Fast and Furious World of
Predictive Marketing
Nathan Decker
Director of Ecommerce
evo
Matt Williamson
Co-Founder & CEO
Windsor Circle
Loren McDonald
Marketing Evangelist
IBM Marketing Cloud
What You’ll Learn Today
1. What is “Predictive Marketing?”
2. Why Now?
3. Who Should Act to Seize Competitive Advantage?
4. Real World Examples from EVO
5. How to Get Started
1. WHAT IS PREDICTIVE MARKETING?
4
Gartner: Five Key Trends
1. Cross-Channel Strategy, Campaigns and Data
2. Automation to Boost Speed and Performance
3. Yearning for 1:1 Customer Relationships
4. Engagement Aligned for Daily Activities
5. More Responsibility for Digital Commerce
http://www.gartner.com/smarterwithgartner/five-key-trends-in-gartners-2015-digital-marketing-hype-cycle/
2. WHY NOW?
‘Early adopters’ require more
complete products, but move
quickly to seize competitive
advantage.
Mainstream adoption requires
completeness and convenience.
Innovators willing
to try early
products, co-invest
in development,
etc.
3. WHO SHOULD ACT NOW TO SEIZE COMPETITIVE ADVANTAGE?
Who Should Act Now to Seize Competitive Advantage?
Aspiring
Stars
Category
Leaders Established
Migrators
Sophis
tication
Resources
4. REAL WORLD EXAMPLES FROM EVO
A CROSS SECTION OF OUR CATEGORIES
evo PRODUCT MIX
evo curates the best of brands and products in Ski, Snowboard, Wake, Bike,
Skate, and Surf – from hardgoods to apparel and accessories, sport to lifestyle.
8CATEGORIES
400+BRANDS
13,000PRODUCT STYLES
FROM PEOPLE TO SPACES, evo IS UNMISTAKABLE
evo PERSONALITY
We believe in making the business and our people accessible, showing the customer behind the curtains and inviting them to the evo party. Being cooler than the consumer is
not a part of evo; we are open and inclusive, knowledgeable but friendly, and always excited to share the fun.
OUR SCRAPPY JOURNEY FROM HOMEGROWN AND MANUAL TO CLOUD BASED AND AUTOMATED
Three Stages of Email Marketing
STAGE ONE: INITIALIZATION
evo.com
Social PLADirectPaidOrganic Store
Blunt
CampaignRepeat Etc.
Purchase
STAGE TWO: OPTIMIZATION
evo.com
Social PLADirectPaidOrganic Store
Blunt
Campaign
Repeat
PurchaseEmail Signup
Welcome #1
Welcome #2 Welcome #3
Targeted
Campaigns
STAGE 3: RETENTION AUTOMATION
evo.com
Social PLADirectPaidOrganic Store
Blunt
Campaign
Repeat
Purchase
Email Signup
Welcome #1
Welcome #2 Welcome #3
Targeted
Campaigns
Post Purchase
Series
Behavioral
Automation
EMAIL TRENDS Over 10%
0%
2%
4%
6%
8%
10%
12%
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
2010 2011 2012 2013 2014 2015
Email Revenue
Email as % Total
RETENTION SERIESTRIGGERED EMAIL COMMUNICATION BASED ON VISTITOR BEHAVIOR
“OMNI” CHANNELRECREATING THE RICHNESS OF THE IN STORE EXPERIENCE THROUGH DIGITAL MEDIUMS
DIGITAL
PURCHASE
PurchaseConversion on evo.com
Fit uncertainty
UNCERTAINTY , GUILT AND SUBOPTIMAL INFORMATION IN CONSUMER PURCHASING
HOLES IN THE PATH
ResearchCustomer researches on
evo.com
Shipping• Outside SEA, PDX, package
ships to home.
• Lost opportunity for add-on
sales, service.
Isolated Service• Consumer walks product into 3rd
party for service.
• Consumer guilt over separate
purchase, point of tension.
• Random traffic, often lost to local
shop.
Lost CommunicationRisk of lost contact after shipping
reduces incremental sales beyond
service.
PurchaseConversion on evo.com
PROVIDING A SEAMLESS PATH
CLOSING THE LOOP
CLOSING THE
LOOP
ResearchCustomer researches on
evo.comIncreased Loyalty• Follow up on fit
• Product use guides
• Ability to suggest related products
Reinforcing expertise and leadership
• Delighting Customers = Higher
loyalty with evo.
Partnership between evo and local retailer can remove much of the consumer guilt, improve service, ramp up local traffic, and capture customer data for acquisition and
increased communication. The end result is improved loyalty for evo and a new customer for the partner retailer.
Shipping• Ship to partner offered to
consumer
• Opportunity to direct traffic
to partners
Service• Customer gets recommended
service location
• Increased consumer trust, blunts
uncerttainty upfront.
“OMNI” CHANNEL RECREATING THE RICHNESS OF THE IN STORE EXPERIENCE THROUGH DIGITAL
• Lower tech knowledge gap
• Communicate critical ownership
information
• Improve product experience
with suggestive selling opportunities
38%
CTR
RETENTION AUTOMATION – POST PURCHASE EMAILS DESIGNED TO IMPROVE THE PRODUCT EXPERIENCE
1. Guide to Trying on Your Boots
OPEN
RATE
67.8%
Relevant
Image
Why this works
Clear CTA
25%
CTR
RETENTION AUTOMATION – POST PURCHASE EMAILS DESIGNED TO IMPROVE THE PRODUCT EXPERIENCE
2. How to Video
OPEN
RATE
56%
Reference to first email
in series
Why this works
Clear CTA
8%
CTR
RETENTION AUTOMATION – POST PURCHASE EMAILS DESIGNED TO IMPROVE THE PRODUCT EXPERIENCE
3. Technical Ski Socks
OPEN
RATE
49%
Fun Image
Mentions First Purchase
Why this works
Clear CTA
RESULTS: SKI BOOT SERIESRECREATING THE RICHNESS OF THE IN STORE EXPERIENCE THROUGH DIGITAL
18.1%
58%
67.8%
56%
48.3%
2.6%
25%
38%
26%
8%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Open Rate
Click Rate
3.2
9.6
Times theOpen Rates
Times theClick Rates
POST PURCHASE FOLLOW UP SERIES
Backcountry Safety Snowboard Boots Guide
RECREATING THE RICHNESS OF THE IN STORE EXPERIENCE THROUGH DIGITAL
BRIDGE THE DATA & TECH GAPFIRST CONNECT THE RIGHT DATA INTO YOUR EMAIL PROGRAM, THEN POWER UP AUTOMATION
• Automated
• Accurate
• Accessible
• Nightly upload
• Data translation
• Over 50 fieldsPhoto: Grant Gunderson
Source: Outsideonline.com
Mt. Baker Road Gap
• Automated
Programs
BRIDGE THE DATA & TECH GAPFIRST CONNECT THE RIGHT DATA INTO YOUR EMAIL PROGRAM, THEN POWER UP AUTOMATION
Examples:
WC_Purchase_History
Marker The Squire Ski Bindings (110mm Brakes);Line
Skis Snow Angel Skis Girls - 133 Kids;Rossignol S2 Skis
Women's – 150
WC_Purchase_Category
SNOWSPORTS > SKIING > SKIS
WC_First_Order_Date
01/28/2013
+50 more
BEHAVIORAL AUTOMATIONTRIGGERED EMAIL COMMUNICATION BASED ON VISITOR BEHAVIOR
BEHAVIORAL AUTOMATIONTRIGGERED EMAIL BASED ON VISITOR BEHAVIOR
10.1%
$4.75
REVENUE
PER EMAIL
CLICK
RATE
BEHAVIORAL AUTOMATION – EMAIL COMMUNICATION TRIGGERED BY WEBSITE INTERACTION
CART ABANDONMENT
OPEN
RATE
49.8%
12.3%
$1.83
REVENUE
PER EMAIL
CLICK
RATE
BEHAVIORAL AUTOMATION – EMAIL COMMUNICATION TRIGGERED BY WEBSITE INTERACTION
WINDOW SHOPPING
OPEN
RATE
57.4%
12.3%
$1.83
REVENUE
PER EMAIL
CLICK
RATE
BEHAVIORAL AUTOMATION – EMAIL COMMUNICATION TRIGGERED BY WEBSITE INTERACTION
POST PURCHASE
OPEN
RATE
57.4%
14.99%
$1.72
REVENUE
PER EMAIL
CLICK
RATE
BEHAVIORAL AUTOMATION – EMAIL COMMUNICATION TRIGGERED BY WEBSITE INTERACTION
PRICE DROP
OPEN
RATE
43.86%
BEHAVIORAL AUTOMATION – EMAIL COMMUNICATION TRIGGERED BY WEBSITE INTERACTION
RESULTS
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Abandoned Cart Window Shopping
Opens
CTR
BEHAVIORAL AUTOMATION – EMAIL COMMUNICATION TRIGGERED BY WEBSITE INTERACTION
RESULTSRetention Series (Windsor Circle)
3%
Promotional Email
(Windsor Circle + IBM)54%
Behavioral Automation (Bluecore)
34%
Transactional9%
Email % Revenue
LEARN FROM OUR FAILURES AND MISTAKES
FAIL
INTERNAL AND EXTERNAL FACTORS WE NEEDED TO OVERCOME
CHALLENGES
• Customer Feedback
• Internal Resistance
• Data Challenges
• System Obstacles
TECHNICALHUMAN
QUICK WINS
QUICK WINS: LATE DAY REMINDERS
Subject Line: REMINDER: $50 Off Ends at Midnight!
Piggyback Creative
Highly Relevant
50+% Open Rates, 5%+ CTRs
New Traffic – Huge Conversion Rates
(2-3x)
QUICK WINS: LATE DAY REMINDERS
Late Day ReminderSends
Same Day Sends
Total
Total
94%
6%
Reminder Revenue as % Total Email(last 30 days)
QUICK WINS: SWEEPS!
Ensure Message Gets
to Intended Audience
Piggyback
Creative
Use Previous
Performance
Incremental Revenue
Sent 2/10 (100K) Sent 2/12 (20K)
QUICK WINS: REVIEW LOOKBACKS
QUICK WINS: FAILS!
QUICK WINS: FAILS!
59%
41%
RevenueThis one is RARE. The North Face! We Screwed Up!
QUICK WINS: SWEEPS!
5. HOW TO GET STARTED
55
• Get the Basics Down First
• Thank Customers
• Reward Best Customers
• Predict and Save Churning Customers
• Cart Abandonment
• Segmented Promotions
• Then Quickly Move to More Advanced Capabilities
• Replenish Items That Have Run Out
• Browse Abandonment
• Geo-location and store targeting
Automation You Should Be Running
• Windsor Circle is IBM Smarter for Commerce Certified
• IBM is a Windsor Circle Platinum Partner
• Joint Capabilities
• Full Integration of eCommerce Data to IBM Marketing Cloud
• Pre-packaged WebSphere for Commerce Integration
• Cart and Browse Abandonment
• Behavioral and Predictive Marketing Automation
• UBX Integration (coming soon!)
IBM Marketing Cloud + Windsor Circle
Retention Marketing Survey
www.WindsorCircle.com/Survey
58
In 10 minutes…
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